Explanation
BACKGROUND:
The goal of designating Community Reinvestment Areas is neighborhood revitalization and stabilization. The designation will help to stabilize neighborhoods, increase school enrollment and increase the supply of affordable housing in the City.
This Ordinance will create the Franklinton/Area G Community Reinvestment Area (see Exhibit B) and provide real property tax exemptions for residentially-zoned parcels within the target area.
FISCAL IMPACT:
No funding is required for this legislation.
Title
To create the Franklinton/Area G Community Reinvestment Area and to authorize real property tax exemptions as established in Sections 3735.65 to 3735.70 of the Ohio Revised Code; and to declare an emergency.
Body
WHEREAS, the council of the City of Columbus (hereinafter "Council") desires to pursue reasonable and legitimate incentive measures to assist and encourage development in specific areas of the City of Columbus that have not enjoyed reinvestment from remodeling or new construction; and
WHEREAS, Resolution No. 1698-78, approved August 3, 1978, as amended by Ordinance No. 1345-02, approved July 29, 2003, authorized the Department of Development to carry out a Community Reinvestment Program, pursuant to Sections 3735.65 to 3735.70 of the Ohio Revised Code, and approved certain administrative procedures for the program; and
WHEREAS, a survey of housing (see Exhibit A) as required by Ohio Revised Code (ORC) Section 3735.66 has been prepared and included in this proposed Community Reinvestment Area; and
WHEREAS, the remodeling of existing buildings for residential use and construction of new residential structures in this Community Reinvestment Area would serve to encourage economic stability, maintain real property values, and generate new employment opportunities; and
WHEREAS, the remodeling of existing housing units for residential use and the construction of new residential structures in this Community Reinvestment Area constitutes a public purpose for which real property exemptions may be granted; and
WHEREAS, this proposal is a public/private partnership intended to promote and expand conforming uses in the designated area; and
WHEREAS, emergency passage is necessary to meet the State's deadline for certification for an effective date of January 1, 2007, thereby keeping the effective date consistent with the other Community Reinvestment Areas in the City; and
WHEREAS, an emergency exists in the usual daily operation of the Development Department in that it is immediately necessary to create the Franklinton/Area G Community Reinvestment Area, therefore preserving the public health, property, peace, safety, and welfare; and NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
Section 1. The area depicted as Franklinton/Area G Community Reinvestment Area constitutes an area in which housing facilities or structures of historical significance are located, and in which new construction or repair of existing facilities has been discouraged.
Section 2. Pursuant to ORC Section 3735.66, The Franklinton/Area G Community Reinvestment Area is hereby established in the following described area:
North: Bounded by the rear property lines on the north side of McKinley Avenue
South: Bounded by rear property lines on the south side of Mound Street.
East: Bounded by the railroad on the east side McDowell Avenue
West: Woodbury north to Grandview Avenue crossing parcel numbers
010-066814; 010-066929; 010-067013; 010-067014; 010-066337; 010-066448;
010-136584; 010-153694
The Community Reinvestment Area is approximately depicted as the area on the map attached to this Ordinance, marked Exhibit B; by parcel number, marked Exhibit B (1) and by this reference incorporated herein.
Only residential-zoned properties with uses consistent with the applicable zoning regulations and variances thereto within the designated Community Reinvestment Area will be eligible for exemptions under this Program.
Section 3. All properties identified in Exhibit B as being within the designated Community Reinvestment Area are eligible for this abatement if they meet the criteria outline in Sections 3 and 4 of this Ordinance: including vacant residentially-zoned parcels; owner occupied residential properties; existing residentially-zoned rental properties.
Section 4 Participation in this program is by application only. A pre-application will be required to insure the compatibility of the new construction with the neighborhood and to insure the maintenance of existing streetscape lines, style, scale, setback and landscaping features compatible with the neighborhood. Applications must be completed and filed with the Housing Division upon completion of the new construction or renovation activity. A tax exemption on the increase in the assessed valuation, resulting from improvements as described herein, shall be granted upon proper application by the property owner and certification thereof by the designated Housing Officer for the following periods:
(a) One hundred percent (100%) for ten (10) years for the remodeling of:
· owner-occupied dwellings containing not more than two housing units and upon which the remodeling cost is at least twenty percent (20%) of the current assessed value of the existing structure (excluding land) as determined by the County Auditor for the tax year prior to the improvement;
· conversion of rental housing to owner-occupied housing, containing not more than two units, upon which the remodeling cost is at least fifty percent (50%) of the current assessed value of the existing structure (excluding land) as determined by the County Auditor for the tax year prior to the improvement.
(b) One hundred percent (100%) for twelve (12) years for the remodeling of:
· owner-occupied dwellings containing more than two housing units and upon which the remodeling cost is at least twenty percent (20%) of the current assessed value of the existing structure (excluding land) as determined by the County Auditor for the tax year prior to the improvement;
· rental housing, containing more than two housing units, upon which the remodeling cost is at least fifty percent (50%) of the current assessed value of the existing structure (excluding land) as determined by the County Auditor for the tax year prior to the improvement;
· conversion of rental housing to owner-occupied housing, containing more than two units, upon which the remodeling cost is at least fifty percent (50%) of the current assessed value of the existing structure (excluding land) as determined by the County Auditor for the tax year prior to the improvement.
(c) One hundred percent (100%) for fifteen (15) years for newly built:
· construction of new owner-occupied dwellings;
· construction of new owner-occupied dwellings containing more than two housing units.
Section 5. Subsequent to the effective date of this legislation, owners of residential investment delineated within this legislation, and completed after the date of this Ordinance, and before December 31, 2011 will be eligible to apply for this property tax abatement.
Section 6. Each community reinvestment area real property tax exemption established pursuant to this Ordinance shall take precedence for the term of that community reinvestment area exemption over both the tax increment financing real property tax exemption and obligations under the Ohio Revised Code, to make service payments.
Section 7. To administer and implement the provisions of this Ordinance, the Department of Development Housing Administrator, is designated as the Housing Officer as described in Sections 3735.65 through 3735.70.
Section 10. The Community Reinvestment Area Housing Council shall make an annual inspection of the properties within the district for which an exemption has been granted under Section 3735.66 of the ORC. The council shall also hear appeals under 3735.70, of the ORC.
Section 11. The Mayor of the City of Columbus is hereby authorized to submit such documentation to the Director of the Ohio Department of Development as is necessary to confirm the findings herein.
Section 12. That for the reasons stated in the preamble hereto, which is hereby made a part hereof, this ordinance is hereby declared to be an emergency measure and shall take effect and be in force from and after passage and approval by the Mayor, or ten days after passage if the Mayor neither approves nor vetoes the same.