Callender Introduces Bill to Modify Community Reinvestment Areas

COLUMBUS – House Bill 456 has been introduced to allow for additional modification to pre-1994 Community Reinvestment Areas (CRAs), announced State Representative Jamie Callender (R-Concord). Under current law, pre-1994 CRAs can only be modified two times before they lose their grandfathered status and must conform to the rules governing post-1994 CRAs. This limits the ability of 14 Ohio communities to attract investment and redevelop areas within their jurisdiction compared to post-1994 CRA communities. House Bill 456 would allow a 3rd and 4th modification to pre-1994 CRAs without triggering the change to post-1994 CRAs. 

CRAs are areas designated by municipalities or counties to provide real property tax reductions for commercial, industrial, or residential building improvements in areas in which investment has been discouraged. This can be used to revitalize existing structures or to build new stock. CRAs are divided into two district categories, pre-July 1994 CRAs and post-July 1994 CRAs, with the primary differences being pre-July 1994 CRAs not requiring prior approval from the Ohio Department of Development or the ability to restrict what type of development will occur within the CRA.

House Bill 456 originated following conversations between Representative Callender’s office and the City of Painesville regarding the need to modify their existing pre-1994 CRA to support a new housing development downtown. The city aims to amend their current CRA, which allows for a 75% property tax reduction over 8 years, to attract investment in affordable homes aimed at first time home buyers. 

“If approved, this bill will allow us to encourage development on properties that have been vacant for over 10 years near our downtown district,” said Doug Lewis, Painesville City Manager. “We are trying to encourage residential, commercial, and industrial development on these vacant properties, and without tax incentives that are competitive with other cities, it makes it very difficult for the City of Painesville to attract new developers.”

Spread across Ohio, the 13 additional communities covered by pre-1994 CRAs are Akron, Cincinnati, Cleveland, Columbus, Cuyahoga Falls, Elyria, Lima, Niles, Reynoldsburg, Sandusky, Toledo, Warren, and Xenia. 

“Ensuring our communities have the tools they need to not only attract new investment, but reinvest in existing brownfield sites, is critical to attracting both jobs and ensuring we have enough housing for residents,” said Callender. “By allowing additional modifications to pre-1994 CRAs, some of Ohio’s largest municipalities will be able to reinvigorate communities and lay the foundation for future Ohioans to experience all our state offers.”

House Bill 456 now awaits a committee assignment.