Cleveland City Council is considering an ordinance modifying tax abatements for residential properties.
The plan would exempt new and renovated residences for 15 years, instead of 10. While abatements mean less revenue for city schools, which depend on property taxes, Cleveland Council member Anthony Brancatelli said abatements revitalize neighborhoods, which ultimately benefits the schools.
“This helps the schools in a number of ways. One of the things that you do see is that you’re improving the value of surrounding housing as well, so you are improving the real estate values of the entire neighborhood, which does significantly help the schools, “ he said.
The bill’s sponsors say abatements spur development of underused property and empty lots, and attract potential homeowners.
Khrys Shefton, real estate development director for the non-profit community development corporation Famicos Foundation, said the exemptions have been a selling point for its properties on the city’s East Side.
“We have been lucky enough to sell several market rate, historic rehab homes along E. 105 th street, and it is definitely a help when people are making a decision to purchase a home,” she said.
If the ordinance passes, it would take effect immediately.