GOPC Assesses Suitability of Replicating Peers’ Funding Tools to Support Affordable Housing in Central Ohio

By Alex Highley, GOPC Project Associate The Affordable Housing Alliance of Central Ohio (AHACO) has released a new report, The Columbus and Franklin County Affordable Housing Challenge: Needs, Resources, and Funding Models, underscoring the difficulties many residents face in obtaining affordable housing in Columbus and the surrounding suburbs. Informed by Greater Ohio Policy Center (GOPC) research, the report then investigates ways that the public sector can aid in increasing the affordable housing supply. GOPC’s systematic study of tools and programs that have been successfully used in cities outside Ohio highlights opportunities for expanding affordable housing in and around Columbus.

With Central Ohio’s population growing at a substantial rate and wages not keeping up with increasing rent prices, affordable housing is harder to come by for renters in the region. Between 2009 and 2014, median rents went up by almost twice the rate of median household incomes. Given that Franklin County poverty rates are growing, including in most of the major suburbs, many new job openings do not pay a “housing wage,” and the stark spatial mismatch between where jobs are located and where people live, AHACO concluded there is a strong need for new affordable housing. AHACO sought GOPC’s expertise to deliver robust research of viable models that could support much of the good work already being done throughout communities in Columbus to improve affordable housing opportunities for residents.

Click Here to Access the Executive Summary and the full Report

Methodologically, GOPC conducted an extensive literature scan and internet search to assess the funding mechanisms that communities around the country employ in order to spur the creation of a rich and diverse set of housing choices. In total, GOPC studied 40 funding mechanisms in 25 communities in detail. GOPC judged the merits of possible replication in Central Ohio by comparing the respective cities’ demographic data, summarizing the cities’ relevant economic conditions that made implementation of the tools possible, and concluding with weighing the advantages and limitations of mirroring the tool in Central Ohio. Examples of successful tools and the cities they are used in are listed below.

• Seattle, WA - Dedicated Property Tax Revenue – $340 million generated over 20 years
• Austin, TX - General Obligation Bonds - $120 million generated over 7 years
• Portland, OR - Tax Increment Financing (TIF) – $107 million generated over 4 years
• Washington, DC  - General Fund Appropriation – $48 million generated over 1 year
• San Francisco, CA - Linkage Fees & Impact Fees – $188 million generated over 9 years
• Denver, CO - Inclusionary Zoning: Developer Set Asides – $7.6 million generated over 13 years
• Denver, CO - Social Impact Bonds – $8.7 million generated over 1 year

Along with explaining the mechanism of each tool and highlighting the number of affordable housing units produced through the program, GOPC discussed the tools’ applicability to Columbus. In many cases, the tools already exist and are used to some extent, or current law precludes their usage towards affordable housing purposes. For instance, General Obligation bonds issued by a county, township, or municipality can be used for housing construction costs, but may not be used for a rental or operating subsidy in Ohio. The county sales tax offers another opportunity; the current temporary permissive Franklin county sales tax of .25% generates over $58 million per year. If this revenue were to be directed toward affordable housing purposes, then this would represent a sizable amount of revenue available for funding solutions should voters renew the tax in 2018.

To understand how many new units of affordable housing could be created using these tools, GOPC estimated the total costs of various housing projects. For instance, permanent supportive housing costs $165,000 per unit to build and $7,000 per person per year in operation costs. GOPC also reviewed the feasibility of particular tools from a legal standpoint. For example, Franklin County has the authority to devote general funds toward rent subsidies, similar to the Local Rent Subsidy Program used in Washington DC. To conclude the report, GOPC created a chart for the Appendix which organizes each funding source according to the political subdivision (states, cities, counties, etc.) that may implement a program to support affordable housing along with whether that program is currently being used for housing purposes in Franklin County.

Click Here to Access the Executive Summary and the full Report

GOPC’s Recommendation to Boost Public Transit Included in 2018-19 Ohio Senate Transportation Budget

By Jason Warner, GOPC Manager of Government AffairsThis is the third in a series of articles taking a closer look as specific items contained in the Governor’s proposed budget for FY2018-19, which the legislature must pass by June 30, 2017.The second article is available here.

Greater Ohio Policy Center (GOPC) would like to thank the Ohio Senate for approving a transportation budget that would allocate an additional $15 million over two years to public transportation. In alignment with GOPC’s recommendations that Ohio repower its ailing bus fleet, the Senate’s budget would support a new grant program using funds from the Volkswagen Mitigation Trust Fund to support public transit.

In a strong bipartisan effort, the Ohio Senate unanimously approvedAm. Sub. HB 26, the state transportation budget for fiscal years 2018 and 2019 on March 22nd. All 24 Republican members and the 9 Democratic members of the chamber voted to support passage of the budget.Over the course of eight hearings, Senators heard testimony from a number of organizations, including GOPC, who advocated for an increase in funding for public transportation.

As GOPC noted in testimony before the Transportation, Commerce and Workforce Committee last week, Ohio appropriates only 2% of the state transportation budget to public transportation, while peer states spend between 10-20% of their transportation funds on transit-related needs and services. Governor Kasich’s proposed budget recommended spending an additional roughly $33 million annually in federal highway “flex” funds for public transit capital appropriations (purchasing new “rolling stock”, or buses), which was an increase of $10 million per year over the current budget.

GOPC thanks the members of the Ohio Senate for recognizing the need for additional support for public transit in the state and encourages the Ohio House of Representatives to support this Senate-backed provision in the budget.

In testimony, GOPC encouraged the legislature to spend an additional $17 million per year, boosting overall funding in public transportation to $50 million annually. The Senate-approved budget plan to strengthen public transportation using Volkswagen Mitigation Trust Funds would support a grant program that assists local transit agencies in purchasing new buses and transit vans across the state.

Later that same day, the Ohio House, which was the first to pass the transportation budget on March 1, voted to reject the full slate of Senate-approved changes 88-0. The bill now moves to a conference committee which will settle the differences between the two bills. Final passage of the budget bill will occur later this week, as state law requires Governor Kasich to sign the transportation budget by April 1.  

Learn more about GOPC's policy research and advocacy to modernize Ohio's transportation system

Cota on high st

2018-19 Transportation Budget Passes Ohio House and Advances to Senate

By Jason Warner, GOPC Manager of Government Affairs This is the second in a series of articles taking a closer look as specific items contained in the Governor’s proposed budget for FY2018-19, which the legislature must pass by June 30, 2017. The first article is available here.

It has been a busy couple of weeks at the Ohio Statehouse as work continues on the drafting of the state Transportation Budget for Fiscal Years 2018 and 2019.  The House Finance Committee passed the transportation budget on February 24, while the full House approved the bill on March 1. The Senate Transportation, Commerce and Workforce Committee held its initial hearing on the bill with testimony from ODOT Director Wray and other administration officials a day before, on February 28. Hearings have been ongoing during the week of March 6th as well.

The House-passed budget maintained the as-introduced budget proposal to increase the amount of federal flex-funding dedicated towards public transportation by $10 million annually, up from $23 million currently. A portion of this funding ($10 million per year), will be distributed by formula to transit agencies, while the remaining funds will be competitively awarded through grants to replace the state’s aging fleet of vans and buses with more modern equipment that is more fuel efficient and requires less maintenance. Greater Ohio Policy Center (GOPC) continues to advocate for additional funding for this program, asking the legislature to appropriate a total of $50 million annually (this would require an additional $17 million per year above what is in the current budget proposal).

Visit GOPC's Transportation Modernization page to learn more about this important issue area

Among the other highlights of the House version of the ODOT budget:

• Maintains exemption from the motor fuel tax (MFT) for aviation fuel, K-1 kerosene and compressed natural gas (CNG);
• Eliminates the change from collecting the MFT from the point when it is ‘received’ in Ohio to the terminal refinery rack;
• Increases the service fee paid to a deputy registrar from $3.50 to $5.25 and increases the multi-year registration fee by a similar percentage;
• Permits a county commission to levy a $5 motor vehicle license fee for transportation purposes. Under current law, cities, townships and counties may establish a combination of local motor vehicle registration taxes totaling up-to $20. This new fee (which is optional for counties) increases the total amount of local motor vehicle registration taxes totaling up-to $25;
• Requires the Registrar or Motor Vehicles to conduct a study of the benefits and detriments of lowering the permanent registration fee for commercial trailers and semitrailers and streamlining the registration process. A pilot program will be conducted between January 1, 2018 and December 31, 2019 with the fees being reduced from $30 to $15 for vehicle registrations in Clinton, Lucas, Montgomery and Stark counties;
• Increases the earmark for Transportation Improvement Districts (TID’s) to $4.5 million in each fiscal year. A TID is a special-purpose district created by an Ohio county for the purpose of coordinating and financing road construction projects among local governments and private partnerships in that county. At present, there are 30 TID’s across Ohio;
• Limits the proposal to permit the ODOT director to establish variable speed limits to a pilot program on highways that are a part of ODOT’s Smart Mobility Initiative, specifically I-670 (Franklin County), I-90 (Cuyahoga County) and U.S. Route 33 (Franklin, Union Counties); pilot program expires December 31, 2018.

GOPC continues to advocate for the increase in federal flex funding for public transportation, as well as advocate for establishment of dedicated funding for public transit, adoption of a statewide active transportation policy, and comprehensive reform of the ODOT budget. This is happening in one-on-one meetings with members of the Ohio Senate, as well as testimony before the Transportation, Commerce and Workforce committee, which is planned to occur next week.

Visit GOPC's Transportation Modernization page to learn more about this important issue area

Congratulations to the Greater Ohio Sustainable Development Award Finalists

Greater Ohio Policy Center congratulates the following individuals and organizations who have been chosen as Finalists for the Greater Ohio Sustainable Development Awards.  All of our Finalists have made outstanding contributions to achieving vibrant and prosperous communities in Ohio.  Award Winners will be announced at the Summit during the Awards ceremony breakfast at 8:30 am on March 8, 2017.  

Private Sector Champion Award Finalists.  
This Award recognizes an entity or individual operating in the private sector who has demonstrated a commitment to and excellence in existing communities and strengthening local economies in Ohio. 

CareSource is a managed health care organization that is making major investments that are leading the rejuvenation of Downtown Dayton.

ProMedica is a nonprofit health system serving northwest Ohio that will move its headquarters to downtown Toledo in summer 2017, bringing 1,000 jobs and a $60 million investment.

Scott Ziance is a Partner at the Vorys, Sater, Seymour and Pease, LLP, who led the charge to preserve the Ohio Historic Tax Credit in 2015. 

 

Nonprofit Sector Luminary Award Finalists.
This award recognizes an entity or individual operating in the nonprofit sector that has employed innovative thinking in working with communities to identify and address local needs and opportunities with distinction.

Dayton Children’s Hospital serves as one of the DaVinci Partners that is leading the redevelopment of the Old North Dayton and McCook Field Neighborhoods.

Jeanne Golliher is President and CEO of Cincinnati Development Fund, a nationally recognized Community Development Financial Institution that provides much-needed credit and investment capital in Cincinnati’s underserved neighborhoods. 

Yay Bikes! is a nonprofit organization that advocates for safer conditions for bicyclists in Central Ohio and statewide, including the recently-enacted 3-foot passing law.  YayBikes organizes professional development rides with local officials to give them a “bike’s view” of local roads. 

Public Sector Leader Award Finalists.
This award recognizes a public sector individual or entity exemplifying outstanding leadership and innovation in advancing policies or programs that incentivize and enable community reinvestment and sustainable development in Ohio’s cities and regions.

Rep. Jonathan Dever sponsored House Bill 463, passed by the Ohio General Assembly in 2016, which contains new provisions that will help Ohio’s communities mitigate and prevent blight. 

Douglas A. Garver has served as the Executive Director of the Ohio Housing Finance Agency since 2004.  Under his leadership, OHFA has provided assistance to first-time homebuyers, homeowners, renters, seniors, and others who might not otherwise be able to afford quality housing. 

Darryl Rush, being honored posthumously, served as the City of Cleveland’s Director of Community Development for 13 years. He is remembered for his dynamic leadership and dedication to serving the people of Cleveland. 

Rep. Kirk Schuring has authored dozens of legislative initiatives to improve community development, including the establishment of Joint Economic Development Districts and the recent enacted of House Bill 233, which created Downtown Redevelopment Districts. 

Catalytic Partnership Award Finalists.
This Award recognizes a cross-sector partnership that has had a positive impact on a community or region, and represents a model for creative and effective collaboration.

The Downtown Akron Vision and Redevelopment Plan identified 10 planning priorities to shape Akron’s future.  The Plan was shepherded by the Downtown Akron Partnership and City of Akron with support from the Knight Foundation and GAR Foundation. 

Link Lima/Allen County is an employer-centric workforce development strategy taking on the most daunting workforce challenges of employers in the Greater Lima Region through a private/public partnership among Allen Economic Development Group, OhioMeansJobs-Allen County, and many hundreds of employers.

RNC Host Committee is a multi-sector nonprofit corporation comprised of leaders from across Cleveland who dedicated themselves to ensuring that the 2016 Republican National Convention was a success and highlighted the positive work taking place in the city.