Senate committee hears sponsor testimony on Promised Land Act to spur nonprofit-led homeownership

The Senate committee on housing held an informal hearing on Senate Bill 250, the Promised Land Act, where the bill's sponsor described a plan to use state tax credits to encourage nonprofits and faith-based organizations to develop owner-occupied housing on underused land.

The sponsor said the bill is "a faith friendly housing bill designed to unlock underutilized land owned by nonprofits across Ohio to develop owner occupied housing." The sponsor framed the measure as a response to families being priced out of homeownership and as a way for mission-driven organizations to partner with private developers.

According to the sponsor's testimony, Senate Bill 250 would establish the Promised Land Credit, a 10% state tax credit "applied to the land and construction costs of housing projects developed by eligible nonprofit or faith based organizations." The credit would be transferable: nonprofits could "sell or transfer portions of their tax credit to investors or developers creating liquidity that can be used to finance construction or support operations," the sponsor said.

The bill sets eligibility and affordability conditions, the sponsor said. To qualify, an Ohio-based nonprofit must own at least 1 acre of developable land and submit an application to the Department of Development after at least one home on the property has been sold to an owner-occupant as their primary residence. The sponsor said preference would be given to applicants that "incorporate long term affordability and ownership protections." The bill, as described in testimony, does not require nonprofits to transfer ownership of the land; qualifying units must include a leasehold or other long-term interest in the land and affordability mechanisms such as ground leases or deed restrictions would be used to preserve owner-occupancy.

The sponsor also outlined program limits and reporting requirements. "That's the credit is at $2,000,000 in credits per biennium to a given taxpayer," the sponsor said, and the program would have "a total annual allocation for the program [limited] to 25,000,000 per fiscal year." The testimony said any transfer of the credit must be accompanied by a written notice to the tax commissioner. The sponsor said the Director of the Department of Development would have discretion to refine the application, and that the program would require a development period of at least six months and reporting on the number of units sold to owner-occupants.

On how projects would work, the sponsor said developers would be paid through standard construction contracts and development fees while nonprofits would benefit from leases of land and proceeds from transferable credits, creating a partnership between values-driven institutions and market-driven partners to increase owner-occupied affordable housing.

No questions were raised by committee members during the informal hearing, and the chair concluded the session. Committee members were asked to review the minutes before adjournment. The transcript records no motion or vote on SB 250 during the session.