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"Commercial CRAs"

Community Reinvestment Area: Commercial Tax Abatement

Commercial CRAs offer a partial property tax abatement to companies or developers building or renovating a residential (5+ units), commercial, industrial, or mixed-use facility when the project will result in job creation. The Commercial CRA reduces post-construction property taxes paid by the property owner, helping to lower risk and operating expenses while increasing project viability and developer capacity. Projects may be eligible for up to a maximum 67% net abatement for up to 15 years.

Background

 

The Community Reinvestment Area (CRA) Program is a direct incentive tax exemption program created by the State of Ohio to aid property owners who renovate existing or construct new buildings. It permits municipalities and counties to designate areas where investment has been discouraged and offer tax incentives to spur revitalization of the existing housing stock and new development. The City of Cincinnati’s entire municipal area is one CRA, with DCED administering two programs: Commercial Tax Abatements (“Commercial CRAs”) and Residential Tax Abatements (“Residential CRAs”)​​

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Goal​

Commercial CRAs catalyze development and investment that often would otherwise would not occur. It can also incentivize additional positive development practices, such as certified ‘green building’ practices.

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Who Can Apply?

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  • Business Owners

  • Developers

  • Non-Profits & Community Development Corporations

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Overview of Process

 

Applications are submitted to and reviewed by DCED. Application are reviewed based on underwriting, City policy, and City and State law. Recommendations are then provided to the City Manager and City Council. (Note: City Council has the power to disapprove or approve the exemption at any amount or duration in accordance with City and State law).

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If approved by City Council, DCED works with each developer to execute a CRA agreement with the City. The developer also enters into a separate agreement with the school board to pay the equivalent of 33% of taxes abated as a payment-in-lieu of taxes (“PILOT”); they may also make a contribution of a portion of the taxes abated, up to 15%, pursuant to a Voluntary Tax Incentive Contribution Agreement (“VTICA”).

Note: Applicants for certain types of City Business — including development incentives with an estimated value of $100,000 or more per year — will be required to complete the City Business Disclosure Form pursuant to CMC Chapter 119. More information is available on the City Business List webpage.

Timeline​

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Applications are received on a rolling basis throughout the calendar year. Typically, internal review and issuance of an offer letter takes at least four weeks; contract drafting and City Council approval, if necessary, takes approximately 12 weeks; and contract execution and any pre-construction activities take at least two weeks. To be eligible, developers must execute their CRA agreement before any construction begins.

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Interested? Have questions? For more information, contact:

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Marc Von Allmen, marc.vonallmen@cincinnati-oh.gov

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