The Cincinnati Tax Abatement is CHANGING! Learn More Here
On September 2nd, City Council passed a motion to change the policy to the current Tax Abatement also known as the Community Reinvestment Areas. The tax abatement allows residents and businesses to have a portion of their property taxes abated based on the improved value of their investment into a specific property. Essentially, if you renovate or build a home in the City of Cincinnati, you have the opportunity to pay less in taxes if you follow certain criteria.
Quick disclosure as we get started, this blog post is not meant to give you a step by step guide how to have your taxes abated nor is it the end of your fact finding on changes. I am a real estate agent that focuses on New Construction in Cincinnati, but not an attorney, consultant or expert on the tax abatement policies. I say this to make sure you understand that expert guidance may still be needed if you are making investments or decisions to which the tax abatement may impact..
Anyways, back to the information…the original goal of the tax abatement and the CRA (Community Reinvestment Areas) is to remain intact. If you read through the City’s tax abatement information, you’ll see that the original goal of the CRA was to: 1) stimulate community revitalization, 2) retain City residents, 3) attract homeowners, and 4) reduce development costs of home-ownership and rental projects. To find out more, click here to review the City’s website on the current tax abatement.
Fast forward to today, City Council under Vice Mayor Smitherman has empowered “The Property Tax Working Group” at the end of 2018 was set up to investigate the effects of the CRA and see how they can improve upon it. These are the results of thousands of hours of review by that group and recommendations from a number of parties.
In regards to the suggested changes, which may soon become a reality, here’s what you need to know.
Tax Abatement Terms and Caps are CHANGING –You can review these by clicking here, but you’ll notice that each of the categories for new construction has gone down. There are also new incentives based on Historic Renovations, Visibility and renovations in general.
Four Families may be moving from the Commercial tax abatement requirements to residential, which is highly favorable for owners of multi-families.
Visibility – This is a term you might not know yet, but soon will. By increasing threshold widths, creating zero step entries, and adding “visitable paths”, you may be able to increase your abated value by $100,000. This can only be done at the planning stage, during design, and could save you around $2500/year. For more information on visibility, click here (https://docplayer.net/42823090-City-of-cincinnati-visitability-standards.html)
Tiered Approach Under Consideration – On the final policy change, you may see something along the lines of a tiered neighborhood approach. We’ve heard that they plan to continue to engage in an extensive study to review this option.
Grandfathering – USGBC and the HBA are talking through the provisions for grandfathering properties to the old Tax Abatement Rules that are in some phase of development. This is still TBD and being discussed, but will most likely be a part of the new ordinance.
TALK TO YOUR CONSULTANT – It’s more important than ever to talk to your consultant, especially Green Building Consulting, who has been at the forefront of these changes.
We know this motion and policy is NOT set in stone, but it’s important to keep an eye on these changes. We’re lucky to call Paul Yankie of Green Building Consulting a friend, so we’re one call away from understanding where these changes stand. And if you’re considering building or renovation, we encourage you to give his firm or any of the other LEED building consultants in town a call.
Disclosure: Since this information is changing on a daily basis, please consult the City of Cincinnati, a LEED Consultant and/or your builder before you act on any of this information. We can not guarantee any of this for accuracy as it’s based on our interpretation of the Property Tax Working Group and Home Builders Association information.
Cincinnati has been voted one of the best places to live in the United States, and while that may be not surprise to us lifelong residents, we want to make sure new visitors and transfers understand just how great our City is! Of course we love our sports teams, unique restaurants, and the wide array of things to do, but our personal favorite is the affordable housing market.
So, please take a quick look at all the reasons we love the Queen City and head on over to our PROPERTY SEARCH to browse our selection of homes currently on the market to purchase. You know you love Cincinnati as much as we do… is it time to set new roots in your favorite neighborhood?
If you’ve been living in the City of Cincinnati, chances are you’ve heard about the tax abatement for new construction and remodeled homes. But, do you really know how it works??
Paul Yankie, President & CEO of Green Building Consulting sat down with us to give us a little crash course on the tax abatement & LEED Construction and why it’s been such a driving force in the Cincinnati residential real estate market.
Paul explains it best in our chat with him, but here are the main takeaways:
The Cincinnati Community Reinvestment Area (CRA) Residential Tax Abatement, as it’s called, offers property owners the ability to minimize tax implications when you build, add-on or invest in your home. This means that any improvements will NOT significantly add to the property tax bill. You would only pay on the amount of “pre-improvement” value, up to $275,000.
LEED Certification: This is the secret topping to the tax abatement. Basically, LEED Building = Green Building = Energy Efficiency.The City of Cincinnati is one of the BEST places to build a LEED certified home because it saves you even more money. The higher the rating, the more money you save. LEED Silver allows for up to $400,000 abated, LEED Gold is up to $562,000 and LEED Platinum is UNLIMITED. Of course, LEED comes with it’s extra building costs, but that’s specific to the home you build and how much money you can spend!
Find a professional (a builder or Build Collective or Green Building Consulting) that understands the tax abatement and construction process. They can help you determine what the best plan of action is for you.
Now that you’re armed with this information, doesn’t building and remodeling in the City sound that much better? Not only can you design a home specifically for you and your family, but you can save money in the process!
See How Much Money You Can Save on A New Home with Our Tax Abatement Calculator!
Everything you need to know about Walworth Junction
Site of HOMEARAMA® 2020
The Highlights:
First LEED ND Certified Neighborhood – Greenest Neighborhood in the area!
39 Luxury, Single Family Homes
Site of HOMEARAMA® – July 2020
For the first time in, well, ever, HOMEARAMA® 2020 is coming to the City of Cincinnati. We’re especially excited with this site as it’ll be one of the most impressive and ground breaking (literally) that we’ve ever had the pleasure of being a part of. Why? Well because this happens to be an old railroad maintenance site that has been completely remediated by the developer and EPA to be the future site of 39 contiguous, luxury single family homes. It’ll be a one of a kind community in the City of Cincinnati for so many reasons…
Here’s what you need to know:
The History:
As a former railroad maintenance station, this site is rich in railroad history, formally known Pendleton Yards. Not to be confused with Pendleton outside of OTR, this yard and station saw it’s fair share of traffic and cars up to the mid 20th century. Over the summer of 2019, the developer in conjunction with EPA and Terracon, have been removing dirt to turn a former “brownfield” into a gorgeous new community!
The Developer:
East End Develepment LLC is comprised of two veteran developers, TJ Ackermann and Ralph Meierjohan. The two partners have developed countless communities over the years, including recent Citirama sites, Woodlawn Meadows and Springrose Meadows. Having decades of experience in development and building, they’re gaining national attention for Walworth Junction because of it’s site remediation, design and it’s location!
The Location:
Located just down the street from the Precinct Restaurant on Delta, it’s ideally located on the edge of Columbia Tusculum in the East End and around the corner from Hyde Park and Mt. Lookout. All 39 homes are walkable to Eli’s BBQ, Hi Mark, Allyns and Pearls, not to mention countless other little shops and watering holes. This is the draw of Walworth Junction. And better yet, it’s a hop, skip and a jump from Downtown Cincinnati.
The Amenities:
One of our favorite features of Walworth Junction is it’s own park. As you enter into the community, the park stretches hundreds of feet along Walworth and ends with a tunnel connecting homeowners and neighbors to Riverside Drive. Additionally, each home will have views of the River and the City of Cincinnati. It’s raised topography allows for these views from the 2nd and 3rd floors along with the rooftop decks, should owners go that route. AND…each owner will utilize the private drive, alley way for a rear entry garage, which means the front elevations and the streetscape isn’t dominated by garages on the front of homes!
The Taxes:
With all of the homes being LEED Gold by Green Building Council, the tax rate is locked in for ALL 39 homes. This is part of the LEED ND (Neighborhood Development) certification, making Walworth Junction the first community in Cincinnati with that designation! In addition, there is an additional TIF Assessment on all of the lots for the EPA site mitigation, which is still being finalized. Details will be released in the coming months on this..
The Builders
With HOMEARAMA® set for July 2020, the preferred builders have been set and homes will start coming out of the ground in Dec of 2019. Currently, the featured builders for Walworth Junction are:
Walworth Junction will be “the greenest” Homearama show ever! And did we mention, the first in Cincinnati to be LEED ND (Neighborhood Development) certified. Without getting too technical, this means ALL of the new homes will be LEED certified, there are points for the smart location and linkages being so close to the City, and due to it’s overall design. It will be the first subdivision that has mandated LEED Gold for every home…so you’re in good company as a resident of Walworth Junction.
So what are you waiting for? Now is the time to take a drive over to the community and meet with the builders so you can get your hands on one of the best lots!
Condos in Cincinnati come in all shapes and sizes. There are urban downtown units in OTR,
Kentucky offers floor plans with views of the Cincinnati skyline, and then there are incredible high-rise options in
Walnut Hills with a little bit of both! Unfortunately, these can be hard to find! Luckily for you, we have an exquisite condo that has checked multiple criteria boxes for a number of buyers. 1201 Edgecliff Place, Unit 1043 in Walnut Hills, is seconds from Eden Park and minutes to downtown.
Just why is this condo so special? It doesn’t take much selling, but here’s a few of our favorite
features:
1.Incredible Sweeping Views of Downtown Cincinnati and the River: Although it might only be on the 4th floor, we challenge you to find a better, unobstructed view! You’ll have soaring sights from each room and the three balconies that have views of downtown, up the river and the vistas of Northern Kentucky. While you’re not enjoying the view, take a stroll over to Eden Park, Mt. Adams or a bike ride Downtown to Smale Park! The connectivity is truly unparalleled
2. Completely Remodeled: Every inch in this condo has been elegantly crafted and renovated so a buyer can move right in without a worry in the world. Each thought out detail can be appreciated within just minutes of entering the condo. We can assure you that there are few homes in Cincinnati that can rival the workmanship in Unit 1043!
3. Fully Automated, Smart Home: Let’s face it, technology makes life easy. And, in 1043, life is as easy as it gets. With a button to control the blinds and another for the lights, there’s no need to over exhaust yourself by getting up off the couch! Let your Ipad control your life…but don’t let it distract you from the blissful views and elegant environment!
4. Walkability Galore: Whether you’re a dog lover or just an avid walker/runner, Edgecliff has what you need. With sidewalks that can get you everywhere from Eden Park to Mt. Adams to Downtown, there’s more than enough miles of sidewalks to wear you out. On a rainy day, you can use one of the 3 treadmills down in the gym! Did we mention thatt he Flying Pig and other running events run right by the building?!?
5. Building Amenities that Rival the best Manhattan Condos! Few buildings can rival the condos at Edgecliff Place. Built less than 30 years ago, this fairly new building has every amenity that you can think of. With a full time concierge, gym, Max Welton entertaining house, green space, lobby and maintenance manager, you’ll have no need unfulfilled. They’ll even change your lightbulbs!!
We could keep going on and on about how great this home is, but I think it’s time you come on
through. Click here to see more details on the property and to fall in love…
Have You Ever Considered Building New in the City??
If not, NOW might be the time to look at 262 Klotter Street!
Why you might ask? Well, there are more reasons than ever to build inside the city limits with the tax abatement, reasonable costs and booming entertainment districts! These days, more and more people are wanting to live urban, but need more space and want to have input on customizing their design. Since most condo projects don’t often offer the opportunity to be a part of making it your own, a single family home on your OWN lot with your OWN outdoor space can be an excellent opportunity. Plus, with condo prices continuing to rise, you will get a better cost per square foot in a single family home & no parking or HOA fees!
So when you consider your next move, here’s a few reasons that 262 Klotter might be the PERFECT home for you:
It’s Tax Abated for 15 years – This can save you as much as $6-10,000/year
Unique Design from an experienced team that knows urban! The Titan Group is an established builder/developer in the city and strives to make the process smooth and fun!
Roof Deck and Elevator Option – Most rehab homes in the city do not allow for a rooftop private retreat!
Garage Parking – You can have your OWN garage, not just a parking space.
Located between uptown and downtown, Klotter is the perfect location to satisfy all the desires of urban living.
If you’ve been wondering why so many people are wanting a more urban lifestyle, think about choosing to live where you play. You can easily meet up with your friends and neighbors, and be just minutes away from local parks, theaters, bars, and the best restaurants in town!
For more information on this home, click here for the full listing or contact Stacy Rickert, Coldwell Banker West Shell at 513-515-2615. I would love to show you more of what this opportunity has to offer!
Incredible Sweeping Views of Downtown Cincinnati and the River: Although it might only be on the 4th floor, we challenge you to find a better, unobstructed view! You’ll have soaring sights from each room and the three balconies that have views of downtown, up the river and the vistas of Northern Kentucky. While you’re not enjoying the view, take a stroll over to Eden Park, Mt. Adams or a bike ride Downtown to Smale Park! The connectivity is truly unparalleled
