Contact Us

Fax  (804)646-5686

Address  Richmond City Hall
900 E. Broad St., Room 802
Richmond, VA 23219 USA

Hours of Operation
Monday – Friday
8:00 AM – 5:00 PM

Rehabilitation

The city of Richmond allows partial tax exemption from real estate taxes for qualifying structures through two separate initiatives:

  1. Rehabilitated or Replacement Structures
  2. New Construction within Redevelopment and Conservation Areas and Rehabilitation Districts

For those properties that qualify, the increase in market value caused by rehabilitation/replacement will be credited from taxable assessment for up to ten years.  The Rehabilitation Application may be obtained online or in the City Assessor's Office located in Room 802 of City Hall.

Application

As of July 1, 2006 (City Code Sec. 98-132), only one application may be taken out per parcel. If you have an active rehab, no applications can be submitted for additional rehabs unless the active rehab will be canceled. The only exception would be for parcels that are being subdivided, or condo conversions.

 

Base Inspection

Upon receipt of the application, the Assessor's Office will inspect the property to determine the base (initial) value. An interior or exterior inspection must be conducted in order for the application to be valid.

At the end of each calendar year of the application period, the Assessor's Office is required to place a partial value on rehabilitation work as per state law. Credit is not applied to the tax bill until all work is completed and the requirements have been met.

 

Final Inspection

It is the responsibility of the property owner to inform the Office of the Assessor of Real Estate, in writing, when the work is complete. The request for final value determination must be made prior to the expiration of application of the current year to ensure a proper credit. If the property qualifies, the credit for rehab will be granted on the year following request. If a property is not been completed within the two year limit, the final value will be based on the existing condition as of the final inspection. The final value is determined using the original date of the application. Value appreciation due to inflation or changing market conditions is excluded from the final value estimate.

 

Application Expiration

The property must meet the requirements for the abatement by application expiration date. Extensions to the Rehab Program are not granted. If requirements are not met, the application will be denied and a new application must be filed in order for a new base value to be established. Applications expire the second year after which they are filed (ex: filed 7/1/2006 expire 7/31/2008); with the exception of Commercial/Industrial properties in the Enterprise Zone.  Applications in the Enterprise Zone expire December 31st of the second year.

 

Application of Tax Benefits

After the property qualifies, the tax credit begins January 1 of the year following the final inspection. The owner shall receive, during the years of partial tax exemption, a credit posted to the annual tax bill for such exemption from the Department of Finance. The partial exemption for each tax year shall be continued upon payment of the non-exempt amount of real estate taxes on said property on or before June 15 of each tax year.

For residential, multi-family and commercial (inside of the Enterprise Zone), the initial increase, caused by rehabilitation will be abated 100% for 7 years followed by a 3 year phase out (25%, 50%, & 75%) in years 8-10. For commercial and industrial (outside the Enterprise Zone), the increase caused by rehabilitation will be abated 100% for 5 years followed by a 2 year phase out (33% & 66% ) in years 6-7.

The Assessor's Office will continue to conduct annual reassessments. Any increase due to reassessment is not included in the tax rehabilitation program and is the responsibility of the taxpayer. The tax abatement automatically transfers to new owners should the property sell.

If a property has been disqualified for any reason, value improvement to the property will be fully assessed. Failure to pay real estate on or before June 15 will result in forfeit of the partial exemption for that year and cancellation of the rehab credit issued for that year. Demolition and replacement of any registered Virginia Landmark Property or any structure deemed significant by the Virginia Department of Historic Resources, or to a registered "historic district", shall make that property ineligible for the Rehabilitation Abatement Program.

 

Additional Resources

For additional information, please visit room 802, City Hall.  The City Rehab Coordinator can be reached at (804)646-5227.

Single Family Residential (1-4 units)

  • The qualifying structure age must be 20 years or older
  • The rehabilitation must increase the base value by at least 20%
  • Appropriate permits must have been issued from the Department of Planning and Development Review, Room 110, at the time of application
  • The rehabilitated or replacement structure must meet zoning and other legal requirements
  • The partial tax credit, if awarded, is extended for 7 full years and 3 partial years

 

Multi-Family Residential (five units or more)

  • The qualifying structure age must be no less than 20 years
  • Rehabilitation must increase the base value by at least 40%
  • A replacement structure cannot exceed the square footage of the replaced structure by more than 30%
  • Appropriate permits must have been issued from the Department of Planning and Development Review, Room 110, at the time of application
  • The rehabilitated or replacement structure must meet zoning and other legal requirements
  • The tax credit, if awarded, is extended for five full years and two partial years

 

Commercial or Industrial (outside of the Enterprise Zone)

  • The qualifying structure age must be no less than 20 years old
  • Rehabilitation must increase the base value at least 40%
  • A replacement structure cannot exceed the square footage of the replaced structure by more than 100%
  • Appropriate permits must have been issued from the Department of Planning and Development Review, Room 110, at the time of application
  • The rehabilitated or replacement structure must meet zoning and other legal requirements
  • The tax credit, if awarded, is extended for five full years and two partial years

 

Commercial or Industrial (in the Enterprise Zone)

  • The qualifying structure age must be no less than 20 years old
  • Rehabilitation must increase the base value at least 40%
  • A replacement structure cannot exceed the square footage of the replaced structure by more than 100%
  • Appropriate permits must have been issued from the Department of Planning and Development Review, Room 110, at the time of application
  • The rehabilitated or replacement structure must meet zoning and other legal requirements
  • The tax credit, if awarded, is extended for seven full years and three partial years

The application fees for these programs are as follows.

  • $125.00 for residential properties
  • $250 for all other properties

The fee is non-refundable unless initial application is rejected.

Rehabilitated or Replacement Structures

A complete description, including the provision for qualifying for this partial tax exemption, is found in Code Section 26-398. These code sections address residential property (1-4 units), multi-family property (5 units or more), commercial and industrial property.

New Construction within Redevelopment and Conservation Areas and Rehabilitation Districts

A complete description, including the provision for qualifying for this partial tax exemption is found in Code Section 26-579. This code section addresses new construction designed to assist rehabilitation of pre-defined districts or areas within the city.