Section 122.631 | Grant for land bank acquisitions of residential property.
(A) As used in sections 122.631 to 122.633 of the Revised Code:
(1) "Qualified nonprofit developer" means a nonprofit corporation, as defined in section 1702.01 of the Revised Code, that is all of the following:
(a) Incorporated in this state;
(b) Engaged in community development activities primarily within an identified geographic area of operation in this state;
(c) Has as its primary purpose the improvement of the physical, economic, or social environment by addressing critical problems in that geographic area of operation including housing.
(2) "Electing subdivision," "county land reutilization corporation," and "land reutilization program" have the same meanings as in section 5722.01 of the Revised Code.
(3) "Manufactured home" has the same meaning as in section 3781.06 of the Revised Code, and "mobile home" has the same meaning as in section 4501.01 of the Revised Code.
(4) "Qualifying residential property" means a single unit of single-family residential property that has at least eight hundred square feet of habitable space and is either a stand-alone unit or in a multi-unit property containing not more than ten single-family residential units. "Qualifying residential property" excludes mobile homes but includes both of the following:
(a) A manufactured home;
(b) A single unit in a multi-unit property that has other nonresidential units or uses. Such nonresidential units or uses are not qualifying residential property.
(5) "Qualifying median income" means one hundred twenty per cent of median income for the county where qualifying residential property is located, as determined by the director of development pursuant to section 174.04 of the Revised Code.
(6) "Qualifying financial literacy counseling" means a homeownership course with a curriculum that includes basic home maintenance training and financial literacy.
(7) "Qualifying counseling provider" means an individual, business, nonprofit organization, or political subdivision, including an agency or instrumentality thereof, that is licensed, certified, or authorized to provide homeownership counseling and financial literacy as one of its primary functions, including housing counselors certified by the United States department of housing and urban development or the Ohio housing financing agency.
(B) There is created in the department of development the welcome home Ohio (WHO) program to administer the grants authorized by this section and section 122.632 of the Revised Code and the tax credits authorized by section 122.633 of the Revised Code. The department shall create and maintain a list of qualifying residential property to which the deed restriction described in division (D)(4) of this section, division (B)(4) of section 122.632, or division (C)(4) of section 122.633 of the Revised Code applies. That list is not a public record for purposes of section 149.43 of the Revised Code.
(C) An electing subdivision, a county land reutilization corporation, or a qualified nonprofit developer may apply to the director of development for a grant from the welcome home Ohio fund, which is created in the state treasury, to pay or defer the cost of purchasing qualifying residential property for incorporation into the electing subdivision's or county land reutilization corporation's land reutilization program or the qualified nonprofit developer's housing program. Up to two thousand dollars of each grant may be used to fund the qualifying financial literacy counseling required under division (D)(6) of this section. To the extent that funding is available in that fund, the director may award grants to electing subdivisions, county land reutilization corporations, and qualified nonprofit developers that make such an application and agree to comply with division (D) of this section, with a maximum grant of one hundred thousand dollars per qualifying residential property.
(D) The director of development shall require all applicants for a grant authorized by division (C) of this section to agree, as part of the application, to all of the following:
(1) That grant funds shall only be used to pay the cost of purchasing qualifying residential property;
(2) That qualifying residential property on which grant funds are spent shall be held until sold to an individual or individuals who, inclusively:
(a) Have annual income that is not more than the qualifying median income;
(b) Demonstrate the financial means to purchase the qualifying residential property;
(c) Agree to maintain ownership of the qualifying residential property, occupy it as a primary residence, and not to rent any portion of the property to another individual for use as a dwelling, for at least three years following the date of purchase;
(d) Agree not to sell the qualifying residential property, within fifteen years after the date of the sale, to any purchaser other than the electing subdivision, county land reutilization corporation, or qualified nonprofit developer or an individual or individuals who have annual income that is not more than the qualifying median income;
(e) Agree to pay a penalty to the director of development for violation of the agreement required by division (D)(2)(c) of this section that equals the amount of the grant attributable to the property, less one-third of that amount multiplied by the number of full years the individual or individuals owned the property;
(f) Agree that the director of development is a third-party beneficiary of the purchase agreement;
(g) Agree to participate in the applicant's qualifying financial literacy program;
(h) Agree to annually certify to the director of development, during the period described by division (D)(2)(c) of this section, that the individual or individuals own and occupy the qualifying residential property, and that no part of the property is being rented to another individual for use as a dwelling.
(3) That qualifying residential property on which grant funds are spent shall be sold for not more than two hundred twenty thousand dollars per property.
(4) That qualifying residential property on which grant funds are spent shall not be sold without a deed restriction prohibiting the sale of the property to a person that is not the electing subdivision, county land reutilization corporation, or qualified nonprofit developer or an individual or individuals who have annual income that is not more than the qualifying median income for fifteen years after the date of the property's first transfer from the applicant following the use of grant funds. The deed restriction is a covenant running with the land and is fully binding on subsequent purchasers of the property until it expires on the fifteenth anniversary of the property's first transfer from the applicant following the use of grant funds. The electing subdivision, county land reutilization corporation, or qualified nonprofit developer may include in the deed restriction a right of first refusal to repurchase the property for the purpose of ensuring that the property is ultimately sold to an individual or individuals who have annual income that is not more than the qualifying median income.
(5) That the applicant shall repay all grant funds not expended to purchase qualifying residential property or to fund the qualifying financial literacy counseling required by division (D)(6) of this section and all grant funds expended to purchase qualifying residential property that is not sold to an individual or individuals who meet the requirements described in division (D)(2) of this section or that is sold without the deed restriction described in division (D)(4) of this section.
(6) That the applicant shall provide qualifying financial literacy counseling, over a minimum of six months, delivered by a qualifying counseling provider, to each purchaser of qualifying residential property on which grant funds are spent. An applicant may provide information regarding its qualifying financial literacy program to the director of development for review as part of the application or prior to application. Qualifying financial literacy counseling provided by the applicant to the same purchaser, in accordance with division (B)(6) of section 122.632 of the Revised Code or division (C)(5) of section 122.633 of the Revised Code, satisfies the requirements of division (D)(6) of this section.
(7) That the applicant shall report to the department of development the date when the qualifying residential property that is the subject of the application is sold by the applicant.
(E) The director of development has authority and standing to sue for the enforcement of a deed restriction described in division (D)(4) of this section.
(F) An electing subdivision, a county land reutilization corporation, or a qualified nonprofit developer may apply for, and the director of development may award both a grant under this section for the purchase of qualifying residential property, and either a grant under section 122.632 of the Revised Code, or a tax credit under section 122.633 of the Revised Code, to rehabilitate or construct the same qualifying residential property.
(G)(1) The director may adopt rules in accordance with Chapter 119. Of the Revised Code as necessary to administer the grant program. Such rules may include the following:
(a) Application forms, deadlines, and procedures;
(b) Criteria for evaluating and prioritizing applications;
(c) Guidelines for promoting an even geographic distribution of grants throughout the state;
(d) Guidelines to determine the value of qualifying residential property located in a building with other uses and the total value of that building.
(2) Any grants repaid under this section shall be credited to the welcome home Ohio fund.
(3) An electing subdivision, a county land reutilization corporation, or a qualified nonprofit developer shall use all profits derived from the sale of qualifying residential property on which grant funds are spent, including profits derived from the resale of such property to a subsequent purchaser, for the electing subdivision's or county land reutilization corporation's land reutilization program or the qualified nonprofit developer's housing program.
Last updated July 29, 2025 at 2:45 PM
Available Versions of this Section
- October 3, 2023 – Amended by House Bill 33 - 135th General Assembly [ View October 3, 2023 Version ]
- September 30, 2025 – Amended by House Bill 96 - 136th General Assembly [ View September 30, 2025 Version ]