To amend sections 175.17, 5725.37, 5726.60, 5729.20, and 5747.84 of the Revised Code to modify the affordable single-family home credit.
HB765 revises Ohio’s affordable single-family home tax credit program. The bill changes the definition of the “affordability period” from 10 years to 7 years, and it updates the credit calculation so that the annual credit amount is tied to the lesser of 35% of a dwelling’s development cost or the amount needed to close either the affordability gap or appraisal gap. It also allows the Ohio Housing Finance Agency director to competitively award credits under a formal plan, set application and reporting requirements, and adopt rules governing underwriting, buyer qualifications, affordability protections, and project risk.
The bill preserves the basic structure of the program as a reservation-based, nonrefundable credit for qualifying single-family housing projects, but it adds more detailed administrative controls. Credits may be claimed against several state taxes, including insurance company taxes and the personal income tax, and may be transferred among investors or other eligible persons subject to reporting requirements. The bill also caps annual reservations at $50 million, prohibits new reservations after June 30, 2027, and allows recapture if a project later fails to qualify.
HB765 would amend sections 175.17, 5725.37, 5726.60, 5729.20, and 5747.84 of the Revised Code and repeal the existing versions of those sections. In practice, it would alter the state’s affordable housing tax credit program by shortening the required affordability period, refining how credit amounts are determined, and expanding the director’s authority to set competitive selection criteria and compliance rules. The bill would affect affordable housing developers, project investors, insurance companies, and individual income taxpayers who claim or receive transferred credits, while also increasing reporting and oversight obligations for project participants and state agencies.
Based on the bill text and the absence of recorded committee testimony or votes, the overall sentiment appears policy-driven and supportive of affordable housing development rather than overtly contentious. The measure is framed as a refinement of an existing credit program, suggesting an intent to improve administration and target financing gaps in single-family housing projects. Because there is no transcript or vote history available, there is no documented public opposition or endorsement in the provided materials.
The main potential points of contention are the shortened affordability period, the size and structure of the tax credit, and the degree of discretion given to the Ohio Housing Finance Agency director. Supporters would likely emphasize that the credit helps close affordability and appraisal gaps and encourages construction of affordable homes, while critics might question the fiscal cost, the use of transferable tax credits, and whether a seven-year affordability period is sufficient to preserve long-term affordability. Another possible issue is the competitive award process and underwriting/risk rules, which could be seen either as necessary safeguards or as added administrative complexity for developers and investors.