CINCINNATI’S NEW RESIDENTIAL CRA TAX ABATEMENT

CINCINNATI’S NEW RESIDENTIAL CRA TAX ABATEMENT

ChuckLohre HERS Rating, LEED for Homes, Living Building Challenge, Visitability

This just in from Paul Yankie. Thanks to Paul and all those that helped get this legislation passed.


CINCINNATI’S NEW RESIDENTIAL CRA TAX ABATEMENT

SUMMARY-Cincy CRA Changes 1-1-22

(Changes take effect as of 1/1/22 and are only applicable to “…applications for Residential Improvements where the remodeling or construction commenced on and after January 1, 2022, as either evidenced by permits issued by the City’s Department of Buildings and Inspections, if required pursuant to applicable law, or if permits are not required by applicable law, as determined by the housing officer.” In other words, as it is currently written and has been explained by the City’s Law Department, the CRA rules stay AS-IS NOW for all projects until projects start getting their issued building permits dated 1/1/22 or later. Only those projects and beyond will be governed under these new rules and projects with building permits dated prior to 1/1/22 CANNOT use these new rules even when they are beneficial. This last part was unintentional language, in my opinion, and should be reviewed for change.)

 

New Construction
Criteria Cap Term (years)
Non-LEED or Non-LBC Qualified $200,000 10
LEED Silver $400,000 15
LEED Gold/LBC Zero Energy Petal $500,000 15
LEED Platinum/LBC Full Cert $650,000 15
Bonus Criteria (Can be added to any tier) Additional Cap Increase  
Visitability $100,000
Remodel
Non-HERS/LEED/LBC $200,000 12
HERS Qualified $300,000 15
LEED Silver $500,000 15
LEED Gold/LBC Zero Energy Petal $650,000 15
LEED Platinum/LBC Full Cert $800,000 15
Bonus Criteria (Can be added to any tier) Additional Cap Increase
Visitability $100,000
Historic Building (pre-1920 building) $100,000

 

MAJOR ACCOMPLISHMENTS OF THIS PLAN

  • Elimination of the Uncapped (No Maximum) Incentive
  • Decreases in almost all New Construction categories except for Visitable projects.
  • Increases in almost all Remodel categories except for the uncapped top tier.
  • Simplification of Incentive by eliminating unnecessary and ineffective tiers.
  • First time in the CRA’s history that Remodel/Restoration is given a greater incentive than New Construction to help curb the teardown concern in some neighborhoods.
  • Creates appropriate gaps between tiers to match homeowner’s decision criteria used to determine how much additional investment they will make in their home.
  • Adds Visitability & Historic Building Bonuses that focuses investment on additional City Priorities without cannibalizing the currently incentivized priority of efficient and healthy housing for all.
  • 4 Unit buildings are now eligible in the Residential Program with Condos,1,2 & 3 unit buildings.
  • Helps close an inequity “loophole” that allowed and even incentivized homes in the most underserved communities to be constructed in a manner that passed higher energy, water and maintenance costs on to those homeowners. This, while motivating the healthiest and most cost-efficient homes to be built in the most “market ready” neighborhoods.

Additionally, this green/high performance construction “loophole” had attracted a less experienced building trade mostly, either by choice or by opportunity. This is why the HBA, the USGBC , CABR and others are offering to partner with the City to offer & promote training for those smaller and/or less experienced contractors in the skills necessary to produce the housing that is highlighted in this plan (Green, Visitable, High Performance Remodel, Historic etc.)