Roanoke council approves real-estate tax exemption for Restoration Housing, rejects vehicle exemption for Behavioral Health Navigators

Roanoke City Council on Dec. 16 adopted an ordinance exempting from real-estate taxation two properties owned by single-member limited liability companies whose sole member is Restoration Housing, a Virginia nonprofit that rehabilitates and manages affordable rental units.

Isabelle Thornton, executive director of Restoration Housing, told council the organization operates on tight margins and that the properties in question include family-sized units leased to tenants using Section 8 vouchers. “We are requesting tax exemption as we are a non profit, who owns the properties,” Thornton said, adding that the four units at the two addresses compare favorably to HUD fair-market rents and fill a local need for larger family units.

City staff and the deputy city attorney reviewed statutory criteria the council must consider, including nonprofit status, revenue impact to the locality and whether granting an exemption would open the door to similar requests. Staff recommended the council could adopt the exemption while continuing a broader review of exemption policy; after discussion the council voted by roll call to adopt the ordinance.

In a separate public hearing the council considered an ordinance to exempt certain personal property owned by Behavioral Health Navigators Inc., specifically a 2023 Genesis vehicle described in the organization’s application as used for client transport and outreach. Several council members said exempting a relatively new vehicle raised policy concerns about equitable treatment and precedent for other organizations. The Commissioner of the Revenue clarified that under state code the organization had not been found to meet statutory classifications that automatically exempt property from taxation.

Following discussion the ordinance to exempt the vehicle failed on a roll-call vote (all members voting No). Council members who opposed the exemption said the city should prioritize limited tax-exemption relief for providers whose structures and services meet established statutory and policy criteria.

What’s next: City staff indicated the office of real-estate assessment and the council will continue policy-level work on exemptions; restoration-housing applicants whose applications were filed before Jan. 1 would not be barred from receiving relief if council later chooses to adopt policy changes.

Votes at a glance: - Ordinance exempting real property owned by single-member LLCs (Restoration Housing): Adopted (roll call: Aye by all present). - Ordinance exempting personal property owned by Behavioral Health Navigators Inc. (2023 Genesis vehicle): Failed (roll call: No by all present).

Sources: Statements and testimony at the Dec. 16 Roanoke City Council meeting, including Isabelle Thornton, Executive Director, Restoration Housing; Commissioner of the Revenue (name given in transcript); deputy city attorney comments on statutory criteria.