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QUESTION
What information is required from building owners applying for the tax exemption program?
0:30:51
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109 sec
The council member is informed that building owners applying for the tax exemption program do not need to provide financial distress information since it is a reimbursement program, not underwritten financial assistance.
- Owners must secure upfront financing themselves to complete the eligible renovation work
- Owners cannot owe the city any municipal charges to receive the tax exemption
- While financial struggles may exist, the program does not assess those factors directly
Pierina Ana Sanchez
0:30:51
And can you share now about the characteristics of the buildings that were approved in the in the past year.
0:30:57
So the age of buildings, if you Do you require information on financial distress from applicants, or did you in the past?
Kim Darga
0:31:06
So we do not this is not because it's an as of program.
0:31:11
It's not a program where we're underwriting a benefit.
0:31:14
Right?
0:31:14
So we have other programs like that where we're writing loans or discretionary tax incentive, and so we are structuring that financial assistance to address both the financial and physical needs.
0:31:25
This is different in that An owner self identifies as wanting and needing the assistance.
0:31:37
And they apply based on work they are planning to do, and they complete that work, and then we process an application.
0:31:47
There are requirements that I think speak to financial conditions within the building.
0:31:56
So first, Because this is a reimbursement program, the owner has to be able to actually secure some financing upfront to do the work.
0:32:07
That could be that they're getting a loan, a bridge loan, maybe they have some savings.
0:32:13
So that's number 1.
0:32:15
2 in order to be eligible for us to for the benefit of the other day, end of the day, and for us to process the certificate of eligibility.
0:32:26
The owner cannot owe the city for any municipal charges.
0:32:31
Yep.
0:32:32
So I think those 2 things speak to financial conditions, but it's certainly possible that owners are struggling with other things that we wouldn't see.