The Village of Covington created a CRA by Ordinance 08-20 in 2020 to provide economic options for businesses within the Village. The State of Ohio describes a Community Reinvestment Area as a program that is an economic development tool administered by municipal and county government that provides real property tax exemptions for property owners who renovate existing or construct new buildings.
These areas permit property owners to receive tax incentives for investing in real property improvements on their property. The Village of Covington has a CRA post 1994, which is a specific type of program in the State of Ohio.
CRA Benefits
Within the Community Reinvestment Area, the percentage of the tax exemption on the increase in the assessed valuation resulting from improvements to commercial and industrial real property and the term of those exemptions shall be negotiated on a caseby-case basis in advance of construction or remodeling occurring according to the rules outlined in ORC Section 3765.67. The results of the negotiation as approved by Village Council will be set in writing in a Community Reinvestment Area Agreement as outlined in ORC Section 3735.671.
Residential Properties
- For residential property, a tax exemption on the increase in the assessed valuation resulting from the improvements as described in ORC Section 3 735 .67 shall be granted upon application by the property owner and certification thereof by the designated Housing Officer. The period of the tax exemption granted and the percentage of the tax exemption for the remodeling or new construction of residential, commercial and industrial properties are as follows:
- For the remodeling of every residential dwelling unit containing not more than two (2) housing units or for a newly constructed or remodeled accessory structure located on the same lot as the primary housing unit and upon which the cost of the improvements is at least $20,000, as described in ORC Section 3735.67, the tax exemption shall be granted for a period of five (5) years with such exemption being equal to one hundred percent ( l00%) of the increase in the assessed valuation resulting from such improvements for each of the five (5) years.
For the remodeling of every residential dwelling unit containing more than two (2) housing units but 4 or fewer housing units, or for a newly constructed or remodeled accesso1y structure located on the same lot as the primary housing units and upon which the cost of the remodeling is at least $20,000, as described in ORC Section 3735.67, the tax exemption shall be granted for a period of five (5) years with such exemption being equal to one hundred percent (100%) of the increase in the assessed valuation resulting from such improvements for each of the five (5) years. - For the construction of residential dwellings containing not more than one housing unit and upon which the cost of the new construction is at least $180,000, as described in ORC Section 3735.67, the tax exemption shall be granted for a period of five (5) years with such exemption being equal to one hundred percent (100%) of the first Four Hundred Thousand Dollars ($400,000) of the increase in assessed valuation resulting from such new construction for each of the five (5) years.
Commercial / Industrial Properties
For the remodeling of existing commercial facilities and upon which the cost of remodeling is at least $20,000, as described in ORC Section 3735.67, the term and percentage of the tax exemption shall be negotiated on a case-by-case basis in advance of the commencement of the remodeling, with the maximum term of such exemption being a period of ten (10) years and the maximum exemption being equal to one hundred percent (100%) of the increase in the assessed valuation resulting from such improvements.
For the remodeling of existing industrial facilities and upon which the cost of remodeling is at least $50,000, as described in ORC Section 3735.67, the term and percentage of the tax exemption shall be negotiated on a case-by-case basis in advance of the commencement of the remodeling, with the maximum term of such exemption being a period of ten (10) years and the maximum exemption being equal to one hundred percent (100%) of the increase in the assessed valuation resulting from such improvements.
For the constrnction of new commercial or industrial facilities, the term and percentage of the tax exemption shall be negotiated on a case-by-case basis in advance of the commencement of the construction, with the maximum term of such exemption being a period of ten (10) years and the maximum exemption being equal to one hundred percent (100%) of the increase in the assessed valuation resulting from such new construction.
Complete Ordinance / Regulations
To see the full Ordinance which has all regulations related to the CRA creation, please download it below. For questions, please call the Village Administrator.