April 2021: State Budget Update

This was originally published in the April 30th, 2021 newsletter.

State News

Main Street Job Recovery Program Included in House Budget

Ohio CDC Association (OCDCA) is advocating for the Main Street Job Recovery Program at the Statehouse during this budget season in order to increase resources for community development organizations.

The Main Street Job Recovery Program will provide state funds for nonprofit organizations that address the economic needs of low-and moderate- income individuals and families through the creation of permanent business development and employment opportunities. The program will focus on creating jobs for Ohioans while rebuilding neighborhoods by addressing priorities such as blight remediation, vacant properties, housing, and the reentry population.

We’re pleased that a bipartisan group of 10 submitted the proposed amendment to the House budget version that include Rep Rick Carfagna (R-Genoa Township), Rep Sara Carruthers (R – Hamilton), Rep Jeff Crossman (D – Parma), Rep Laura Lanese (R – Grove City), Rep Lepore-Hagan (D – Youngstown), Rep Gayle Manning (R – North Ridgeville), Rep Mike O’Brien (D – Warren), Rep Tom Patton (R – Strongsville), Rep Jean Schmidt (R – Miami Township), Rep Bride Rose Sweeney (D – Cleveland). The program was included in the House-passed budget but at a lower than requested amount of $500,000 a year. This is still positive as it’s rare to have new programs funded in the budget. Efforts are underway to increase this amount in the Senate and to access state resources for community development in the American Rescue Plan Act.

Property Tax Increase Limits Sought For Low-Income Owners

Sen. Hearcel Craig (D – Columbus) said the ongoing impact of the pandemic makes it all the more crucial lawmakers rally to support his forthcoming plan to protect Ohioans from being priced out of their homes. He announced his yet-to-be-introduced legislation to cap property tax increases at 5% for households at or below their county's median income level. He said the bill is a combination of sorts of laws adopted in other states, including Michigan and Nevada. The cap would prevent drastic increases, he said, instead pursuing a more phased-in approach. Sen. Craig said the legislation was crafted while keeping in mind local government funding cuts over the last decade as well as the ongoing debate over revamping the K-12 school funding formula.

UPDATED PY21 Housing Development Gap Financing Guidelines

OHFA has made several updates to the previously released PY21 HDGF Guidelines to address applicants seeking funding from the Federal Home Loan Bank's Affordable Housing Program. Updated language can be found on pages 3, 5, and 11 of the Guidelines. Below is a summary of the additions made:

  • Due to the timing of the funding round, OHFA will reserve HDGF resources from the agency’s Program Year 2022 (PY22) HDAP allocation for up to four projects in the PY21 round who are seeking Federal Home Loan Bank (FHLB) financing in the to-be-announced November Affordable Housing Program (AHP) round. PY22 resources are subject to funding availability.

  • PY22 reservations will be contingent upon the award of FHLB AHP funds. If PY22 funds are reserved for a development that does not receive an AHP award in November, the reservation will then be cancelled and the funds will become available for use in the 2022 program year.

  • For applicants who receive a reservation of PY22 HDGF funds (and subsequently are awarded FHLB AHP funds in November 2021), the submission of the full HDGF application will be due to OHFA on May 2, 2022.

Contact Karen Banyai with any questions.

Slew of Anti-Protest Bills Hit the Statehouse

SB 33, which penalizes and criminalizes many forms of peaceful protest at oil and gas infrastructure sites, was signed into law January 2021. This new law went into effect in April of this year. Following the passage of SB 33, four more anti-protest, anti-democracy bills have been introduced into the Ohio Legislature and are under discussion. These new bills (HB 22, HB 109, SB 16, SB 41 – note, SB 16 has been recently amended to remove protest language) are very broad in their definitions of prohibited action. In addition, the language in the bills is so vague, confusing and complex that those of us who participate in any kind of peaceful public protest anywhere for any reason, risk being charged with felonies, incarcerated and liable to heavy fines for something as simple as blocking a street or throwing confetti or distracting a police officer. One of these bills even threatens huge penalties for non-profits for advertising or organizing pubic protest. These penalties would bankrupt most non-profits. Read more about these bills with action items from Unitarian Universalist Justice Ohio (UUJO).

Federal News

Restaurant Revitalization Fund to Open Monday

Restaurants and other eating and drinking establishments will be able to register for federal help beginning today and submit applications beginning Monday. The U.S. Small Business Administration (SBA) announced that registration for the Restaurant Revitalization Fund application portal will begin at 9 a.m. Friday, April 30. Applications can be accessed beginning at noon Monday, May 3. The SBA also will host a webinar about the fund at 2:30 p.m. today. Another was held Tuesday, April 27. Both are being recorded and will be posted on the SBA’s YouTube channel. Details on application requirements, eligibility, and a program guide are now available in English at sba.gov/restaurants or in Spanish at sba.gov/restaurants.

President Biden Calls for 15% Increase in HUD Budget and to fund Neighborhood Homes Investment Act

From NACEDA…President Biden recently released a "budget blueprint" that would boost discretionary funding for the HUD budget by $9 billion in fiscal year 2022, raising the total HUD budget to $68.7 billion. View the HUD fact sheet.

NACEDA is encouraged by the President's request for a $500 million increase to the HOME Investment Partnerships Program, the highest funding level since 2009. The NACEDA network has been advocating for this increased HOME funding though the HOME Coalition. Thank you to all the organizations who participated in the national sign-on letter, which was signed by more than 2,000 organizations. The funding request also provides $3.8 billion for Community Development Block Grant program.

In a separate March 31 announcement, President Biden released details on the American Jobs Plan to boost America's infrastructure. The plan would invest $213 billion in housing funds in a bid to tackle the historic shortage of housing supply, currently at its lowest in 30 years. The President called on Congress to fund these housing priorities in the American Jobs Plan:

  • Invest $20 billion to build and rehabilitate more than 500,000 homes for low- and middle-income homebuyers through the Neighborhood Homes Investment Act (a NACEDA priority).

  • Produce, preserve, and retrofit more than a million affordable, resilient, accessible, energy efficient, and electrified housing units.

  • Eliminate exclusionary zoning and harmful land use policies.

  • Address longstanding public housing capital needs.

NACEDA applauds President Biden for including the Neighborhood Homes Investment Act (NHIA) in the plan. NHIA creates a tax credit to encourage private investment in single-family construction, rehabilitation, and repair in disinvested neighborhoods to stabilize neighborhoods and increase homeownership opportunities. NACEDA has been advocating for this legislation through the Neighborhood Homes Coalition.

President Biden Calls for 15% Increase in HUD Budget and to fund Neighborhood Homes Investment Act

From Enterprise…On March 23, Representative Brian Higgins (D-NY-26) introduced the Neighborhood Homes Investment Act (NHIA) in the House (H.R. 2143). Identical companion legislation was introduced by Senators Rob Portman (R-OH) and Ben Cardin (D-MD) in the Senate late January (S. 98). The NHIA, modeled after the successful Housing Credit and New Markets Tax Credit (NMTC), would create a federal tax credit to encourage investment in distressed urban, suburban, and rural neighborhoods that face a “value gap” – where the cost of rehabilitating or building a home is greater than the post-construction value of that home. The program would target communities facing the greatest need – those with high poverty rates, low median family incomes, and low home values – and could revitalize an estimated 500,000 homes, creating $100 billion in development revenue over the next 10 years.

The NHIA, which was first introduced last Congress in both the Senate, S. 4073, and the House, H.R. 3316, was also included in the House passed, H.R. 2, the Moving Forward Act. More recently, the Biden administration called for $20 billion to incentivize the building or rehabilitation of over 500,000 homes for low- and middle-income homebuyers through the NHIA through its American Jobs Plan. Enterprise applauds Representative Higgins, other members of Congress, and the Biden administration for their championship of this critical legislation, which could improve property values, increase family wealth, and decrease blight and abandonment in distressed communities.

Federal Small Business Assistance – PPP deadline May 31

The U.S. Small Business Administration’s (SBA) current relief efforts can be found at sba.gov/coronavirusrelief. Here are two key programs:

Paycheck Protection Program: The deadline for applying for federal financial help through the Paycheck Protection Program has been pushed back to May 31. For more information, click here.

COVID-19 disaster loans: The SBA is increasing the maximum amount small businesses and nonprofit organizations can borrow through its COVID-19 Economic Injury Disaster Loan (EIDL) program. The SBA has raised the loan limit for the COVID-19 EIDL program from six months of economic injury with a maximum loan amount of $150,000 to up to 24 months of economic injury with a maximum loan amount of $500,000. Also, the SBA extended deferment periods for all disaster loans, including the EIDL program, until 2022.

HUD Announces $693 Million for National Housing Trust Fund

HUD announced earlier this month that communities will receive $693 million, more than double last year’s allocation, in national Housing Trust Fund (HTF) funding for the construction and operation of affordable, accessible housing for the lowest-income people. The HTF is a dedicated resource for building, rehabilitating, and preserving affordable housing for people with the lowest incomes.

CFPB Ramps Up Enforcement of CDC Eviction Moratorium

The Consumer Financial Protection Bureau (CFPB) issued an interim final rule on April 19 that establishes new enforcement measures for the Center for Disease Control and Prevention's (CDC) eviction moratorium. Under the new rule, which takes effect on May 3, debt collectors can be prosecuted for failing to provide tenants written notice of their rights under the federal eviction moratorium and for misrepresenting a tenant’s eligibility under the CDC order.

Roundtable: A Movement-Based Federal Housing Agenda

What are the New Deal for Housing Justice and the BREATHE Act and how do they move beyond previous housing agendas? Read the full article in Shelterforce.