Definition of Cleveland's residential tax abatement

In Cuyahoga County, 19 cities have legislated Community Reinvestment Areas to promote the revitalization of areas where investment has been discouraged by offering real property tax abatement for any increased property valuation resulting from improvements to the property in the form of new construction or remodeling of existing structures; in some cases, the CRAs were established for specific projects.

In Cleveland, new construction of single- or two-family homes can be abated at 100 percent for 15 years. The tax abatement is only applied to the construction of the property. The property owner is liable for the land taxes for 15 years. The County calculates the value of the land taxes by how much the property is worth after it is built.

Rehabilitation of single- and two- family homes can receive abatement of up to 100 percent for 10 years. The tax abatement is only applied to the amount of money that is put into the home that adds value. The owner is responsible for all previous building and land taxes.

Multi family abatement varies by location. Downtown projects range from 25 percent for two years to 75 percent for 12 years. Neighborhood multi family projects can get 100 percent abatement for a period of 12 to 15 years depending on the criteria met.