Governor Dewine

February 2021: State & Federal Budget Updates

This was originally published in the March 2, 2021 OCDCA newsletter.

State News

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State Budget Updates

Recently the DeWine administration introduced the biennium budget. Of note is a proposal that would invest $200 million to provide grants to pay for community infrastructure projects. This would happen in the form of $2 million grants for only smaller communities (those with populations between 1,000 and 75,000 and with an annual median household income of less than $50,000 per year) for projects that include water and sewer projects, downtown revitalization, demolition of blighted properties and redevelopment purposes. This proposal and the entire budget will reworked by the House and Senate.

OCDCA is also advocating for additional community development resources at the state level through the Main Street Job Recovery Program and the Ohio Financial Empowerment Fund.

Please sign your organization onto the Main Street Job Recovery Program support letter by March 9th!

Sign the letter

Brownfield Funding Legislation Introduced in the State Legislature

From Greater Ohio Policy Center: House Bill 143 (HB143) and Senate Bill 84 (SB84) were introduced in the Ohio House of Representatives and the Ohio Senate by Representative Brett Hudson Hillyer (R – Uhrichsville) and Senators Sandra Williams (D – Cleveland) and Michael Rulli (R – Salem). These bills provide dedicated funding to the Clean Ohio Revitalization Fund (CORF). CORF was a highly successful program which, between 2002 and 2013, provided state funding to revitalize brownfields, and in turn, provided the state with a four-to-one economic return. CORF is recognized as a community-responsive tool for brownfield redevelopment efforts. Therefore, public and private stakeholders agree that providing CORF with a dedicated funding source is the most logical solution to addressing the brownfield remediation need in Ohio’s communities.

SB17 will cost $20M in red tape while helping no one

An Ohio Senate bill that seeks to catch fraud among people applying for and receiving social services will result in increased work for county case workers, as well as fewer low-income people obtaining food aid, Medicaid, and unemployment benefits. Read more about it in the Highland County Press or Cleveland.com. Follow #OhioansagainstSB17 to stay up to date.

Final PY21 Housing Development Gap Financing Guidelines Now Available

The Final Program Year 2021 HDGF Guidelines are now available on OHFA's HDAP webpage. The HDGF program will award Ohio Housing Trust Funds and National Housing Trust Funds to affordable housing developments consisting of four to 24 units. OHFA will begin accepting Intents to Apply from applicants on May 3, 2021. Questions regarding HDGF can be sent to kbanyai@ohiohome.org.

Federal News

House Passes Coronavirus Relief Package with Over $40 Billion for Housing and Homelessness

The House of Representatives passed by a vote of 219 to 212 the “American Rescue Plan Act,” a $1.9 trillion coronavirus relief package containing $40 billion in essential housing and homelessness assistance, including $26 billion for rental assistance and $5 billion to assist people who are homeless. Although the Senate parliamentarian ruled on the evening of February 25 that the provision to increase the federal minimum wage to $15 per hour violates the parameters of the reconciliation process, congressional leaders in the House kept the provision in the bill. As the bill moves to the Senate, Democratic leaders will determine whether to remove the provision from the Senate bill or keep the provision and likely have it subjected to a “Point of Order” during debate and removed. Senate leaders are expected to skip committee votes and bring the bill to the Senate floor for up to 20 hours of debate, followed by a “vote-a-rama,” during which senators will have the opportunity to offer an unlimited number of amendments to the bill before a floor vote. The House and Senate are aiming to have the bill finalized and sent to President Biden before March 14, when the pandemic-extended unemployment benefits are slated to expire. Read more from NLIHC.

Federal Sign On Letters

Maximize HUD Funding

Urge Congressional appropriators to allocate the largest possible slice of the pie to the Transportation, Housing and Urban Development (THUD) subcommittee. It's critical that the THUD subcommittee get the resources they need to fund housing and community development programs at HUD and USDA. Sign the letter by March 5th!

CRA Can be Race-Conscious

NCRC is re-opening a comment letter we submitted last week for further sign-on that urged the Federal Reserve Board to adopt a more race-conscious Community Reinvestment Act (CRA). Sign the letter by March 5th!

OCDCA Submits CRA Comment Letter

Thank you to the many members who submitted comments on the Federal Reserve's Advanced Notice of Proposed Rulemaking (ANPR) on CRA. OCDCA submitted our comments earlier in February. Read them here.

Restoring Communities Left Behind Act

The Restoring Communities Left Behind Act (H.R. 816) was introduced in the House of Representatives by Rep. Marcy Kaptur (D-OH) and Rep. Rashida Tlaib (D-MI). The Restoring Communities Left Behind Act would authorize the Secretary of Housing and Urban Development (HUD) to establish a $5 billion program, that would operate from fiscal years 2021 to 2031, to award competitive grants to eligible local partnerships for neighborhood revitalization activities.

HUD Announces Fair Housing Protections for LGBTQ Americans

HUD announced this month that it will now accept and review Fair Housing Act complaints alleging discrimination on the basis of sexual orientation and gender identity. We, along with Enterprise Community Partners, applaud HUD for taking this important step towards addressing housing discrimination against LGBTQ individuals.

January 2021: Governor's Budget, Rent Assistance

This was originally published in the February 2, 2021 OCDCA newsletter.

Federal News

Federal Eviction Moratoriums Extended
The Centers for Disease Control and Prevention extended the national moratorium on evictions until March 31, as ordered by President Biden on his first day in office. In addition, HUD and USDA extended eviction and foreclosure moratoriums through March 31. FHFA extended foreclosure and REO eviction moratoriums until February 28. Go to NACEDA's COVID-19 housing resources page for more information.

Federal Reserve Issues Community Reinvestment Act ANPR

Submit comments by February 16 for the Federal Reserve Board's Advance Notice of Proposed Rulemaking on the Community Reinvestment Act (CRA). The Fed proposal improves upon the current CRA exam structure in contrast to previous rulemaking by the Office of the Comptroller, which dramatically weakens CRA. These two federal agencies regulate different banks and were unable to agree upon common rulemaking. NCRC has posted sample comment letters.

Senator Portman Reintroduces Tax Credit Bill to Encourage Revitalization of Distressed Homes

The Neighborhood Homes Investment Act (NHIA) was introduced on January 28 by Senators Rob Portman (R-OH) and Ben Cardin (D-MD), and co-sponsored by Senators Tim Scott (R-SC), Todd Young (R-IN), Chris Coons (D-DE), and Sherrod Brown (D-OH). NHIA would encourage private investment in an estimated 500,000 homes that currently cannot be developed or rehabilitated because the costs to do so exceed the value of the home. The tax credit supports development of homes in rural communities struggling with the costs of new construction, as well as the rehabilitation of homes in distressed urban communities. For NHIA info relative to Ohio, watch the OCDCA webinar recording from December 8th. View the slides from Matt Josephs of LISC and the Cleveland data from Kate Monter Durban at CHN Housing Partners. Learn more.

President Biden Directs HUD to Reverse Anti-Fair Housing Policies

The President signed an executive order on January 27 directing his administration to end policies that enable discrimination in housing and lending, and acknowledging the federal government's role in erecting systemic barriers to fair housing. The previous day, he issued a memorandum directing HUD to examine Trump Administration revisions making it harder to utilize the Fair Housing Act's Disparate Impact Standard, as well as the abandonment of the Affirmatively Furthering Fair Housing provisions within the Act. The president also pledged federal action to pursue environmental justice, lift restrictions on housing production, and ease the racial gap in homeownership and homelessness. Read Biden Lays Out His Blueprint for Fair Housing from Bloomberg CityLab for analysis plus information on HUD appointments.

Rep. Marcia Fudge Gets Hearing on HUD Secretary Nomination

The Senate Banking Committee held a hearing January 28 on the nomination of Representative Marcia Fudge (D-OH) to serve as HUD Secretary. Pat Toomey (R-PA), the acting committee chairman, and Ranking Member Sherrod Brown (D-OH), the likely incoming Chairman, applauded Fudge's long career in public service and highlighted her commitment and passion in their public statements. Her nomination has bipartisan support and advocates believe her confirmation process will be smooth in the coming weeks.

State News

Governor Dewine Unveils Budget Proposal

The DeWine Administration unveiled its second budget proposal Monday for the biennium from July 1, 2021 - June 30, 2023, with the spending bill coming to nearly $171.6 billion over two years. Gov. Mike DeWine touted $1 billion in targeted investments aimed at the state's recovery from an economic and public health crisis, what is perhaps most notable about the budget is what isn't in it. There isn't tax increases or decreases, a plan to borrow from the state's "rainy day" Budget Stabilization Fund, or a significant slash in spending.

Of note are proposed single occurrence expenditures to invest in Ohio communities focused on pandemic recovery including:

  • $450 million under what's called "Investing in Ohio by Enhancing our Communities" by investing in community infrastructure projects ($200 million) and expanding broadband access ($250 million).

  • $460 million for small business relief, such as entertainment and hospitality enterprises.

  • $20 million for new businesses that started in 2020.

  • Enhanced services to minority businesses.

  • $70 million for workforce development.

The budget will now move to the Ohio House of Representatives and then the Ohio Senate. Click here for broad budget details from the Associated Press.

Rent, Utility Assistance Approved

The first round of federal aid dollars from the latest federal relief bill to pass through the Controlling Board will go toward rent and utility assistance. The board gave its OK to the use of $100 million in funding for the aid programs, which will be administered by community action agencies through the Ohio Development Services Agency (ODSA). Renters in the U.S. owe an estimated $57 billion in back rent, with the typical renter almost four months and $5,600 behind on their monthly rent and utilities. ODSA recently allocated $55.8 million from the state's federal Community Development Block Grant - Coronavirus relief funding for the Home Relief Grant Program to provide assistance into early 2021. Congress approved $25 billion for emergency rental assistance in the new economic stimulus package with Ohio's distribution of $778.1 million expected soon. Ohioans seeking assistance should contact their local community action agency. For more information and a listing of local community action agencies visit ODSA's Home Relief Grant web page.

Ohio's Vaccine Resources

The Ohio Department of Health has created a COVID-19 Vaccine Myth v Fact sheet, which is available in several languages. There is other information and resources available on their portal as well to help with an adequate vaccine distribution and information campaign.

JobsOhio Inclusion Grants

The JobsOhio Inclusion Grant exists to provide financial support for eligible projects in designated distressed communities and/or for businesses owned by underrepresented populations across the state.

Grant decisions are based on a number of project factors, including but not limited to company location, company ownership, jobs created and/or retained, and project fixed asset investment. Support is generally intended for small to medium-sized companies with eligible projects.

Learn more about these factors and how to help your community's businesses apply.