Community Reinvestment Areas are areas of land in which property owners can receive tax incentives for investing in real property improvements. The Community Reinvestment Area (CRA) Program is a direct incentive tax exemption program benefiting property owners who renovate existing or construct new buildings. This program permits municipalities or counties to designate areas where investment has been discouraged as a CRA to encourage revitalization of the existing housing stock and the development of new structures.
 
The Ohio CRA Program should not be confused with the Federal Community Reinvestment Act, which requires lending institutions to lend within their service area. Ohio's CRA Program was created to promote the revitalization of areas where investment has been discouraged by offering property tax exemptions for any increased property valuation that would result from renovation of existing structures or new construction activities within the area. The program can be used to encourage historic preservation, residential construction and/or as an economic development tool to encourage commercial and industrial renovation or expansion and new construction.
 
Eligible Areas
 
The CRA Program was created in 1977. The program underwent major revisions in 1994. In fact, there are two types of CRA's in Ohio - those created prior to July 1, 1994 and those after. The regulations governing each type vary considerably. In each case however, the local legislative authority with jurisdiction over the designated area determines the size, the number of areas as well as the term and extent of the real property exemptions.
 
A municipality or county must undertake a Housing Survey of the structures within the area proposed as a CRA. The results of the survey must support the finding that the area is one in which housing facilities are located and that new construction and renovation are discouraged. The local legislation creating the CRA must contain a statement of finding that the area included in the description is one in which "housing facilities or structures of historical significance are located and new housing construction and repair of existing facilities or structures are discouraged."