City of Parma Heights CRA Program

A Community Reinvestment Area (CRA) is a geographic area in which residential and commercial property owners can receive tax abatement for investing in their real property.  Tax abatement is the temporary deferment of increased property taxes for a period of time.

In Parma Heights, the entire city is designated as a CRA.

The CRA Program is a tool used by the City of Parma Heights to:

• Promote the development of new residential and commercial structures, and
• Encourage the revitalization of our existing building stock.

Under the CRA Program, residential and commercial property owners are eligible to receive abatement of property taxes up to 100% of the increase in the assessed value of a structure.  The abatement permitted differs for new construction projects and projects involving the remodeling of existing structures:

1. Ten years for the remodeling of every residential dwelling containing not more than four housing units and upon which the cost of remodeling is at least $2,500, as described in Ohio R.C. 3735.67, and with such exemption being 100% for each of the ten years.
2. Ten years for the new construction of owner-occupied residential dwellings containing not more than four housing unite, as described in Ohio R.C. 3735.67, with such exemption being 100% for each of the ten years.
3. Up to, and including twelve years, and up to, and including 100% for the remodeling of existing commercial and industrial facilities and upon which the cost of remodeling is at least $5,000 as described in Ohio R.C. 3735.67, the term and percentage of which shall be negotiated on a case-by-case basis in advance of remodeling occurring.
4. Up to, and including fifteen years, and up to, and including 100% for the construction of new commercial and industrial facilities, the term and percentage of which shall be negotiated on a case-by-case basis in advance of construction occurring.
5. All commercial and industrial projects are required to comply with the State application fee requirements of Ohio R.C. 3735.672(c) and the local annual monitoring fee of 1% of the amount of taxes exempted under the agreement a minimum of $500.00 up to a maximum of $2,500 annually unless waived.
6. Residential application must be filed with City of Parma Heights Building Department no later than 12 months after construction completion.

Note: Normal repairs and maintenance will not increase the assessed value of a structure.

Improvements that will increase assessed value tend to be more costly projects such as:

• Adding additional living area
• Gutting and renovating a home or apartment building.
• Converting all or part of a non-residential building to a residential use
• Building new or enlarging a garage
• Installing new additional bathroom or toilet
• Adding new porch
• Installing stall shower
• Installing indoor fireplace
• Finishing attic, second floor, or bedroom with paneling, plaster or plasterboard.

Properties for which tax abatement has been granted are subject to annual inspections under Section 3735.67 of the Ohio Revised Code.

If you have a project that you believe is eligible under the CRA Program, call the Building Department at 440.888.0985

City of Parma Heights

City of Parma Heights