FAQ about 12.80 Tax Incentive for Housing Rehabilitation
1. How do I apply?
A request must be submitted in writing to the municipal assessor. You may use the application linked above and submit to PArecordsrequest@anchorageak.gov
2. What is the duration of this exemption?
10 years beginning January 1 of the first full calendar year after final approval.
3. What is the amount of this tax exemption?
The taxes eligible for exemption under this chapter are attributable only to the residential buildings and their accessory structures on the property.
This exemption is not applicable to taxes attributable to the land value, nonresidential buildings, or nonresidential portions of a mixed-use buildings.
4. What is the deadline to apply?
5:00pm on August 31st, 2030.
5. Where can I find the Vacant and Abandoned Building registry?
Contact Code Abatement Enforcement through Development Services:
Email codeabatementinspectors@anchorageak.gov
Phone: 907-343-8301
Location: Planning and Development Center, 4700 Elmore Road, Anchorage, Alaska 99507
6. How do I register my property on the Vacant and Abandoned building registry?
Visit the Development Services website https://www.muni.org/Departments/OCPD/development-services/report-problem/Pages/Vacant-and-Abandoned-Buildings.aspx
7. The application requires that the building has not undergone substantial rehabilitation, renovation, demolition, removal, or replacement within the past 15 years. What is substantial?
There isn’t a precise formula for determining whether a property has undergone substantial rehabilitation, renovation, or replacement. Instead, it depends on the type and scope of the work performed.
Repairs that fall under curable physical deterioration (think replacing broken windows, repairing a roof, installing a new hot water heater, or updating floor coverings) are usually not substantial rehabilitation on their own. For example, replacing a roof does not, by itself, change the property’s effective age or improve its overall condition classification.
However, these kinds of repairs can serve as yellow flags. When many of them are completed at once, or when they are paired with substantial upgrades to long-lived systems or structural components (think foundation, framing, plumbing, or electrical), the combined effect can alter the property’s effective age or condition. At that point, the work may cross into the territory of substantial rehabilitation, renovation, etc.
Subsection (c) of 12.80 ties substantial rehabilitation to permitted work, so conducting a permit search is another useful way to see if any major projects were undertaken.
8. The application requires floor plans – Can I draw them myself?
Hand crafted drawings may be accepted for the units being rehabilitated and any existing structures, provided they clearly and accurately describe the structures and the square footage.
The floor plans are used by the Municipal Assessor to demonstrate eligibility and to verify that the completed rehabilitated area matches the plans granted under the provisional approval.
9. The application requires work estimates. What can I provide if I do the work myself?
If you are completing the work yourself, you must still provide an estimate of the total costs. While the code does not prescribe a specific format, it is helpful to break down your estimate by component (e.g., framing, plumbing, electrical) and to distinguish between labor and material costs. Also, be sure to separate your rehabilitation costs with any new residential units.
10. What fees would be included in the 15% value of improvements?
Fees would include demolition, contractor’s work, or materials. The registration cost to be on the vacant and abandoned would not list are not included.
11. How do I complete the labor compliance requirement?
Information for labor standards can be found here: https://labor.alaska.gov/lss/
Information for worker safety standards can be found here: https://labor.alaska.gov/lss/oshhome.htm
12. The property is vacant, but I plan to build residential units. Would I still qualify?
Unfortunately, no. At least a portion of one existing residential structure must be on the property at the time of application.
13. Is anything required after I receive approval for the exemption?
The owner of the property is required to submit an Annual Compliance and Status Report no later than March 15th each year the exemption is applied. Failure to submit the annual compliance report for three consecutive years will result in termination of the exemption.
14. If I sell the property after I receive approval, will the exemption stay on the property?
Yes, the exemption shall run with the land and transfer, in whole only, to another entity or owner when the ownership of the property is transferred.
The Municipality will not prorate the exemption for a partial calendar year.