House Economic and Workforce Development Committee Proponent Testimony — House Bill 517 (June 18, 2024)

Summary

Proponent testimony dated June 18, 2024, to the House Economic and Workforce Development Committee, on behalf of Ohio REALTORS®, closing with Scott Williams, Chief Executive Officer. The testimony says Ohio REALTORS® was formed in 1910 and is the state’s largest professional trade organization with approximately 36,000 members. It supports expanding eligibility of the Ohio Homebuyer Plus Program to active-duty military personnel stationed in Ohio. It says first-time homebuyers made up 32% of the market this year, an increase from last year’s 26%.

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                          House Economic and Workforce Development Committee
                                         Proponent Testimony
                                            House Bill 517
                                             June 18, 2024

Chair Swearingen, Vice Chair Santucci, Ranking Member Upchurch, and members of the
House Economic and Workforce Development Committee, thank you for the opportunity to
provide testimony in support of House Bill 517 on behalf of Ohio REALTORS®. Formed in
1910, Ohio REALTORS® is the state’s largest professional trade organization with
approximately 36,000 members representing both residential and commercial practitioners,
as well as auctioneers and appraisers.

The Ohio Homebuyer Plus Program was created during last year’s operating budget to
promote homeownership and financial stability and is available to any prospective
homebuyer in the state. It operates by providing tax-favored savings accounts and above-
market interest rates to assist in saving for the purchase of a primary residence, with funds
being applied to the down payment and closing costs associated with the purchase. This
program is particularly beneficial for first-time homebuyers struggling to save for a down
payment, especially as it has become increasingly challenging in recent years due to
escalating home values and interest rates. The age of first-time homebuyers has risen to
an all-time high of 36, with factors of student, car, and credit card debts posing additional
financial barriers to their purchasing ability.

Establishing this program was necessary not only for supporting homebuyers but also for
contributing to Ohio’s economy. Each time a home is purchased, there are a host of
economic benefits to the state, including an average of $72,800 that goes back into the
economy through construction, renovation, and retail and appliance purchases1. This ripple
effect supports local businesses and job creation and generates additional tax revenue that
boosts community services and infrastructure.

By providing an incentive, this program offers a valuable tool for prospective homebuyers
and addresses the financial barriers of saving for a down payment in today’s real estate
climate. This year, first-time homebuyers made up 32% of the market, an increase from last
year’s 26%2. To maintain this momentum, it is imperative to support efforts to provide
resources and incentives that facilitate homeownership for those who would otherwise face
barriers to entry into the housing market. This program not only helps individuals achieve
their goal of owning a home, but also stabilizes communities by increasing homeownership
rates and cultivating long-term neighborhood investment.

Expanding eligibility of the Ohio Homebuyer Plus Program to active-duty military personnel

1
    NAR: The Economic Impact of A Typical Home Sale in Ohio
2
    NAR: Highlights From the Profile of Home Buyers and Sellers.
stationed in Ohio is paramount in honoring their commitment to our country and providing
them with the opportunity to establish roots in our communities. We encourage military
personnel to pursue homeownership in the state and support their use of affordability
measures offered by the program. Owning a home is one of the most secure ways to build
generational wealth that can be leveraged later in life or passed on to family, and we want
to ensure that our military personnel have equal access to this opportunity.

Since its implementation earlier this year, the Ohio Homebuyer Plus Program has seen over
10,000 accounts opened, demonstrating the high demand for accessible pathways to
homeownership. As these accounts continue to grow, we anticipate seeing successful
purchases of homes facilitated by this program. HB 517’s expansion to military personnel
is critical in offering further essential support in securing affordable housing for our
servicemen and women. We strive to make Ohio a state that recognizes and honors the
contributions of military personnel and their families and provides them with the resources
needed to thrive and build a stable future within our communities.

This legislation proposes a necessary expansion to Ohio’s Homebuyer Plus Program,
addressing challenges of the housing inventory shortage, rising home prices, and the strain
on businesses striving to attract and retain talent in our communities. This bill aims to foster
and enhance the overall resilience of Ohio’s housing market and economy, and we thank
the sponsors for introducing this legislation.

Sincerely,




Scott Williams
Chief Executive Officer
Ohio REALTORS




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