§ 6.405. Certificate of Economic Hardship.

A.

A Certificate of Economic Hardship may be granted by the Historic Preservation Commission or by the City Council on appeal. Separate standards for obtaining a Certificate of Economic Hardship are established for investment or income producing and non-income producing properties. Non-income producing properties shall consist of owner occupied single-family dwellings and non-income producing institutional properties.

B.

The basis to establish economic hardship for an income producing property shall be the inability of a property taken as a whole to obtain a reasonable rate of return in its present condition or if rehabilitated.

C.

Economic hardship in regard to a non-income producing property shall be found when the property owner demonstrates that the property has no beneficial use as a single-family dwelling or for an institutional use in its present condition or if rehabilitated.

D.

Demonstration of an economic hardship shall not be based on or include any of the following circumstances:

1.

Willful or negligent acts by the owner;

2.

Purchase of the property for substantially more than market value;

3.

Failure to perform normal maintenance and repairs;

4.

Failure to diligently solicit and retain tenants;

5.

Failure to provide normal tenant improvements.

E.

Demonstration of an economic hardship may be viewed in light of or include the ability and diligence of the property owner at the time of acquisition, to determine the potential historic significance or existing Historic Preservation District designation of the subject property.

F.

In order to properly assess a request for Certificate of Economic Hardship, the Commission shall request and receive from the applicant all information it deems necessary. This may include, but is not limited to, the following:

1.

A report from a licensed engineer or architect with experience in rehabilitation as to the structural soundness of the building(s) on the property, their suitability for rehabilitation, and possible new uses for the property;

2.

The assessed value of the land and improvements according to the two (2) most recent assessments;

3.

The real estate taxes paid during the previous two (2) years;

4.

All appraisals obtained by the owner or applicant in connection with his purchase, financing, or ownership of the property;

5.

Any listing of the property for sale or rent, price asked and offers received, if any;

6.

All building and fire code violations which have been listed on the property for the last two (2) years.

7.

Any federal, state, or local citation(s) which have determined the building to be a nuisance under applicable law; and

8.

If the property is income-producing:

a.

Annual gross income from the property for the previous two (2) years;

b.

Itemized operating and maintenance expenses for the previous two (2) years; and

c.

Annual cash flow, if any, for the previous two (2) years.

G.

The procedures for obtaining a Certificate of Economic Hardship shall be the same for obtaining a Certificate of Appropriateness.

H.

If a Certificate of Economic Hardship is issued, a Certificate of Appropriateness shall be granted.

(Ord. No. 1772, 6-23-93)