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To amend sections 175.01 and 175.04 and to enact | 1 |
sections 175.30 to 175.35 of the Revised Code to | 2 |
create the Grants for Grads Program. | 3 |
Section 1. That sections 175.01 and 175.04 be amended and | 4 |
sections 175.30, 175.31, 175.32, 175.33, 175.34, and 175.35 of the | 5 |
Revised Code be enacted to read as follows: | 6 |
Sec. 175.01. As used in | 7 |
175.13 of the Revised Code: | 8 |
(A) "Bonds" means bonds, notes, debentures, refunding bonds, | 9 |
refunding notes, and other obligations. | 10 |
(B) "Financial assistance" means grants, loans, loan | 11 |
guarantees, an equity position in a project, and loan subsidies. | 12 |
(C) "Grant" means funding for which repayment is not | 13 |
required. | 14 |
(D) "Homeownership program" means any program for which the | 15 |
Ohio housing finance agency provides financing, directly or | 16 |
indirectly, for the purchase of housing for owner-occupancy. | 17 |
(E) "Housing" means housing for owner-occupancy and | 18 |
multifamily rental housing. | 19 |
(F) "Housing development fund" means the housing development | 20 |
fund created and administered pursuant to section 175.11 of the | 21 |
Revised Code. | 22 |
(G) "Housing finance agency personal services fund" means the | 23 |
housing finance agency personal services fund created and | 24 |
administered pursuant to section 175.051 of the Revised Code. | 25 |
(H) "Housing for owner-occupancy" means housing that is | 26 |
intended for occupancy by an owner as a principal residence. | 27 |
"Housing for owner-occupancy" may be any type of structure and may | 28 |
be owned in any form of ownership. | 29 |
(I) "Housing trust fund" means the low- and moderate-income | 30 |
housing trust fund created and administered pursuant to Chapter | 31 |
174. of the Revised Code. | 32 |
(J) "Improvement" means any alteration, remodeling, addition, | 33 |
or repair that substantially protects or improves the basic | 34 |
habitability or energy efficiency of housing. | 35 |
(K) "Lending institution" means any financial institution | 36 |
qualified to conduct business in this state, a subsidiary | 37 |
corporation that is wholly owned by a financial institution | 38 |
qualified to conduct business in this state, and a mortgage lender | 39 |
whose regular business is originating, servicing, or brokering | 40 |
real estate loans and who is qualified to do business in this | 41 |
state. | 42 |
(L) "Loan" means any extension of credit or other form of | 43 |
financing or indebtedness extended directly or indirectly to a | 44 |
borrower with the expectation that it will be repaid in accordance | 45 |
with the terms of the underlying loan agreement or other pertinent | 46 |
document. "Loan" includes financing the Ohio housing finance | 47 |
agency extends to lending institutions and indebtedness the agency | 48 |
purchases from lending institutions. | 49 |
(M) "Loan guarantee" means any agreement in favor of a | 50 |
lending institution, bondholder, or other lender in which the | 51 |
credit and resources of the housing finance agency or the housing | 52 |
trust fund are pledged to secure the payment or collection of | 53 |
financing extended to a borrower for the acquisition, | 54 |
construction, improvement, rehabilitation, or preservation of | 55 |
housing or to refinance any financing previously extended for | 56 |
those purposes. | 57 |
(N) "Loan subsidy" means any deposit of funds the Ohio | 58 |
housing finance agency holds or administers into a lending | 59 |
institution with the authorization or direction that the income or | 60 |
revenues the deposit earns, or could have earned at competitive | 61 |
rates, be applied directly or indirectly to the benefit of housing | 62 |
assistance or financial assistance. | 63 |
(O) "Low- and moderate-income persons" means individuals and | 64 |
families who qualify as low- and moderate-income persons pursuant | 65 |
to guidelines the agency establishes. | 66 |
(P) "Multifamily rental housing" means multiple unit housing | 67 |
intended for rental occupancy. | 68 |
(Q) "Nonprofit organization" means a nonprofit organization | 69 |
in good standing and qualified to conduct business in this state | 70 |
including any corporation whose members are members of a | 71 |
metropolitan housing authority. | 72 |
(R) "Owner" means any person who, jointly or severally, has | 73 |
legal or equitable title to housing together with the right to | 74 |
control or possess that housing. "Owner" includes a purchaser of | 75 |
housing pursuant to a land installment contract if that contract | 76 |
vests possession and maintenance responsibilities in the | 77 |
purchaser, and a person who has care or control of housing as | 78 |
executor, administrator, assignee, trustee, or guardian of the | 79 |
estate of the owner of that housing. | 80 |
(S) "Security interest" means any lien, encumbrance, pledge, | 81 |
assignment, mortgage, or other form of collateral the Ohio housing | 82 |
finance agency holds as security for financial assistance the | 83 |
agency extends or a loan the agency acquires. | 84 |
Sec. 175.04. (A) The governor shall appoint a chairperson | 85 |
from among the members of the Ohio housing finance agency. The | 86 |
agency members shall elect a member as vice-chairperson. The | 87 |
agency members may appoint other officers, who need not be members | 88 |
of the agency, as the agency deems necessary. | 89 |
(B) Six members of the agency constitute a quorum and the | 90 |
affirmative vote of six members is necessary for any action the | 91 |
agency takes. No vacancy in agency membership impairs the right of | 92 |
a quorum to exercise all of the agency's rights and perform all | 93 |
the agency's duties. Agency meetings may be held at any place | 94 |
within the state. Meetings shall comply with section 121.22 of the | 95 |
Revised Code. | 96 |
(C) The agency shall maintain accounting records in | 97 |
accordance with generally accepted accounting principals and other | 98 |
required accounting standards. | 99 |
(D) The agency shall develop policies and guidelines for the | 100 |
administration of its programs and annually shall conduct at least | 101 |
one public hearing to obtain input from any interested party | 102 |
regarding the administration of its programs. The hearing shall be | 103 |
held at a time and place as the agency determines and when a | 104 |
quorum of the agency is present. | 105 |
(E) The agency shall appoint committees and subcommittees | 106 |
comprised of members of the agency to handle matters it deems | 107 |
appropriate. | 108 |
(1) The agency shall adopt an annual plan to address this | 109 |
state's housing needs. The agency shall appoint an annual plan | 110 |
committee to develop the plan and present it to the agency for | 111 |
consideration. | 112 |
(2) The annual plan committee shall select an advisory board | 113 |
from a list of interested individuals the executive director | 114 |
provides or on its own recommendation. The advisory board shall | 115 |
provide input on the plan at committee meetings prior to the | 116 |
annual public hearing. At the public hearing, the committee shall | 117 |
discuss advisory board comments. The advisory board may include, | 118 |
but is not limited to, persons who represent state agencies, local | 119 |
governments, public corporations, nonprofit organizations, | 120 |
community development corporations, housing advocacy organizations | 121 |
for low- and moderate-income persons, realtors, syndicators, | 122 |
investors, lending institutions as recommended by a statewide | 123 |
banking organization, and other entities participating in the | 124 |
agency's programs. | 125 |
Each agency program that allows for loans to be made to | 126 |
finance housing for owner occupancy that benefits other than low- | 127 |
and moderate-income households, or for loans to be made to | 128 |
individuals under bonds issued pursuant to division (B) of section | 129 |
175.08 of the Revised Code, shall be presented to the advisory | 130 |
board and included in the annual plan as approved by the agency | 131 |
before the program's implementation. | 132 |
(F) The agency shall prepare an annual financial report | 133 |
describing its activities during the reporting year and submit | 134 |
that report to the governor, the speaker of the house of | 135 |
representatives, and the president of the senate within three | 136 |
months after the end of the reporting year. The report shall | 137 |
include the agency's audited financial statements, prepared in | 138 |
accordance with generally accepted accounting principles and | 139 |
appropriate accounting standards. | 140 |
(G) The agency shall prepare an annual report of its programs | 141 |
describing how the programs have met this state's housing needs. | 142 |
The agency shall submit the report to the governor, the speaker of | 143 |
the house of representatives, and the president of the senate | 144 |
within three months after the end of the reporting year. | 145 |
(H) The agency shall prepare an annual report regarding the | 146 |
grants for grads program created under section 175.31 of the | 147 |
Revised Code describing the number and dollar amount of grants | 148 |
awarded, and the activities of the agency under sections 175.30 to | 149 |
175.35 of the Revised Code, during the previous calendar year. The | 150 |
agency shall submit the report to the governor, director of | 151 |
development, chancellor of the Ohio board of regents, president of | 152 |
the senate, and speaker of the house of representatives. | 153 |
Sec. 175.30. As used in sections 175.30 to 175.35 of the | 154 |
Revised Code: | 155 |
(A) "First home" or "home" means the first residential real | 156 |
property located in this state to be purchased by a grantee, which | 157 |
property serves as the grantee's primary residence, upon its | 158 |
acquisition, for not less than five years, but does not include a | 159 |
home purchased from an immediate family member of the grantee or | 160 |
from a business in which an immediate family member of the grantee | 161 |
owns more than a ten per cent interest. | 162 |
(B) "Graduate" means an individual who has graduated from an | 163 |
institution of higher education and who is eligible under division | 164 |
(B) of section 175.31 of the Revised Code to apply for a grant | 165 |
awarded under the grants for grads program. | 166 |
(C) "Grant" means a cash payment awarded to a grantee by the | 167 |
Ohio housing finance agency under section 175.32 of the Revised | 168 |
Code. | 169 |
(D) "Grantee" means an individual who has been awarded a | 170 |
grant under the program. | 171 |
(E) "Institution of higher education" means a state | 172 |
university or college located in this state, a private college or | 173 |
university located in this state that possesses a certificate of | 174 |
authorization issued by the Ohio board of regents under Chapter | 175 |
1713. of the Revised Code, or an accredited college or university | 176 |
located outside this state that is accredited by an accrediting | 177 |
organization or professional accrediting association recognized by | 178 |
the Ohio board of regents. | 179 |
(F) "Ohio resident" means any of the following: | 180 |
(1) An individual who was a resident of this state at the | 181 |
time of the individual's graduation from an Ohio public or | 182 |
nonpublic high school that is approved by the state board of | 183 |
education, and who is a resident of this state at the time of | 184 |
applying for the program; | 185 |
(2) An individual who was a resident of this state at the | 186 |
time of completing, through the twelfth-grade level, a home study | 187 |
program approved by the state board of education, and who is a | 188 |
resident of this state at the time of applying for the program; | 189 |
(3) An individual who attended an out-of-state high school | 190 |
that was accredited by a regional accrediting organization | 191 |
recognized by the United States department of education and met | 192 |
standards at least equivalent to those adopted by the state board | 193 |
of education for approval of nonpublic schools in this state, or | 194 |
from a high school approved by the United States department of | 195 |
defense and whose parent was a resident of this state at the time | 196 |
of the individual's graduation from such high school, and who is a | 197 |
resident of this state at the time of applying for the program. | 198 |
(G) "Program" means the grants for grads program created | 199 |
under section 175.31 of the Revised Code. | 200 |
Sec. 175.31. (A) There is the grants for grads program for | 201 |
the purpose of providing grants to Ohio residents who have | 202 |
received an associate, baccalaureate, master's, doctoral, or other | 203 |
postgraduate degree, which grants shall be used by a grantee to | 204 |
pay for the down payment or closing costs on the purchase of a | 205 |
first home. The program shall be administered by the Ohio housing | 206 |
finance agency. Participation in the program shall require a | 207 |
graduate to be eligible under division (B) of this section and to | 208 |
file an application for the grant in accordance with division (C) | 209 |
of this section. | 210 |
(B)(1) A graduate is eligible to participate in the program | 211 |
if the graduate: | 212 |
(a) Is an Ohio resident who has received an associate, | 213 |
baccalaureate, master's, doctoral, or other postgraduate degree | 214 |
from an institution of higher education; | 215 |
(b) Is able to provide to the agency evidence documenting the | 216 |
graduate's Ohio residency and documenting graduation from a high | 217 |
school and an institution of higher education; | 218 |
(c) Intends to live and work in this state for at least five | 219 |
years after the graduate's graduation or completion of a | 220 |
postgraduate degree; and | 221 |
(d) Intends to purchase a first home in this state. | 222 |
(2) Married graduates may both apply for grants under the | 223 |
program and both graduates, if eligible, shall be included in the | 224 |
lottery pool under section 175.32 of the Revised Code. | 225 |
(3) A graduate who is married to an individual who has | 226 |
previously received a grant under the program is ineligible to | 227 |
apply for a grant under this section. | 228 |
(C) A graduate who is eligible under division (B) of this | 229 |
section to participate in the program shall file an application | 230 |
with the Ohio housing finance agency not later than the sixtieth | 231 |
day after the graduate's graduation date or date of completion of | 232 |
a postgraduate degree. Married graduates who both are eligible for | 233 |
a grant under the program shall apply individually. The agency | 234 |
shall provide for the content and format of the application. A | 235 |
graduate who files an application under this division is | 236 |
ineligible to file an application for a grant in any other year. | 237 |
(D) The application shall include information as determined | 238 |
by rule of the Ohio housing finance agency under section 175.34 of | 239 |
the Revised Code, but at a minimum shall include evidence of | 240 |
meeting the requirements in division (B) of this section. | 241 |
(E) A graduate who, at any time during the period from filing | 242 |
the application for a grant until a grant is awarded, has been | 243 |
found by the state to be delinquent in the payment of individual | 244 |
income taxes is ineligible to receive a grant under the program. | 245 |
Sec. 175.32. (A) The Ohio housing finance agency shall review | 246 |
each application filed under section 175.31 of the Revised Code | 247 |
for compliance and accuracy, and shall determine whether a | 248 |
graduate is eligible to receive a grant and the amount thereof, | 249 |
based on the information provided to the agency in the | 250 |
application. An application found by the agency to be insufficient | 251 |
may be resubmitted by the graduate within the sixty-day period | 252 |
within which the graduate may apply for a grant. | 253 |
(B)(1) Grants shall be provided from moneys in the grants for | 254 |
grads fund. A grant shall be given to a graduate whose application | 255 |
has been determined by the agency to meet the requirements of | 256 |
section 175.31 of the Revised Code and to be timely and complete, | 257 |
and who has been selected as one of three hundred grantees in a | 258 |
random lottery conducted by the agency by the thirty-first day of | 259 |
January of each year. The lottery pool shall include all graduate | 260 |
applicants who have filed applications within the calendar year | 261 |
immediately preceding the year in which the lottery is conducted. | 262 |
In addition, one hundred alternate grantees shall be selected in | 263 |
the random lottery if additional moneys are available in the | 264 |
grants for grads fund after grants are awarded to the three | 265 |
hundred grantees first selected for that calendar year. The | 266 |
alternate grantees shall receive grants in the order they were | 267 |
selected in the lottery until moneys for the year are exhausted. | 268 |
(2) If there are less than three hundred applicants for | 269 |
grants in a given calendar year, the lottery shall be dispensed | 270 |
with and all applicants the agency determines under this section | 271 |
to be eligible for grants shall be awarded grants. | 272 |
(C) The awarding of a grant shall be evidenced by written | 273 |
notification to the grantee, which notification shall clearly | 274 |
state the amount of the grant and the starting and ending dates of | 275 |
the award period. The agency shall provide the notification within | 276 |
sixty days after completion of the lottery. The award period shall | 277 |
be from the start date through the last day of the twelfth month | 278 |
thereafter. | 279 |
(D) The amount of each grant awarded to a grantee who | 280 |
received a notification under division (C) of this section shall | 281 |
be as follows: | 282 |
(1) For a grantee who received an associate degree, two | 283 |
thousand five hundred dollars; | 284 |
(2) For a grantee who received a baccalaureate degree, five | 285 |
thousand dollars; | 286 |
(3) For a grantee who received a post-graduate degree, ten | 287 |
thousand dollars. | 288 |
(E) The grant shall be provided to the grantee as a cash | 289 |
payment when the grantee obtains a mortgage loan, and the amount | 290 |
of the cash payment shall be applied in full only to pay all or a | 291 |
portion of the closing costs or down payment on the purchase of | 292 |
the grantee's first home. The grantee shall not receive any cash | 293 |
back at the time of the closing. The grantee must take receipt of | 294 |
the grant within the award period designated in the notification, | 295 |
after which the grant shall expire. | 296 |
Sec. 175.33. (A) If the Ohio housing finance agency finds | 297 |
that a grantee failed to comply with the first home ownership | 298 |
criteria in division (A) of section 175.30 of the Revised Code, or | 299 |
otherwise applied for a grant using fraudulent information, the | 300 |
grantee's state income tax liability for the applicable taxable | 301 |
period shall be increased by any amount necessary for the | 302 |
recapture of the amount of the grant awarded under section 175.32 | 303 |
of the Revised Code subject to division (B) of this section. | 304 |
(B)(1) If a grantee becomes a resident of another state and | 305 |
does not reside at least five years in a first home purchased with | 306 |
a grant awarded under the program, the amount of the grant | 307 |
recaptured under division (A) of this section shall be determined | 308 |
as follows: | 309 |
Months resided in first home | Amount of grant recaptured | 310 | ||
Less than 12 months | 100% | 311 | ||
12 months and a day to 24 months | 80% | 312 | ||
24 months and a day to 36 months | 60% | 313 | ||
36 months and a day to 48 months | 40% | 314 | ||
48 months and a day to 60 months | 20% | 315 |
(2) Recapture of a grant under division (B)(1) of this | 316 |
section does not apply if the grantee, within the five-year | 317 |
period, moves to another residence located in this state. | 318 |
(C) An action to recapture a grant awarded under the program | 319 |
shall be initiated within three years from and after the | 320 |
thirty-first day of December of the year in which the grant was | 321 |
awarded. | 322 |
Sec. 175.34. (A) The Ohio housing finance agency shall adopt | 323 |
rules under Chapter 119. of the Revised Code to carry out the | 324 |
purposes of the grants for grads program. | 325 |
(B) The agency shall establish an internal audit program for | 326 |
the program and the grants for grads fund before the beginning of | 327 |
each calendar year, subject to the approval of the auditor of | 328 |
state. At the end of each calendar year, the agency shall prepare | 329 |
and submit an annual report to the auditor of state for the | 330 |
auditor of state's review and approval, specifying the internal | 331 |
audit work completed by the end of that calendar year and | 332 |
reporting on compliance with the annual internal audit program. | 333 |
The form and content of the report shall be prescribed by the | 334 |
auditor of state under division (C) of section 117.20 of the | 335 |
Revised Code. | 336 |
Sec. 175.35. There is in the state treasury the grants for | 337 |
grads fund. The fund shall consist of all appropriations made to | 338 |
the fund and grants, gifts, and contributions of money made from | 339 |
any source to the Ohio housing finance agency for deposit in the | 340 |
fund. The fund shall be administered by the agency and is for use | 341 |
in providing grants to graduates participating in, and for | 342 |
implementing and administering, the program. Moneys in the fund | 343 |
shall be invested by the treasurer of state in the same manner as | 344 |
moneys in the general revenue fund, and earnings on the | 345 |
investments of the fund shall be deposited into the fund. | 346 |
Section 2. That existing sections 175.01 and 175.04 of the | 347 |
Revised Code are hereby repealed. | 348 |