“Once the state approves the proposal it will take effect immediately,” Heck said.
According to Ohio’s Development Services Agency’s website, the CRA program is described as a direct incentive tax exemption program benefiting property owners who renovate existing or construct new buildings.
Because the program permits municipalities or counties to designate areas where investment has been previously discouraged, CRA encourages revitalization of the existing housing stock and the development of new structures.
The tax abatement stays with the property for the duration of the abatement, which under Springfield’s CRA plan is 15 years, even if the property is sold.
The only requirement to be included in the CRA program is to have a new or renovated structure within the designated areas.
Springfield has nine CRA designated areas scattered throughout the city. Under the proposed newly endorsed plan, all nine areas would connect, creating one large CRA.
To find out if a property is in one of the reinvestment areas, contact the residential housing office at 973-328-3480 or go to the Clark County GIS site.
Examples of improvements that may qualify to increase the assessed value of property include building a new porch, installing a sunroom, converting a basement or attic into a living space, building additions to an existing structure, gutting and renovating a home or apartment building, building or enlarging a garage, installing an indoor fireplace, and adding bathrooms, or other new construction projects.
Improvements that will not qualify for a tax abatement include adding light fixtures, painting, remodeling a kitchen, replacing a hot water heater, doing sidewalk work, or adding a swimming pool, awnings or aluminum siding.