Downtown Housing Incentives
Thanks to a variety of aggressive incentive programs, more and more developers are finding the downtown residential market to be a highly attractive environment for private investment.
The City of Columbus has created a menu of incentives to accelerate the creation of more downtown housing, including:
- As-of-right property tax abatements
- Low-cost financing
- Cost-reduction incentives
- Street and sidewalk improvement funding
Property Tax Incentives
75-100 percent residential property tax abatement
description:
As-of-right real estate tax abatement for downtown housing projects; amount varies according to location and type of housing
use:
To close the gap between the development cost and the rental/sales value of downtown housing
contact:
Tom Heaphey
City of Columbus Downtown Development Office
(614) 645-7067
Ordinance Review
The residential tax incentive generally provides a 10-year, 75 percent property tax exemption on the increased value for new or rehabilitated residential housing in the Downtown Columbus area through the creation of the Columbus Downtown Residential Community Reinvestment Area (CRA).
In addition, the ordinance creates higher levels of incentives for affordable housing, student housing, redevelopment housing, targeted area housing and residential remodeling as follows:
| Housing Classification | Amount | Term |
|---|---|---|
| Affordable Housing | 100% | 15 years (new) |
| 12 years (renovate 3+ units) | ||
| 10 years (renovate 1-2 units) | ||
| Student Housing | 100% | 10 years |
| Redevelopment Housing | 100% | 10 years |
| Targeted Area Housing | 100% | 10 years |
| Residential Remodel project of two units or less and remodeling cost of at least $2,500 |
100% | 10 years |
| Residential Remodel project of more than two units and remodeling cost of at least $5,000 |
100% | 10 years |
The level of incentives described above are net effective levels of exemption arrived at by generally applying 100 percent exemptions, coupled with offsetting payments in lieu of taxes ("PILOTs") by the property owners. PILOTs are generally payable to Columbus City Schools.
Related commercial use improvements, such as street-level retail in a multistory residential structure, will receive the same level of incentive as the residential improvement in that structure — if those improvements do not exceed one-third of the gross square footage of the structure. No incentives are provided for commercial use improvements where they exceed one-third of the gross square footage of the structure.
The Director of Development, acting as the City's designated housing officer, will award these real property tax exemption incentives to the eligible projects described above. No additional action is required by council.
Cost Reduction Incentives
Utility tap fee credits
description:
Full credit for existing water and sewer taps provided by the City of Columbus
use:
To reduce upfront infrastructure costs for new-build and renovation projects throughout Columbus
contact:
Tom Heaphey
City of Columbus Downtown Development Office
(614) 645-7067
info@downtowncolumbus.com
Street and sidewalk improvement funding
description:
Funding of street and sidewalk improvements available from the City of Columbus
use:
To enhance the curb appeal of new residential units for downtown commercial and residential developers
contact:
Steve Cochrun
City of Columbus Downtown Development Office
(614) 645-6305
info@downtowncolumbus.com
Downtown Minute
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