Auburn councilors have passed a law they hope will open the door to improving the city's housing stock.

They unanimously approved last week a policy that allows tax breaks for homes undergoing renovations to become a single family home or to become an owner-occupied multiple dwelling. The property will remain partially exempt for seven years at the rate of 12.5 percent of the increased assessed market value.

The state Senate and Assembly passed the Real Property Tax Law that allows the program. The exemption will range from $10,000 to $100,000, based on the increase in value from the reconstruction.

“We're trying to get them to a single-family home. I think it would make the city better here,” Mayor Timothy Lattimore said.

The council aims to encourage people to buy homes. The city has a high percentage of renters; about 55 percent of residents rent rather than own.

A recent housing study recommended Auburn officials promote more home ownership.

Councilor Matt Smith campaigned on the issues related to housing in Auburn. “Especially walking through the neighborhoods and living here, you see the deterioration of the neighborhoods,” Smith said. The incentive offers a way for people to rebuild their own homes and revitalize neighborhoods, instead of waiting for government to fix everything.

The next step is to create a tax break for people who build new homes within city limits. City Manager Mark Palesh

has begun turning paper streets and vacant lots to surrounding property owners. Smith suggested the city should work with the Auburn Enlarged City School District and Cayuga County officials to offer countywide breaks.

The recently-approved incentive also could result in making the city less dense, Lattimore said.

“It's another tool they can use to encourage people to buy in the community and do some improvements on their properties. It will help the city all around,” Councilor Thomas McNabb said.

The city doesn't offer any bonus to encourage property owners to fix their homes or do major reconstruction, McNabb said. In fact, some considered increases in assessed property values as a deterrent for such improvements.

“We were penalizing people for fixing their properties,” Councilor William Graney said.

Finally, there's something to help them fix their homes without fearing their assessments would be too hefty to pay, he added.

Graney said the incentive is a good start to instilling pride in neighborhoods again.

Besides inspiring more single family homes, the law is designed to increase the number of local property owners. The city has struggled with issues related to absentee landlords over the years.

Staff writer Jessica Soule can be reached at 253-5311, ext. 267 or jessica.soule@lee.net