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, Ohio Department of Development or 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 pre-1994 CRA program or a residential tax abatement program, please contact Jennifer A. Patterson. For information on administering a post-1994 commercial/industrial tax abatement CRA program, please see the Application Process chart, which documents the process from application to construction, or the Abatement Administration chart, which documents the process from the end of construction through the end of the abatement.
Useful links -
Ohio Department of Development