Passaic council introduces tax‑exemption ordinance to incentivize home improvements amid rent stabilization debate

The Passaic City Council on Feb. 4 introduced an ordinance amending chapter 2‑75 to create a five‑year tax exemption on assessed added value for qualifying residential improvements, seeking to encourage owners to rehabilitate aging housing stock while the city maintains rent stabilization measures.

Business administrator Rick (last name not specified in the record) and mayoral staff framed the ordinance as an incentive limited to improvements rather than full abatements of existing property tax. The administration said the exemption applies to new assessed value from eligible improvements, not to reduce a property's current tax base. The exemption would cap qualifying assessed added value at amounts consistent with state guidelines (the discussion referenced a $25,000 cap for dwellings as embedded in the state guidance used to draft the ordinance).

"This in turn would also incentivize the property owner to rehabilitate that old housing stock to balance, right, the quality of life and the affordability for our…