Building a Better Community: Making Homeownership More Attainable

A new program from the State of Ohio could provide an opportunity

Local governments often find themselves limited in their ability to increase homeownership opportunities within their communities. While they play a crucial role in approving re-zoning applications for housing development, their direct involvement typically ends there.

However, there is a promising new initiative offered by the State of Ohio that could help make homeownership more attainable for our residents. Last month, Governor Mike DeWine and State Treasurer Robert Sprague introduced the Ohio Homebuyer Plus Program. This program, as outlined by the Governor's Office, offers above-market interest rates to account holders who deposit their money in participating banks or credit unions. Additionally, those who open an account may qualify for certain Ohio state income tax deductions.

In his announcement, State Treasurer Sprague highlighted the challenges faced by prospective homebuyers in Ohio's housing market. "To own a home in Ohio is to invest in Ohio," he stated. "However, today's market presents numerous hurdles, including rising down payment and closing costs. Through Ohio Homebuyer Plus, we're leveraging the state's financial strength to help Ohioans build their nest egg and secure the savings needed for one of life's most important purchases." You can find more information about the program here.

In our previous issue, we delved into the local government's investment portfolio. As of 2022, the city has accumulated an investment portfolio exceeding $86 million, with $47 million invested in federally chartered institutions focused on housing, such as the Federal Home Loan Bank and the Federal National Mortgage Association.

You might be wondering, why is this significant? What if the City were to combine the Ohio Homebuyer Plus Program with its own funds to specifically make housing in Troy more affordable for savers?

Here's how it could work: Suppose a household has saved $5,000 through the Ohio Homebuyer Plus Program and found a desirable home in our community with the help of a savings institution and a realtor. If the household can demonstrate that they have $5,000 saved in the program, the City could contribute an additional $5,000 toward the home purchase or for home improvements.

This $5,000 contribution would be secured by a second-position mortgage on the property. When the household decides to move, the $5,000 would be repaid to the city. If the household chooses to remain in the community, the $5,000 payback could be waived, simply transitioning as a second-position mortgage to the new property. Even a modest investment of $250,000 of city funds in the program could open doors to homeownership for many households.

Investing in Our Residents

Choosing to purchase a home within a community is a long-term commitment and an investment in that community's future. Part of this investment is the payment of income taxes to the community, with Troy's tax rate currently at 1.75%. Actions that increase the tax base by welcoming more income-producing residents are essential for community growth. Ultimately, investing in our residents benefits both them and our community.

While partnering with Ohio's Homebuyer Plus Program won't solve all of Troy's housing challenges, it is a promising step in the right direction and deserves serious consideration. Together, we can work towards a brighter, more accessible future for homeownership in our community.

Thanks for reading today’s Civic Capacity Newsletter! What do you think about today’s ideas? Feel free to participate in the above poll and leave your ideas and insights in the comment section. Please feel free to share this with your friends and neighbors and Happy New Year!