Senator Reynolds Introduces Promise Land Act To Expand Affordable Homeownership
COLUMBUS— State Senator Michele Reynolds (R-Canal Winchester) introduced SB 250, the Promise Land Act, landmark legislation designed to unlock nonprofit and faith-based land for affordable housing development while creating new pathways to homeownership for Ohio Families.
The act establishes the "promised Land Credit," a state tax credit equal to 10% of the cost of building a new home (including land). Nonprofits and churches that develop housing can claim the credit, or sell it to new developers and businesses to generate cash for additional projects.
"This bill brings together the faith community, nonprofits, and the private sector to tackle Ohio's housing crisis," said Senator Reynolds. "Too many Ohio families are being priced out of the dream of homeownership. The Promised Land Act empowers nonprofits and developers to work together, unlocking land, leveraging tax credits, and putting more families into homes they can afford."
Key Features of the Promised Land Act
- Nonprofit-Led Housing Development: Churches and nonprofits that own land can partner with developers to build new homes for owner-occupants.
- 10% Tax Credit: Nonprofits can receive a tax credit worth 10% of construction and land costs, which can be transferred (sold) if the nonprofit doesn't owe taxes.
- Social Enterprise Model: By converting land into affordable housing, nonprofits generate a sustainable revenue stream that supports both housing supply and their broader charitable objectives.
- Partnership Opportunities: Developers are paid through construction contracts and fees, while nonprofits benefit from land sales/leases and tax credit proceeds.
Statewide Impact: The program is capped at $25 million annually, ensuring broad participation across Ohio. - Focus on Affordability: The law encourages the use of ground leases and deed restrictions to preserve affordability for future buyers.
Why It Matters
The Promised Land Act bridges the gap between community-based nonprofits and private developers, creating a win-win model that:
- Helps families achieve affording homeownership
- Rewards developers for building quality homes
- Enables nonprofits to function as social enterprises, generating resources to sustain their missions
- Ensures nonprofits can put underutilized land to productive use
- Strengthens Ohio Communities with stable housing opportunities
"This is about making the American Dream possible again," Senator Reynolds added. "By aligning mission-driven nonprofits with market-driven developers, we are building stronger families, stronger neighborhoods, and a stronger Ohio."
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