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SEC. 51A-11.207.   TAX EXEMPTION FOR HISTORIC PROPERTIES OPEN TO THE PUBLIC AND OWNED BY NON- PROFIT ORGANIZATIONS.
   (a)   General. The purpose of this tax exemption is to enable non-profit organizations to maintain historic structures that are open to the public. An application for a determination of eligibility and an application for a letter of verification are required. City council review under Subsection 51A-11.201(e) and rehabilitation of the property are not required.
   (b)   Tax exemption based upon non-profit status.
      (1)   Eligibility for tax exemption. To be eligible for this tax exemption:
         (A)   the property must be a contributing structure within a historic district;
         (B)   the property must be designated as a recorded Texas historic landmark or a state archeological landmark;
         (C)   the property must be operated by a non-profit organization that qualifies for tax exemption under Section 501(c)(3) of the Internal Revenue Code;
         (D)   the property must be open and available to the general public for tours or use at least 20 hours per month; and
         (E)   any income generated by public use of the historic property is reinvested into maintenance of the historic property or into philanthropic efforts in Dallas.
      (2)   Value and duration.
         (A)   One hundred percent of the historic property’s value is exempt from city property tax.
         (B)   The tax exemption will begin as soon as possible after verification and continue for as long as the property meets the requirements of this section.
         (C)   The tax exemption will cease if the property is no longer operated by a non-profit organization that qualifies for tax exemption under Section 501(c)(3) of the Internal Revenue Code or if the property is no longer open to the public. (Ord. 27016)
SEC. 51A-11.208.   CITYWIDE TAX EXEMPTION.
   (a)   General. The tax exemption under this section may be combined sequentially or simultaneously with other tax exemptions in this article. Tax exemptions based on maintenance are permitted at any time (including during the term of a previous tax exemption) if the owner provides additional maintenance limited to repair, reconstruction, or maintenance of the exterior facade, meeting the minimum expenditure based on the pre-rehabilitation value applicable to the subsequent application, and otherwise meets all requirements of this article.
   (b)   Tax exemption based upon maintenance of a contributing structure.
      (1)   Eligibility for tax exemption. To be eligible for this tax exemption:
         (A)   the historic property must be in a historic district; and
         (B)   the maintenance expenditures for the contributing structure must equal or exceed three percent of the pre-rehabilitation value of the contributing structure (excluding value of the land).
      (2)   Eligible expenditures. Maintenance expenditures may include the following items if done in compliance with all city regulations, building codes, and ordinances:
         (A)   Foundation repair, upgrade, or replacement.
         (B)   Exterior wall repair, weather proofing, and insulation.
         (C)   Exterior painting.
         (D)   Window repair, weather proofing, and insulation.
         (E)   Roof repair or replacement, including roofing materials, and structural, venting, and drainage systems.
         (F)   Electrical repair or replacement.
         (G)   Heating, venting, and air conditioning repair, installation, or replacement.
         (H)   Plumbing repair or replacement.
         (I)   Fireplace repair or replacement.
         (J)   Porch repair.
      (3)   Proof of expenditure. Proof of maintenance expenditures must be provided within 12 months after the landmark commission's determination of eligibility.
      (4)   Value and duration.
         (A)   The added value of the historic property over the pre-rehabilitation value will be exempt from city property tax.
         (B)   This tax exemption will begin as soon as possible after verification and have a duration of three years. (Ord. 29953)
Division 51A-11.300. Other Incentives for Historic Preservation in Urban Historic Districts.
SEC. 51A-11.301.   HISTORIC CONSERVATION EASEMENT PROGRAM.
   (a)   Purpose. The purpose of the historic conservation easement program is to encourage the preservation of historic property by making the owner eligible for a federal income tax deduction and a reduction in city property taxes.
   (b)   Applications. An application for the offer to grant the city a historic conservation easement must be filed with the director. The director shall make recommendations regarding the merits and ramifications of each application to the landmark commission, and the landmark commission shall make a recommendation to the city council. The city council may in its sole discretion accept or reject the offer of any historic conservation easement.
   (c)   Eligibility. Historic conservation easements may not be accepted by the city unless:
      (1)   The historic conservation easement is on all or a part of a historic property in an urban historic district, and
      (2)   The portion subject to the historic conservation easement is a contributing element of the historic property’s historic character.
   (d)   Commitment to repay. After acceptance of the historic conservation easement by the city, the owner must execute a commitment to repay and file it in the deed records of the appropriate county. The commitment to repay must be approved as to form by the city attorney. The commitment to repay must run with the land and bind the owner and his successors, heirs, and assigns. The commitment to repay must provide that any unpaid repayment is a lien against the historic property. The commitment to repay must indemnify the city against all claims arising out of the acceptance by the city of a historic conservation easement.
   (e)   Reappraisal. Historic conservation easements that are accepted will be forwarded by the director to the appraisal district for reappraisal of the historic property. If the historic property is reappraised, the reappraisal will not affect the ability of the owner to apply for the other incentives contained in this article.
   (f)   Maintenance. Maintenance of the portion of the historic property covered by the historic conservation easement in compliance with all city ordinances and regulations remains the responsibility of the owner. If the portion of the historic property covered by the historic conservation easement is damaged, the owner must immediately rehabilitate the portion of the historic property covered by the historic conservation easement in conformance with the preservation criteria of the historic district.
   (g)   Historic property destruction or alteration.
      (1)   If it is suspected that the portion of the historic property covered by the historic conservation easement has been totally or partially destroyed or significantly altered by the willful act or negligence of the owner or his representative in violation of the preservation criteria in the historic district ordinance, the city council, landmark commission, or city manager shall immediately cause the matter to be scheduled for consideration by the city council. The director shall give written notice of the hearing before the city council to the owner at least 10 days before the hearing date. If, after the hearing, the city council determines that the portion of the historic property covered by the historic conservation easement has been totally or partially destroyed or significantly altered by the willful act or negligence of the owner or his representative in violation of the preservation criteria in the historic district ordinance, the director shall notify the appraisal district and the owner shall immediately repay to the city all of the tax foregone.
      (2)   Where the portion of the historic property covered by the historic conservation easement is totally or partially destroyed or significantly altered other than by the willful act or negligence of the owner or his representative, the owner shall, within 30 days, request a certificate for demolition when rehabilitation is not feasible, or request a certificate of appropriateness to rehabilitate the portion of the historic property covered by the historic conservation easement. The landmark commission shall determine whether rehabilitation is feasible during its consideration of the certificate for demolition or certificate of appropriateness. In cases in which the portion of the historic property covered by the historic conservation easement is demolished pursuant to a certificate for demolition or rehabilitated in compliance with a certificate of appropriateness, repayment of the tax revenues that were not paid because of the historic conservation easement is not required. (Ord. Nos. 23506; 24584; 25509; 27016)
SEC. 51A-11.302.   TRANSFER OF DEVELOPMENT RIGHTS.
   (a)   In general. Development rights of a historic property may be transferred in accordance with this section. For purposes of this section, “development rights” means the difference between the actual floor area on a building site and the maximum permissible floor area as determined by the floor area ratio of the building site. The maximum floor area permitted in the West End Historic District is eight times the lot area. The minimum amount of development rights which may be transferred under this section is 20,000 square feet.
   (b)   Eligibility. Development rights for a historic property may not be transferred unless:
      (1)   the historic property is within an urban historic district;
      (2)   the historic property is a contributing structure listed in the National Register of Historic Places, if it is located in the West End Historic District; and
      (3)   the historic property has been rehabilitated within the past five years, and the total value of the rehabilitation exceeds 50 percent of the pre-rehabilitation value. Only rehabilitation may be counted in determining whether the proposed work exceeds 50 percent of the pre-rehabilitation value.
   (c)   Location. Development rights may only be transferred to building sites in the CA-1(A) and CA- 2(A) districts.
   (d)   Maximum floor area. The maximum floor area ratio may be increased by no more than 4.0 through the transfer of development rights.
   (e)   Transfer process.
      (1)   An owner who wishes to transfer development rights must submit to the director the following information in a form approved by the director and suitable for filing in the deed records of the appropriate county:
         (A)   Names and addresses of the owners of the development rights.
         (B)   Street address, lot and block number, and legal description of the historic property.
         (C)   Street address, lot and block number, and legal description of the property to which the development rights are to be transferred.
         (D)   The floor area of the historic property and the lot area of the historic property.
         (E)   The amount of development rights to be transferred.
      (2)   The director shall check the information supplied on the form and sign the form if the applicant has complied with the requirements of this section.
      (3)   When the director has signed the form, the applicant shall file the form in the deed records of the appropriate county, and shall supply the director and the building official with a copy of the filed document.
      (4)   When a person applies for a building permit to use the transferred development rights, the building official shall forward the building permit application and the form transferring the development rights to the director. The director shall review the application and verify that the development rights have been properly transferred and may be used.
      (5)   The recipient of the transferred development rights may further transfer all of the development rights received by following the same process described in this section. (Ord. Nos. 23506; 24584; 25509; 27016)
Division 51A-11.400. Sunset Provision and Coordination with Pending Tax Exemptions.
SEC. 51A-11.401.   SUNSET PROVISION.
   No certificates of eligibility may be granted, and no applications for extension of the deadline for rehabilitation or deadline for a certificate of occupancy may be considered, by the landmark commission under this article after December 31, 2025. (Ord. Nos. 23506; 24584; 25509; 27016; 29953; 31694)
SEC. 51A-11.402.   COORDINATION WITH PENDING TAX EXEMPTIONS.
   (a)   After issuance of the first letter of verification for that tax exemption (the initial verification), the tax exemption application process is completed, and the tax exemption is subject to the code provisions in place at the time of the initial verification.
   (b)   An application that has been determined to be eligible, but that has not yet received initial verification, is subject to the procedures for completion and verification in place at the time of the application for initial verification. If no completion date was specified in the determination of eligibility, the completion date is deemed to be three years from the date the landmark commission made its determination of eligibility.
   (c)   An applicant who has received a determination of eligibility for a tax exemption under previous provisions of this article may submit a revised application for consideration of eligibility under the current provisions of this article at any time prior to initial verification. The application may be made without resubmitting documentation except as necessary to meet current requirements. If the revised application is denied, the previously approved application remains in effect. If the revised application is approved, it replaces the previously approved application. (Ord. 27016)