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1. What is a Community Reinvestment Area (CRA)?

A CRA is a program authorized by the State of Ohio that allows a local government (like the City of Xenia) to offer real property tax abatements to incentivize new construction, expansion and rehabilitation in areas where there is a demonstrated need for reinvestment.

2. How does a CRA tax abatement work?

Building a new home, store or office or investing in renovations can make real property taxes go up. This is because improvements to a property increase the property’s value, and real property taxes are a percentage of the taxable real property value. A real property tax abatement in a CRA makes it possible for property owners to avoid all or a portion of the tax increase caused by the improvements over a 10-15 year period.

3. How can a CRA tax abatement help me?

If you are a business, homeowner or landlord who would like to build, expand or substantially rehabilitate a building, a CRA real property tax abatement can result in a significant annual savings to you over a period of 10-15 years. The tax savings keeps more money in your pocket that you can invest in your project.

If you are someone who does not have plans to improve your property, you will indirectly benefit from the CRA program because it will encourage improvement of other Xenia properties as well as business attraction and expansion, which can improve the value of your property as well as Xenia’s general quality of life.

4. How can I qualify for a CRA tax abatement?

You must own a residential or business property within the CRA and do one of the following:
1. Undertake new construction of a commercial/industrial building or one or more residential units, or
2. Expand or rehabilitate an existing residential, commercial or industrial building to an extent that it increases the taxable real property value.

5. How much of a tax abatement can I receive?

Below are the types and levels of tax abatements available:
- Residential Remodeling, 1 or 2 family buildings: 10 years/100%
- Residential Remodeling, 3-4-family buildings: 12 years/100%
- Residential New Construction, 1-4 family buildings: 15 years/100%
- Commercial/Industrial/5+ family Residential Remodeling or New Construction: Term length/percentage to be negotiated on a case-by-case basis in an agreement approved by City Council.

It is important to note that projects must add substantially to the taxable real property value in order to realize significant savings through an abatement. Projects involving new construction, significant expansions, and major rehabilitation (i.e. gutting/reconstructing the interior of a building) will generally add substantial taxable value. Smaller remodeling projects, such as replacing a roof, windows, siding, flooring, appliances, cabinets or furnishings may not result in any change in taxable value.

6. How do I apply for a CRA tax abatement?

Upon COMPLETION of your new construction, expansion or renovation project, fill out the online application and follow the online instructions. When you click “submit” it will be sent to the Planning and Zoning Department for processing. You can access the online application by clicking here.

7. Who reviews and approves my CRA application?

The Planning and Zoning Department will review the application to ensure proper documentation has been submitted and will inspect the property to ensure that the application information is consistent with actual work completed. Then the application will be forwarded with a certification to the County Auditor. The County Auditor will then make a final determination on the actual increase in taxable value generated by the new construction, expansion or renovation project. The Auditor will then apply the approved abatement to future tax bills.

8. Will a CRA tax abatement reduce the taxes that I paid on the property prior to new construction, expansion or renovation?

No. A CRA tax abatement only applies to increases in real property taxes caused by improvements to a property. Pre-improvement real property taxes must still be paid.

9. If I receive a CRA tax abatement, will my taxes go up or down during the abatement period if my property is re-assessed or if a tax levy is passed?

Perhaps. You will still be responsible for paying pre-improvement real property taxes on the property, which could go up or down due to periodic County Auditor re-assessments or tax levies.

10. What happens to my tax bill at the end of the tax abatement period?

After a tax abatement expires, you will begin paying the full amount of real property taxes on both the pre-improvement and post-improvement value of a property.

11. Why was this part of Xenia selected for the CRA, and not ALL of Xenia?

Xenia is a diverse community which contains both growing and established areas. Some established neighborhoods and business districts have experienced increases in vacancy as well as a decline in property maintenance. These factors can discourage existing businesses and homeowners from expanding or continuing to invest in their properties. These factors can also discourage new businesses and homeowners from locating in or building in these areas. The CRA offers a tool to help existing and prospective property owners to overcome these obstacles to investment. The City will continue to monitor the progress of the program as well as conditions in other portions of the City and continuously evaluate whether the CRA should be expanded to include additional areas.