The Housing Interpreter September 2017

the

Housing InterpreteR CURRENT TRENDS IN REAL ESTATE AND THE RICHMOND REGION

September 2017

Only 84 residents have taken advantage of Chesterfield County’s tax rehabilitation program in the past 20 years.

IN THIS ISSUE: ++Chesterfield’s Rehab Tax Abatement ++RVA on the Move: Our Transit Future ++Diving Deeper into Green

WeAreTheR.com

Chesterfield’s Rehab Tax Abatement

by Joh Gehlbach, Government Affairs Coordinator Richmond Association of REALTORS®

Chesterfield County experienced a massive

growth spurt in the 1980’s and residential housing ballooned by nearly 6%. For reference, housing stock only expanded by 1.1% in the past seven years. Today, 2 of every 3 homes in Chesterfield are over 25 years old. As your home ages, it is important to maintain and update it. This is important for not only your resale value, but helps maintain and preserve the desirability of your neighborhood for future homebuyers. Local governments know that blighted buildings are a drain on the tax payer and most offer incentives for residents to maintain their properties, including Chesterfield.

Unfortunately, the average citizen doesn’t know about these programs and Chesterfield is no exception. The County has had a tax rehabilitation program for the past 20 years and only 84 residents have taken advantage of it.

Because of the lack of utilization, the program was dramatically expanded in 2016. If your home was built before 1992, you could be eligible for a

15 year partial tax exemption when you renovate your property. This means you can create your dream kitchen or perfect bathroom and not have to pay taxes on it for the next 15 years.

To apply, you just need to file a free application with the Department of Real Estate Assessments.

You have up to a year to apply for the exemption, once you have filed the building permit for the renovations. Once the exemption application has been filed, the county assessor will determine the base value of the structure by using the existing assessed value; or if you request it, can come out and conduct an inspection.

Here is the catch: the new kitchen or new bathroom must increase the value of your house by 10%. The Assessor will return when the project is finished to make sure that’s the case.

If you are interested in learning more about Chesterfield’s Residential Rehab Program, contact the Assessor’s Office at 804-748-1321.

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Photo by GRTC Transit System

RVA on the Move: The Transit Future

by Lisa Guthrie, Executive Director of the Virginia Transit Association & Trip Pollard who directs the Land and Community Program at the Southern Environmental Law Center

Localities are expanding transportation options

nationwide, providing better access and more public transportation, rail, bicycling and walking choices. Here in the Greater Richmond Region, significant steps have been taken recently to address one of our greatest transportation gaps — the lack of effective regional public transportation services.

Why Should You Care?

The surge in attention to transit and other transportation choices is primarily due to the multiple benefits these options offer; helping to boost economic activity, relieve traffic congestion, provide greater access to jobs, revitalize communities and reduce vehicle pollution. Experience has shown that if you build a great place, people and companies will follow.

And transportation is a cornerstone to building a great place.

Forward-thinking communities increasingly recognize that a community’s ability to successfully attract and retain young professionals and prosperous retirees depends on a strong transit system. National survey data from the Rockefeller Foundation shows that two-thirds

of millennials place high-quality transportation in their top three concerns when evaluating a new place to live.

Every segment of society – individuals, families, communities and businesses – benefits from public transportation, even if they don’t ride it.

According to a 2015 survey, more than threequarters of residents believe that bus service improves the overall quality of life of residents living in our region.

Reducing or eliminating driving has a huge impact on household finances as well. For example, a two-person household can save, on average, almost $10,000 a year by downsizing to one car.

In addition, according to the American Public Transportation Association (APTA), transit generates $4 in economic returns for every $1 invested and residential property values performed 42% better on average if they were located near public transportation with highfrequency service. Research commissioned

by APTA and the National Association of REALTORS® in 2013 indicated that urban form and transportation options played a key role in

the ability of residential properties to retain value during a recession.

Good News in the Richmond Region

This is an exciting time for transit in our region.

The new Bus Rapid Transit (BRT) system, the Pulse, is the largest transit infrastructure investment in the city in decades. Think of it as a modern streetcar that runs on wheels, much of it in its own dedicated lane, that can serve as the spine to a whole new transit network. The Pulse will begin to roll down Broad and Main Streets in 2018, running buses every 10-15 minutes along its 7.6 mile route to activity centers from Willow Lawn to Rocketts Landing.

GRTC will launch a new transit network plan at the same time as the Pulse. The network plan will better integrate existing routes with the new Bus Rapid Transit system, and it will also provide more frequent service on other routes, but with fewer stops to go farther faster.

The economic study GRTC conducted concluded that the Pulse could significantly increase local property values, including raising residential property values by $349 million to $1.2 billion. To help capture potential benefits, city council recently adopted a Pulse Corridor Plan that will encourage greater development near the new transit stations with an emphasis on more compact, mixed use development and fewer parking lots, while also providing incentives for providing affordable housing.

On a regional scale, a new Greater RVA Transit Vision Plan calls for BRT service to be added to six major routes. Although the counties only have minimal transit service today, discussions are currently underway in both Henrico and Chesterfield to expand and improve service and there is significant public support for such steps.

Challenges Ahead

There are, however, challenges to transit in our future that can halt the wheels of progress.

Many of these challenges involve funding. At the federal level, budget proposals are pending in Congress that would significantly cut available funding for new transit services.

At the state level, an August report to the General Assembly from the Virginia Department of Rail and Public Transportation (DRPT) cited a 33 percent increase in the demand for public transportation services over the last decade. The General Assembly’s modest funding increases for public transit over the last two decades, however, have been unable to meet the growing demand for investment in transit capital.

So what can you do?

• Contact government officials: Let local, state and federal officials know you support public transportation in your community.

Federal officials particularly need to hear that they should oppose budget cuts to transit.

• Use it or lose it: Show your support for public transportation, including using it whenever possible. Systems with high ridership are better able to expand routes, upgrade services and technology, and qualify for government funding.

• Tell the story: Your family, friends, colleagues and clients will be much more likely to also support public transportation, if they hear good things about it from you!

Diving Deeper into Green

by Stuart Nuckols, Director of External Affairs Viridiant

At Viridiant, we are committed to supporting

sustainable building processes. Through certification programs and sustainability solutions, Viridiant helps to set a path for sustainable, affordable, energy efficient housing. The EarthCraft House program, Viridiant’s flagship program offering, provides a blueprint for healthy, comfortable homes that reduce utility bills and protect the environment with comprehensive, third party verification and diagnostic testing to ensure quality and performance. By incorporating energy and resource efficient designs and systems, all EarthCraft certified homes demonstrate energy costs that are, on average, 35% below those of a typical new home, directly translating to monthly utility savings for the homeowner, while lessening the home’s impact on the environment.

Viridiant also offers a variety of services to help address energy efficiency and sustainability in existing homes. Comfort problems? Sustainability questions? Help with an addition or renovation?

We’ve got you covered. We offer a variety of resources and services for helping your home be the best it can be.

Photo by Bain-Waring Builders

Unsure what a green home looks like and entails?

Let’s take a closer look at a newly-built EarthCraft house in Glen Allen from local builder, BainWaring Builders.

Home Energy Pledge Take the pledge and receive a helpful checklist and guidebook to make sustainable, energy efficient updates to your home.

Evaluate Your Home Take the Home Energy Assessment and evaluate your home’s energy efficiency.

Plan Review For additions or renovations, meet your efficiency goals and ensure details are specified correctly in your plans.

Consulting Want assistance weighing your efficiency options? Viridiant can provide building science consulting services.

Consider Solar Once you’ve made efficiency improvements, it may be wise to add solar.

Learn more, get started or take the Solar Assessment.

About the House

Viridiant recently completed EarthCraft certification on 11500 Grey Oaks Estates Run, a new construction, EarthCraft-certified, single-family home in Glen Allen, VA. The home has an impressive HERS index of 52, indicating that it’s 48% more efficient than a house built to code.

A number of efficiency improvements contributed to this low HERS index. The crawlspace was conditioned and the first-floor air handler is located there, keeping it in conditioned space. Instead of using oriented strand board (OSB) for sheathing, R-3 structurally insulated sheathing (SIS) was used in its place. Using this minimizes thermal bridging and improves the R-value of the wall assembly, making it a smart improvement over OSB. The properties of SIS also mean that house-wrap is not required, saving the builder a step while still providing a moisture barrier. Since SIS has its seams taped, it contributes to a tighter building envelope.

This house tested in at a notable 2.5 ACH50. With a tight envelope, proper ventilation and safe combustion practices are essential. Supply side ventilation is provided. The furnace and tankless water heater are high efficiency condensing ones, greatly reducing the chances of any combustion byproducts affecting the occupants. Overall duct leakage in the house was less than 3% to the outside of the home and less than 6% total.

“Having this level of performance means we can talk to our clients about things that other builders can’t,” says Mark Waring of Bain-Waring Builders. “Our house-as-a-system approach means I can tell them their new home will be cleaner, quieter, healthier, and more comfortable than any code built home using the minimum standards.”

House Snapshot • • • •

Sales Price: $753,450 4,525 square feet 6 bedrooms, 5 bathrooms EarthCraft Certified, 174 points • HERS Index: 52 • Central Fan Integrated System (CFIS) consisting of an AprilAire mechanical damper and controller programmed to provide fresh air ventilation

• Conditioned crawl space • R-3 structurally insulated sheathing (SIS) • High efficiency furnace • Tankless water heater • 2.5 ACH50 • <6% total duct leakage • Sense Energy Monitoring system installed

VIRIDIANT • 804.225.9843 • VIRIDIANT.ORG

A PUBLICATION OF THE RICHMOND ASSOCIATION OF REALTORS®

If you have a message for Richmond REALTORS®, homebuyers, or homeowners, please contact kwhitlow@RARealtors.com