|
|
| 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 who | 157 |
| has not owned or had an ownership interest in a principal | 158 |
| residence in the three years prior to the purchase. | 159 |
| (B) "Graduate" means an individual who has graduated from an | 160 |
| institution of higher education and who is eligible under division | 161 |
| (B) of section 175.31 of the Revised Code to apply for a grant | 162 |
| awarded under the grants for grads program. | 163 |
| (C) "Grant" means a cash payment awarded to a grantee by the | 164 |
| Ohio housing finance agency under section 175.32 of the Revised | 165 |
| Code. | 166 |
| (D) "Grantee" means an individual who has been awarded a | 167 |
| grant under the program. | 168 |
| (E) "Institution of higher education" means a state | 169 |
| university or college located in this state, a private college or | 170 |
| university located in this state that possesses a certificate of | 171 |
| authorization issued by the Ohio board of regents under Chapter | 172 |
| 1713. of the Revised Code, or an accredited college or university | 173 |
| located outside this state that is accredited by an accrediting | 174 |
| organization or professional accrediting association recognized by | 175 |
| the Ohio board of regents. | 176 |
| (F) "Ohio resident" means any of the following: | 177 |
| (1) An individual who was a resident of this state at the | 178 |
| time of the individual's graduation from an Ohio public or | 179 |
| nonpublic high school that is approved by the state board of | 180 |
| education, and who is a resident of this state at the time of | 181 |
| applying for the program; | 182 |
| (2) An individual who was a resident of this state at the | 183 |
| time of completing, through the twelfth-grade level, a home study | 184 |
| program approved by the state board of education, and who is a | 185 |
| resident of this state at the time of applying for the program; | 186 |
| (3) An individual whose parent was a resident of this state | 187 |
| at the time of the individual's graduation from high school, and | 188 |
| who graduated from either of the following: | 189 |
| (a) An out-of-state high school that was accredited by a | 190 |
| regional accrediting organization recognized by the United States | 191 |
| department of education and met standards at least equivalent to | 192 |
| those adopted by the state board of education for approval of | 193 |
| nonpublic schools in this state; | 194 |
| (b) A high school approved by the United States department of | 195 |
| defense. | 196 |
| (G) "Program" means the grants for grads program created | 197 |
| under section 175.31 of the Revised Code. | 198 |
| Sec. 175.31. (A) There is hereby created the grants for grads | 199 |
| program for the purpose of providing grants to Ohio residents who | 200 |
| have received an associate, baccalaureate, master's, doctoral, or | 201 |
| other postgraduate degree, which grants shall be used by a | 202 |
| grantee to pay for the down payment or closing costs on the | 203 |
| purchase of a first home. The program shall be administered by | 204 |
| the Ohio housing finance agency using moneys available to it. | 205 |
| Participation in the program shall require a graduate to be | 206 |
| eligible under division (B) of this section and to file an | 207 |
| application for the grant in accordance with division (C) of this | 208 |
| section. | 209 |
| (B)(1) A graduate is eligible to participate in the program | 210 |
| if the graduate: | 211 |
| (a) Is an Ohio resident who has received an associate, | 212 |
| baccalaureate, master's, doctoral, or other postgraduate degree | 213 |
| from an institution of higher education; | 214 |
| (b) Is able to provide to the agency evidence documenting the | 215 |
| graduate's Ohio residency and documenting graduation from a high | 216 |
| school and an institution of higher education; | 217 |
| (c) Intends to live and work in this state for at least five | 218 |
| years after the graduate's graduation or completion of a degree | 219 |
| described in division (B)(1)(a) of this section; and | 220 |
| (d) Intends to purchase a first home in this state. | 221 |
| (2) Married graduates may both apply for grants under the | 222 |
| program and both graduates, if eligible, shall be included in the | 223 |
| lottery pool under section 175.32 of the Revised Code. | 224 |
| (3) A graduate who is married to an individual who has | 225 |
| previously received a grant under the program is ineligible to | 226 |
| apply for a grant under this section. | 227 |
| (C) A graduate who is eligible under division (B) of this | 228 |
| section to participate in the program shall file an application | 229 |
| with the Ohio housing finance agency not later than the sixtieth | 230 |
| day after the graduate's graduation date or date of completion of | 231 |
| a degree described in division (B)(1)(a) of this section, except | 232 |
| that for purposes of the initial lottery conducted under the | 233 |
| program, a graduate is eligible to file an application if the | 234 |
| graduate's graduation date or date of completion of a degree | 235 |
| occurs on or after January 1, 2008. Married graduates who both are | 236 |
| eligible for a grant under the program shall apply individually. | 237 |
| The agency shall provide for the content and format of the | 238 |
| application. A graduate who files an application under this | 239 |
| division is ineligible to file an application for a grant in any | 240 |
| other six-month period. | 241 |
| (D) The application shall include information as determined | 242 |
| by rule of the Ohio housing finance agency under section 175.34 of | 243 |
| the Revised Code, but at a minimum shall include evidence of | 244 |
| meeting the requirements in division (B) of this section. | 245 |
| (E) A graduate who, at any time during the period from filing | 246 |
| the application for a grant until a grant is awarded, has been | 247 |
| found by the state to be delinquent in the payment of individual | 248 |
| income taxes is ineligible to receive a grant under the program. | 249 |
| Sec. 175.32. (A) After selecting graduates pursuant to | 250 |
| division (B) of this section, the Ohio housing finance agency | 251 |
| shall review each application selected for compliance and | 252 |
| accuracy, and shall determine whether a graduate is eligible to | 253 |
| receive a grant and the amount thereof, based on the information | 254 |
| provided to the agency in the application. An application found | 255 |
| by the agency to be insufficient may be resubmitted by the | 256 |
| selected graduate within sixty days. If the application is not | 257 |
| resubmitted or the resubmitted application is found to be | 258 |
| insufficient, the selected graduate shall not receive a grant. | 259 |
| (B)(1) Grants shall be provided from moneys in the grants for | 260 |
| grads fund. A grant shall be given to a graduate whose application | 261 |
| has been determined by the agency to meet the requirements of | 262 |
| section 175.31 of the Revised Code and to be timely and complete, | 263 |
| and who has been selected as one of one hundred fifty grantees in | 264 |
| a random lottery conducted by the agency twice a year, by the | 265 |
| thirty-first day of January and by the thirty-first day of July | 266 |
| of each year. The lottery pool shall include all graduate | 267 |
| applicants who have filed applications within the six months | 268 |
| immediately preceding the date on which the lottery is conducted. | 269 |
| In addition, fifty alternate grantees shall be selected in the | 270 |
| random lottery to receive any additional moneys available in the | 271 |
| grants for grads fund after grants are awarded to the eligible | 272 |
| grantees first selected for that six-month period. The alternate | 273 |
| grantees shall receive grants in the order they were selected in | 274 |
| the lottery until moneys for the six-month period are exhausted. | 275 |
| (2) If there are less than one hundred fifty applicants for | 276 |
| grants in a given six-month period, the lottery shall be dispensed | 277 |
| with and all applicants the agency determines under this section | 278 |
| to be eligible for grants shall be awarded grants. | 279 |
| (C) The awarding of a grant shall be evidenced by written | 280 |
| notification to the grantee, which notification shall clearly | 281 |
| state the amount of the grant and the starting and ending dates of | 282 |
| the award period. The agency shall provide the notification to | 283 |
| selected grantees within sixty days after completion of the | 284 |
| lottery. The award period shall be from the start date through | 285 |
| the last day of the twenty-fourth month thereafter. | 286 |
| (D) The amount of each grant awarded to a grantee who | 287 |
| received a notification under division (C) of this section shall | 288 |
| be as follows: | 289 |
| (1) For a grantee who received an associate degree, two | 290 |
| thousand five hundred dollars; | 291 |
| (2) For a grantee who received a baccalaureate degree, five | 292 |
| thousand dollars; | 293 |
| (3) For a grantee who received a post-graduate degree, ten | 294 |
| thousand dollars. | 295 |
| (E) The grant shall be provided to the grantee as a cash | 296 |
| payment when the grantee obtains a mortgage loan, and the amount | 297 |
| of the cash payment shall be applied in full only to pay all or a | 298 |
| portion of the closing costs or down payment on the purchase of | 299 |
| the grantee's first home. The grantee shall not receive any cash | 300 |
| back at the time of the closing. The grantee must take receipt of | 301 |
| the grant within the award period designated in the notification, | 302 |
| and must use it within twenty-four months after taking receipt of | 303 |
| the grant, after which the grant shall expire. | 304 |
| Sec. 175.33. (A)(1) At the time a first home is purchased | 305 |
| under the program, the Ohio housing finance agency shall secure | 306 |
| the amount of the grant by a lien on the home for a period of five | 307 |
| years. Such lien shall attach, and may be perfected, collected, | 308 |
| and enforced in the same manner as a mortgage lien on the home, | 309 |
| and shall otherwise have the same force and effect as a mortgage | 310 |
| lien, except that it shall be subordinate to a mortgage lien | 311 |
| securing any money loaned by a financial institution for the | 312 |
| purchase of the home. | 313 |
| (2) If the agency finds that a grantee failed to comply | 314 |
| with the first home ownership criteria in division (A) of | 315 |
| section 175.30 of the Revised Code, or otherwise applied for a | 316 |
| grant using fraudulent information, the agency shall enforce the | 317 |
| lien. | 318 |
| (B)(1) If a grantee becomes a resident of another state and | 319 |
| does not reside at least five years in a first home purchased with | 320 |
| a grant awarded under the program, the amount of the lien created | 321 |
| in division (A) of this section that may be collected shall be | 322 |
| determined as follows: | 323 |
| Months resided in first home | Collectable amount as per cent of grant amount | 324 | ||
| Less than 12 months | 100% | 325 | ||
| 12 months and a day to 24 months | 80% | 326 | ||
| 24 months and a day to 36 months | 60% | 327 | ||
| 36 months and a day to 48 months | 40% | 328 | ||
| 48 months and a day to 60 months | 20% | 329 |
| The lien created under division (A) of this section shall be | 330 |
| extinguished upon collection pursuant to this division. | 331 |
| (2) A lien created under division (A)(1) of this section | 332 |
| shall be extinguished if the grantee, within the five-year | 333 |
| period, moves to another residence located in this state. | 334 |
| Sec. 175.34. (A) The Ohio housing finance agency shall adopt | 335 |
| rules under Chapter 119. of the Revised Code to carry out the | 336 |
| purposes of the grants for grads program. | 337 |
| (B) The agency shall internally audit the program and the | 338 |
| grants for grads fund before the beginning of each calendar year. | 339 |
| At the end of each calendar year, the agency shall prepare and | 340 |
| submit an annual report to the advisory board created pursuant to | 341 |
| section 175.04 of the Revised Code, specifying the internal audit | 342 |
| work completed by the end of that calendar year and reporting on | 343 |
| compliance with the annual internal audit program. | 344 |
| Sec. 175.35. There is hereby created in the state treasury | 345 |
| the grants for grads fund. The fund shall consist of all | 346 |
| appropriations made to the fund and grants, gifts, and | 347 |
| contributions of money made from any source to the Ohio housing | 348 |
| finance agency for deposit in the fund. The fund shall be | 349 |
| administered by the agency and is for use in providing grants to | 350 |
| graduates participating in, and for implementing and | 351 |
| administering, the program. Moneys in the fund shall be invested | 352 |
| by the treasurer of state in the same manner as moneys in the | 353 |
| general revenue fund, and earnings on the investments of the fund | 354 |
| shall be deposited into the fund. | 355 |
| Section 2. That existing sections 175.01 and 175.04 of the | 356 |
| Revised Code are hereby repealed. | 357 |