Lawmaker: 'Ohio has fallen behind.' State must seize opportunity to alleviate housing burden

The Ohio House of Representatives state budget has taken the initiative to include a priority bill I introduced that aims to authorize a workforce and affordable housing tax credit.

With the pressing need for accessible and workforce housing in Ohio, this legislation holds tremendous potential to address the current crisis.

By leveraging federal funds, incentivizing private sector investment, and promoting economic growth, this is a crucial step towards creating a more affordable and sustainable housing landscape in our state for our workers and residents.

Ohio is grappling with a severe shortage of affordable housing, affecting working families, veterans, and seniors across the state. The alarming statistics reveal that in 2020, only three out of the ten most common jobs paid enough for a worker to afford a modest two-bedroom apartment.

This disparity burdens not only the lowest-income households but also moderate-income renters, with nearly 400,000 households in Ohio spending over half of their income on rent.

The situation demands immediate action to provide relief and stability to vulnerable communities.

The proposed legislation recognizes the effectiveness of the federal Housing Credit, or LIHTC, as a driver of affordable housing development.

The tax credit in the Ohio House budget will offer $500 million in credits for our Ohio families and workers. The credit will also build upon this proven model by offering a 9% or 4% credit, utilizing federal tax-exempt bonds.

Ohio currently receives approximately $120 million in federal bond volume cap for multifamily development annually, yet much of this allocation remains untapped due to a lack of incentives for private sector investment since 2015.

By aligning the state's resources with the existing federal program, it ensures a more efficient and impactful use of available funds.

Ohio must remain competitive in attracting investment for affordable housing development. 

Twenty states have successfully enacted state housing tax credits, effectively drawing down federal LIHTC resources to meet their housing needs.

These states have witnessed increased investments and development, while Ohio has fallen behind.

Our proposal seeks to rectify this disparity by establishing a state-level funding mechanism that will make Ohio more appealing to private sector investors.

By doing so, the legislation aims to revitalize our housing market, stimulate economic growth, and create new opportunities for affordable housing units.

Critics of tax credits may argue that they provide unwarranted benefits without any guarantees. However, this initiative is designed to be entirely performance-based.

Developers will only receive tax credits if they actively participate in the incentive program and deliver on their commitment to building new housing units.

Moreover, the state retains the power to claw back the award if developers fail to fulfill their obligations. This careful and accountable approach ensures that the tax credits are effectively utilized to address the housing crisis and maximize their impact on communities.

The Ohio House state budget represents a vital solution to Ohio's growing workforce housing crisis.

By leveraging federal funds, increasing investment attractiveness, and creating a performance-based tax credit system, this legislation promises to generate substantial economic impact, create jobs, and significantly increase the availability of affordable housing for our citizens.

It is our duty to seize this opportunity and take decisive action to alleviate the housing burden faced by working families, veterans, and seniors across our great state.

Let us unite in support of the Ohio House budget and pave the way for a brighter and more inclusive future for all Ohioans.