St. Joseph to launch new tax incentive program to boost rehab of historic and blighted homes
ST. JOSEPH, Mo. (News-Press NOW) -- Local property owners will soon have a new tool to assist with restoring blighted and historic homes, the latest move to address critical needs in St. Joseph's housing market.
City officials are finalizing a new program, called the "St. Joseph Neighborhood Redevelopment Corporation", which allows individual residential property owners to seek tax abatement for redevelopment projects involving blighted properties.
The program offers property owners long-term cost savings by allowing for the abatement of real property taxes over a specified period, depending on the level of financial investment planned for the property, excluding furniture and appliances.
"If they invest in that property. Historic ones, for example, to bring it back online and back to useful life and perhaps more importantly, save that property from continuing to deteriorate, then they'll enjoy a tax incentive," City Manager Mike Schumacher said. "That's our way to get involved and support that private property owner."
Results from a community survey launched this spring showed that 75% of respondents supported using tax incentives for the restoration of historic properties in St. Joseph.
With nearly 40% of the city's aging housing stock being built before 1960, city officials are hopeful that targeting one of the largest housing sectors in need of improvement will produce the greatest change.
To qualify for the program, applicants must provide evidence of blight and financial details on their project before undergoing extensive reviews by city staff, SJNRC, the Planning Commission and City Council, including development of an Impact Study Exhibit. Public hearings are also required to allow for community feedback on each application.
"There's a lot of different variables that have to be reviewed," Schumacher said. "We also have to be mindful of our partner agencies, like us, that are impacted through an abatement. That it makes sense for everyone involved."
Along with long-term cost savings, the program establishes a mechanism to apply to the city without the cost required to submit a third-party blight analysis and cost-benefit study, which can help property owners save thousands of dollars on upfront fees and expenses.
Incentives are primarily designed for projects relating to an individual land parcel; however, treating multiple properties may be deemed appropriate depending upon the circumstances. The program shall generally apply to individual single-family residential structures, but may be used for multi-family or multiple single-family structures.
"One of the best uses for that tool is rehabilitation and restoration of historic properties. We have some beautiful older homes here. Some are vacant and some are really in need of help," Schumacher said. "We need to fill up our toolbox with every available tool."
Recent weeks have seen city leaders signal their approval for a range of programs and policies designed to improve permitting processes and incentive housing development, this coming in response to an April study that showed critical declines in St. Joseph's population (70,382) with housing gaps likely playing a significant role in the loss of younger demographics.
City Council passed an ordinance in June that allows the city to waive construction permit fees associated with qualified residential development and construction located in approved geographic areas of the city.
City staff have been collaborating closely with representatives from the Chamber of Commerce, St. Joseph School District and Buchanan County to take a comprehensive approach to economic development and housing improvements.
"Working with the Chamber on the economic development piece and engaging different builders, and attracting them to St. Joe. You know, it's time to grow," he said. "We need to be the most attractive community for any developer to want to come into."
The St Joseph Neighborhood Redevelopment Corporation will include a Board of Directors consisting of three individuals: one representative from the City’s Legal Department, one representative from the Planning & Community Development Department, and one representative from the St Joseph Chamber of Commerce.
The three members will review applications for consistency with program guidelines and make a recommendation to the Planning Commission for their review and consideration, before forwarding to City Council for approval.
Schumacher said an official announcement will be made in the near future when the program is up and running.
"We need to get that board stood up, which will happen. And then I encourage you to follow the newspaper as well as our social media to look for announcements coming in the future," he said.
