Title
Ordinance to Amend and Reenact the City Code of the City of Hampton, Virginia by Amending Chapter 37 - Taxation, Article II - Real Estate Taxes to Add Division 8 - Classification of Blighted Properties
Purpose
PURPOSE/BACKGROUND:
See Discussion.
Discussion:
Code of Virginia Sec. 58.1-3221.6 authorizes localities with a score of 100 or higher on the fiscal stress index, published July 2020 by the Department of Housing and Community Development ("DHCD") to enact legislation to establish "blighted properties" and "derelict buildings" as a separate classifications for real property tax purposes. The City of Hampton had a score of 105.29 on the July, 2020 DHCD fiscal stress index. During the FY26 City Council Budget Retreat, staff was directed to move forward with developing a standardized process to implement one or both of these rates for Fiscal Year 2027. It was ultimately decided to move forward with a process for blighted properties only (given the challenges of identifying structures that meet all of the criteria of derelict buildings). Properties classified as blighted may be taxed at a rate that is up to five percent (5%) higher than the general real property tax rate
"Blighted properties" are defined as any individual commercial, industrial, or residential structure or improvement that endangers the public’s health, safety, or welfare because the structure or improvement upon the property is dilapidated, deteriorated, or violates minimum health and safety standards, or any structure or improvement designated as blighted pursuant to §36-49.1:1 of the Code of Virginia under the process for determination of “spot blight.” The process to identify those properties is memorialized in the ordinance below proposed for adoption.
The City Manager's Recommended Budget for Fiscal Year 2027 includes the recommendation of a general real property tax rate of $1.14; and a blighted properties real property tax rate of $1.20.
Impact:
The enactment of this ordinance creates another tool to incentivize owners of property in disrepair to improve the condition of a property.
Recommendation:
Rec
May 6, 2026: Introduction
May 13, 2026: Approval
Body
BE IT ORDAINED by the City Council of the City of Hampton, Virginia, that Chapter 37, Article II of the City Code of the City of Hampton, Virginia be amended to add Division 8, to be effective as of July 1, 2026, and to read as follows:
CHAPTER 37 - TAXATION
. . .
ARTICLE II. - REAL ESTATE TAXES
. . .
DIVISION 8. - CLASSIFICATION OF BLIGHTED PROPERTIES
State Law references - Authority to adopt an ordinance to enact this Division 8, Code of Virginia §58.1-3221.6; Definition of “blighted property”, Code of Virginia §36-3.
Sec. 37-141. - Authorized.
The city, as a “qualifying locality” as defined §58.1-3221.6 of the Code of Virginia, hereby declares blighted properties, along with the land such properties are located on, to be a separate class of property and to constitute a separate classification for local taxation of real property.
Sec. 37-142. - Blighted properties, defined.
For the purposes of this Division 8, “blighted property” means any individual commercial, industrial, or residential structure or improvement that endangers the public’s health, safety, or welfare because the structure or improvement upon the property is dilapidated, deteriorated, or violates minimum health and safety standards, or any structure or improvement designated as blighted pursuant to §36-49.1:1 of the Code of Virginia under the process for determination of “spot blight.”
Sec. 37-143. - Separate tax rate.
City council may by ordinance levy a tax on any property classified by the office of the assessor of real estate as blighted property at a rate that may exceed the rate applicable to the general class of real property by up to five percent (5%), but shall not be less than the rate applicable to the general class of real property. Such tax shall continue to be imposed until it has been determined by the office of the assessor real estate that such property no longer constitutes a blighted property.
Sec. 37-144. Assessor to determine classification.
Each January 1 and July 1, the office of the assessor of real estate shall review the condition of all properties in the city to determine (i) which properties to classify as blighted property and (ii) which properties previously classified as a blighted properties are then in a condition sufficiently improved to no longer qualify for that classification. For the purpose of this review, the office of the assessor may rely on those properties included on the city’s department of community development “Public Nuisance/Condemned” list as having been identified as “unsafe structures” under section 106.3 of the Virginia Property Maintenance Code, as it may be amended from time to time, as of the date available nearest the date of review.
Sec. 37-145. Notice.
The office of the assessor of real estate shall notify a property owner of a change in classification pursuant to this Division 8 within five (5) business day of posting the change to the assessment record of the property.
Sec. 37-146. Property owner remedies.
(a) At any time prior to the expiration of the time period for which an assessment can be appealed pursuant §58.1-3980 of the Code of Virginia, for any property that has been classified as blighted in accordance with this Division 8, the property owner may request a hearing before the city’s assessor of real estate to establish that the classification does not or no longer applies to the property. For this purpose, the owner shall follow the process prescribed in city code section 37-17.2, without being limited by the deadlines stated therein. If the assessor concurs with the property owner, the “blighted property” classification shall be removed from the property as of the date of the property owner’s request for a hearing.
(b) In addition to subsection (a), any property owner aggrieved by the application of this Division 8 may appeal the determination of the office of the assessor of real estate in the same manner as an erroneous assessment in accordance with Article 5 of Chapter 39 of the Code of Virginia.