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June 23, 2026 <br /> <br /> <br /> To be eligible for the assessment credit, the property owner must apply prior to the <br />substantial rehabilitation, must perform work that increases the assessed value by at least <br />40% for residential properties and at least 60% for commercial or industrial properties, <br />and must comply with all other program rules and requirements. <br /> <br />Discussion: <br /> <br /> Unlike the programs of neighboring localities, the existing Portsmouth program <br />does not require completion of the substantial rehabilitation within any specific timeframe <br />after application approval, nor does it require timely payment of taxes and compliance <br />with zoning and building code requirements as a condition of continuing eligibility for the <br /> <br />credit. <br /> <br /> The amendment proposed for Council consideration rectifies these issues in order <br />to ensure that rehabilitations are timely completed and that properties remain code- <br /> <br />compliant after rehabilitation is completed. <br /> <br /> The amendment provides that, to be eligible for the credit, residential <br />rehabilitations must be completed within two years from application approval and <br /> <br />commercial/industrial rehabilitations within three years from application approval.For <br />projects with an application that was approved prior to adoption of the amendment, <br />rehabilitations must be completed within 6 months of adoption of the amendment or two <br />years (residential)/three years (commercial/industrial) from the approval date of the <br /> <br />application, whichever is later. <br /> <br /> The amendment also provides that the credit may be terminated if, after completion <br />of the rehabilitation, the property becomes out of compliance with City building or zoning <br />ordinances and the non-compliance is not cured within 30 days, or if real estate taxes <br /> <br />levied against the subject property are delinquent for 30 days or more. <br /> <br />Financial impact: <br /> <br /> None. <br /> <br />Recommended Action: <br /> <br /> Adoption of the ordinance. Strategic Pillar # 3: Economic Growth & Citywide <br />Revitalization. <br /> <br />Next Steps Following Council Action: <br /> <br /> The City Assessor will provide notice of the amendment to owners of properties <br />that are currently receiving the credit, or that have had applications approved for the <br /> <br />program but have not yet completed the substantial rehabilitation. <br /> <br />“ORDINANCE TO AMEND AND REORDAIN DIVISIONS 5 (REHABILITATED REAL <br />ESTATE) AND 6 (REHABILITATED REAL ESTATE IN URBAN ENTERPRISE ZONE) <br />OF ARTICLE III (EXEMPTIONS FROM REAL ESTATE TAXES) OF CHAPTER 35 <br />(TAXATION) OF THE CODE OF THE CITY OF PORTSMOUTH, VIRGINIA TO MODIFY <br />THE RULES AND REQUIREMENTS APPLICABLE TO THE REHABILITATED REAL <br />ESTATE ASSESSMENT CREDIT PROGRAM. <br />” <br /> <br />26-152b: <br /> <br />Adoption of an ordinance accepting STEP-VA Peer/Family Recovery Supports <br />Enhancement funding in the amount of $153,493.37 from the Virginia Department <br />of Behavioral Health and Developmental Services and appropriating said amount <br />in the FY 2026 Behavioral Healthcare Service Fund for use by BHS. <br /> <br />Background: <br /> <br /> DBHDS issued a competitive grant opportunity providing one-time funding to <br />Community Services Boards to expand and formalize peer-led recovery support services. <br />Portsmouth Behavioral Healthcare Services (PBHS) applied for and was awarded <br />$153,493.37 to support the hiring of additional Peer Recovery Services staff for the period <br /> <br />of June 1, 2026 through June 30, 2027. <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br />