Revised March 15, 2023 – Page 1
City of Cleveland
Community Reinvestment Area Program
Residential Tax Abatement
Single and Two-Family Structures
The City of Cleveland Residential Tax Abatement Policy is
designed to stimulate private investment through job creation,
neighborhood stabilization, and residential development.
CITY OF CLEVELAND
Mayor, Justin M. Bibb
Alyssa Hernandez, Director
James Greene, Commissioner & Housing Officer
Dulce Sanchez, CRA Tax Abatement Manager
(216) 664-3442
(216) 664-4000
Department of Community Development
601 Lakeside Avenue – Room 320
Cleveland, Ohio 44114
Revised March 15, 2023 – Page 2
PROGRAM DESCRIPTION
The State of Ohio’s Department of Development authorized the City of Cleveland through the
Department of Community Development to create Community Reinvestment Areas (CRA) in
which property owners can apply for tax exemptions on residential real property. The City of
Cleveland through Cleveland City Council passed Ordinance No. 482-2022, on May 25, 2022.
Ordinance No. 482-2022 became effective May 25, 2022.
NEW CONSTRUCTION
Until December 31, 2023, residential tax abatement is offered at a rate of 100% for 15 years on all
new construction residential property in the City of Cleveland. New construction must meet the
Cleveland Green Building Standard in order to be eligible for tax abatement. Taxes on a newly
constructed home are abated. The owner is liable for all taxes associated with the after improved
value of the land only. During the term of the abatement, the land taxes may change due to changes
in the tax rate and/or changes in assessed value of the land.
REHABILITATION
Until December 31, 2023, residential property owners rehabilitating single and two-family homes
where the remodeling costs, as evidenced by true and accurate permits as further described in these
instructions, are greater than $2,500.00 can receive tax abatement at a rate of 100% for 15 years on
the value of the remodeling improvements to the home. In order to be eligible to participate in the
tax abatement program, all improvements must be evidenced by true and accurate building permits
issued by the City of Cleveland Department of Building and Housing. Substantial and Moderate
Rehabilitation of an entire house must meet the Cleveland Green Building Standard and
complete all items on the checklist for approval in order to be eligible for tax abatement.
Example of a rehabilitation project: the initial market value of a home is $60,000.00 and the improvements made to
the home reflect a $30,000.00 increase in the market which is now established at $90,000.00. The tax abatement
will be placed on $30,000.00 of the improved value of the home. The owner will owe taxes on the initial $60,000.00.
* Real property must be within the City of Cleveland
ONLY IMPROVEMENTS THAT INCREASE THE ASSESSED VALUE OF
RESIDENTIAL PROPERTY TAXES ARE ELIGIBLE:
Green Building Standard is required for:
* Substantial Rehabilitation of entire house
* Moderate Rehabilitation of majority of house- See Cleveland Green Building Standard Handbook guidance
regarding distinction between Moderate and Substantial Rehabilitations.
Green Building Standard is NOT Required:
Build new or enlarge garage
Room addition (Finish attic, second floor or bedroom with paneling, plaster or plasterboard)
Install additional bathroom or stall shower
CRITERIA
REHABILITATION
Revised March 15, 2023 – Page 3
Improvements that DO NOT increase the assessed value of residential property taxes are
not eligible unless a (Substantial) house rehabilitation includes mechanicals and a Building
Permit issued by the Department of Building and Housing requiring a certificate of
occupancy showing a $60.00 fee.
-Install new roof
-Install aluminum siding; repair siding
-Install storm windows and doors
-Add windows and doors
-Repair, replace, and add window shutters
-Install awnings
-Add/replace gutters and downspouts
-Repoint, repair, and replace masonry
-Add window boxes
-Repair, replace porches and steps
-Install lawn sprinkling system
-Plant lawns, shrubs, grass, plants
-Scrape and paint house
-Install, repair, and replace sidewalks/driveway
*Normal repairs and maintenance will not increase the real estate tax assessment of your home.
NOTE: For clarification on all matters dealing with real estate taxes, contact the Office of
the Cuyahoga County Auditor at (216) 443-7010.
HOW TO APPLY
STEP I – GREEN DEVELOPMENT PLAN & BUILDING PERMIT
Revised March 15, 2023 – Page 4
Every project that requires meeting the Cleveland Green Building Standard must begin by hiring a
third-party consultant qualified to certify compliance for the selected Cleveland Green Building
Standard option (“Green Verifier”). Then, begin with a Green Development Plan developed by the
owner, Green Verifier, design professional, and the builder/contractor.
The Applicant must obtain a true and accurate Building Permit from the Department of Building
and Housing, 5
th
Floor of Cleveland City Hall for all improvements for which a tax abatement
application is to be submitted. The permit must state the true value of costs to build new or
remodel. The permit must require the applicant to obtain a Certificate of Occupancy upon
completion of the construction or remodeling. Improvements not evidenced by true and accurate
permit(s) properly obtained at the time of the construction or remodeling’s commencement will not
be eligible for participation in the tax abatement program.
STEP II – CONSTRUCTION/REMODEL
Begin construction or remodel. IMPORTANT: The Applicant is responsible for scheduling
construction inspections and providing documentation to the Green Verifier. The inspections are
required at certain points during the construction process and will vary depending on type of project
and green building path.
STEP III – COMPLETION
After the work is completed and the Golden Rod/Sign-Off Sheet has been finalized by all required
Inspectors, the Golden Rod/Sign-Off Sheet must be taken to the Record Room of the Department
of Building and Housing to generate the Certificate of Occupancy. The Certificate of Occupancy
will be mailed to the Applicant.
STEP IV
The Applicant completes the Residential Tax Abatement Application and mails or emails it to the
Department of Community Development with copies of the Building Permit and Certificate of
Occupancy (or finalized Golden Rod/Sign-Off Sheet), all necessary third party verification of
compliance with Cleveland Green Building Standards attached (see checklist attached to this Application
for full list of necessary documents), and all applicable supplemental documentation described in the
checklist below. If the property is being sold and a purchase agreement is available after receipt of
the Certificate of Occupancy or Golden Rod/Sign-Off Sheet, a copy of this document must be
attached to the application. If this sale has already been completed, a copy of the final settlement
statement or Closing Disclosure must be attached as well.
STEP V
The Housing Officer for the Residential Tax Abatement Program reviews the application along with
the required documents for completeness. If the application and supporting documentation meets
the requirements of the program, the Housing Officer processes the application for tax abatement.
The Housing Officer sends an original confirmation letter to the Applicant and a copy to the
Auditor’s Office. If the property is being sold, it is the responsibility of the Applicant to send a copy
of the confirmation letter to the new homebuyer.
STEP VI
The Cuyahoga County Auditor’s Office has a dual role in the process of the Residential Tax
Abatement Program:
Revised March 15, 2023 – Page 5
1) The appraisers review each remodel and new construction permit issued in the City of
Cleveland. Upon the appraiser’s field inspection and verification that the property is at least 35%
complete (new construction); value will be added to that property. Value is placed on the tax
duplicate in January of each year. Example: A permit issued to construct a new home on March 22,
2007 will be field inspected by the County Appraiser in 2008. If the house is 35% complete (exterior
walls and roof), value will be placed on the tax duplicate for the January 1, 2008 tax year with the tax
payment due January, 2009.
2) Once the tax abatement application has been submitted to the Cuyahoga County Auditor’s
Office, they will adjust the tax duplicate accordingly.
GUIDELINES
The Tax Abatement Application must be completed in its entirety with all required documents
attached to be eligible. The application is forwarded to:
Attention: Dulce Sanchez, Tax Abatement Manager
City of Cleveland, Department of Community Development
Division of Neighborhood Development
601 Lakeside Avenue – Room 320
Cleveland, Ohio 44114
(216) 664-3442
(216) 664-4000
Applications for single and two family homes are filed at the time the building construction or
remodel of the residential property is completed and a Certificate of Occupancy (or finalized Golden
Rod/Sign-Off Sheet) has been issued from the Department of Building and Housing.
All applications are processed in the order received. If the application packet is missing any
information, the incomplete application packet will be returned and processing time will restart upon
submission of the missing documentation. All applications must be filed and processed with the City
of Cleveland by November 1
st
of the following year in which the Building Permit was issued to
ensure the abatement is in place before the next tax year. Failure to adhere to this guideline will
result in the owner losing years on the abatement and owing taxes the first year in the home.
TERMINATION:
Under Ordinance No. 482-2022, the City may terminate the residential tax exemptions, after
the first year if the Housing Officer finds that the property is not being maintained or
repaired due to the neglect of the owner, that the owner is in default of the Community
Benefit Agreement (CBA), that the property is being used for limited lodging or short term
rental as defined in the Codified Ordinances of Cleveland, Ohio, 1976, that the City has
revoked the owner’s Rental Registration, or that the property taxes have become delinquent;
and once terminated shall not reinstate the tax exemption.
COMMUNITY REINVESTMENT AREA PROGRAM
Revised March 15, 2023 – Page 6
Prior to submitting application please confirm that all items listed on the Submission Checklist have been
attached to the application packet.
Applicant Name (Print)
Address/City/State/Zip
Phone/fax
E-mail
Seller (If not applicant)
Address/City/State/Zip
Phone/fax
E-mail
Property Profile
Address
Permanent Parcel
Number (PPN)
Ward
No. of units
(circle one)
1 2
New Construction _______
Rehabilitation ________
Current Market Value
Before Sale *
$_________________
Current property
Taxes
$______________
Price paid for
property before
Improvement
$____________
Date of
purchase
___/___/____
Cost of Construction /
Improvements
$_________________
Previous or current CRA tax abatement on this parcel? ______________________
Does this project involve a structure of historical and/or architectural significance? ________
Is this project receiving City funds? Circle one: CDBG HOME HTF AAH NSP N/A
*Market value and tax as shown on County Fiscal Officer’s website @ myplace.cuyahogacounty.us
Buyer information (if improved property is sold/to be sold)
Buyer (If applicable)
Address/City/State/Zip
Purchase agreement
(copy attached)
Yes No
Current sale price or
Estimated sale price
Date sold
Estimated property tax on sale price
Project Profile
BLDG. Permit No.
(attach copy)
_________________
_________________
Date of permit
Estimated cost shown on permit
$_______________
Project
Description
(copy attached)
Yes No
Neighborhood
______________
Date of certificate of
occupancy or stamped
goldenrod
(attach copy)
_____________
Date
Scope of work / Evidence of
Improvements
(copy attached)
Yes No
Purchase Agreement Attached:
Yes No
The application continued on the next page.
RESIDENTIAL TAX ABATEMENT
SINGLE AND TWO FAMILY STRUCTURE APPLICATION
Revised March 15, 2023 – Page 7
City of Cleveland Green Building Standard
Please include a unique project identifier (provided by the third-party rating system) and the required attachments
for one of the following options:
Options for Complying with the
Cleveland Green Building Standard
Required Certifications and Attachment(s)
OPTION A: Enterprise Green
Communities Certification –
Affordable Housing
Certification though the on-line Enterprise Green Communities
Certification Portal; EGC Certification Form by Green Verifier, HERS
certification, ENERGY STAR certification and reports as applicable
OPTION B: Enterprise Green
Communities Compliance –
Market Rate
EGC Certification Form by Green Verifier (spreadsheet from City of
Cleveland); Energy model, HERS certification, ENERGY STAR
certification and reports as applicable
OPTION C: LEED Silver
Certification
LEED Checklist and Certification Document
OPTION D: National Green
Building Standard (NGBS)
Certification
NGBS Scoring Tool and Certification Document
OPTION E: Advanced
Building Certification
Programs
Applicable Scoring Checklist and Certification Document
Signature
Date
The Tax Abatement Application must be completed in its entirety and all required documents attached to be eligible.
Mail or email as one PDF file the completed application to:
Dulce Sanchez
City of Cleveland, Department of Community Development
601 Lakeside Avenue – Room 320
Cleveland, Ohio 44114
(216) 664-3442
dsanchez@clevelandohio.gov
Revised March 15, 2023 – Page 8
CITY OF CLEVELAND’S COMMUNITY REINVESTMENT AREA PROGRAM
RESIDENTIAL TAX ABATEMENT PRECONSTRUCTION CONDITIONAL APPROVAL FOR
SINGLE- AND TWO-FAMILY STRUCTURES APPLICATION – SUBMISSION CHECKLIST
ACKNOWLEDGE USING INITIALS
Application Form:
A) Completed Community Reinvestment Area Program Residential Tax Abatement
Single- and Two-Family Structure Application, signed by Applicant. (Pages 6 & 7, No
blank spaces)
B) Submit a separate application for each Permanent Parcel Number (PPN)
C) List Property Address and PPN as shown on Cuyahoga County ‘s website:
https://myplace.cuyahogacounty.us
Evidence of Improvements and Resulting Value:
D) For rehabilitation projects, chose one of the two options below:
E) Submit an itemized scope of work with all estimated costs, and submit before & after
photos of all rehabilitation work; or submit the final contractor’s invoice(s) for all
rehabilitation work.
Permit Documentation:
F) Building Permit(s) showing the true and accurate description and cost of all work
completed. Shows a $60.00 fee and the work requires a certificate of occupancy
Evidence of Improvements and Resulting Value:
G) Before and After photos of all rehabilitation work; or
Submit the final contractor’s invoice(s) for all rehabilitation of the property.
H) Final Certificate of Occupancy or Goldenrod Sign-off signed by all Inspectors and
stamped as “Received” by the Department of Building and Housing.
I) For for-sale projects (new and rehabilitation), provide a copy of the Purchase
Agreement and final settlement statement or Closing Disclosure evidencing sale to
final homebuyer.
Green Building Documentation:
For projects selecting a compliance path other than Enterprise Green Communities, contact the
Department of Community Development in advance of your submission.
J) City of Cleveland Green Communities Certification Form and Checklist completed in
full and signed by Green Verifier. Forms missing verification of any Mandatory Criteria
or evidencing less than the minimum Optional Points for the project will not be
accepted.
K) HERS Certificate.
L) RESNET Disclosure signed by the Green Verifier or other disclosure form(s)
completed by Green Verifier as part of Green Communities Certification process.
M) For new construction projects only, an Energy Star certificate and associated Energy
Star reports.
Additional Documentation: Other documentation as may be requested or required by the
Housing Officer.
