Tax Abatement

Residential Property Tax Abatement

Buyers of newly built homes in the Transit Village and Southern Moreland Community Reinvestment Areas (CRA) may be eligible for a residential property tax abatement.

Specifically, property owners who apply for and receive the abatement will get a tax exemption of 100 percent of the increase in the assessed value of the property resulting from new construction. The period of the abatement is up to 10 years.

The abatement is granted only for the value of the improvements related to the newly constructed home. During the term of the abatement, the property owner is responsible for paying all taxes associated with the land value of the property.

Eligibility

To be eligible for the abatement, properties must meet certain criteria. These include:

• Located in the Transit Village or Southern Moreland CRAs (see map below)
•  Minimum investment of $125,000
• New construction  
• Owner occupied  
• Residential, single-family dwelling

To receive the abatement, eligible property owners must:

• Apply for the abatement
• Have the application certified by a Shaker Heights Housing Officer

Applications must be filed with the Shaker Heights Housing Officer no later than six months after completion of the new construction. The Housing Officer will determine whether an application meets the requirements for the program.

Learn more

• View the Residential Tax Abatement Application
• View a map (PDF) of the Transit Village and Southern Moreland CRA Districts.
• Learn about building a new home on a city-owned vacant lot.
• Read Shaker Heights Ordinance 14-97 (PDF) (enacted February 23, 2015) and Ordinance 16-33 (PDF) (enacted March 28, 2016) for details about and requirements for each CRA.
• Download a Tax Abatement Information Sheet (PDF).
• View the Residential Tax Abatement Updated Owner Form