Legislative Recap Week 38

By OREIA Virtual-Assistant - Monday, September 26, 2022

Ohio Real Estate Investors Association

Title: Report Breaks Down Economic Impact Of Housing Finance Agency Programs.
Please see the article below from Gongwer regarding a recent economic impact report from the Ohio Housing Finance Agency showing that the agency's efforts each year generate about $432.2 million in direct and indirect tax revenue while sustaining more than 27,000 jobs. A copy of the full report is also attached for your review.
Gongwer Article:
The Ohio Housing Finance Agency continues to be an economic generator for the state despite a tumultuous housing industry, according to a new analysis.
OHFA's new economic impact report calculated that the agency's efforts each year generate about $432.2 million in direct and indirect tax revenue while sustaining more than 27,000 jobs.
All that came as the agency and the state at large navigate the lingering impact of the COVID-19 pandemic, which has disrupted supply chains and driven up costs for homebuyers and construction firms.
"The work we're doing here at OHFA to create safe, affordable housing improves the health, education, and economic outcomes for Ohio families," Executive Director Shawn Smith said in a statement. "It also is an economic driver, supporting nearly 7,000 construction jobs, more than 4,800 health care and social assistance jobs and more than 3,000 jobs in the finance and insurance sector.
"The report, based on data over the last five years, determined the agency is responsible for a $4.5 billion output for the state each year, translating into $1.69 in economic activity for every dollar spent on those programs.
The study also identified an added annual $2.6 billion in value added to Ohio's gross state product and $1.7 billion in labor income.
Overall, the study identified annually:
1. Direct effects of 15,002 jobs, $2.35 billion in output and $205 million in tax revenue.
2.Indirect effects of 5,166 jobs, $996 million in output and $99.6 million in tax revenue.
3.Induced effects – essentially non-related spending of related labor income – of 6,960 jobs, $1.13 billion in output and $118 million in tax revenue.
None of that, the agency suggests, accounts for the "social" value of those programs, which help retain and attract residents and skilled workers.
"Housing is also a social determinant of health," the report reads, including when it comes to lead exposure.
"Furthermore, when housing is affordable, low-income families have more money to budget for healthy food, routine doctor visits, and quality childcare, which create pathways out of poverty and reduce dependence on public assistance," the report reads.
Lawmakers in the current budget enacted a 20.7% funding increase for the agency for FY 2022, boosting support to $14.8 million. The agency also draws funding from federal sources for various programs.
That includes the nascent Homeowners Assistance Fund – a facet of the American Rescue Plan Act of 2021 – that landed the state $280.8 million. Using that funding, the agency launched the Save the Dream Ohio 2021 initiative to support homeowners struggling to pay bills, property taxes, insurance or other costs.
During Fiscal Year 2021, the agency assisted more than 6,400 households through that program, providing more than $26 million in mortgage assistance and more than $8 million in utility and other assistance.

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Joplin Area Real Estate Investor Association