Lawmakers consider tax credit to help Ohio's "severe" affordable housing shortage
There’s a shortage of around a quarter of a million affordable housing units around the state, which puts pressure on both low-income people and middle class home renters and buyers. One of the top priorities of Republicans aligned with Ohio House Speaker Jason Stephens is a bill to create an affordable housing tax credit.
Only 3 of 10 of the most common jobs in Ohio paid an hourly rate needed to afford a modest two-bedroom apartment, according to Rep. Gail Pavliga (R-Portage County). That's the same conclusion from a 2020 reportfrom the Coalition on Homelessness and Housing in Ohio.
Pavliga said that’s created an affordable housing shortage in Ohio that she called "severe".
“A tax credit would create 34,000 new construction jobs and $11.4 billion, and House Bill 3 would stimulate 2,300 more affordable housing units each year," Pavliga said.
Pavilga said the credit could create 13,000 more affordable housing units over six years, when the credit would sunset.
“None of these tax credits, or nothing is paid out until the project is completed, and these tax credits are over the course of – the bill actually sunsets in six years once, hopefully, it is passed. But it will be 10 years and $50 million each year," Pavliga said.
Pavliga said that could create 13,000 more affordable housing units over six years, when the credit would sunset.
The bill's co-sponsor Rep. Lauren McNally (D-Youngstown) said about 400,000 Ohio households spend more than half of their monthly income on rent. The bill to create the credit is only a placeholder now, so there are few details.