File #: HP2023-0012    Name: HNIZ Level 2 Request for 902 W. Virginia Street
Type: Agenda Item Status: Regular Agenda Item
In control: Historic Preservation Advisory Board
On agenda: 3/9/2023 Final action: 3/9/2023
Title: Consider/Discuss/Act on a Request by Daniel Karnuta for a Level 2 (Rehabilitation Level) Historic Neighborhood Improvement Zone Program Tax Exemption for the Property at 902 W. Virginia Street
Attachments: 1. Applicant Submittal, 2. Presentation

Title

Consider/Discuss/Act on a Request by Daniel Karnuta for a Level 2 (Rehabilitation Level) Historic Neighborhood Improvement Zone Program Tax Exemption for the Property at 902 W. Virginia Street

 

Summary

 

COUNCIL GOAL:                     Enhance the Quality of Life in Downtown McKinney

 

MEETING DATE:                     March 2, 2023

 

DEPARTMENT:                      Planning Department - Development Services

 

CONTACT:                       Cassie Bumgarner, Historic Preservation Planner

                     Paula Jarrett Nasta, AIA, Planning Manager

 

RECOMMENDED BOARD ACTION:                     

                     Staff recommends approval of the request.

 

ITEM SUMMARY: 

                     The applicant requests approval of a Level 2 (Rehabilitation Level) HNIZ Program tax exemption for the property located at 902 W Virginia Street.

 

                     To be eligible for a tax exemption incentive under the HNIZ Program, residential properties must meet the minimum eligibility requirements of the program, along with specific criteria for the requested incentive level.

 

                     Staff has reviewed the request and has found that it meets the minimum eligibility requirements of the HNIZ Program for a Level 2 (Rehabilitation Level) exemption.

 

                     Specifically, the criteria for a Level 2 Rehabilitation incentive are as follows:

 

o                     The residential structure is at least 40 years old.

§                     The home was built circa 1915.

 

o                     The owner receives a letter of eligibility from the City of McKinney verifying that proposed improvements qualify for a rehabilitation incentive.

§                     Although a letter of eligibility was not issued before the work commenced, the property owner had verified with staff that the work was appropriate and eligible. All of the proposed work did not require a Certificate of Appropriateness.

 

o                     No later than 12 months following the issuance of the letter of eligibility, the owner completes, or causes to be completed, verified, eligible improvements having a combined cost of at least $10,000.

§                     The applicants did the following eligible work, which exceeds $10,000 within the last year:

                     Foundation repairs, including 29 new piers, repositioning and shimming of existing piers, and additional ventilation ($13,380.00)

                     Insulation ($5,908.00)

 

BACKGROUND INFORMATION: 

                     The Historic Neighborhood Improvement Zone (HNIZ) Program was established in 2008 for the purpose of preserving the city’s unique and historic neighborhoods while encouraging property owners to maintain and/or rehabilitate residential properties and structures.

 

                     The HNIZ Program includes a three-tiered incentive structure whereby residential properties that meet specified criteria are eligible to receive ad valorem tax exemptions on city taxes for a designated period of time.

 

                     To be eligible for an HNIZ Program incentive, the following minimum general requirements apply:

o                     The property shall be located within the HNIZ Program area.

o                     The property shall be owner-occupied and shall maintain a homestead exemption from the Collin Central Appraisal District for the life of the incentive period.

o                     Verified, eligible improvements shall have received all necessary permits and approvals, including COAs.

o                     The structure, accessory structures, grounds, property elements and building elements with their materials and finishes have been maintained in good repair and in operable condition.

o                     There are no pending code violations.

o                     The total ad valorem taxes owed to the city must be current and paid on time.

 

FINANCIAL SUMMARY: 

                     A Level 2 (Rehabilitation Level) incentive carries a 50% exemption from city ad valorem taxes for a period of ten years.

 

                     In order to limit potential budgetary concerns, the HNIZ Program has an annual aggregate cap of $500,000 for the total amount of city ad valorem taxes that can be exempted in any budget year.

 

                     Per Collin County Tax Assessor, the  city ad valorem taxes for this property in 2022 were approximately $2,628.72.