Northampton moving forward on creation of Community Revitalization Fund

Northampton County is moving forward with a proposal to create a Community Revitalization Fund, following discussions at Tuesday night’s work session. The Board has been considering this initiative, authorized for localities by the Virginia General Assembly, for several meetings.

Proposals for the program include waiving up to $4,000 in disposal fees for the voluntary demolition of blighted or derelict structures, as defined by Virginia law; rebating County permit fees for rehabilitating and constructing primary residences assessed at $350,000 or less, which cannot be used for short-term rentals for seven years; offering a seven-year rebate on County real estate taxes for new construction of attainable housing; and providing rebates for essential repairs and improvements to such housing. Additionally, a revolving loan fund will be established to assist in the rehabilitation of existing homes, offering zero-interest loans up to $30,000 for properties valued at $200,000 or less.

County Administrator Charlie Kolakowski reported that the funds would come from revenue generated by the cigarette tax, with the County currently holding $90,000 in such revenue.

During discussions, concerns were raised by several Supervisors regarding the proposal to offer interest-free loans to residents, particularly about the implications if borrowers default. Kolakowski explained that if recipients fail to make payments, the County would seize the property and conduct a tax sale.

“A commercial lender bases interest rates on risk, and we are saying this is for someone who can’t get a commercial loan, which means the risk is higher,” said Supervisor Dixon Leatherbury.

Supervisor John Coker echoed these concerns, expressing hesitation about voting to take people’s homes in case of non-payment. There was a consensus among the Board that collaboration with the Accomack-Northampton Planning District Commission, or contracting a third party, would be preferable for managing this aspect of the program.

Kolakowski will incorporate the Supervisors’ comments and draft an ordinance for the plan, which will then be sent to public hearing.

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