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SPECIFIC EXPLANATION:
Section 44-5 of the Code of Ordinances provides an incentive for historic preservation in the form of a tax exemption for historic sites. Prior City Council designation of the property as a contributing structure in an historic district is a prerequisite to granting an historic site tax exemption. The property owner must then demonstrate to the Chief Development Officer that restoration and preservation expenditures were made in an amount equal to at least 50% of appraised value of the improvements and within the time frames prescribed in the Ordinance. The tax exemption amount is then calculated based on the amount spent on restoration, up to 100% of ad valorem taxes that would be owed the following year on the appraised value of improvements only (not land). The exemption is for a 15-year period but is capped each year at the exemption amount calculated for year one.
The owner of the following contributing structures is in historic district submitted sworn affidavits that meet the criteria set out in the Code of Ordinances. The table below shows the base value of improvement (pre-restoration), the amount of the restoration investment made by the property owner, the approximate dollar amount of the taxes that will be foregone for the first year based upon Harris County Appraisal District’s 2014 property valuation and the City’s current property tax rate, and the estimated maximum amount that would be exempt over 15 years:
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Contributing Structure
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Historic District
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Base Yr. Improvement Value (HCAD)
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Total Restoration Expenditure
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Estimated Yr. One Exemption
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Max. Estimated Exemption over 15 Yr.
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1901 North Blvd
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Boulevard Oaks
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$48,930
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$1,162,396
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$4,009
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$60,135
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209 E. Woodland St
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Germantown
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$74,638
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$238,728
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$1,476
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$22,140
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523 Bayland Ave
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Woodland Heights
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$55,356
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$115,016
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$3,843
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$57,645
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1539 Rutland St
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Houston Heights West
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$76,481
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$440,731
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$2,517
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$37,755
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1845 Harvard St
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Houston Heights East
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$42,176
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$330,579
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$12,544
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$188,160
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101 Parkview St
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Germantown
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$46,724
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$485,804
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$993
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$14,895
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1433 Allston St
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Houston Heights West
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$169,800
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$396,016
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$1,072
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$16,080
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1334 Ashland St
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Houston Heights West
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$7,000
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$419,246
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$1,643
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$24,645
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518 Harvard St
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Houston Heights South
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$212,000
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$215,754
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$1,362
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$20,430
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419 Euclid St
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Woodland Heights
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$141,316
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$279,433
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$1,077
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$16,155
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606 Colquitt St
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First Montrose Commons
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$35,000
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$114,972
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$221
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$3,315
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208 East 8th Street
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Houston Heights South
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$128,065
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$126,123
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$796
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$11,940
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715 Pizer Street
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Norhill
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$139,146
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$219,215
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$1,383
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$20,745
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Since the properties have been designated as contributing structures in an historic district, and meet all other criteria, it is recommended that City Council grant each of the properties the exemption from ad valorem taxation provided under Section 44-5 of the Code of Ordinances.
cc: Marta Crinejo, Agenda Director
Anna Russell, City Secretary
David Feldman, City Attorney
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