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Representative Sherwood pitches tax-credit incentives to tackle abandoned and nuisance buildings
Summary
Rep. Sherwood proposed a ‘carrot-based’ bill to incentivize private redevelopment of underutilized or deteriorated buildings via property tax credits and capped the number of designations by community size; the concept avoids eminent-domain authority and includes lien priority protections for lenders.
Representative Sherwood presented a revived bill concept aiming to encourage private redevelopment of abandoned or nuisance properties through property-tax credits rather than a government takings approach. The proposal would let municipalities designate eligible properties (vacant, deteriorating, or posing health/safety risks) and offer tax credits — up to 50% of demolition costs or up to 100% for bringing a structure up to code within defined timeframes — that property owners or new purchasers could use against property taxes over a 10-year period.
Sherwood said the bill includes safeguards: designation limits based on municipal population (e.g., no more than three concurrent designations for communities under 15,000), explicit non-use of eminent domain, and lien rules that preserve preexisting bank liens ahead of city abatement liens. She noted prior versions passed committee but fell on the House floor for timing; refinements in the current draft reflect feedback from county and banking stakeholders.
Committee members asked for technical clarity on how credits are administered, the city approval and plan-review process, and whether demolition versus rehabilitation would change the credit calculation. WAM and other municipal stakeholders signaled support for a ‘‘carrot’’ approach that incentivizes remediation while limiting overreach.
No formal action was taken; the committee indicated interest in carrying the concept forward and aligning it with other housing tools under consideration.
