Ohio REALTORS asks state to offer financial help on commercial properties
Ohio REALTORS sent a letter to Gov. Mike DeWine, Lt. Gov. Jon Husted, Lydia Mihalik, Director of the Development Services Agency yesterday requesting adjustments and relief on property taxes for large commercial property owners and managers affected by the lack of cash flow from the state's forbearance Order. The Association is asking the state to provide some liquidity assistance while rents and other income is suspended for 90 days.
Dear Governor DeWine:
Yesterday, you signed an Executive Order regarding commercial evictions and foreclosures, encouraging mortgage servicers to work with property owners during this tumultuous time. On behalf of the more than 33,000 REALTORS operating across Ohio, I appreciate your attention to this critical matter.
Although a forbearance is an excellent tool, I ask you to take this a step further. I have heard from many of our large commercial property owners and managers that they have received notice from a significant number of tenants indicating that due to the COVID-19 pandemic, they will be unable to pay their rent for the foreseeable future. In short, there is no cash flow to the property owner or manager. They are now facing serious and difficult decisions that will have far-reaching impacts on an already delicate Ohio economy. For instance, many will no longer have the funds to pay the critical trades currently working to maintain their properties.
These property owners have just remitted their local property taxes, this annual occurrence greatly reduces the liquidity and cash on hand of these businesses. It is critical that some liquidity be made up during this time of suspended income. Commercial property owners who have reached out to me believe one of the best and fastest ways to regain significant liquidity would be for the state to rebate the local property taxes that were just paid. Property owners have stressed this cash flow is needed immediately to keep these properties afloat and be able to pay salaries and other debts. Many of the commercial spaces that exist today will not survive in the coming months. In order to ensure Ohio’s businesses have a place to operate post-pandemic, we must act swiftly to support these property owners in order to avoid a massive loss of usable commercial space.
As you know, the vibrancy of Ohio’s real estate marketplace is critical to our overall economic strength. Our industry accounts for $99.6 billion annually, or almost 15 percent of Ohio’s gross state product.
I am happy to offer more insight into this matter and help illustrate how critical this matter is to not only our REALTOR members, but the economic health of the entire state.
Sincerely,
Scott R. Williams, Chief Executive Office, Ohio REALTORS
