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Incentive Program for the Rehabilitation of Residential Properties
Incentive Program
To protect and preserve our mature and settled neighborhoods, Chesterfield
County has adopted an ordinance granting a partial tax exemption for older
residential properties that have been rehabilitated, renovated or replaced.
Upon approval, the partial exemption will be in effect for 8 years and
transfers with the real estate. The amount of the exemption is based solely
on the increase in assessed value and does not change over the 8-year
period.
To Qualify
This program is available to property owners who rehabilitate residential
buildings meeting the following criteria:
- The property must be lawfully used for residential purposes.
- Residential structures must be no less than 25 years of age; or
- Structures between 15 and 25 years of age may qualify if the real
estate assessment reflects an above normal (10 percent or greater) physical
depreciation.
- The rehabilitation, renovation or replacement must increase the assessed
value by more than 10 percent.
- For multifamily residences, the rehabilitation, renovation or replacement
must not increase the total square footage of the structure being rehabilitated
by more than 30 percent.
- For residential structures other than multifamily, the exemption
shall apply only to the first 200 percent of any increase in square
footage due to replacement or rehabilitation.
- Landscaping, driveways, fencing, or other detached improvements do
not qualify under this program.
The Process
The Department of Real Estate Assessments (DREA) administers this program,
which incorporates the following requirements:
- Prior to beginning any rehabilitation, renovation or replacement,
the owner must apply for exemption.
- A $50 application fee is required but will be refunded upon completion
of the project.
- DREA will inspect the property and determine the base value of the
structure, which shall be effective for two years from the date of determination.
- Appropriate building permits must be applied for and issued by the
Building Inspector’s Office.
- All increases in the assessed value during the time the rehabilitation,
renovation or replacement is being performed shall be taxable annually
until such time as all work has been completed and approved.
- All work must be completed and approved by Building Inspection, and
DREA must be notified of such completion of work by December 31 in order
for the abatement to be effective January 1 of the following calendar
year.
- Upon completion of the project, the building permit will be processed
under normal procedures and additional value will be supplemented and
taxed effective as of the date of completion.
How to Apply
Download the application
in PDF format or contact the Assessor’s Office at (804) 748-1321.
(The material available for download is in PDF format. You can access
PDF formatted material by using the free Adobe®
Acrobat® Reader, available at http://www.adobe.com.)
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