Contact Info
Starting January 1, 2024, the City of Cleveland's Residential Tax Abatement program will be fully implemented.
In order for the project to be grandfathered in under the old previous tax abatement program, Project teams that submit a complete schematic application to the Planning Department on or before December 31, 2023, will be eligible for the existing tax abatement policy. In light of this change, the Planning staff anticipates there may be a pipeline of projects to review prior to this deadline. In order to understand the workload, we are requesting that all project teams reach out to Planning Department staff (Planning or Landmarks) prior to September 15, 2023, to schedule a pre-development consultation using the link below
For more information on the changes and the new Residential Tax Abatement Program please refer to the FAQ document.
For more information about the amount of tax abatement a project may be eligible for please reference the Neighborhood Typology Map and Residential Tax Abatement Chart.
New applications will be released on December 1, 2023.
Requirements
Tax Abatement is available to both homeowners and developers. All rehabilitation or new construction work must be completed under a valid and accurate permit issued by the City of Cleveland Department of Building and Housing. The property must be in the City of Cleveland. Tax Abatement applications won't be accepted for improperly permitted improvements. Examples of improperly permitted improvements include work completed under a permit that does not accurately reflect the actual cost of the work or work completed outside the scope of the work described on the building permit. Additionally, the building permit must require a Certificate of Occupancy upon completion for whole-house rehabilitation and new construction. A final Certificate of Occupancy must be obtained and submitted as part of the application package.
The Cuyahoga County Fiscal Office determines the abatement amount based on the type of improvements. Timing of the abatement term is dependent on the time that the permitted improvement(s) to the dwelling create new taxable value, according to County records. Taxes may increase or decrease during the abatement period when voted changes in tax rates, state-mandated reappraisals, or updates reflecting neighborhood trends take effect.
The property owner will be responsible for paying property taxes based on the assessed value of the land and the building(s) before improvements. Tax savings realized by developers are transferred on to tenants in the form of lower rents.
Application Submission
Submit your application via the Department Grant and Program Participant Portal (coming soon)
Selection and Award
Complete and accurate Tax Abatement applications are processed in the order they are received. Depending on season and volume, processing time may vary. If an applicant's submission is incomplete, processing time restarts until all application materials' full and final requests are met. All requests with incomplete application packets older than 60 days will be returned.
In order to ensure timely processing, all tax abatement applications must be submitted to the City of Cleveland by November 1st of the year following the year in which the building permit was issued. For example, if a building permit was issued in March 2021, the tax abatement application must be submitted to the City of Cleveland on or before November 1, 2022. For further information, contact Dulce Sanchez, CRA Tax Abatement Manager, at 216-664-3442 or by email: dsanchez@clevelandohio.gov
Please Attach the following Applications (pdfs):
Cleveland Green Communities Certification Form
Cleveland Green Communities Green Verifiers
Cleveland Green Building Standards
Residents and developers seeking tax abatement for residential projects must meet Cleveland Green Building Standards found in the Cleveland Green Building Standard Handbook.
Applicant must select a Compliance Method
- 2020 Enterprise Green Communities Criteria
- National Green Building Standard (NGBS) Certification
- LEED (Silver) Certification
Each method relies on a roster of independent third-party professionals known as Green Raters or Verifiers. They assist and confirm that the project meets the standards for that method. The resident or developer must hire a third-party professional from the appropriate roster in the project's planning stages. This will ensure that the project can be certified as eligible for tax abatement by complying with the requirements of the selected method and the Cleveland Green Building Standard.
NOTE: Removal of dilapidated sheds and garages will result in those items being removed from the tax duplicate. For clarification on all matters dealing with real estate taxes, contact the Office of the Cuyahoga County Auditor at 216.443.7100.
Improvements that DO NOT increase the assessed value of a residential property
| Exterior Residential Improvements |
|---|
| New roof installation, aluminum siding installation, siding repair, storm window/door installation, adding windows/doors, repair/replace/add shutters, install awnings, add/replace gutters/downspouts, repoint/repair/replace masonry, add window boxes, repair/replace porches/steps, install outdoor lighting, install sprinkling system, plant lawns/shrubs/grass/plants, scrape/paint house, install/repair/replace sidewalks |
| Interior Residential Improvements |
|---|
| Remodel kitchen, add closets, paint/wallpaper/redecorate, resurface floors, resurface ceilings/walls, Repair plaster, install window blinds, add built-in bookcases, add built-in cabinets, replace furnace with the same kind, replace hot water heater, replace oil or gas burner, replace hot water heater, replace plumbing, rewire completely, add electrical circuits/outlets, install/replace light fixtures |
Note: normal repairs and maintenance will not increase the real estate tax assessment
Improvements which DO increase the assessed value of residential property:
- Add additional living area
- Gut and renovate a home or apartment building
- Convert all or part of a non-residential building to a residential use
- Install new additional bathroom or toilet
- Add new porch
- Install stall shower
- Finish attic, second floor or bedroom with paneling, plaster, or plasterboard
- Build new or enlarged garage
Cleveland Tax Abatement Study Available
In the summer of 2019, the City of Cleveland’s Office of Community Development and the Equitable Community Development Working Group engaged with the Reinvestment Fund, PFM, Greater Ohio Policy Center, Neighborhood Connections, and Leverage Point Development to study the City’s residential tax abatement program. The study was commissioned to understand the historical usage of the program, the value generated for the city, and identify potential adjustments that would help the city advance an Equitable Community Development Strategy.