Testimony — Amy Riegel, COHHIO, House Bill 3, Economic and Workforce Development Committee (March 14, 2023)

Summary

Testimony of Amy Riegel, executive director of the Coalition on Homelessness and Housing in Ohio (COHHIO), before the House Economic and Workforce Development Committee on House Bill 3, dated March 14, 2023, in support of the bill. The testimony states that there are only 43 affordable units available for every 100 extremely low income renters in Ohio, according to the Gap Report. It describes the Ohio Workforce Housing Tax Credit as a state version of the federal Low Income Housing Tax Credit (LIHTC) that would bolster the production of affordable housing, with OHFA awarding credits to developers who sell them to private investors.

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 Testimony before the House Economic and Workforce Development Committee
                     Amy Riegel, COHHIO Executive Director
                                 March 14, 2023
                                  House Bill 3

Chair Swearingen, Vice Chair Santucci, Ranking Member Upchurch and members of
the Economic and Workforce Development Committee. My name is Amy Riegel and I’m
the executive director for the Coalition on Homelessness and Housing in Ohio. COHHIO
is a statewide advocacy organization working to expand access to housing to end
homelessness in our state. Thank you for the opportunity to testify today in support of
House Bill 3.

So many of Ohio’s public policy issues begin at home – or the lack of a home. Even
before covid there was a severe shortage of affordable housing in Ohio, and it has only
grown worse in the last two years as rents have increased at a record pace. The
fundamental problem is: too many jobs pay too little for employees to afford rising rents.
Of the 10 most common jobs in Ohio only two pay comfortably more than a family
needs to afford a two-bedroom apartment.

For example, Maya is a single mom living in Lebanon with two children. She works full-
time as a customer service representative, where she earns $17.89/hour, or
$37,000/year. Housing is considered affordable when you don’t pay more than 30% of
your income toward rent and utilities, so Maya needs to find an apartment in Lebanon
that costs less than $930/month to meet that affordability standard. However, based on
recent data from Rent.com, the average rent for a two-bedroom apartment in her
community is $1,300/month.

That’s why we have only 43 affordable units available for every 100 extremely low
income renters in Ohio, according to the Gap Report. Nearly 400,000 households
spending over half their income on rent in Ohio. In most Ohio communities, one-in-five
renters pays more than half their income towards housing. This isn’t just our
metropolitan communities, that list includes areas around Mount Vernon, Marion,
Salem, Findlay, Chillicothe, Fremont, Wooster, and Zanesville.

Affordable housing programs are designed to bridge the gap between what so many
workers earn and the high cost of housing. As you may know, the federal Low Income
Housing Tax Credit (LIHTC) was created by President Reagan and Congress in 1986 to
encourage private sector investment in the new construction, acquisition, and
rehabilitation of affordable housing. Over the last three decades, LIHTC has become the
most successful affordable rental housing production program in history. However, as
our economy has evolved, LIHTC is not sufficient to address the affordable housing
gap.
The Ohio Workforce Housing Tax Credit is a state version of LIHTC that would greatly
bolster the production of affordable housing. Here’s how these public-private
partnerships work:

   •   OHFA awards housing tax credits to developers, who then sell the credits to
       private investors in exchange for funding the construction and rehabilitation of
       affordable workforce housing.
   •   The credits lower the debt required to finance the development of housing (and
       resulting debt payments), which allows for lower, more affordable rents.
   •   Credits increase and preserve the supply of rental housing so low-wage working
       families and individuals can afford a safe, decent, stable home.

It's often been said: “the rent eats first.” This means seniors often skip prescriptions and
families skip meals in order to keep a roof over their heads. High rent burdens make it
extremely difficult to gain greater financial independence. A family simply cannot save
for a down payment to achieve homeownership when they’re spending half their income
on rent. Creating a new state housing tax credit will ensure more units that are
affordable to people like Maya, helping reduce rent burdens so that they can cover their
basic needs and perhaps even save for the future.

The affordable housing shortage isn’t just a problem for workers; it’s a problem for
businesses. Rising housing costs prevent many workers from being able to live near
their place of employment, and this is especially important for low-wage workers, who
typically have inflexible work schedules and leave options. With high housing and
transportation costs, emergencies such as a vehicle breakdown or an eviction hearing
can force them to miss work. Intel’s decision to build a chip factory outside of Columbus
is great news, but the lack of nearby housing could create real problems, especially for
people working in ancillary service jobs.

I want to commend the Ohio House for making this legislation a priority. Safe, decent,
affordable homes are the fundamental building blocks of a healthy, thriving community.
The Ohio Workforce Housing Tax Credit will ensure that the workers who serve our
food, care for our elders and our children, who clean our offices and hotels, and keep
our shops open can afford to become fully participating members of the communities
they serve.

Thank you for the opportunity to testify on this important matter. I would be happy to
answer any questions you might have.


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