Key Themes:
- Creation of Residential Economic Development Districts (REDDs): The bill proposes establishing specific geographic areas designated as REDDs to encourage housing development in proximity to large economic development projects.
- Establishment of a Housing Accelerator Fund: A dedicated state fund is proposed to provide grants to local governments within REDDs to support workforce housing projects.
- Incentivizing “Pro-Housing Development Policies”: Local governments are encouraged and incentivized to adopt policies that streamline and promote the construction of diverse housing options.
- Focus on Workforce Housing: The legislation specifically targets the development of “major workforce housing projects” within REDDs.
- Promoting Economic Well-being and Home Ownership: The stated intent of the bill is to support economic growth and increase home ownership in areas impacted by major economic development projects.
Most Important Ideas and Facts:
- Definition of Residential Economic Development District: A REDD is defined as “all parcels of land within a twenty-mile radius of a major economic development project.” This establishes a geographically defined area for targeted housing development efforts.
- Definition of Major Economic Development Project: A “major economic development project” is defined by two key criteria:
- It is “reasonably expected to create, retain, and attract jobs or otherwise improve the economic well-being of the area surrounding the project site.”
- It involves “At least seven hundred million dollars in private investments are committed to establish, expand, renovate, or occupy a facility as part of a single project at a designated project site.” This sets a high threshold for the type of economic activity that triggers the creation of a REDD.
- Definition of Major Workforce Housing Project: A “major workforce housing project” is defined as a project that “reserves at least one hundred units, designed for residential occupancy by at least one hundred individuals or families living independently from each other.” This specifies the scale and purpose of the housing projects intended to be supported by the bill.
- The Housing Accelerator Fund: The bill establishes the “housing accelerator fund in the state treasury.” The fund will be comprised of “money appropriated to it by the general assembly and all other money received for the purposes of section 122.635 of the Revised Code.” The funds are to be used “only for the purpose of providing grants under section 122.635 of the Revised Code.”
- Grant Eligibility and Application: Counties, townships, or municipal corporations “that is fully or partially located within a residential economic development district may apply for a grant.” Applications can be submitted independently or in collaboration with housing developers or other local governments.
- Requirements for Grant Applications: To be eligible for a grant, applicants must provide documentation demonstrating they have “done or has imminent plans to do both of the following within the district: (1) Adopt and implement pro-housing development policies; (2) Approve a major workforce housing project.” This links grant funding directly to local action on housing development.
- Examples of “Pro-Housing Development Policies”: The bill provides a list of examples of what constitutes a “pro-housing development policy,” including:
- Expedited permit review processes.
- Pre-approval processes for diverse developers.
- Subsidizing or decreasing water/sewer costs.
- Acquiring and readying development sites.
- Reducing or eliminating fees.
- Adopting zoning plans that promote “higher density, small lot size, and minimum setback requirements.”
- Developing comprehensive plans promoting diverse residential options.
- Minimal or no parking requirements.
- Infrastructure improvements (traffic studies, water/sewer, roads).
- Promoting non-traditional building structures.
- Grant Award Criteria and Preference: The Department of Development will award grants on a rolling basis and will prioritize applicants based on scoring metrics that give preference to those who:
- “Adopt more pro-housing development policies in terms of both quantity and impact.”
- “Allow for higher density, smaller lot size, smaller or no side yard setbacks, and minimal open space.” This clearly indicates a preference for development patterns that maximize housing units within a given area.
- Grant Fund Usage: Grant funds can only be used for specific purposes, including:
- “Providing capital for housing development through grants or loans.”
- “Acquiring and readying sites for development.”
- “Providing financial assistance for housing-related infrastructure projects.”
- “Addressing additional service or public safety needs due to increases in population.”
- “Any other purpose deemed appropriate by the director of development.”
- Conditional Grant Disbursement: If a grant is approved based on imminent plans, the Department of Development will confirm that the local government “follows through with those plans…before disbursing grant funds.” This ensures accountability.
- Rulemaking Authority: The Director of Development is required to “adopt rules in accordance with Chapter 119. of the Revised Code to implement and administer this section,” including addressing application procedures, scoring metrics, grant distribution, and “state model zoning plans that include density, lot size, and setback preferences.”
- Legislative Intent: The general assembly explicitly declares its intent “to encourage major workforce housing projects in areas of the state that otherwise would not attract such developments and to increase home ownership among Ohioans.”
Conclusion:
Ohio Senate Bill 184 proposes a new framework to stimulate housing development in areas experiencing significant private economic investment. By creating Residential Economic Development Districts and a dedicated grant fund, the bill aims to incentivize local governments to adopt “pro-housing development policies” and facilitate the creation of “major workforce housing projects.” The bill prioritizes policies that promote higher density and efficient land use, reflecting a legislative intent to address potential housing shortages and support economic growth by ensuring adequate housing for the workforce associated with large development projects. The conditional nature of grant disbursement and the requirement for detailed rulemaking suggest a focus on accountability and clear guidelines for implementation.