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PROGRAM: Program encourages rehabilitation and new construction of structures through property tax incentives. Property tax abatement is available for any increased valuation that results from the improvements to the property for both new construction and renovation. One, two, and three unit residential structures within the City of Cincinnati are eligible. Multi-unit, mixed-use, commercial, and industrial structures are eligible based on the project and an agreement that must be executed before construction begins.
PROGRAM GOAL: Stimulate revitalization, retain residents, and attract homeowners to the City of Cincinnati. Commercial CRAs are designed to facilitate the retention and expansion of businesses and the retention and creation of jobs.
TYPE OF ASSISTANCE: Tax abatement
MAXIMUM AMOUNT: The new construction abatement term is 15 years, 100% exemption up to $245,970 market value. Tax must be paid on land. The renovation abatement term is 10 years, 100% exemption, market value cap of $245,970 on the improvement value (the market value limit increases by 3% compounded each year as per City agreement with the School Board). Minimum $2,500 in costs for one and two unit structures, $5,000 for three unit structures. The multi-unit abatement is net 75% exemption after school contract, up to eight years term, market value cap of $245,970 per unit both new construction and renovation (the market value limit increases by 3% compounded each year), and minimum $100,000 in costs. Terms will be adjusted according to the project. The Commercial/Industrial abatement is up to 15 years new construction, up to 12 years renovation, net 75% exemption after school contract, and minimum $100,000 in costs. Mixed-use developments use a combination of the above.
REPAYMENT: Tax exemption can be rescinded if contract terms are not met.
INCENTIVES: Homeowners and developers pay less tax. Savings can be used for other purposes.
BENEFITS: The program provides a benefit for residents who improve their homes and encourages home shoppers to buy in the City of Cincinnati. The program decreases development costs by assisting marketing in home ownership projects and reducing on-going operating expenses in commercial projects.
ELIGIBILITY: Real property must be within the City of Cincinnati. Residential, commercial or industrial facilities are eligible for abatement. Any improvement for the purpose of making a building more structurally sound, more habitable, or for the purpose of improving the structure or land's appearance is eligible. Eligible uses include renovation or new construction of 1, 2, or 3 unit, multi-unit, mixed use, and commercial/industrial structures.
CRITERIA: All residential 1, 2, and 3 unit structures are entitled to abatement. Multi-unit housing (four or more units), mixed-use development and commercial development, both rehabilitation and new construction, are subject to program criteria such as gap analysis, cost/benefit analysis, and relation to other City subsidy. Jobs created and retained will be considered where appropriate.
EVALUATION: Abated properties will be monitored against building code violations, property tax default and contract terms met, i.e. jobs, completion of renovation, etc.
RATES/FEES: Mixed use, commercial and multi-unit developments have an annual fee of 1% of the annual tax exemption, but not less than $250 or more than $2,500. A $750 application fee is required by the Ohio Department of Development, Office of Tax Incentives.
APPROVAL: All 1, 2, and 3 unit structures are entitled to abatement. Multi-unit, mixed-use, and commercial abatements are approved through City Council.
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Contact: Eric Denson, Senior Development Officer Phone: (515) 352-4981 Fax: (513) 352-6257 | |
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 | McMillian Manor is a $27 million, 119-unit student housing facility in Mt. Auburn that was completed in 2006. |
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 | The new Skyline Chili in Walnut Hills created sixteen new jobs and has 140 seats, 60 parking spaces and improved drive-thru capacity. A grand opening was held in March 2008. |
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 | Middle Earth's "Machine Flats", located in Camp Washington, was a vacant industrial building that was renovated into 60 units of market-rate loft apartments, office space and also includes a parking garage. The $7 million project was completed in 2006. |
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