Council approves CHIP2025 tax-rebate for 16-unit duplex development on Hayes Street
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Summary
The Valley Center City Council approved a CHIP2025-2 commercial housing incentive for K2M Investments LLC covering eight duplex buildings (16 units) on Hayes Street, granting a three-year, 100% city property tax rebate provided ownership requirements are met.
The Valley Center City Council voted to approve a commercial housing incentive (CHIP2025-2) application from K2M Investments LLC for eight duplexes (16 total units) on Hayes Street.
City staff said the properties were completed in February 2025 and that the CHIP program provides a three-year, 100% city property tax rebate as long as the owner maintains ownership of both sides of each duplex (the lots contain a lot line down the middle; selling one side voids the rebate for that building). Staff explained the city verifies ownership annually, typically after the second-half property-tax payment is due, and refund checks are usually issued in June (the resolution sets a July 30 target for issuing refunds).
Council asked clarifying questions about the qualification and annual verification process; staff confirmed they check ownership annually and, if a sale occurred, they review whether the prior year still qualified. After brief discussion council moved and approved the application.
What happens next: staff will complete the annual verification steps and, if eligibility is met, process the tax rebate under program rules.