The Virginia Senate passed a bill to address the issue of affordable housing in Charlottesville by a vote of 37-3 Friday.
The bill, sponsored by Del. David Toscano, D-Charlottesville, allows the City to make grants and loans to moderate- or low-income citizens for the purchase of homes. Additionally, the bill allows the City to offer real estate tax deferrals for current low-or moderate-income homeowners.
According to Toscano, the bill was proposed by Charlottesville City Council to the Virginia General Assembly as part of the city's legislative package.
"It gives them more flexibility to devise new programs that they couldn't do under the current state law," Toscano said.
Charlottesville Vice Mayor Kevin Lynch said the bill will better prepare homeowners in dealing with property assessments, which have been steadily increasing over the past four years.
He explained there are three types of real estate in the city: commercial, residential rental and residential home ownership. All three types have the same tax rate, but only commercial and rental property owners profit from increased property assessments, he said.
"The intention [of the bill] is that people whose property values have been rapidly escalating will see less of a bite this year," Lynch said.
City Council based their proposal on a system currently in use in Alexandria, Va., according to Charlottesville Mayor David Brown.
Under the Alexandria system, the city can grant credit to homeowners, Brown said. By defining the parameters of eligibility, this credit can be used to target certain groups of people, such as low- and moderate- income citizens, he explained.
"We can't tax homeowners and businesses differently," Brown said, but explained that with the passage of the bill, the City will have "a tool to selectively lower the rate for homeowners and not for businesses."
Sen. Frank Ruff, R-Mecklenburg, was one of the three Senate members to vote against the legislation.
"It's just a philosophical decision for me," Ruff said. "I don't like legislation that raises taxes. You'd be providing a benefit to a certain subset of the city and, in turn, would have to raise that tax money from the other 90 percent of the people."
However, Toscano denied the idea that the bill would cause a hike in taxes.
"This has nothing to do with a tax increase," he said. "The [City] Council will work within its budget."
According to Lynch, City Council has already started working the bill into the upcoming budget.
"We're coming up with a proposal within the next month," Lynch said. "We will have money set aside for tax relief by April."
Toscano said homeowners may see benefits from the bill as early as this coming fall.
The bill was previously passed by the House of Delegates and will now go to Governor Tim Kaine for his signature. If signed, the bill will go into effect July 1 of this year.
Read More
Department of Education reverses course, awards Federal Executive Institute to U.Va.
By Ford McCracken | 2 days agoThe ED had previously awarded the institute to Charlottesville City Schools.
Students reflect on the life and legacy of Pope Francis
By Bertie Azqueta | 3 days agoAt the University, students shared a range of perspectives on his legacy of reform, inclusivity and his impact on the global Catholic community.
What does the University’s contract with dining service Aramark entail?
By Brandon Kile | 3 days agoThe Cavalier Daily submitted a Freedom of Information Act request to the University for its contract with Aramark to understand the specific terms of the agreement.
