Housing proposal could be ‘game-changer’
$400 million plan spread over next four years
Housing advocates say Gov. Mike Dewine’s proposal to spend up to $400 million on affordable apartments could transform the state’s housing landscape.
In the budget Dewine proposed in January, $100 million each of the next four years would be spent on tax credits for affordable multifamily housing. An additional $50 million a year would be spent on building affordable singlefamily homes.
The money would be administered by the Ohio Housing Finance Agency, which now administers federal tax credits, the primary mechanism for building affordable apartments in the state.
While OHFA does not have an estimate on how many apartments could be built with the state tax credits, Dewine’s proposed $100 million a year would more than triple the $30 million a year that OHFA distributes in the main federal tax-credit fund to build affordable apartments.
“I think this is a game-changer,” said OHFA spokesperson Penny Martin. “This gives us additional ways to help bridge the state’s housing gap.”
Advocates say the money would help address a dire need for affordable housing in the state. According to OHFA, 135,562 apartments and rental homes were affordable and available for the state’s 413,187 extremely low-income renters in 2021, or less than one unit for every three renters in need.
“Ohio is in the midst of a severe shortage of affordable housing for working families, veterans on a fixed income, and seniors,” said state Rep. Gail Pavliga, R-atwater, who introduced a bill in February with Rep. Lauren Mcnally, Dyoungstown, that would fund Dewine’s proposal.
The legislation, House Bill 3, mirrors legislation Pavliga introduced last year with Rep. James Hoops, R-napoleon.
“In 2020, only three of the 10 most common jobs in Ohio paid an hourly rate
necessary for a worker to afford a modest, two-bedroom apartment,” said Pavliga in a statement supporting the funding. “This causes a significant rent burden not only among Ohio’s lowest income but also moderate-income renters across the state.”
The state money would be in addition to other initiatives, such as the $200 million approved by Columbus voters in the fall for affordable housing.
Others also welcomed the state spending.
“A state tax credit would be a huge game-changer; that would be monumental,” said Jonathan Mckay, vice president of development with the Columbus-based affordable housing developer Woda Cooper Companies.
“If you had a state tax credit, you could really build a lot of housing,” Mckay added. “We’re keeping a close eye on it. That would be crucial in central Ohio.”
If approved, Ohio would become the 21st state with affordable housing tax credits.
Dewine’s proposal has been endorsed by a variety of public and private groups including the Ohio Realtors trade association. “It’s no secret that Ohio has
crisis-level housing shortages across the state,” wrote the Realtors in support of the legislation. “Although housing shortages typically first surface in large metropolitan areas, we have rural communities across Ohio that have no housing available for the workforce in those areas.”
According to a 2021 study commissioned by the National Association of
Realtors, Ohio’s three largest metro areas – Cincinnati, Cleveland and Columbus – are all among the top 10 large cities with the most “underbuilt” housing in the nation.
Dispatch reporters Mark Ferenchik and Nathaniel Shuda contributed to this report. jweiker@dispatch.com @Jimweiker