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The City of Cleveland’s Residential Tax Abatement program is the temporary elimination of 100% of the increase in real estate property tax for eligible projects. It is available to stimulate investment in new development or redevelopment in the City of Cleveland. The length or term of abatement varies from 10 to 15 years depending on type of project. These types of developments may qualify:
- New construction of single-family homes or multifamily investor-owned properties (15 years)
- Conversion of nonresidential buildings to residential units (10 years or 12 years for 3 or more units)
- Rehabilitation of existing one and two-family homes which increases market value (10 years)
- Rehabilitation of multifamily (three or more units) structures costing over $15,000 per unit or $500,000 total. (12 years)
- Improvements, costing over $2,500, of one and two-family homes that increase the assessed value of the property. (10 years)
Tax Abatement is available to both homeowners and developers. Work must be completed under a permit issued by the City of Cleveland Department of Building and Housing and the property must be located in the City of Cleveland.
The Cuyahoga County Auditor's Office determines the abatement amount based on the type of improvements. There may be an increase or decrease in taxes during the abatement period when voted changes in tax rates, state-mandated reappraisals, or updates reflecting neighborhood trends take effect.
The property owner will be responsible for paying property taxes based on the assessed value of the land and the building(s) prior to improvements. Tax savings realized by developers is passed on to tenants in the form of lower rents.
Abatement terms and rates vary depending on the project. A schedule of tax abatement terms and rates for project types is included in each application found at the links below. The contact number for further information is 216.664.3442. Applications for tax abatement can be found here:
Residents and developers seeking tax abatement for residential projects must meet Cleveland Green Building Standards found in the Cleveland Green Building Standard Handbook. Applicant must select a Compliance Method: Enterprise Green Communities Criteria, National Green Building Standard established by the NAHB, or LEED (Silver) Certification.
Each method relies on a roster of independent third party professionals known as Green Raters or Verifiers who provide assistance and confirm that the project meets the standards for that method. The resident or developer must hire a third party professional from the appropriate roster in the planning stages of the project. This will assure that the project can be certified as eligible for tax abatement by complying with the requirements of the selected method and the Cleveland Green Building Standard.
The Certification Form and the list of Green Raters required to certify compliance can be found here:
NOTE: Removal of dilapidated sheds and garages will result in those items being removed from the tax duplicate. For clarification on all matters dealing with real estate taxes, contact the Office of the Cuyahoga County Auditor at 216.443.7100.
Improvements which DO NOT increase assessed value of residential property:
Exterior Residential Improvements
Interior Residential Improvements
New roof installation
Note: normal repairs and maintenance will not increase the real estate tax assessment
Improvements which DO increase the assessed value of residential property:
- Add additional living area
- Gut and renovate a home or apartment building.
- Convert all or part of a non residential building to a residential use
- Build new or enlarge garage
- Install new additional bathroom or toilet
- Add new porch
- Install stall shower
- Install indoor fireplace
- Finish attic, second floor or bedroom with panelling, plaster or plasterboard