REALTORS, leading organizations urge reinstatement of Homeownership Savings Linked Deposit Program in state budget
By Andrew Huffman, Ohio REALTORS Director of Government Affairs
A coalition of leading organizations representing the housing industry, the business community, developers, and the financial industry just sent a joint letter to the Ohio Senate urging reinstatement of the Homeownership Savings Linked Deposit Program created in the state operating budget (House Bill 33).
The joint letter notes that while the substitute bill accepted by the Senate makes investments in the development of single-family homes, Ohioans will continue to struggle with affording those homes unless they have access to additional tools to overcome financial hurdles such as downpayments and closing costs. Even with a potential increase in housing inventory, those financial barriers will continue to exist. The tax advantages for individuals, family members, and employers that contribute to the account, combined with the above market interest rate provided through the resources within the Ohio Treasurer of State’s office will help Ohioans overcome these financial barriers. In short, the groups contend that the Homeownership Savings Linked Deposit Program will be a valuable resource that will assist Ohioans transition from renters into homeowners.
The letter, sent to Senate President Matt Huffman (R-Lima), was jointly signed by the Ohio REALTORS, Ohio Chamber of Commerce, Ohio Bankers League, Ohio Manufactured Homes Association, Ohio Home Builders Association, Inc., Ohio Credit Union League, Ohio Mortgage Bankers Association, Ohio Land Title Association, and Zillow.
Below is the June 9 letter seeking reinstatement of the program into the main operating budget:
President Huffman:
On behalf of organizations representing housing advocates, the business community, developers, and financial services industry, we urge you to reconsider the elimination of the Homeownership Savings Linked Deposit Program created in the state operating budget (HB 33).
While the Senate substitute version of HB 33 makes investments in the development of single-family, owner- occupied homes, it neglects to provide potential homeowners with the resources necessary to overcome the financial barriers associated with purchasing a home. Often, saving for a down payment and closing costs pose the most significant barrier to homeownership. Even with a potential increase in housing inventory, those barriers will continue to exist. The tax advantages for individuals, family members, and employers that contribute to the account, combined with the above market interest rate provided through the resources within the Ohio Treasurer of State’s office will help Ohioans overcome these barriers. We believe the Homeownership Savings Linked Deposit Program will be a critical resource as the state works to encourage more Ohioans to transition from renters into homeowners.
The housing inventory shortage has impacted every part of Ohio and places additional challenges on businesses looking for employees as well as on growing communities. In addition, it has made the dream of homeownership for many first-time homebuyers more unattainable than ever before. Scarce inventory and rising home prices have played a significant role in lowering the number of first-time homebuyers nationally to 26%, the lowest share of first- time buyers since data started being tracked by the National Association of REALTORS (NAR) in 1981. The typical first-time homebuyer is 36 years old -- an all-time high. These are trends we would like to reverse.
There are numerous economic benefits to the state associated with homeownership. A recent analysis found that in 2021, on average, each Ohio home sale contributes $72,800 back into the economy through retail and appliance purchases, construction, and renovations. Homeownership is a driving force of our economy and programs like the Homeownership Savings Linked Deposit Program can make owning a home a reality for more Ohioans.
Homeownership can also build generational wealth that can be leveraged later in life or passed onto family. The Survey of Consumer Finances, released in 2020 by the Federal Reserve, found that the median net worth of a homeowner is over 40 times greater than the median net worth of a renter. In other words, owning a home is one of the best ways to build wealth.
For these reasons we urge you to reinstate the Homeownership Savings Linked Deposit Program in HB 33.
