Worthington City Council adopted a new Workforce Housing Tax Abatement Program Monday night, establishing the city's first formal incentive structure for encouraging affordable housing development. The resolution passed with one abstention from Councilmember David Robinson.
The program represents what officials described as "one tool in a toolbox" for addressing housing affordability in the region, with a target of 1,300 new units that aligns with Central Ohio's broader regional housing goals.
Program Goals and Vision
Assistant City Manager David McCorkle connected the program to Worthington's community visioning process, reading from adopted vision statements: "Our community is committed to quality housing, services and amenities for all residents. A stable and diverse housing market makes it possible for Worthington residents to put down roots and live full lives here."
The program is designed to encourage workforce housing units within new multifamily developments, promote mixed-use projects combining residential units with office and commercial space, and support broader housing and economic development goals.
Eligibility Requirements
The program targets households earning 60% and 80% of the Area Median Income (AMI). McCorkle noted that while staff analyzed 100% AMI, "it just wasn't enough of an affordability consideration to warrant tax abatements."
Two Tiers Based on Project Size:
- Under 2 acres: Minimum $2 million payroll and 4 residential units
- Over 2 acres: Minimum $5 million payroll and 10 residential units
The payroll requirement ensures an economic development component to the program, generating income tax revenue for the city.
Affordability Requirements:
- Minimum 20% of units must be affordable (at 60% or 80% AMI)
- Higher affordability percentages (up to 30%) earn enhanced abatement benefits
- Tax abatements range from 50% to 100% depending on affordability commitment
Bonus Payroll Incentives: Developers can receive up to one additional year of tax abatement for each $5 million (or $2 million for smaller projects) in payroll above the baseline requirement, with a maximum term of 15 years as permitted by state law.
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Affordability Flex Option
The program includes flexibility for developers who fall slightly short of the 20% affordability minimum. They can make a one-time cash contribution to the city's housing fund: $40,000 per unit for 60% AMI shortfalls, or $20,000 per unit for 80% AMI shortfalls. At the request of Worthington Schools, this option is capped at 10% of total units.
Public Input
Two residents offered comments during the meeting.
One resident urged council to reconsider several aspects of the program, calling the abatement levels "quite conservative" and noting that "Worthington's history of conservativeness in these programs has not yielded significant success over the past two decades." They recommended eliminating the commercial payroll requirement for residential-only projects, expanding the geographic boundary beyond the current Commercial Community Reinvestment Area (CRA), and allowing maximum abatements permitted by law with case-by-case negotiation. They also noted that a map in the council's packet appeared to be missing recently added property at 44 and 46 West New England Avenue.
Another resident suggested that the payment amounts for buying down units may be too low and requested more definition around how the housing fund would be used. They also recommended council consider additional incentives for three-bedroom units, noting that naturally occurring affordable housing in the city typically caps out at two bedrooms.
Geographic Scope
The program applies within the existing Commercial CRA boundary, which McCorkle calculated encompasses 762 parcels representing 788 acres, 22.3% of all land in the city. This includes industrial and S1 properties.
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Council Perspectives
The resolution drew mixed reactions from council members.
Councilmember Beth Kowalczyk spoke strongly in favor: "This is one tool in a toolbox that I hope is very big and has a lot of robust opportunities to promote housing options in the city... When you look at the community here, where we have not really addressed housing needs at all since the time I've been on council, really, aside from a few discrete projects that have had opposition, I think this is a smart first step."
Council President Rachael Dorothy noted that the council plans to revisit the program annually during its pilot phase.
Councilmember Robinson abstained, praising McCorkle's work but expressing concerns. "I look at the map and I feel it's both too constrictive in some ways and also too focused in other ways," he said. He also questioned the 1,300-unit goal, which is based on Worthington's percentage of the Columbus metropolitan area population, a formula he characterized as "simplistic" that "doesn't take into consideration specifics or particulars of Worthington."
Annual Reporting and Oversight
Recipients must report annually to the city with payroll information and proof that affordable units are being rented to eligible workforce individuals. The Tax Incentive Review Council will review projects annually and can recommend modifications or termination, with final decisions coming before City Council.
What's Next
The 1,300-unit target represents Worthington's calculated share of the region's 200,000-unit housing goal, with Columbus committing to 100,000 units and hoping suburbs contribute the remaining 100,000. McCorkle noted that while the city's housing assessment identified demand for 2,000 units, the 1,300 target was deemed "reasonable." Council can revisit this target at any time.