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Proposed legislation could stall housing development when we need it most

As Central Ohio continues to grow, so does the demand for housing. Yet the tools we use to build attainable homes are under threat. At the BIA of Central Ohio, we are dedicated to removing barriers to housing development and ensuring public policy supports smart growth, not roadblocks. That’s why we oppose House Bill 113 and House Bill 154, two proposals that could significantly hinder residential development in our region.

What’s At Stake?

Building homes in 2025 is more expensive than ever. Builders are already facing a tough landscape with the rising material costs, labor shortages, and international tariffs all squeezing the margins. But beyond construction, builders are often responsible for critical infrastructure like roads, sidewalks, water, and sewer systems. We’ve heard it from our members: These upfront costs can total hundreds of thousands, or even millions, of dollars and are passed on to the end buyer, increasing the price of a home.

Communities use tools like Community Reinvestment Areas (CRAs) to offset some of those costs and encourage development. CRAs offer property tax incentives that help keep projects financially viable and make housing more attainable for buyers. But these two new bills could change that.

What Would HB 113 and HB 154 Do?

Both bills would restrict or outright remove the effectiveness of CRAs, removing one of the few financial tools that support new development:

  • Ohio House Bill 113 proposes new annexation restrictions, reducing the maximum annexation size from 500 to 200 acres and giving county commissioners veto power over annexations. Most notably, it would allow city, local, or exempted village school districts to block the creation of incentives to spur residential development by giving county commissioners new authority to veto annexations—including expedited ones that are currently protected—adding political uncertainty and delays to projects that rely on efficient approval.
  • Ohio House Bill 154 would further require school district approval for any residential property tax exemptions within a CRA. This means developers would need explicit consent from the affected school district before moving forward with projects that rely on these incentives, adding another layer of complexity, delay, and uncertainty to the process.

Together, these bills disincentivize new housing development at a time when Central Ohio needs it the most.

Why Ohio House Bills 113 & 154 Matter to Central Ohio’s Builders and Developers

These bills represent a step backward. They:

  • Introduce new layers of red tape and approval delays
  • Drive up costs and reduce the financial feasibility of new developments
  • Threaten the long-term viability of projects in high-demand areas

We know developers already invest heavily in public infrastructure as part of their projects. Removing or weakening CRAs shifts more of that burden onto builders without providing additional support or incentives.

In an environment where the Central Ohio region is already underbuilding by thousands of homes each year, this type of policy creates a chilling effect on future development.

Collaboration, Not Complication

At the BIA, we believe in working alongside school boards, municipal leaders, and community stakeholders. Our position is not anti-local government: we’re pro-housing, pro-growth, and pro-solutions.

We know that housing development affects schools, traffic, and infrastructure. That’s why we champion collaborative conversations grounded in data and conversations that bring builders, engineers, policymakers, and residents together to understand the full picture.

But collaboration requires clarity, not more layers of approval and potential vetoes that stall much-needed growth.

The Cost of Doing Nothing is Steep

If policies like HB 113 and HB 154 are passed, we risk:

  • Higher home prices for buyers
  • Fewer homes built each year
  • Missed opportunities for growth in towns and cities across the region

Let’s not lose sight of the bigger picture. A strong, growing Central Ohio depends on our collective ability to build smarter, act boldly, and ensure that housing is attainable for everyone, today and tomorrow.

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