                                 CODE OF VIRGINIA

HOUSING REVITALIZATION ZONE GRANTS (§ 36-166)

A. As used in this section:
			&#8220;Qualified zone improvements&#8221; means the amount properly
chargeable to a capital account for improvements to rehabilitate or undertake
construction on real property during the applicable year within a housing
revitalization zone, provided that the total amount of such improvements equals
or exceeds (i) for a qualified business firm, an investment of $25,000 in
rehabilitation expenses on each housing unit, $50,000 in new construction
expenses for each single family housing unit, or $40,000 for each multifamily
housing unit or (ii) for a qualified owner occupant, an investment of $12,500 in
rehabilitation expenses or $50,000 in new construction expenses for each housing
unit. Qualified zone improvements include expenditures associated with any
exterior, structural, mechanical, plumbing, utility, or electrical improvements
necessary to rehabilitate or construct a building for residential use and
excavations, grading, paving, driveways, roads, sidewalks, landscaping, or other
land improvements. Qualified zone improvements shall also include, but not be
limited to, costs associated with demolition, carpentry, sheetrock, plaster,
painting, ceilings, fixtures, doors, windows, fire suppression systems, roofing
and flashing, exterior repair, cleaning, and cleanup.
			Qualified zone improvements shall not include:

   1. The cost of acquiring any real property or building.

   2. (i) The cost of furnishings; (ii) any expenditure associated with
   appraisal, architectural, engineering and interior design fees; (iii) loan
   fees, points, or capitalized interest; (iv) legal, accounting, realtor, sales
   and marketing, or other professional fees; (v) closing costs, permits, user
   fees, zoning fees, impact fees, and inspection fees; (vi) bids, insurance,
   signage, utilities, bonding, copying, rent loss, or temporary facilities
   incurred during construction; or (vii) outbuildings.

B. Beginning on and after July 1, 2000, a qualified business firm or qualified
owner occupant may be allowed a grant from the Housing Revitalization Zone Fund
for making qualified zone improvements. The grant amount shall not exceed thirty
percent of the qualified zone improvements; however, in no event shall the total
grants paid to a qualified business firm or qualified owner occupant exceed
$50,000 per housing unit for qualified zone improvements made during the period
in which such area of a county, city, or town is designated as a housing
revitalization zone. Additionally, the total grants paid to a qualified business
firm for a housing complex with five or more attached housing units may not
exceed $150,000 over such period.

C. Local governments shall certify that the zone improvements made within
housing revitalization zones within their jurisdictions comply with all locally
adopted plans and ordinances.

HISTORY: 2000, cc. 789, 795.