Earlier this month, the state rolled out the new Welcome Home Ohio program to increase the housing stock in communities throughout the state. This post provides information about the program and how qualified entities can apply for grant funds.
What is the Welcome Home Ohio Program?
The Welcome Home Ohio program provides funds for the creation of owner-occupied housing units across the state. It has three components: Purchasing, Rehab/Construction, and Tax Credits. The program was funded by the Ohio General Assembly for $100 million in grant funds and $50 million in tax credits over 2 years. Welcome Home Ohio funds can be combined with other grants and tax credit programs.
Purchasing: Grant funds are awarded to cover the cost of purchasing a qualifying residential property. The property must contain an existing residential structure, have at least 1,000 square feet of habitable space, and can be a foreclosure or traditional sale.
Eligible applicants are land banks, land reutilization corporations, and electing subdivisions*.
Rehab/Construction: Grant funds are available to cover the cost of rehabilitation or construction of a qualifying residential property.
Eligible applicants are land banks, land reutilization corporations, and electing subdivisions*.
Tax Credit: A tax credit is issued to the individual buyer once the residential property has been sold. The property must be owner occupied and have at least 1,000 square feet of habitable space. It can be a single family, duplex, triplex, fourplex, townhouse, row house, condo, or modular home. The qualifying buyer must earn 80% AMI or less and be the primary occupant for at least five years. There will be a 20-year deed restriction requiring that future purchasers be at 80% AMI or below at time of sale.
Eligible applicants are land banks, land reutilization corporations, electing subdivisions*, and eligible developers.
*Electing subdivision: A municipal corporation that has enacted an ordinance or a township or county that has adopted a resolution of adopting and implementing procedures to facilitate the effective reutilization of nonproductive land situated within its boundaries.
How much is my project eligible for?
Purchasing: There is no maximum limit for the purchase. $25 million is available each fiscal year and excess funds can be rolled over.
Rehab/Construction: A maximum of $30,000 for rehabilitation or construction per qualifying residential property. $25 million is available each fiscal year.
Tax Credit: $90,000 or one third of the cost of rehab/construction is available for each home. $25 million is available each fiscal year.
Who will this program benefit?
All components of Welcome Home Ohio can benefit land banks, land reutilization corporations, and electing subdivisions. The tax credit component can also benefit eligible developers, including nonprofit entities.
What is the applicant responsible for?
The applicant will be responsible for income-qualifying the buyers of the properties, financial counseling, monitoring that the property remains owner occupied for the first five years and income restricted for the first 20 years. This means that the applicant will be committed to a 20-year involvement with the project.
What are the penalties for noncompliance?
For the Tax Credit program, if a home is not sold to an eligible buyer or without a deed restriction, the applicant must repay all funds received.
If the homebuyer does not occupy the home for five years after purchase, the homebuyer will be responsible for repaying $90,000 reduced by 20% for each full year they occupied the property.
If it is found that repaying would impose a hardship on the seller, Development has the authority to waive penalties for the homeowner. Homeowner hardships may involve situations like divorce, disability, illness, loss of income, or any other documented hardship that receives approval from Development.Top of Form
When are applications due?
The current application period is January 9 to February 9, 2024. Rolling applications will be accepted February 12 to May 31, 2024 utilizing any leftover funds.
Find the full program guidelines here:
https://development.ohio.gov/community/redevelopment/welcomehome