The bill amends the Ohio Revised Code to enhance the affordable single-family home credit by introducing new definitions such as "eligible developer," which includes nonprofit corporations and partnerships dedicated to affordable housing. It also defines "appraisal gap" and "affordability gap," which measure the disparity between purchase prices and development costs. Notably, the bill reduces the affordability period from ten years to seven years and allows the tax credit to be claimed against various taxes, with provisions for transferring credits among eligible parties. The application process for tax credits is revised, requiring project developers to submit detailed project information, while the director of the Ohio housing finance agency will evaluate applications and determine the reserved credit amount, capped at thirty-five percent of total estimated development costs. Importantly, no tax credits will be reserved after June 30, 2027.

Additionally, the bill removes certain documentation requirements for project developers to verify their entitlement to tax credits and eliminates the director's authority to disallow or recapture credits based on project qualification status. It introduces provisions for the issuance or transfer of tax credits to both domestic and foreign insurance companies, as well as taxpayers with interests in pass-through entities, thereby broadening eligibility. The bill also establishes a competitive framework for awarding tax credits, including criteria for project assessment and mandates the director to implement rules for administering the program, which includes maintaining affordability in qualified projects. Existing sections of the Ohio Revised Code governing these tax credits are repealed to streamline the process and improve accessibility for stakeholders involved in project development.

Statutes affected:
As Introduced: 175.17, 5725.37, 5726.60, 5729.20, 5747.84