Presenter
Presented by Mr. Deasy
Title
Ordinance amending and supplementing the Pittsburgh Code, Title Two, Fiscal; Article IX, Property Taxes; Chapter 267, Exemptions for Industrial and Commercial Improvements; Section 267.01, Definitions; Section 267.03, Exemption Schedule; Section 267.04, Exemption Conditions; and Section 267.09, Participation by Allegheny County and Pittsburgh Board of Education, so as to create a new tax exemption for the conversion of industrial, commercial or other business property into owner-occupied residential use in deteriorated underutilized transition areas and also to increase the exemption for improvements constituting a qualified conversion to commercial residential use as to properties which are located in deteriorated underutilized transition areas for applications filed on or after July 1, 2007 through June 30, 2012.
Body
Be it resolved by the Council of the City of Pittsburgh as follows:
Section 1. The Pittsburgh Code, Title Two, Fiscal; Article IX, Property Taxes; Chapter 267, Exemptions for Industrial and Commercial Improvements; Section 267.01, Definitions, paragraph (d), Improvement, paragraph (l), Converted Residential Portion, and paragraph (n), Uptown District, are hereby amended to read as follows:
(d) IMPROVEMENT. Repair or construction (as defined in subsection (c) hereof) including alterations and additions, having the effect of rehabilitating an existing structure so that it allows higher standards of safety, health, economic or social amenity or the bringing into compliance of the structure with laws, ordinances or regulations governing building standards. Ordinary upkeep and maintenance shall not be deemed an improvement. The conversion of deteriorated property (as defined in subsection (g) hereof) to commercial residential use or to residential use shall qualify as an improvement for purposes of this Chapter.
(l) CONVERTED RESIDENTIAL PORTION. That portion of a building which in a “qualified conversion to commercial residential use” or a “qualified conversion to residential use”, as the case may be, is converted to commercial residential use or residential use, measured by floor area between ground level and the roof together with any area of the property or a property in close proximity to be used for parking by residents or guests only and not by the public.
(n) UPTOWN DISTRICT. The area begins at Fifth Avenue and Diamond Street and continues east on Fifth Avenue to Crawford [Chatham] Street where it travels northward to Colwell Street. The boundary line then follows Colwell Street eastward to Kirkpatrick Street where the boundary then goes southward to Interstate 376. The boundary follows Interstate 376 westward until Municipal Court Way where it then continues northward toward First Avenue. The boundary line then follows First Avenue westward to Try Way. The boundary line continues north along Try Way until Second Avenue where it continues to Crosstown Boulevard. The boundary line follows the Crosstown Boulevard until it meets Diamond Way. The boundary line then continues along Diamond Way to its intersection on Fifth Avenue.
Section 2. The Pittsburgh Code, Title Two, Fiscal; Article IX, Property Taxes; Chapter 267,
Exemptions for Industrial and Commercial Improvements; Section 267.01, Definitions, paragraph (o), Downtown District, is hereby amended by substitution to read as follows:
(o) DOWNTOWN DISTRICT. The area begins at 11th Street and Penn Avenue, and continues northward along 11th Street to the Allegheny River. The boundary line then follows the southern shore of the Allegheny River westward to Commonwealth Place, where it turns south and follows Commonwealth Place to the Monongahela River. The boundary then follows the northern shore of the Monongahela River eastward to the Crosstown Boulevard, where it turns northward on the Crosstown Boulevard to the intersection with Fifth Avenue. The boundary travels West on Fifth Avenue to Ross Street, goes north on Ross Street to Bigelow Boulevard, follows Bigelow Boulevard north to the Crosstown Boulevard, then north to Liberty Avenue. The boundary then proceeds west on Liberty Avenue to 12th Street, goes north for one block on 12th Street, turns west on Penn Avenue and ends at the intersection of Penn Avenue and 11th Street. The Downtown District does not include any area designated as a Tax Increment Financing District.
Section 3. The Pittsburgh Code, Title Two, Fiscal; Article IX, Property Taxes; Chapter 267, Exemptions for Industrial and Commercial Improvements; Section 267.01, Definitions, is hereby supplemented by adding paragraphs (t) and (u) which read as follows:
(t) RESIDENTIAL USE. Space is used for residential use if it is
suitable for and is generally to be used by the occupants for personal residence purposes and is occupied by an owner.
(u) QUALIFIED CONVERSION TO RESIDENTIAL USE.
Improvements having the effect of converting all or a portion of deteriorated property to residential use, so that it becomes habitable, provided that at least fifty (50) percent of the total building area, measured by floor area at ground level and above is so converted. Neither new construction nor ordinary upkeep and maintenance shall be deemed a qualified improvement for this purpose.
Section 4. The Pittsburgh Code, Title Two, Fiscal; Article IX, Property Taxes; Chapter 267, Exemptions for Industrial and Commercial Improvements; Section 267.03, Exemption Schedule, is hereby amended and supplemented to read as follows:
§ 267.03 EXEMPTION SCHEDULE.
Any person making improvements to deteriorated property or constructing or improving industrial, commercial or other business structures in deteriorated areas and/or in deteriorated underutilized transition areas may apply for and receive a tax exemption upon the improvements or construction as provided in the following schedule:
(a) With respect to improvements to deteriorated property or construction or improvements of industrial, commercial or other business structures in deteriorated areas, other than improvements constituting a qualified conversion to commercial residential use or a qualified conversion to residential use that are located in deteriorated underutilized transition areas:
(1) The exemption is granted to eligible properties located anywhere in deteriorated areas;
(2) The exemption granted is limited to a period of five (5) years, and the exemption from City real [estate] property tax shall not exceed fifty thousand dollars ($50,000.00) in any single year;
(3) The exemption granted shall be one hundred (100) percent of the real property tax upon the assessed valuation attributable to the construction or improvement.
(b) With respect to improvements constituting a qualified conversion to commercial residential use that are located in deteriorated underutilized transition areas:
(1) The exemption is granted to eligible properties located anywhere in deteriorated underutilized transition areas;
(2) The exemption granted is applicable to the real property tax upon the assessed valuation attributable to improvements to the converted residential portion or the residential portion of the new construction for commercial residential use (including related parking) and is limited to ten (10) years. For applications filed prior to July 1, 2007 or on or after July 1, 2012, [The] the exemption is one hundred (100) percent for the first two years and declines ten (10) percent for each two-year period thereafter with the exemption being sixty (60) percent in the ninth and tenth years. For applications filed on or after July 1, 2007 through June 30, 2012, the exemption is one hundred (100) percent for a period of ten (10) years. No exemption applies in the eleventh year or thereafter. The exemption from City real [estate] property tax shall not exceed one hundred fifty thousand dollars ($150,000.00) in any single year.
(c) With respect to improvements constituting a qualified conversion to residential use that are located in deteriorated underutilized transition areas:
(1) The exemption is granted to eligible properties located anywhere in deteriorated underutilized transition areas for applications filed on or after July 1, 2007 through June 30, 2012.
(2) The exemption granted is applicable to the real property tax upon the assessed valuation attributable to improvements to the converted residential portion (including related parking) and is limited to ten (10) years. The exemption is one hundred (100) percent for a period of ten (10) years. No exemption applies in the eleventh year or thereafter. The exemption from City real property tax shall not exceed two thousand seven hundred dollars ($2,700.00) in any single year.
(3) In the event that the owner of a property which has qualified for exemption pursuant to this paragraph enters into a written lease for a term of one (1) year or more for which the owner receives consideration, the exemption granted pursuant to this paragraph shall expire upon the effective date of the lease.
(d) Improvements to deteriorated property that have the effect of converting all or a portion of the property to a commercial residential use but do not satisfy the requirements of a “qualified conversion to commercial residential use” and construction of property containing space for commercial residential use but which does not satisfy the requirement “new construction for commercial residential use” may be eligible for the exemption described in (a) above. In a building located in a deteriorated underutilized transition area for which there is a qualified conversion to commercial residential use or new construction for commercial residential use, subsection (b) above is applicable to the converted residential portion or the residential portion of the new construction for commercial residential use (including related parking) and subsection (a) above may be applicable to the remainder of the property.
Section 5. The Pittsburgh Code, Title Two, Fiscal; Article IX, Property Taxes; Chapter 267, Exemptions for Industrial and Commercial Improvements; Section 267.04, Exemption Conditions, paragraph (e) is hereby amended to read as follows:
(e) There is no exemption granted and any existing exemption shall be revoked if and for so long as there exists any tax delinquency with respect to the property or property owner. An exemption for qualified conversion to commercial residential use shall be revoked if and to the extent the property does not continue to be commercial residential use property. Likewise, an exemption for qualified conversion to residential use shall be revoked if and to the extent the property does not continue to be residential use property, as specified in Section 267.03 (c) (3). Any revocation shall not extend the exemption period set forth in Section 267.03
Section 6. The Pittsburgh Code, Title Two, Fiscal; Article IX, Property Taxes; Chapter 267,
Exemptions for Industrial and Commercial Improvements; Section 267.09, Participation by Allegheny County and Pittsburgh Board of Education, is hereby amended to read as follows:
§ 267.09 PARTICIPATION BY ALLEGHENY COUNTY AND
PITTSBURGH BOARD OF EDUCATION.
Prior to implementation of this Chapter, the City shall enter into the appropriate cooperation agreements with the County of Allegheny and the Pittsburgh Board of Education so as to require these taxing bodies to participate with the City of Pittsburgh in the LERTA PROGRAM as enumerated in this Chapter. Except as otherwise expressly stated, the [The] City of Pittsburgh cannot unilaterally implement the amendments to this Chapter without the full participation by the County of Allegheny and the Pittsburgh Board of Education. This requirement shall not apply to any applications for exemption filed on or after July 1, 2007 through June 30, 2012 pursuant to any amendments to this Chapter which have been adopted and are applicable solely to applications filed during said five (5) year period.