Incentives exist for multi-family conversions

Programs already exist to incentivize the conversion of multi-family properties to single-families in Cincinnati, according to a recent report by City Manager Milton Dohoney Jr.

The report is the result of a motion by Councilmember Laketa Cole, subsequently adopted by City Council, asking for the City to explore ways to help restore communities by replacing blighted, neglected rental units with homeownership - leading to reinvestment and an increased tax base.

Many of Cincinnati's large turn-of-the-century homes have been carved up into multiple apartments, which are often a substandard last option for their tenants.

Dohoney says that the City's current tax abatement policy, which provides a ten-year credit for renovation of new construction, provides an incentive for re-converting multi-family structures into lower-density buildings.

And on March 30, city administration notified council that it was changing its method of awarding subsidy assistance for homeownership projects from a first-come, first-served disbursement to a Notice of Fund Availability (NOFA)
process.

"It is believed that this NOFA process will optimize the use of City funds for increasing the City's rate of homeownership," Dohoney wrote.

Dohoney says that several factors have led to the carving up of some of Cincinnati's larger homes.

"Through the years, market forces have led to the conversion of numerous single-family homes into rooming houses and multi-family structures in many of the City's neighborhoods," he wrote.

Among the reasons cited are:

* Decreases in average family sizes
* Increased costs for utilities
* Increased costs to maintain and repair such large structures
* Customer demand for larger lot sizes, more bathrooms and larger closets
* The desire to maximize rental income by increasing the number of tenants

City officials continue to look for ways to reduce blight - including incentives for the conversion of multi-family buildings back to single-family homes.

"The administration will continue to explore best practices and innovative ideas to reduce the number of nuisance properties in an effort to improve our neighborhoods," Dohoney wrote.

Previous reading on BC:
Cincinnati motion on multi-families adopted (3/28/08)
Cole: Incentivize conversion of multi-families (3/18/08)