State Operating Budget Moves to Senate with Housing Provisions in Play
By Anastasia Kotkovskaya, Manager, Advocacy and Research
The Ohio House has officially passed House Bill 96, its two-year state operating budget that sets Ohio's spending priorities through fiscal year 2027. Legislators made hundreds of policy changes to the bill during the House committee process after Governor Mike DeWine unveiled the plan earlier this year. The massive legislation, which is over 5000 pages long, touches every facet of state government and is something Ohio REALTORS® has been actively lobbying since it was first introduced by Governor DeWine in February.
Property Taxes Take Center Stage
Ohio homeowners have felt the squeeze of property tax bills, and the need for reform has never been more urgent. Because of this, Ohio REALTORS® has joined the Ohio Taxpayer Protection Coalition to push for meaningful changes that provide relief and restore balance to the system. The Ohio House added a provision to the operating budget that would require county budget commissions to reduce property tax rates for school districts that carry over more than 30% of their operating budget from the previous year. As the budget moves to the Ohio Senate committee process, Ohio REALTORS® will stay actively engaged in property tax discussions and work with lawmakers to ensure that any final changes included in the budget will deliver meaningful relief and are implemented effectively.
Other Key Provisions in the House-Passed Budget:
- Housing Accelerator Fund: The budget allocates $2.5 million each fiscal year to create the Housing Accelerator Fund, a new grant program aimed at supporting townships and municipalities that adopt pro-housing policies. To qualify, local governments must adopt at least three pro-housing policies, such as allowing accessory dwelling units (ADUs), encouraging modular housing, increasing housing density, or speeding up approval processes. This is a promising addition supported by Ohio REALTORS®.
- Clarifying real estate representation agreements: Ohio REALTORS® was successful in adding an amendment that clarifies provisions from House Bill 466 last session, which dealt with written representation agreements in residential real estate transactions. This will ensure consistent applications of the legislation.
- Welcome Home Ohio Program: Ohio REALTORS® also successfully secured an amendment to House Bill 96 that expands eligibility for Welcome Home Ohio grants to non-profits such as Habitat for Humanity and Community Development Corporations. The budget also increases funding for this important program, which will strengthen its impact across the state.
- Brownfield Remediation and Demolition: An amendment was added to provide $250 million in FY 2026 for the Brownfield Remediation Fund and $20 million per fiscal year for the Building Demolition and Site Revitalization Fund. Ohio REALTORS® supports this investment as a sustainable funding mechanism to help communities clean up contaminated sites, remove blighted structures, and unlock potential development across the state.
- Limitations on Property Tax Challenges: House Bill 96 modifies the requirements governing when political subdivisions can file property tax complaints and counter-complaints. This change builds upon legislation passed in 2022 (House Bill 126) that was aimed to protect property owners from the aggressive tactics used by school districts to challenge property valuations set by county auditors.
- Lead Abatement Tax Credit: The budget increases the Lead Abatement tax credit issued by the Ohio Department of Health from $10,000 to $50,000, providing a stronger incentive for lead hazard remediation. Ohio REALTORS® supports expanding tools that promote safer, healthier housing.
- Increases Historic Building Rehabilitation Tax Credit: The budget increases the Historic Building Rehabilitation Tax Credit from $60 million to $90 million, short of the $120 million proposed by the Governor. It also removes the proposed refundable tax credit for owner-occupied historic homes, which had been part of the original executive budget.
- Housing Investment Opportunity Program: The House-passed budget removes the Governor's proposed $100 million investment for the Ohio Housing Investment Opportunity Program, which was initially designed to support affordable housing development in rural and border counties through the Department of Development.
- Housing Trust Fund Fees: The budget removes the requirement for county recorders tosend a portion of Housing Trust Fund fees to the Department of Development. Under this change, those funds would remain in the county where they are collected and must be used for housing-related purposes as determined by the county board of commissioners.
- Lead Abatement Program: The House budget cuts funding for state-supported lead abatement efforts. It eliminates the Lead-Safe Home Fund Program and reduces funding for local lead cleanup projects to $250,000 per year, down from $500,000 in the original proposal. This funding was intended to help local governments address lead hazards and improve housing conditions.
House Bill 96 now heads to the Senate for further consideration. The final budget measure must be passed by both chambers and signed into law by Governor DeWine by June 30th. As this bill is deliberated, Ohio REALTORS® will continue to advocate for the interests of its members.
Find relevant information below:
Ohio's Budget Breakdown: Key Housing Provisions to Watch
Ohio Taxpayer Protection Coalition
Legislative Service Commission: Main Operating Budget
