Rehabilitation Incentive Programs

  1. Residential Properties
  2. Commercial & Industrial Properties
  3. Historic Properties

Incentive Program

To protect and preserve our mature and settled neighborhoods, Chesterfield County has adopted an ordinance granting a partial tax exemption for the rehabilitation, renovation or replacement of older residential structures. Upon approval, the partial exemption will be in effect for 15 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 15-year period. View the residential rehab program brochure (PDF).

To Qualify

This program is available to property owners who rehabilitate, renovate, or replace residential structures, subject to the following criteria:

  • The structure must be lawfully used for residential purposes.
  • Residential structures must be no less than 25 years of age.
  • 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 at least 10 percent.
  • For multifamily residences, the rehabilitation, renovation or replacement must not increase the total square footage of the structure 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 quality under this program.
  • In any year in which the market value of the qualified real estate decreases below the base value, no credit or refund shall be provided.

The Process

The Department of Real Estate Assessments (DREA) administers this program, which incorporates the following requirements:

  • Within twelve months after the filing date of the building permit application for the rehabilitation, renovation or replacement, the owner may apply for exemption. The application shall be made on the forms provided by the county assessor.
  • Appropriate building permits must be applied for and issued by the Building Inspector’s Office.
  • All increases in the assessed value during the time of the rehabilitation, renovation or replacement is being performed shall be taxable annually until 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.

How to Apply

Download and complete the real estate tax exemption on qualifying rehabilitated residential structures application (PDF) or call the Real Estate Assessor’s office at 804-748-1321.