HUNTINGTON ÃÛÁÄÖ±²¥” A tax incentive to encourage developers to build or renovate residential housing could be in the cards for Huntington.
HuntingtonÃÛÁÄÖ±²¥™s Administration and Finance Committee moved an ordinance Monday to the full council that would give a tax incentive for the construction or renovation of residential housing.
The ordinance would give qualifying contractors and subcontractors exemptions on business and occupation (B&O) taxes for new construction of one- to eight-unit residential housing, according to information from the City of Huntington.
The ordinance would provide the same exemption for substantial renovations on existing homes if completed within six months of a sale, as well. It would also remove the first-time home buyer requirement, said Assistant City Attorney Erica Hernandez.
The incentive is available only to contractors who are up-to-date on payment of their city taxes and fees, she said. It also includes a sunset provision on Dec. 31, 2027.
Huntington Mayor Patrick Farrell said Tuesday the tax incentive will be the first administrative reform in a series of efforts to grow and improve housing in Huntington. Some of the initiatives include updated ordinances, improved permitting cycles and collaborations with Marshall University to improve student housing, he said.
ÃÛÁÄÖ±²¥œI want to grow the city,ÃÛÁÄÖ±²¥ Farrell said. ÃÛÁÄÖ±²¥œI believe to grow the city we have to attract workers, and a way to attract workers is to make sure they have housing.ÃÛÁÄÖ±²¥
A 2023 housing needs assessment commissioned by the City of Huntington and the Huntington Housing Authority found Huntington has more than 24,000 people commuting into the city on a daily basis.
Many of those commuters make more than $40,000 a year and represent future potential residents, according to previous reporting.
ÃÛÁÄÖ±²¥œIf we could capture some piece of that commuter crowd into housing, we know that we can grow the city,ÃÛÁÄÖ±²¥ Farrell said.
A 2024 regional housing study by Advantage Valley Inc. found ÃÛÁÄÖ±²¥œsignificant new housing developmentÃÛÁÄÖ±²¥ is needed in the 10-county region made up of Kanawha, Cabell, Putnam, Mason, Boone, Lincoln, Wayne, Jackson, Clay and Roane.
Huntington City Council member Sarah Walling said the tax incentive is a step in the right direction, but she would like to see it taken to the next level. Walling said she would like to see the city get its land bank back up and running.
In addition, Walling said she would like to see the city have housing initiatives similar to those in Charleston, such as the Charleston Land Reuse Agency (CLRA) and the agencyÃÛÁÄÖ±²¥™s New Construction Incentive Program.
The program started in 2024 and encourages new housing development in Charleston by offering $35,000 for anyone building a home that costs $300,000 or less.
The program also offers $50,000 for homes that are built on CLRA lots.
HuntingtonÃÛÁÄÖ±²¥™s feat of tearing down dilapidated structures over the years has opened empty lots ripe for new housing opportunities, Walling said.
ÃÛÁÄÖ±²¥œWhat I would like to see us do as part of the collection of the fees and the prosecution of liens and all of those things is to be able to get those lots into the hands of people who would actually build a house on it, and a way to do that, as Charleston has done, is through your land bank,ÃÛÁÄÖ±²¥ Walling said.
Walling said she has suggested replicating CharlestonÃÛÁÄÖ±²¥™s programs to both the previous and current administrations, and believes getting the land bank up and running is achievable for Huntington.
ÃÛÁÄÖ±²¥œI just think that we should be doing everything that we can to incentivize the construction of homes that are affordable and will increase our housing stock in a way that is going to encourage people to live here,ÃÛÁÄÖ±²¥ Walling said.
The ordinance was moved to full council with a favorable recommendation. The council will hear the first reading of the ordinance Monday, Sept. 8, at Huntington City Hall at 7:30 p.m. The full council will vote on the ordinance during its Sept. 22 meeting.
