[Adopted as Article 383 of the Codified Ordinances; amended in its entirety 12-17-2019 by Ord. No. 20-2019]
As used in this article, the following terms shall have the meanings indicated:
DETERIORATED PROPERTY, COMMERCIAL
Any industrial, commercial or other business property owned by an individual, association or corporation, and located in an investment opportunity area, as hereinafter defined, or any such property which has been the subject of an order by a government agency requiring the unit to be vacated, condemned or demolished by reason of noncompliance with laws, ordinances or regulations.
DETERIORATED PROPERTY, MIXED-USE
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; and is located in an investment opportunity area, as hereinafter defined, or any such property which has been the subject of an order by a government agency requiring the unit to be vacated, condemned, or demolished by reason of noncompliance with laws, ordinances, or regulation.
DETERIORATED PROPERTY, RESIDENTIAL
A dwelling unit located in an investment opportunity area, as hereinafter defined, 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
A house, double house or duplex, townhouse or row house, apartment, condominium 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 for the exclusive use of the occupant or occupants.
IMPROVEMENT
Repair, construction or reconstruction, including alterations and additions, having the effect of rehabilitating a deteriorated property, either commercial or residential, so that its assessed value increases more than $25,000, and one of the following: it becomes habitable or attains higher standards of safety, health, economic use or amenity; or is brought into compliance with laws, ordinances or regulations governing such standards; or is new residential construction in an investment opportunity area. Ordinary upkeep and maintenance shall not be deemed an improvement.
INVESTMENT OPPORTUNITY AREA
The areas described above within the City of Lancaster determined by the County of Lancaster to be eligible for tax exemption under Act 76 of 1977 ("Local Economic Revitalization Tax Assistance Act")[1] and Act 42 of 1977 ("Improvement of Deteriorating Real Property or Areas Tax Exemption Act").[2]
RESIDENTIAL CONSTRUCTION
The building or erection of dwelling units, as defined above, upon vacant land or land specifically prepared to receive such structures.
[1]
Editor's Note: See 72 P.S. § 4722 et seq.
[2]
Editor's Note: See 72 P.S. § 4711-101 et seq.
A. 
There is hereby exempted from all real property taxation assessed by the City of Lancaster the assessed valuation of:
(1) 
Improvement to deteriorated property, commercial; deteriorated property, mixed-use and/or deteriorated property, residential.
(2) 
Improvement to any residential, commercial or mixed-use properties, without regard to whether such properties qualify as deteriorated property, commercial; deteriorated property, mixed-use or deteriorated property, residential, provided said improvements are constructed with an investment opportunity area.
(3) 
New residential construction built in any investment opportunity area.
B. 
The exemption authorized by Subsection A(1) and (2) of this § 270-33 shall be in the amounts and in accordance with the provisions and limitations herein provided.
A. 
The exemption from real estate property taxes assessed by the City of Lancaster shall be as follows:
(1) 
To that portion of the additional assessment attributable to the actual cost of improvement to deteriorated property, commercial;
(2) 
To that portion of the additional assessment attributable to the actual cost of improvement to deteriorated property, mixed-use;
(3) 
To that portion of the additional assessment attributable to the actual cost of improvement to deteriorated property, residential;
(4) 
To that portion of the additional assessment attributable to the actual cost of improvement to any residential, commercial or mixed-use properties, without regard to whether such properties qualify as deteriorated property, commercial; deteriorated property, mixed-use or deteriorated property, residential, provided said improvements are constructed within an investment opportunity area; and/or
(5) 
To the assessment valuation attributable to the actual cost of new residential construction within an investment opportunity area.
B. 
The date of improvement shall be the date of issuance of the building permit, improvement record or other required notification of construction.
C. 
In all cases the exemption from taxes shall be limited to that portion of the additional assessment attributable to the improvement or new residential construction, as the case may be, and for which a separate assessment has been made by the County Board of Assessment Appeals and for which an exemption has been separately requested. No tax exemptions shall be granted if the property owner does not secure the necessary and proper permits prior to making an improvement of 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 Lancaster.
D. 
In any case, after the effective date of this article where deteriorated property, commercial; deteriorated property, mixed-use or deteriorated property, residential 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 said 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 residential construction that is in excess of the original assessment that existed prior to damage, destruction or demolition of the property.
A. 
The schedule of real estate taxes to be exempted for improvement to deteriorated property, residential (excluding new residential construction in an investment opportunity area) shall be in accordance with the below portion of Improvement to be exempted each year:
Length
Portion
1st year
100%
2nd year
90%
3rd year
80%
4th year
70%
5th year
60%
6th year
50%
7th year
40%
8th year
30%
9th year
20%
10th year
10%
(1) 
After the 10th year the exemption shall terminate.
B. 
The schedule of real estate taxes to be exempted for improvement to deteriorated property, commercial; deteriorated property, mixed-use or property which was deteriorated property, commercial or deteriorated property, residential at the time of application for a building permit, but as a result of improvement will be converted to a mixed-use property, combining residential and commercial uses, shall be in accordance with the below portion of improvement to be exempted each year:
Length
Portion
1st year
100%
2nd year
90%
3rd year
75%
4th year
60%
5th year
45%
6th year
30%
7th year
15%
(1) 
After the seventh year the exemption shall terminate.
C. 
A property owner or developer building new residential construction may choose at the time of application for a building permit one of the following schedules of real estate taxes to be exempted for new residential construction of dwelling units in an investment opportunity area.
(1) 
A schedule of real estate taxes to be exempted in accordance with the below portion of new residential construction of residential dwelling units to be exempted each year:
Length
Portion
1st year
100%
2nd year
90%
3rd year
75%
4th year
60%
5th year
45%
6th year
30%
7th year
15%
(2) 
A schedule of real estate taxes to be exempted in accordance with the below portion of new residential construction of residential dwelling units to be exempted each year shall be based upon the new residential construction achieving one or more levels of certification under the International Construction Code 700-2008 National Green Building Standard. The City of Lancaster shall require verification of the certification level achieved prior to obtaining an exemption. To obtain a three-year exemption, all dwelling units must achieve a bronze certification. To obtain a four-year exemption, all dwelling units must achieve a silver certification. To obtain a five-year exemption all dwelling units much achieve a gold certification.
Length
Portion
1st year
100%
2nd year
100%
3rd year
100%
4th year
100%
5th year
100%
(3) 
Depending upon the Green Building Standard certification achieved, the exemption shall terminate on the third, fourth or fifth year.
D. 
The exemption from taxes granted under this article shall be upon the property and shall not terminate upon the sale or exchange of the property.
E. 
The exemption from taxes hereunder shall be forfeited by the applicant and/or any subsequent owner of the real estate for failure to pay nonexempt real estate taxes by their due date, i.e., the last date upon which taxes may be paid without penalty. Upon receipt of notice of nonpayment of nonexempt real estate taxes, the Chief Building Code Official shall direct the City Treasurer to discontinue the exemption provided for hereunder.
F. 
If an eligible property is granted tax exemption pursuant to this article, the improvement shall not, during the exemption period, be considered as a factor in assessing other properties.
A. 
Application.
(1) 
Any person desiring tax exemption pursuant to this article should apply to the City of Lancaster at the time that a building permit is secured for construction of improvement or new residential construction, as the case may be. The application must be in writing upon forms specified by the City setting forth the following information:
(a) 
The date of the building permit was issued for said improvement;
(b) 
The location of the property to be improved;
(c) 
The nature of the property to be improved;
(d) 
The type of improvement (commercial, mixed-use, or residential);
(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 the laws or ordinances;
(h) 
The property has been inspected and verified by the Bureau of Code Compliance and Inspections, or its successor, and such additional information as the City may require.
(2) 
There shall be on the application form for a building permit, the following notice:
"Notice to Taxpayer. By Ordinance No. 15 of 2009 you may be entitled to exemption from tax on your contemplated improvement by reassessment. An application for exemption may be secured from the Bureau of Code Compliance and Inspections or other properly designated official of the City of Lancaster and must be filed at the time the building permit is secured."
B. 
A copy of the exemption request shall be forwarded to the County Board of Assessment Appeals by the City's Chief Building Code Official. The Board shall determine whether the exemption shall be granted and shall, upon completion of the improvement or new residential construction, and notification from the City Building Official that the improvement and new residential construction comply with all applicable building and housing codes, 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 the local taxing authorities of the reassessments and amounts of the assessment eligible for exemption. In the case of new residential construction, the Board 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 improvement to residential, mixed-use and commercial properties.
C. 
The cost of improvement to commercial properties and mixed-use properties or costs of improvement or construction per dwelling unit of residential properties, as the case may be, 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.
All properties located within any tax increment financing zone (TIF) which were not grandfathered and enrolled in that program shall be excluded from the exemption from taxes created under this article.
No amendments to this article shall be effective unless consented to by ordinance or resolution of each local taxing authority who has consented to be bound by the terms of this article.
This article shall automatically terminate in 10 years following the effective date hereof; provided, however, that any taxpayer who has received or applied for the exemption granted by this article prior to the expiration date herein provided, shall, if said exemption is granted, be entitled to the full exemption authorized herein.
The provisions of this article are not severable, and if any section, sentence, clause, part or provision hereof shall be held to be illegal, invalid or unconstitutional by any court of competent jurisdiction, such decision of the Court shall invalidate the entire article. It is hereby declared to be the intent of the City Council of the City of Lancaster, Lancaster County, Pennsylvania that this article would not have been enacted but for the inclusion of this section, sentence, clause, part or provision found to be illegal, invalid or unconstitutional.