CINCINNATI — A Cincinnati program is quietly fueling some neighborhood improvements — from beautifying parks to supporting leadership hubs.
The Neighborhood Voluntary Tax Incentive Contribution Agreement, or VTICA, was established in 2017 by the City of Cincinnati. It allows developers who receive commercial tax abatements to opt to pay back up to 15% of their incentive to a community fund. Participation is voluntary.
The question of why companies receiving tax abatements aren't required to give back to communities came up at WCPO's "Finding Solutions" event earlier this month.
"I'm trying to figure out why all these individual companies that get tax abatements, there isn't a line item in their business proposal to the city to give money to communities and youth engagement," panelist Eddie Hawkins said at the event.
One resident at the event also spoke to the stakes of connecting redevelopment to community resources.
"If we do not tie our redevelopment to funding, not just for the money. But for the job resources, for the housing development, for education. If we do not, we will have a rich inclusion excluding us," the resident said.
Contributions collected through VTICA are divided evenly. 7.5% percent goes to affordable housing projects citywide, managed by the Cincinnati Development Fund's Affordable Housing Leverage Fund. The other 7.5% stays in the neighborhood where the development took place, earmarked for projects that improve the "quality of life".
Emma Shirey-McNamara, operations administrator at Homebase Cincinnati — the organization that administers the neighborhood portion of the fund — described how communities can use the money.
"It's a very flexible funding source for neighborhoods to use on permanent improvement projects or neighborhood service programs," Shirey-McNamara said. "It's significant for some of these neighborhoods to be able to have access to those resources."
WATCH: WCPO looks into how companies and developers give back to the communities in which they operate
Thousands of dollars have already been used by communities for education, workforce training and programs benefiting low-income households.
In 2026, eligible neighborhoods that had VTICA funding greater than $10,000 include Bond Hill, Camp Washington, Carthage, CUF, Evanston, Hyde Park, Lower Price Hill, Madisonville, Mt. Auburn, Oakley, and Walnut Hills.
The program is still relatively new in terms of active funding.
"We've really only been collecting on the funds for about three years. So, I think we're just skimming the surface of what's possible with this program," Shirey-McNamara said.
For downtown and Over-the-Rhine projects, VTICA payments fund the Streetcar. Therefore, the neighborhood funds are to be used for community improvements in neighborhoods outside of downtown and Over-the-Rhine.
Applications open twice a year — on Feb. 1 and Aug. 1 — for neighborhoods with a fund balance of $10,000 or more. You can learn more information and see how much is available in your neighborhood here.
We still want to hear from you as we look for solutions to crime and other concerns in our city. You can reach out to Jay Shakur using the contact information below:
