‘We need more’: Tri-State lawmakers reveal bipartisan bill to solve housing crisis

COLUMBUS (WXIX) - Housing, rent and property costs continue to be a growing issue across Ohio as the number of livable homes has become scarce over the last couple of years.

On Tuesday, Ohio House Representatives Dani Isaacsohn (D-Cincinnati) and Adam Mathews (R-Lebanon) introduced a new bipartisan bill that could help solve the housing crisis many Ohioans face today.

The bill is intended to create and uphold a “healthier housing market” and increase the supplies needed to build more homes by incentivizing cities to adopt “pro-housing policies,” the two representatives explained.

Over the years, residents have seen soaring home prices and rent increases that some families cannot afford or the home options available may not fit their safety and needs.

In 2022, Ohio’s homeownership rank fell below the national average to 66%, the lowest it has ever been other than in 2017, according to the Federal Reserve Bank of St. Louis.

That same year, Hamilton County’s homeownership rate was at 63.5%.

“[If] you talk to any young couple looking to start a family and buy a home, or a senior who can’t afford their property taxes and needs to downsize, and they just cannot find a place to live, they all say the same thing: ‘We need more,’” said Rep. Isaacsohn.

The proposed legislation would give local governments the option to change their methods to address housing issues through incentives. The State would create a new housing fund that allows cities to receive housing grants if they adopt several of the bill’s “pro-housing policies.”

As a result, Isaacsohn and Mathews say that this would increase supply production, strengthen homeownership and keep residents in their homes.

“To empower the American dream, we need to build more housing. The first foothold in building a community is building a home and the memories within it. We need to examine our zoning codes, empower tenants to expand new construction across the border. We need to unlock the new opportunities for homeownership and rental units so people can afford, and can then build from. We have to give our young people somewhere to move to when they graduate and our seniors somewhere to retire when they are ready,” Rep. Matthews said. “Our bill gives full flexibility to our local governments to pick and choose as they see fit or not at all.”

The grants-to-housing pipeline

Municipalities would have the opportunity to apply for grants from a new state housing fund if they adopt at least three of the 12 housing policies outlined in the bill.

Some of the policies include eliminating parking minimums, reducing single-family zoning, providing density bonuses, speeding up permit processes, making sure housing is being built in high-economic opportunity areas, and more.

“This is not a one-size-fits-all approach, and we want to emphasize that,” Isaacsohn said. “We are using carrots, not sticks. Local governments do not have to participate, they can choose to participate.”

The Ohio Housing Finance Agency would be in charge of the grant money and would distribute the funds on a per capita basis. The cities that receive funding would be required to use the money on pro-housing policies, such as helping low-moderate-income landlords.

Additionally, the bill would expand the Ohio Community Reinvestment Area program and would require residential construction near mega projects for those who are working on the sites.

How will Ohio fund cities with housing grants?

The state will be able to put money into the housing fund by eliminating a nonbusiness tax deduction that “probably should have never been there in the first place,” according to Isaacsohn.

Nonbusiness income can come from anything that is “not business,” which may include interest payments, rent for properties, sale from an asset, shareholder profits, and payments to investors.

Originally, the tax-deductible was to help improve the number of homeowners in Ohio, but it seems to have done the opposite, Isaacsohn explained.

“If it is a property you do not live in, then it is probably not a non-business and shouldn’t utilize a tax incentive that was meant to boost homeownership,” he said.

The model that the two legislators have been basing this bill on is Minneapolis, which changed their housing policies to make it easier to build in the city and expand housing options.

“What we’ve seen in Minneapolis is that while their rents have gone up 3%, they’ve increased their housing supply by 8%. At the same time, Cincinnati (let’s say area) had rents go up, not by 3%, but by 24%, and so our housing supply declined [...]. So we have a real-world example of a city that is in the Midwest [and] that is growing,” Isaacsohn explained during a press conference.

In all, the representatives said they have done the research and have spoken with housing advocates and stakeholders to formulate a bill that would benefit everyone.

The bill is not available yet on the Ohio General Assembly’s website.

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