The
Ohio Revised Code (§§ 3735.65 - 3735.70) allows communities
to create Community Reinvestment Area (CRA) programs to facilitate residential
and commercial/industrial development and redevelopment through the
application of real property tax abatements. Each community should develop
a program that addresses its specific needs; while some communities
use abatements to facilitate development, other communities may use
abatements to encourage redevelopment. A brief overview of Ohio's CRA
program is noted below. However, please consult the Ohio Revised Code, the Ohio Department of Development or the CPMRA for additional information.
Pre-1994 v. post-1994 CRAs - Due to changes in the
legislation, the creation and administration of CRAs differs substantially
according to when the CRA was implemented and in some situations, how
many times the community's CRA legislation has been amended. A CRA may
be amended for a variety of reasons, including changing the allowable
exemptions or adjusting the CRA's geographic coverage. A "pre-1994
CRA" can only be amended twice and still operate under the rules
that were in effect prior to July 1994; upon the third amendment, the
CRA becomes a "post-1994 CRA" and must operate under the current
Ohio Revised Code. Information for pre-1994 CRAs can be found on the
Ohio Department of Development CRA website.
How to create a CRA program - Creating
a CRA program is a multi-step process that begins with targeting areas
for systematic development efforts and identifying the appropriate abatements
to encourage development. It is very important to understand the short-term
and long-range effects of various abatement types and abatement levels.
The community must be able to demonstrate that structures
within the CRA area are in a state of disrepair or in need of reinvestment.
This lack of investment is documented in the housing survey, which must
be made available to the general public for review.
The community must pass a resolution or ordinance in
order to create a CRA program. However, the community's legislation is
not sufficient to enact the program and its tax abatements. The community
must petition the Ohio Department of Development for certification of
the CRA program. The community may administer the program after ODOD approves
the CRA program.
Please refer to the Ohio Revised Code for more information
on the specific requirements for creating a CRA program.
How to administer a CRA program - For
information on administering a CRA program or a residential tax
abatement program, please visit the
Ohio Department of Development CRA website or contact the CPMRA.
Useful links:
CPMRA CRA Webpage
Ohio Department
of Development
Ohio
Revised Code
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