A tax abatement program is currently being prepared for certain residential areas in Jeannette, as officials hope to encourage redevelopment on properties where dilapidated homes have been cleared.

Under the current proposal, anyone who buys a vacant lot and builds a home on it can benefit from a three-year property tax abatement, City Manager Ethan Keedy said. City, county and school district officials will attend a public hearing scheduled for 6 p.m. Aug. 14 at City Hall to discuss the proposal.

Keedy estimates there are 20 to 30 vacant lots in the city that could benefit.

“We will hopefully develop many of these empty lots with new homes,” he said. “The goal is to promote it as an opportunity for people to come here, develop and stay.”

If the program is approved by all three taxing authorities, it would function similarly to the commercial local economic revitalization tax assistance zones established in Jeannette a few years ago. A project covered by the commercial LERTA program receives a three-year exemption from increased property taxes in exchange for its investment in the city.

If the LERTA law is approved for residential purposes, the developer or property owner must continue to pay taxes on the original assessed property value of the vacant lot for three years while a new home is being built. After the third year, 100% of the newly assessed value is due.

Keedy said the property is subject to LERTA and the tax benefit will remain in place for that period if it changes ownership.

The program will only apply to certain areas of the city where there are dilapidated or vacant properties and building code violations.

Keedy said he hopes to ultimately secure grants to incentivize developers and property owners to build new homes in Jeannette. But the first step will be next week’s public hearing. After that, the city, school district and county must each separately introduce and formally pass legislation before the program can be implemented.

It could come into force as early as October.

Although there were applicants for the commercial LERTA program, none qualified under the guidelines to participate, Keedy said. He believes a future redevelopment project at the former Fort Pitt Brewery site could be a candidate, where demolition began last month.

A major demolition project in seven Westmoreland County communities, including Jeannette, is tearing down dilapidated buildings and leaving empty, grassy lots. Brian Lawrence, executive director of the Westmoreland County Redevelopment Authority and Land Bank, said he is not aware of any other communities that have LERTA programs for housing.

“I would applaud them for doing everything they can under these circumstances,” he said. “This is where the councils need to take the lead.”

The city government hopes to acquire three vacant lots in the county depot for the LERTA housing project. These lots are located at South 12th Street and Scott Avenue.