A. Special Valuation Program Established. Pursuant to Chapter 84.26 RCW, a local option program is hereby established that shall make available to owners of historic property a special tax valuation for the rehabilitation of the historic property, as set forth in Chapter 84.26 RCW and this section.

B. Application Process for Special Property Tax Valuation.

1. An applicant desiring to obtain special property tax valuation for historic property shall file a complete application with the Kitsap County assessor no later than October 1st of the year immediately preceding the first assessment year for which special valuation classification is requested. Applications filed after the October 1st deadline shall not be considered for special property tax valuation until the following year.

2. Complete applications shall include the following information and documentation:

a. A legal description of the historic property;

b. Comprehensive exterior and interior photographs of the historic property before and after rehabilitation;

c. Architectural plans or other legible drawings depicting the completed rehabilitation work;

d. A notarized affidavit attesting to the actual cost of the rehabilitation work completed prior to the date of application and the period of time during which the work was performed, with documentation of both to be made available to the historic preservation commission upon request; and

e. For properties located within National Register historic districts, a statement from the Secretary of the Interior, indicating the property is a certified historic structure as defined in WAC 254-20-030(2).

3. The Kitsap County assessor shall forward to the historic preservation commission all complete applications for special property tax valuation for historic property within 10 days after receiving such applications.

C. Review Process.

1. The historic preservation commission shall review each application for special tax valuation and determine: if the application is complete; if the subject property meets the criteria set forth in RCW 84.26.030 and WAC 254-20-070(1); and if the subject property meets the criteria set forth in subsection D of this section. The historic preservation commission shall review all timely applications, and shall enter a determination on the application no later than December 31st of the calendar year in which the application is made.

2. If the historic preservation commission finds that a subject property is eligible and meets all criteria set forth in this section, the historic preservation commission shall enter into an historic preservation special valuation agreement with the owner of the subject property, which agreement shall contain all terms required by WAC 254-20-120. Upon mutual execution of such an agreement, the historic preservation commission shall approve the application.

3. If the historic preservation commission determines that the subject property does not meet all the requirements of this section, the historic preservation commission shall deny the application.

4. Historic preservation commission decisions to approve or deny applications for special tax valuation shall be in writing, shall describe the facts upon which the determination is based, and shall be filed with the Kitsap County assessor within 10 days after the date of the decision.

5. For those applications approved by the historic preservation commission, the historic preservation commission shall forward a copy of the applicable historic preservation special valuation agreement, the application and all supporting documentation to the Kitsap County assessor. The historic preservation commission shall also notify the State Review Board that the subject property has been approved for special valuation and shall monitor the subject property for continued compliance with the historic preservation special valuation agreement throughout the 10-year special valuation period.

6. The historic preservation commission shall determine whether a property is disqualified from special valuation either because of the owner’s failure to comply with the terms of the historic preservation special valuation agreement or because of a loss of historic value resulting from physical changes to the building or site. In the event that the historic preservation commission concludes that a property is no longer qualified for special valuation, the historic preservation commission shall notify the owner, the Kitsap County assessor and the State Review Board in writing and state the facts supporting its findings.

D. Criteria.

1. The class of historic property eligible for special valuation in the city includes all properties listed on the local register that have been substantially rehabilitated at a cost and within a time period that meets the requirements set forth in Chapter 84.26 RCW.

2. Property Review Criteria. In its review of an application for special valuation of an historic property, the historic preservation commission shall determine if the subject property meets each of the following criteria:

a. The property is an historic property;

b. The property is included within a class of historic property determined eligible for special valuation pursuant to subsection D.1 of this section;

c. The property has been rehabilitated at a cost that meets the definition set forth in RCW 84.26.020(2) within 24 months prior to the date of application; and

d. The property has not been altered in any way that adversely affects those elements that qualify it as historically significant, as determined by applying the standards set forth in WAC 254-20-100(1).

3. Rehabilitation and Maintenance Criteria. The historic preservation commission shall use the Washington State Advisory Council’s Standards for the Rehabilitation and Maintenance of Historic Properties set forth in WAC 254-20-100 as the minimum requirements for determining whether an historic property is eligible for special valuation and whether the property continues to be eligible for special valuation once it has been so classified.

E. Agreement. The historic preservation commission shall use the historic preservation special valuation agreement set forth in WAC 254-20-120 as the minimum agreement required by this section. (Ord. 2016-11 § 2, 2016: Ord. 2011-02 § 2 (Exh. A), 2011. Formerly 18.24.060)