(THE CENTER SQUARE) – Business and advocacy groups in Ohio recently urged Gov. Mike DeWine to spend federal COVID-19 relief money on affordable housing after a new report showed rent in the state increased more than the typical pre-pandemic year.
The U.S. Department of Housing and Urban Development released its 2023 Fair Market Rents report Thursday, an annual estimate of the amount of money that would cover rent and utility expenses.
That report showed an overall increase in Ohio markets of nearly 10% in one year, which the Coalition on Homelessness and Housing in Ohio called more than the typical pre-pandemic increases. Cincinnati had a 13% increase, followed by 12.7% in Columbus and 11.8% in Cleveland.
In Knox County, the increases for one-, two-, three- and four-bedroom apartments averaged a year-over-year increase of about 14.25%, according to the Fair Market Rents report. Efficiency apartments saw the smallest increase, around 5.8%.
The increases in home values and rent costs prompted the Ohio Chamber of Commerce, Ohio Realtors, Ohio Bankers League, Ohio Apartment Association and the Ohio Housing Council to join in a letter to ask DeWine and members of the General Assembly to use American Rescue Plan Act money to increase affordable housing.
The letter reads in part, “Home values and the cost of rent have increased at near record levels over the past two years, disproportionately impacting low-income Ohioans and people with disabilities. Fortunately, State Fiscal Recovery Funds from the American Rescue Plan Act provide our State an unprecedented opportunity to dramatically increase the supply of housing that is affordable to the most vulnerable Ohioans. We urge you to take action immediately on housing development components of the proposal because time is running out.”
COHHIO Executive Director Amy Riegel said the letter shows the connection between economic development and affordable housing.
“These groups recognize that affordable housing is the foundation of a strong, healthy and productive workforce. Businesses need a diversity of workers in order to thrive, and those workers need a range of affordable housing options,” Riegel said.
She also tied the expected Intel plant groundbreaking and subsequent expectation for 7,000 construction workers that will create more housing needs.
“Building the Intel plant will require 7,000 construction workers, and it could be thousands more if Ohio gets Honda’s new battery facility. We need to learn from the fracking boom that dislocated many in Eastern Ohio nearly a decade ago,” she said.
“Investing ARPA to create affordable housing now can prevent these problems while strengthening Ohio’s workforce and restraining state and local spending on hospitals, jails, and foster care,” Riegel said. “This is a one-time expenditure of federal dollars to fix a growing, long-term problem that affects all of our communities.”
A bill in an Ohio House committee, House Bill 560, would provide up to $50 million in nonrefundable tax credits over 10 years to companies building new, affordable housing or remodeling existing buildings to shelters for low-income families.
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