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.

November 2020: Rental Assistance, CARES Act

This was originally published on November 30, 2020 in the OCDCA Newsletter.

Federal News:

Rental Assistance in the Headlines

Georgia District Judge Upholds CDC's Temporary Eviction Moratorium

From Enterprise Community Partners...On October 29, a federal judge rejected a motion for a preliminary injunction against the CDC's temporary eviction moratorium for qualifying renters, upholding the temporary moratorium put in place by the Trump administration. The injunction was filed by the New Civil Liberties Alliance on behalf of a Virginia housing provider and the National Apartment Association. By rejecting the motion for a preliminary injunction, the court has upheld the CDC's nationwide freeze of most residential evictions for nonpayment of rent. As of now, the CDC's emergency health order will continue to protect qualifying renters from eviction for nonpayment of rent through December 31, 2020. Enterprise has joined partners in urging Congress and the Administration to provide emergency rental assistance in conjunction with eviction protections to avoid widespread homelessness and the loss of affordable homes.

Even with moratoriums and some financial relief, evictions remain a threat in Central Ohio

Even as an eviction moratorium promises to blunt the impact of the Covid-19 pandemic, hundreds of eviction filings are being filed in Franklin County each month.

Read the full story in Columbus Business Journal.

Poverty Projections Illustrate Need for Federal Relief Package

A report from the Center on Budget and Policy Priorities (CBPP), "Weakening Economy, Widespread Hardship Show Urgent Need for Further Relief," outlines the need for additional federal funding amid COVID-19. Many funding sources within the CARES Act have expired or run out of funding, and many of the lowest-income individuals were left out of the initial provisions. CBPP reports that despite recent modest economic growth, unemployment remains high and disproportionately affects low-wage workers and people of color. As a result, poverty is projected to increase from 10.5% in 2019 to 13.6% in late 2020. Read more.

Federal Reserve Issues Community Reinvestment Act ANPR

The Federal Reserve Board of Governors released an Advanced Notice of Proposed Rulemaking (ANPR) for the Community Reinvestment Act (CRA). Comments are due by February 16. Suzanne Killian from the Fed summarized the ANPR at the NACEDA Summit in October. President-elect Biden made CRA reform a notable piece of his policy platform during the campaign. However, hurdles remain for him to implement his agenda as it relates to CRA, including an uncertain partisan makeup in the Senate, and how (or if) he can replace Brian Brooks, Acting Comptroller of the Currency. The OCC finalized its rule in May. Advocates have called on President-elect Biden to scrap the OCC's rule and proceed with a new CRA rule under the Federal Reserve's leadership.

State News

Ohio CARES Act Funding for Families and Small Businesses

Low-income families and small businesses hit hard financially by the coronavirus are getting $429.5 million in federal relief.

The relief package includes $50 million for low-income families to pay their rent, mortgage, and sewer and water bills. Those funds are being distributed to Community Action Agencies using the Community Services Block Grant formula. Households with incomes up to 200% of the federal poverty level will be eligible. Households can apply for aid through their local Community Action Agency starting November 2nd.

The Ohio Development Services Agency just recently made an additional $55.8 million in rental assistance available through the state's CDBG II and III allocations. This new rental assistance funding will also be distributed through community action agencies.

Another $125 million will be available for small business relief grants of $10,000, with an additional $37.5 million to help bars and restaurants with $2,500 grants, and $20 million to support arts and cultural organizations. Learn more about small business relief here. The application for small business relief opened November 2.

Loophole Threat to Payday Lending Reform

During this lame duck legislative session, an amendment was introduced in the Senate to House Bill 38 that could have created a loophole sending payday lenders out of the Ohio Fairness in Lending Act statute (HB 123, 2018) and into the Consumer Installment Lending Act (CILA) statute allowing for unlimited fees. OCDCA worked with our partners and the installment lenders to revise the vague amendment that would close the loophole. As of this writing, we're hopeful that the unintentional threat will be eliminated. Read Nate Coffman's testimony. Payday lending reform is working with affordable loans widely available, costing approximately four times less than before, and it has effectively stopped the debt trap. Consumers are saving more than $75 million dollars a year and benefit from widespread access to affordable credit.

Bill Would Make it Harder and More Dangerous for Ohioans to Organize

Introduced in the House Criminal Justice committee on November 19th, HB 784 would make it harder for Ohioans to organize. The bill seeks to amend several sections of the Ohio Revised Code to increase penalties for certain assault, vandalism, and riot offenses; allow peace officers to bring civil suits against persons participating in a riot and organizers regardless of participation in illegal acts; authorize individuals to use force, including deadly force against rioters to escape; and to prohibit bias motivated intimidation of first responders. The bill seeks to make protest organizers and community activists legally responsible for any and all actions of protest attendees or individuals in the vicinity of a gathering. It also encourages deadly force be used by civilians on other civilians in order to "escape riots." There is possibility that this bill could encourage vigilantes to seek out protests in order to incite violence and use deadly force to leave the scene.