[Adopted 11-8-2023 by Ord. No. 14-2023]
As used in this article, certain terms are defined as follows:
CONSTRUCTION COST
Means and includes but not limited to the cost of the entire construction of the project, including all supervision, materials, supplies, labor, tools, equipment, transportation and/or other facilities furnished, used or consumed, without deduction on account of penalties, liquidated damages or other amounts withheld from payment to the contractor or contractors (known as "hard cost"). But such cost shall not include the consulting engineer/architect's fee, or other payments to the consulting engineer/architect or any other fee not associated with the physical construction of the property and shall not include cost of land or rights-of-way and easement acquisition (known as "soft cost").
DETERIORATED AREAS
A. 
Means an area within the corporate limits of the City which the City, pursuant to the public hearing, has determined the physical impairment on the basis of one or more standards included but not limited to the following:
(1) 
The residential buildings, by reason of age, obsolescence, inadequate or outmoded design or physical deterioration have become economic and/or social liabilities.
(2) 
The residential buildings are substandard or unsanitary for healthful and safe living purposes.
(3) 
The residential buildings are overcrowded, poorly spaced, or are so lacking in light, space and air as to be conducive to unwholesome living.
(4) 
The residential buildings are faultily arranged, cover the land to an excessive extent or show a detrimental use of land, or exhibit any combination of the above which is detrimental to health, safety or welfare.
(5) 
A significant percentage of buildings used for residential purposes is more than 50 years of age.
(6) 
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.
(7) 
A disproportionate number of tax delinquent properties exists in the area.
B. 
An area can be established as deteriorated even though it is not a slum; and any deteriorating area may include buildings which are not in and of themselves blighted or dilapidated. The following areas within the City of Chester determined by City Council to be eligible for tax exemption: all parcels within the following Chester City 2020 Census tracts: 4044, 4045, 4046, 4047, 4048, 4049, 4050, 4051, 4052, 4053, 4054, and 4107, which are determined eligible for tax exemption under IDRPA.
DETERIORATED NEIGHBORHOODS
Any area containing unsafe, unsanitary or overcrowded buildings, vacant, overgrown and unsightly lots of ground; a disproportionate number of tax delinquent properties; excessive land coverage; defective design or arrangement of buildings, street or lot layouts; economically and socially undesirable land uses; blighted, as determined by the Blighted Property Review Committee and as certified by the City Council
DETERIORATED PROPERTY
Means a dwelling unit located in a deteriorating neighborhood, or a dwelling unit which has been or upon request is certified by a health, housing or building inspection agency as unfit for human habitation, for rent withholding, or other health or welfare purposes, or has been the subject of an order by such an agency requiring the unit to be vacated, condemned or demolished by reason of noncompliance with laws, ordinances or regulations.
DWELLING UNIT
Means a house, double house or duplex, townhouse or rowhouse, semi detached house or any building intended for occupancy as living quarters by an individual, a family or families, or other groups of persons, which living quarters contain a kitchen or other cooking equipment and a minimum of one bathroom for the exclusive use of the occupant or occupants. The structure is used as a place for habitation by a natural person. The term shall include new residential construction, existing residential construction or any commercial and or industrial property that is converted to a residential use.
IMPROVEMENT
Means the repair, construction or re-construction, including alterations or 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. Reconstruction means the rebuilding of a structure on the same site in substantially the same manner. Reconstruction is a form of rehabilitation. The number of dwelling units on a site may not increase, but the number of rooms per unit may be increased or decreased. Reconstruction of an existing building or structure is required due to economic obsolescence, and the reconstruction is necessary for the owner of the building or construction to occupy the property, which determination shall receive prior approval from the Building Code Official (BCO), Ordinary upkeep or maintenance shall not be deemed an improvement or reconstruction.
MIXED-USE DWELLING
Means any industrial, commercial, residential or other business property owned by an individual, association or corporation which currently houses one or more of the following uses: residential, commercial, cultural, light industrial or other miscellaneous use.
NEW RESIDENTIAL CONSTRUCTION
Means the building or erection of dwelling units, as defined above, upon vacant lands or land specifically prepared to receive such structures. Residential construction shall not be construed to include improvements, repairs, maintenance or any rehabilitation of existing units.
A. 
There is hereby exempted from all real property taxation the assessed valuation of:
(1) 
Improvements to deteriorated properties.
(2) 
Improvements to any residential properties, without regard to whether such properties qualify as deteriorated properties, provided such improvements are constructed within a deteriorated neighborhood.
(3) 
New residential construction built in any deteriorating area.
B. 
The exemption authorized by this section shall be in the amounts in accordance with the provisions and limitations hereinafter provided.
C. 
The amount to be exempted from real estate taxes is limited to that portion of the additional tax assessment attributable to the actual cost of the new construction or the rehabilitation of vacant or abandoned properties in accordance with the exemption schedule established by this article. A tax exemption granted under this article will first apply in the tax year of the applicable local taxing authority immediately following the tax year in which the eligible new construction or improvements are completed. Nothing herein limits or prohibits the levy of interim real property taxes upon new construction or improvements prior to completion thereof. A tax exemption granted hereunder will not terminate upon the sale or exchange of the exempted property. If an eligible property is granted a tax exemption pursuant to this article, the new construction or improvements shall not, during the exemption period, be considered as comparable in assessing other properties.
D. 
The cost of improvements 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 a request initiated prior to the adoption of such amendment.
E. 
The exemption shall be effective only as long as the dwelling unit is built and maintained in conformity with all applicable laws and regulations of and in the City. If the property is determined blighted in accordance with the City's blighted process, shall no longer be granted tax exemption.
A. 
Exemption from real property taxes shall be limited:
(1) 
To the additional assessment attributable to the actual cost of improvements but not in excess of the maximum cost per dwelling unit specified herein in the case of improvements to deteriorated property.
(2) 
To the assessment valuation attributable to the cost of construction of the new residential construction but not in excess of the maximum cost per new dwelling unit specified herein in the case of new residential construction within a deteriorating area.
B. 
The maximum cost of improvements to deteriorated dwellings, of home constructed in 1978 and prior, eligible for exemption shall be $10,000 per dwelling unit for improvements on home. The maximum cost of improvements to deteriorated dwellings, and new construction of apartments, constructed after 1978, eligible for exemption shall be the actual cost of construction incurred per dwelling unit for improvements on home. The date of the construction shall be the date of issuance of the building permit. No tax exemption shall be granted under the provision of this article for any improvements to any dwelling unit in excess of the actual cost of construction.
C. 
The maximum cost of new residential construction eligible for exemption shall be the actual cost of construction incurred. The date of the construction shall be the date of issuance of the building permit. No tax exemption shall be granted under the provision of this article for any improvements to any dwelling unit in excess of the actual cost of construction.
D. 
In any case, the exemption from taxes shall be limited to that portion of the additional assessment attributable to the improvement or new construction, as the case may be, for which a separate assessment has been made by the office of the Delaware County Board of Assessment and Appeals and for which an exemption has been separately requested. No tax exemption shall be granted if the property owner does not secure the necessary and proper permits required prior to improving or constructing the property. No tax exemption shall be granted if the property, as completed, does not comply with the minimum standards of the Housing Code of the City of Chester.
E. 
In any case, after the effective date of this article where deteriorated property is damaged, destroyed or demolished, by any cause or for any reason, and the assessed valuation of property affected has been reduced as the result of such damage, destruction or demolition, the exemption from real property taxation authorized by this article shall be limited to that portion of the new assessment attributable to the actual cost of improvements or construction that is in excess of the original assessment that existed prior to damage, destruction or demolition of the property. The foregoing provision shall not be deemed to apply to property(ies) the title to which is (are) acquired, subsequent to the effective date of this article, from Delaware County under the Real Estate Tax Sale Law, 72 P.S. 5860 et seq.
A. 
Scheduled real estate taxes to be exempted for homeownership shall be in accordance with the following schedule as long as the property is owner-occupied:
Length
Portion %
First Year
100
Second Year
100
Third Year
100
Fourth Year
100
Fifth Year
100
Sixth Year
100
Seventh Year
100
Eighth Year
100
Ninth Year
100
Tenth Year
100
B. 
Scheduled real estate taxes to be exempted shall be in accordance with the following schedule for other than homeownership owner-occupied property:
Length
Portion %
First Year
100
Second Year
100
Third Year
100
Fourth Year
100
Fifth Year
100
Sixth Year
100
Seventh Year
100
Eighth Year
100
Ninth Year
100
Tenth Year
100
After the tenth year, the exemption shall terminate.
A. 
Application.
(1) 
Any person desiring tax exemption pursuant to this article shall apply to the office of the City Treasurer within 30 days of the time a building permit is issued for construction of the improvement, or new construction, as the case may be. The application must be in writing, on forms specified by the City, setting forth the following information:
(a) 
The date the building permit was issued for such improvement;
(b) 
The location of the property to be improved;
(c) 
The nature of the property to be improved;
(d) 
The type of improvement;
(e) 
The summary of the plan of the improvement;
(f) 
The cost of the improvement;
(g) 
Whether the property has been condemned by any governmental body for noncompliance with laws or ordinances;
(h) 
That the property has been inspected and verified by the Department of Public Safety;
(i) 
The number of temporary and permanent full-time jobs being created by this improvement. Applicant should indicate any efforts for local hiring;
(j) 
Documentation of initial assessment of the property and the after-repair value/reassessment of the improvement;
(k) 
Submit a procurement plan demonstrating good faith effort to increase purchasing with Chester City based companies;
(l) 
Such additional information as the City may require, including, but not limited to how the project meets housing development goals of Chester such as:
[1] 
Increasing housing diversity;
[2] 
Supporting strong neighborhoods through increased density and workforce housing, and incorporating sustainability feature in the home.
(2) 
There shall be on the form application for building permit the following notice:
"NOTICE TO TAXPAYER - by City Ordinance Chapter 503, Article IX, you may be entitled to exemption from tax on your contemplated improvement or new residential construction by re-assessment. The application for exemption may be secured from the office of the City Treasurer and submitted to that office within 15 days from the time the Building Permit is issued.
B. 
A copy of the exemption request shall be forwarded by the City Treasurer to City Council in its capacity as the City's Board of Revision of Taxes. Within 60 days the Board shall determine whether the exemption shall be granted and shall, upon completion of the improvements or new construction, and notification from the Department of Public Safety that the improvements comply with all the applicable building codes, request that the Delaware County Board of Assessment and Appeals assess separately the improvement and calculate the amounts of the assessment eligible for tax exemption in accordance with the limits established by this article and notify the taxpayer and local taxing authorities of the re-assessment and the amount of the assessment eligible for exemption. In the case of new residential construction, the Delaware County Board of Assessment and Appeals shall assess, separately, the dwelling unit and the land upon which the new residential construction stands, and shall otherwise perform its duties as above provided for construction of the improvements. The exemption provided for hereunder shall commence in the tax year immediately following the year in which the building permit is issued.
C. 
The cost of improvements and new residential construction 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 amendments to this article, if any, shall not apply to requests initiated prior to their adoption.
D. 
Appeals from the re-assessment and the amount eligible for the exemption may be taken by the City or the taxpayer as provided by law.
Reports containing information relative to the amount of each exemption and the property owner receiving each exemption shall be presented by the CFO to Council on an annual basis each calendar year in which this article is in effect.
A. 
The City Controller shall perform a yearly audit of the administering agencies, departments, authorities, and entities within the Controller's jurisdiction to do so, pursuant to the powers outlined in the Home Rule Charter.
B. 
The scope of this audit should include an accounting of all the projected and cataloged value of all assessment reductions, tax credits, and tax abatements issued through this article, as well as projections of incoming revenue upon expiration of any assessment reductions, tax credits, and tax abatements issued through these programs in the most recent calendar year prior to the commencement of the audit.
C. 
This audit shall document the total production, conversion, and removal of residential, commercial, and industrial units that result from projects or properties granted tax abatements described herein, including those associated with program compliance for the purposes of determining eligibility for exemptions, as delineated on a per-project basis.
D. 
This audit shall be submitted to City Council and filed with the City Clerk.
This article shall become effective upon adoption, by another local taxing authority of a resolution by its municipal governing body exempting from real property taxation improvements to deteriorated properties and residential construction in deteriorating areas in accordance with IDRPA and the terms of this article. All prior ordinances or parts thereof conflicting herewith, are hereby repealed.
The provisions of this article shall expire on December 31, 2026, unless extended by ordinance duly adopted. Any applicant for tax abatement must have a building permit to be eligible for tax abatement treatment hereunder, with that permit having been issued on, or before, the 31st day of December, 2026.
No amendment to this article shall be effective unless consented to by resolution or ordinance of each taxing authority consenting to be bound by the terms of this article.