This was originally published in the July 2nd, 2021 newsletter.
State News
Main Street Job Recovery Program Included in Budget
The final budget included $500,000 in funding for the Main Street Job Recovery Program that will provide state funds for community development 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. Although the final amount was not the goal this is still positive as it’s rare to have new programs funded on the first attempt. Efforts are underway to increase this amount through American Rescue Plan Act funds. We were pleased with the amount of bipartisan support in both the House and Senate. OCDCA would like to thank all of the members that advocated to their legislators and the organizations that signed on in support!
Ohio's New Budget Invests $500M in Brownfield Revitalization, Vacant Commercial & Residential Property Demolition
From Greater Ohio Policy Center…July 1 marks the beginning of the State of Ohio's new fiscal year, with the enactment of the new biennial budget. The budget, passed earlier this week by the Ohio General Assembly and signed just before midnight by Governor Mike DeWine, includes $350 million in one-time spending for the clean-up, remediation, and revitalization of brownfields, as well as $150 million for the demolition of vacant and abandoned commercial and residential sites around the state by county landbanks.
Under the newly enacted budget, each of Ohio's 88 counties will receive $1 million which can be spent in the next year on the remediation of brownfields, and a further $500,000 for the demolition of commercial and residential buildings and the revitalization of surrounding properties on sites that are not brownfields. The remaining funds for both programs ($262M for brownfields, $106M for demolition) will be awarded to projects on a first-come, first-serve basis.
Both programs will be administered by the Ohio Department of Development, which will need to write rules governing the program and must ensure the program is running by the end of September 2021.
Affordable Housing Tax Increase Measure Removed from Budget
From COHHIO…The legislature backed off a disastrous budget proposal that jeopardized the continued viability of one-third of Ohio’s affordable housing properties! Thank you to everyone who spoke out on this issue and the nearly 350 organizations that joined our sign-on letter to defend affordable housing.
Instead of increasing taxes on affordable housing developments, the final state budget would create a 16-member study committee charged with making recommendations about the valuation process of federally subsidized rental properties. The panel, which includes legislators and representatives of the housing industry, banks, insurance, auditors, and local governments, will be required to finalize their report within a year.
More State Budget...
Some miscellaneous state budget items of note…
Appropriates $250 million for broadband access
New school funding formula would establish new individualized base costs per pupil for each of the state's school districts and determine every district's capacity for generating revenue locally based on property and income wealth factors within a community.
For taxable years beginning in 2021, reduces tax rates by 3%. There is no further reduction in 2022. And unfortunately increases the income level at which the first tax bracket begins, from $22,150 to $25,000 in 2021.
Regarding eligibility for safety net programs, the budget removed Senate-added language that would have: prohibited income and asset limits for the Supplemental Nutritional Assistance Program, previously known as food stamps, from exceeding the types and allowable amounts allowed by the U.S. Department of Agriculture; required the Department of Job and Family Services to conduct asset tests; required recipients to cooperate with the child support enforcement program; and mandated ODJFS to submit reports on certain information regarding SNAP.
Federal News
House Follows Senate to Repeal Rent-a-Bank
Following a 2018 bipartisan reform in Ohio, a few banks have partnered with payday lenders that are unlicensed in Ohio to issue loans at prices nearly double those charged by state-licensed payday lenders. These loans are purportedly exempt from state laws because they are originated by banks — the “true lender” also known as Rent-a-Bank — before being transferred to high-cost lenders, and they have been the subject of legal disputes. The Office of the Comptroller of the Currency’s 2020 rule allowed these nominal partnerships, the primary purpose of which is avoiding state laws. Following the Senate repeal on May 11, the House voted 218 - 210 through Congressional Review Act authority to repeal this misguided rule.
CDC Extends Eviction Moratorium for One Month
From NLIHC…The Biden administration announced on June 25 that it will extend through July 31 the federal eviction moratorium issued by the Centers for Disease Control and Prevention (CDC), and it will implement a whole-of-government approach to prevent an historic wave of evictions this summer, as NLIHC has urged the administration to do. The moratorium was set to expire next week. These actions from the White House extend an essential lifeline to millions of renters who remain behind on rent and would be at heightened risk of eviction when the moratorium expires. Read more of this article here.
Bipartisan Infrastructure Agreement Leaves Out Housing and Community Development
From NACEDA…The President and Senate negotiated a bipartisan agreement that does not include any of the President’s proposed $200+ billion in spending to rebuild neglected communities through the Neighborhood Homes Investment Act, advance homeownership among communities of color, and invest in public housing improvements, among many other programs for which the White House released details earlier in June. NACEDA is hopeful that these investments will advance in a separate legislative vehicle, potentially reconciliation. NACEDA and our partners continue to work with Congress and the Administration to make these investments and to include set-asides for community-based development organizations serving the hardest-to-reach communities.
White House Reiterates Support for the Neighborhood Homes Tax Credit
From Enterprise…On June 1, the White House reiterated its support for the Neighborhood Homes Tax Credit with the release of a fact sheet outlining its broader efforts to reduce the racial wealth gap through the American Jobs Plan. This follows the May 28 inclusion of the tax incentive in the President’s Budget and corresponding Green Book from the Treasury, which details the President’s tax priorities and plan to pay for the budget proposal. The tax credit, which aims to help revitalize historically marginalized communities, would help attract additional private investment in the rehabilitation of older homes and increase homeownership rates in low- and moderate-income communities. The administration’s support for the tax incentive mirrors the Neighborhood Homes Investment Act (NHIA), which was reintroduced in both the Senate (S. 98) and the House (H.R. 2143) this Congress by Senators Ben Cardin (D-MD) and Rob Portman (R-OH) and Representative Brian Higgins (D-NY) respectively.