Columbus Tax Abatements

[Austin Steed]

One thing I very much appreciate is paying less tax to our wonderful government. I’m writing this for those who also are interested in the Columbus Oh tax abatement program. I’ve completed 5 tax abatements with the City of Columbus, saving me just under 100k annually. There have been some changes to the program and after talking to the City I’d like to provide everyone with an update. This program allows you to lock in your taxes and protects you from future increases on improvements. Also it can be transferred to a buyer causing a property to grow in value. To complete an abatement you must pull permits and fill out phase 1 and 2 with the Columbus Tax portal. Columbus Tax Portal: https://portal.neighborlysoftware.com/columbusoh/participant

Starting January 10th the City has changed the map where the zones for Market ready, Ready for Opportunity, and Ready for Revitalization are located. See link for the new map here: New CRA Areas https://gis.columbus.gov/csir/ (Once link is opened click the drop down for ED-Housing and select Columbus Housing ERA) this will show the colored map. Here is a link to the old CRA areas: Old CRA areas   https://www.columbus.gov/uploadedfiles/columbus/departments/...

Ready for opportunity (Yellow)

- This has grown in many areas.

- You do not have to prove affordability on 1-3 units, 4 units and above you will.

Ready for Revitalization (Blue)

- This area has shrunk in many spots.

- You have to prove affordability on 1-3 units.

- On new builds 1-3 units sold to home buyers you also have to prove affordability. Affordability is proven by 120% AMI. The city will need to prove the 120% AMI buyer can “afford” the property. Sounded very convoluted and even the City was saying for them the process will be tough.

Market Ready (Green)

- There is no opportunity for abatements on 1-3 units.

- If the property you are working on has passed permits prior to January 10th you are protected by the old CRA map.

If you are underwriting deals 1-3 units and they now fall into the expanded Ready for Opportunity areas this is huge. It will allow you to abate the property with no income requirements for tenants.

I have no affiliation with the City nor am I an attorney. Double check with the City of Columbus on locations, this post is only to help investors and has no guarantees.