6 Builder-Friendly Wins in Ohio’s New State Budget
Earlier this month, the Ohio General Assembly passed the new state budget, and it includes major wins for the housing and development industry across Central Ohio. From reducing project delays to unlocking new infrastructure and housing funds, this budget gives builders more tools to get homes built.
Here’s what members of the BIA need to know.
- Increased Signature Threshold Brings More Certainty
Until now, Ohio was one of only two states where a small group of residents could easily overturn zoning decisions. In some Ohio townships, that meant fewer than 100 people could block large-scale housing projects.
That has changed. The new budget increases the referendum threshold to 35% of registered voters in the last gubernatorial election for most townships and statutory cities. This important reform reduces the chances of unexpected project delays and brings more certainty to the approval process.
- REDDs: $25 Million to Support Workforce Housing Near Mega Projects
A new program called the Residential Economic Development Districts (REDDs) will provide $25 million in grants for housing development located within 20 miles of large-scale job-creating projects.
Counties, cities, and townships will be able to apply for funds to:
– Prepare housing development sites
– Offset infrastructure costs
– Fund housing-related public services
– Collaborate with developers and planning partners to bring housing online
To qualify, projects must include at least 100 units and demonstrate pro-housing local policies. Final rules and scoring criteria will be released by December 2025.
- Rural Infrastructure Gets a Boost: $100 Million Loan Fund
The budget creates a $100 million Residential Development Revolving Loan Fund (RLF) for rural counties with fewer than 75,000 people.
These funds will help pay for infrastructure like roads, water, sewer, electric, or gas service that is required to build single-family housing. Loans are limited to 50% of infrastructure costs or $30,000 per home, whichever is less.
To receive a loan, local governments must waive certain zoning and building requirements, and homes cannot receive federal low-income housing tax credits.
- Welcome Home Ohio Expansion
The Welcome Home Ohio (WHO) program received an additional $91.25 million in grant funding. It also expanded eligibility and increased the amount of financial assistance available.
Key updates include:
– Raising the income limit to 120% of area median income (AMI)
– Increasing grant caps to $100,000 per home
– Reducing the primary owner occupancy requirement from five years to three
– Allowing grants to support manufactured homes and multi-unit properties
– Providing up to $2,000 per home for financial literacy counseling
These changes make the program more flexible and impactful for developers, land banks, and nonprofit housing providers.
- Brownfield Cleanup: Expanded and Streamlined
The Brownfield Remediation Program received an additional $200 million and is now more accessible. Instead of requiring a single “lead applicant” per county, a wider range of organizations, including developers, can apply directly.
The definition of “remediation” has been broadened to include site acquisition, demolition, and basic infrastructure needed to make brownfield sites development-ready. Starting in 2027, funds will be awarded based on economic merit rather than first-come, first-served.
- Transformational Mixed Use Development (TMUD) Program Expanded
The TMUD tax credit program was renewed with $250 million in funding and several key changes that expand its usefulness.
Notable updates include:
– Lowering the cap per project from $40 million to $20 million
– Expanding eligible costs to include due diligence and soft costs
– Making tax credits more transferable between investors
– Adjusting application criteria to better evaluate economic impact
– Increasing flexibility for urban and rural projects alike
The TMUD program remains a critical resource for mixed-use, high-density developments that can anchor entire districts.
What This Means for Builders in Central Ohio
The new Ohio state budget marks a major step forward for the housing and development industry. It gives local governments and builders more flexibility, access to new funding, and fewer roadblocks to getting projects approved and built.
It also highlights the value of advocacy. These wins are a direct result of industry voices being heard at the state level. Your BIA membership helps make that possible.