(THE CENTER SQUARE) – Ohio may soon incentivize housing developers with tax credits to create more affordable housing, collect more federal funds and keep up with other states.
The bill will have Ohio join 20 other states that have enacted similar legislation to create a state housing tax credit, Rep. Gail Pavliga (R-Portage County) said.
That, she said, allows states to draw down federal housing credit resources to meet workforce and affordable housing needs, and those states receive more investment and development.
“House Bill 3 will meet a critical need to address our growing workforce housing crisis,” Pavliga said. “This proposal leverages more federal funds, increases the attractiveness to invest in Ohio, creates thousands of jobs, generates meaningful economic impact and tax revenue and creates more affordable housing for our citizens.”
The tax credit, Pavliga said, would be performance-based, and the state could reverse the award if developers fail to live up to the requirements.
In testimony before the House Economic and Workforce Development Committee, Pavliga said that 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.
“This causes a significant rent burden not only among Ohio’s lowest income [earners] but also moderate-income renters across the state,” Pavliga said. “Due to the shortage of affordable housing, nearly 400,000 households in Ohio face a severe cost burden, spending over half their income on rent.”
Pavliga introduced similar legislation in the previous General Assembly, but it failed to pass. This bill is tagged as a priority bill in the current session.
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