[Adopted 5-17-2012 by Ord. No. 2811]
As used in this article, certain terms are defined as follows:
DETERIORATED RESIDENTIAL PROPERTY
A dwelling unit located in a deteriorated neighborhood or a dwelling unit which has been, or upon request is, certified by the Bureau of Code and Zoning as unfit for human habitation for rent withholding or other health or welfare purposes or has been the subject of an order by the Bureau of Code and Zoning requiring the unit to be vacated, condemned or demolished by reason of noncompliance with laws, ordinances or regulations, regardless of whether the property resides within a deteriorated neighborhood. Deteriorated residential property may also include any residential property owned by the City of Oil City Redevelopment Authority, regardless of whether the property resides within a deteriorated neighborhood.
DWELLING UNIT
Unless otherwise defined in the ordinance or resolution providing for tax exemption, a house, apartment or group of rooms intended for occupancy as separate living quarters by family or other groups or a person living alone, containing a kitchen or cooking equipment for the exclusive use of the occupants.
DETERIORATED NEIGHBORHOOD or DETERIORATED AREA
That portion of the City which the City determines to be physically blighted on the basis of one or more of the following standards:
A. 
The residential buildings, by reason of age, obsolescence, inadequate or outmoded design or physical deterioration, have become economic and/or social liabilities.
B. 
The residential buildings are substandard or unsanitary for healthful and safe living purposes.
C. 
The residential buildings are overcrowded, poorly spaced, or are so lacking in light, space and air as to be conducive to unwholesome living.
D. 
The residential buildings are faultily arranged, cover the land to an excessive extent or show a deleterious use of land, or exhibit any combination of the above which is detrimental to health, safety or welfare.
E. 
A significant percentage of buildings used for residential purposes is more than 20 years of age.
F. 
A substantial amount of unimproved, overgrown and unsightly vacant land exists which has remained so for a period of five years or more, indicating a growing or total lack of utilization of land for residential purposes.
G. 
A disproportionate number of tax-exempt or delinquent properties exist in the area. "Deteriorated neighborhood" means those areas of the City which the City determines to be physically blighted by using the criteria published in the act of May 24, 1945 (P.L. 991, No. 385), known as the "Urban Redevelopment Law," for the determination of "blighted areas," and the act of November 29, 1967 (P.L. 636, No. 292), known as the "Neighborhood Assistance Act," for the determination of "impoverished areas."
RESIDENTIAL IMPROVEMENT
Repair, construction or reconstruction, including alterations and additions, having the effect of rehabilitating a structure so that it becomes habitable or attains higher standards of housing safety, health or amenity, or is brought into compliance with laws, ordinances or regulations governing housing standards. Ordinary upkeep and maintenance shall not be deemed an improvement.
RESIDENTIAL CONSTRUCTION
The building or erection of dwelling units, as defined in this section, upon vacant land or land specifically prepared to receive such structures.
There is hereby exempted from all property taxation that portion of any assessment valuation directly attributable to residential construction or residential improvements within the following areas of the City, authorized by City Council, in the amounts and in accordance with the schedules and limitations provided in § 285-114 below:
A. 
Residential improvement to any deteriorated residential property or dwelling unit located wholly or partially within the following zoning designations:
(1) 
R-1 Single-Family Residential Districts.
(2) 
R-2 Medium Density Residential Districts.
(3) 
RO Residential Office Districts.
(4) 
C-2 Downtown Business Districts (restricted to upper-floor residential uses)
B. 
Residential construction built in any deteriorated neighborhoods or deteriorated areas, located wholly or partially within the zoning designations set forth above in Subsection A.
A. 
Residential construction.
(1) 
The City will grant a tax exemption on that portion of any assessment valuation attributable to the actual cost of residential construction of a new dwelling unit within a deteriorated neighborhood or deteriorated area, as defined above.
(2) 
The amount of taxes exempt for residential construction shall be in accordance with the following schedule for the eligible assessment in the first nine years during which improvements become assessable:
Length
Portion
1st year
100%
2nd year
100%
3rd year
100%
4th year
100%
5th year
100%
6th year
80%
7th year
60%
8th year
40%
9th year
20%
After the 9th year, the exemption shall terminate.
B. 
Residential improvement.
(1) 
The City will grant a tax exemption on that portion of any assessment valuation attributable to the actual cost of residential improvement to a dwelling unit within a deteriorated neighborhood or deteriorated area, as defined above.
(2) 
The amount of taxes exempt for residential improvement shall be in accordance with the following schedule for the eligible assessment in the first five years during which the improvement becomes assessable:
Length
Portion
1st year
100%
2nd year
80%
3rd year
60%
4th year
40%
5th year
20%
After the 5th year, the exemption shall terminate.
C. 
If a residential property is granted tax exemption pursuant to this article, any improvements shall not during the exemption period be considered as a factor in assessing other properties.
D. 
The date of the residential improvement or construction shall be the date of issuance of the building permit, improvement record or other required notification of construction. The exemption shall commence in the tax year immediately following the year in which the building permit, improvement record or other notification is issued.
E. 
A separate request for exemption will be made for each new construction or improvement, and each exemption requested will be evaluated by the County Tax Assessment Office. No tax exemption shall be granted if the property owner does not secure the necessary and proper permits prior to improving or building upon the property. No tax exemption shall be granted if the property as completed does not comply with the minimum standards of the Housing and Building Codes of the City of Oil City.
F. 
In any case after the effective date of this section where deteriorated property is damaged, destroyed or demolished by any cause or for any reason and the assessed valuation of the property affected has been reduced as a result of such damage, destruction or demolition, the exemption from real property taxation authorized by this article shall be limited to that portion of new assessment attributable to the actual cost of improvement or construction that is in excess of the original assessment that existed prior to damage, destruction or demolition of the property.
G. 
The exemption from taxes authorized by this article shall be upon the property exempted and shall not terminate upon the sale or exchange of the property, unless otherwise provided in this article.
H. 
To facilitate the monitoring of this tax exemption program and to ensure all tax exemptions end after the nine-year exemption period, the City Department of Finance, in conjunction with the City Treasurer, will establish a system for auditing, tracking and managing all tax exemptions within the City.
I. 
Sunset provision. This article shall expire nine years from the date of its passage unless otherwise extended by act of City Council as permitted by law. Not later than 90 days prior to the expiration date of this article, City Council will consider the expiration or continuation of this article, with any required modifications. The terms and exemption periods of this article will remain applicable to all residential properties granted tax exemptions prior to the termination of this article.
A. 
Any person desiring tax exemption pursuant to this article should apply to the City at the time a building permit is secured for improvement of deteriorated property or residential construction, as the case may be.
(1) 
The application must be in writing upon forms specified by the City, setting forth the following information:
(a) 
The date the building permit was issued for such improvement or construction;
(b) 
The location of the property to be improved or built;
(c) 
The nature of the property to be improved or built;
(d) 
The type of improvements;
(e) 
The summary of the plan of the improvements;
(f) 
The cost of the improvements;
(g) 
Whether the property has been condemned by any governmental body for noncompliance to laws or ordinances;
(h) 
Whether the property has been inspected and verified by the Bureau of Code and Zoning; and
(i) 
Such additional information as the City may require.
(2) 
There shall be on the form application for a building permit the following notice:
Notice to Taxpayer
By Ordinance No. 2811, you may be entitled to exemption from tax on your contemplated improvement or construction by reassessment. An application for exemption may be secured from the Building Inspector or other properly designated official and must be filed at the time the building permit is secured.
B. 
A copy of the exemption request shall be forwarded to the Venango County Tax Assessment Office by the Bureau of Code and Zoning. Upon completion of the improvement or construction, the taxpayer shall notify the City so that the City may have the County Assessor assess the improvement separately for the purpose of calculating the amount of assessment eligible for tax exemption in accordance with the limits established in this article. The City will then obtain from the County Assessor the amount of the assessment eligible for exemption and will then notify the taxpayer. The City Treasurer shall keep a separate list of all such exempted properties, and upon receipt of the assessments for each property from the Bureau of Code and Zoning, the City Treasurer shall see to it that each such exempted property is credited with its proper exemption as against the County Assessment figure.
C. 
The cost of residential improvement or construction, per dwelling unit of residential properties to be exempted, and the schedule of taxes exempted existing at the time of the initial request for tax exemption shall be applicable to that exemption request, and subsequent amendment to this article, if any, shall not apply to requests initiated prior to their adoption.
D. 
Appeals from the reassessment and the amount eligible for the exemption may be taken by the City or by the taxpayer as provided by law.
The tax exemption from real estate taxes provided in this article shall be forfeited by the applicant and/or any subsequent owner of the real estate for failure to pay nonexempt real estate taxes by December 31 of the year the taxes become due. Upon receipt of notice for nonpayment of nonexempt real estate taxes, the City Department of Finance shall direct the City Treasurer to discontinue the tax exemption.
Appropriate City officials are authorized and directed to take such actions as are necessary to effectuate this article.