Council delays on proposal to deal with vacant and abandoned homes
The Batavia City Council took a step back from a proposal aimed at spurring investment in vacant and abandoned residential properties.
Rather than send a resolution to state representatives asking for legislation to make a tax exemption for investment in such properties possible, the council asked that the proposal be brought back to a future conference meeting.
City Manager Jason Molino warned that with the legislative session under way and ending in June, a delay could decrease the opportunity for timely passage of the legislation.
Councilman Eugene Jankowski took the lead role in opposing passage of the resolution last night.
Jankowski said what little feedback he's gotten on the proposal from constituents is opposition to other homeowners getting a tax exemption not available to them.
He also said he would like to provide residents with more time to digest the proposal and provide feedback to council members.
Molino said the idea that current homeowners are missing out on something is a misunderstanding what the tax exemption is about.
The proposal would provide a limited tax exemption on select owner-occupied properties to offset the significant investment required to rehabilitate vacant and abandoned homes.
The exemption would be graduated over a number of years, starting at 100 percent of the difference of taxes due on the increase in assessed value that would result from rehabilitation. The homeowner would still pay taxes on the original assessed value.
The exemption is called "gap financing" because it's designed to address the fact that it simply isn't financially realistic to expect somebody to invest tens of thousands of dollars to save a home that has limited value in a market not known for a rapid increase real estate values.
"We're trying to create a tool that attracts investment," Molino said.
The value of the tax exemption, Molino said, would be less than what the city would start receiving in water and sewer payments once the house was occupied again.
In some cases, it would return properties back to tax roles that previous owners have abandoned and allowed to go into foreclosure.
Councilwoman Patti Pacino pointed out that by saving these homes, it would help protect the home values of neighboring residents.
Both Jankowski and Councilwoman Rosemary Christian voted against a motion to suspend the rules for moving the proposal to the same night's business meeting. A rules suspension requires a unanimous vote to pass.