This was originally published on July 29, 2020 in the OCDCA Newsletter.
Federal News
Take Action Now: Call For Emergency Rental Assistance
Congress is back to work to negotiate the next coronavirus relief bill. With mass unemployment and over 500,000 Ohio tenants wondering how they'll pay next month's rent, emergency rental assistance must be part of the solution!
U.S. Sen. Sherrod Brown (D-OH) has introduced legislation (S. 3685, H.R. 6820) to provide a $100 billion time-limited emergency rental assistance program in the next coronavirus relief bill. The U.S. House has already passed similar legislation, but so far Senate leaders have been reluctant to act. Sen. Rob Portman (R-OH) could help break the partisan divide.
Please take a couple of minutes to ask Sen. Portman and your U.S. House member to support emergency rental assistance for unemployed workers impacted by the coronavirus pandemic.
Sen. Portman, who introduced the Eviction Crisis Act in December, understands the damage eviction causes to people, but he has not yet publicly advocated for emergency rental assistance to help the millions of unemployed Americans facing eviction during the public health crisis.
Neighborhood Homes Investment Act Would Create Tax Credit for Revitalizing Single-Family Homes in Low-Income Neighborhoods
Sens. Rob Portman, R-Ohio, and Ben Cardin, D-Md., introduced the Neighborhood Homes Investment Act (S. 4073), a bill to create a single-family tax credit similar to the low-income housing tax credit (LIHTC) that would help finance the rehabilitation of deteriorated homes in distressed neighborhoods. The bill requires that homes built or revitalized under the incentive be sold to households earning 140 percent or less of the area median income. The bill's sponsors estimate that it could lead to the revitalization of 500,000 homes and create $100 billion in development revenue over the next 10 years.
"The Neighborhood Homes Investment Act is sorely needed to provide affordable homeownership opportunities while revitalizing our legacy communities. Over the past several years Ohio has necessarily demolished a considerable amount of blighted homes across rural and urban communities. Now is the time to transition to single-family development of affordable new and rehabilitated housing using this tax credit tool. We greatly appreciate Senator Portman's leadership on this most important legislation," said Nate Coffman, Executive Director of the Ohio CDC Association.
US House of Representatives Disapproves of New CRA rule
The House formally voted on June 29 to disapprove of the Office of the Comptroller of the Currency's final Community Reinvestment Act (CRA) rule released in May. The effort was led by House Financial Services Committee Chair Maxine Waters (D-CA). She sponsored a resolution ((H.J. Res. 90) using a mechanism called the Congressional Review Act that allows Congress to overturn regulations developed by federal agencies. In order for the new CRA rule to be overturned using this mechanism, the resolution would have to be approved in the Senate and signed by the President. While this House move is likely symbolic, it is very important over the long term to have members of the House and Senate on record disapproving of the new rule.
In related CRA news, the National Community Reinvestment Coalition (NCRC) and the California Reinvestment Coalition, represented by Democracy Forward and Farella Braun + Martel, filed suit against the Office of the Comptroller of the Currency for unlawfully changing rules related to the CRA. Read CRC's news release.
State News
CFPB Abandons Payday Loan Safeguards - Ohio Protected
Recently the Consumer Finance Protection Bureau (CFPB) announced that they are retracting federal rules governing payday loans. This will harm millions of consumers in other states that don't have strong protections in place. The Ohio Fairness in Lending Act (HB 123) passed in 2018 remains in full effect and borrowers continue to have access to small loans with affordability safeguards that are among the lowest prices of any state (approximately four times less than before reform). Ohio will remain insulated from federal intervention. Consumer-facing nonprofits and legal aid attorneys have seen a sharp decline in clients who report problems with loans since HB 123 took effect. According to Ohio Attorney General data, complaints about payday lending are down from the prior 12 months. And the concern that payday lenders expressed that more consumers would use illegal lenders has not materialized.
Out of Reach: The High Cost of Housing in Ohio
The wage needed to afford a basic two-bedroom apartment in Ohio has risen to $15.73, according to the Out of Reach report released by the National Low Income Housing Coalition and the Coalition on Homelessness and Housing in Ohio. The report compares rents and wages nationally and in every state, county, and metropolitan area in the U.S. The amount of money a worker must earn to afford a two-bedroom apartment in Ohio has risen even as many low-wage employees have lost their jobs due to the pandemic. Someone making minimum wage in Ohio would need to work 74 hours per week to afford a two-bedroom apartment. COHHIO and NLIHC urged Congress to approve a $100 billion emergency rental assistance program for workers affected by the recession, and COHHIO is also asking Gov. Mike DeWine to allocate at least $100 million from the state's virus relief funds for the same purpose.
2020 State of Poverty in Ohio Report Released
The 2020 State of Poverty in Ohio Report was released recently by the Ohio Association of Community Action Agencies (OACAA). For nearly 30 years, the report has thoughtfully researched and analyzed data to highlight obstacles Ohio families face on their journeys to becoming self-sufficient. Working closely with well-respected researchers and data experts, this report annually considers various factors that have created barriers to family stability. The report is now available online.