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. 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.

Transit Village CRA

New construction in the Transit Village CRA is eligible for up to a 15 year 100 percent abatement resulting from new construction. To be eligible for an abatement in the Transit Village CRA, properties must meet certain criteria. These include:

  • Being located within the Transit Village CRA (PDF)
  • Minimum investment of $125,000
  • New construction
  • Sold to an owner-occupant
  • Residential, single-family dwelling

Southern Moreland CRA

New construction in the Southern Moreland CRA is eligible for up to a 10 year 100 percent abatement resulting from new construction. To be eligible for an abatement in the Southern Moreland CRA, properties must meet certain criteria. These include:

  • Being located within the Southern Moreland CRA (PDF)
  • Minimum investment of $125,000
  • New construction
  • Must be owner-occupied for the duration of the abatement
  • Residential, single family dwelling

Application and Eligibility Requirements

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. The Housing Officer cannot consider applications until all permits associated with the construction have passed all required inspections and a Certificate of Occupancy has been issued for the property. The City’s Tax Incentive Review Council reevaluates all abatements yearly. Ownership information must be updated after a property with a tax abatement transfers to a new owner.

 

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