Bill Title: To create the Grants for Grads Program.
Spectrum: Slight Partisan Bill (Republican 14-5)
Status: (Engrossed - Dead) 2009-04-01 - Passed 3rd Consideration House
[SB5 Detail]Download: Ohio-2009-SB5-Engrossed.html
As Passed by the Senate
128th General Assembly | Regular Session | 2009-2010 |
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Cosponsors:
Senators Seitz, Carey, Coughlin, Faber, Fedor, Gibbs, Grendell, Harris, Hughes, Niehaus, Patton, Schaffer, Wagoner, Widener, Wilson, Smith, Turner, Schiavoni
A BILL
| To amend sections 175.01 and 175.04 and to enact
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sections 175.30 to 175.35 of the Revised Code to
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create the Grants for Grads Program.
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BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section 1. That sections 175.01 and 175.04 be amended and
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sections 175.30, 175.31, 175.32, 175.33, 175.34, and 175.35 of the
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Revised Code be enacted to read as follows:
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Sec. 175.01. As used in this chaptersections 175.01 to
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175.13 of the Revised Code:
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(A) "Bonds" means bonds, notes, debentures, refunding
bonds,
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refunding notes, and other obligations.
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(B) "Financial assistance" means grants, loans, loan
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guarantees, an equity position in a
project, and loan subsidies.
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(C) "Grant" means funding for which repayment is not
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required.
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(D) "Homeownership program" means any program for which the
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Ohio housing finance agency provides financing, directly or
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indirectly, for the purchase of housing for owner-occupancy.
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(E) "Housing" means housing for owner-occupancy and
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multifamily rental housing.
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(F)
"Housing development fund" means the housing development
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fund created and administered pursuant to section 175.11 of the
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Revised Code.
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(G) "Housing finance agency personal services fund" means the
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housing finance agency personal services fund created and
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administered pursuant to section 175.051 of the Revised Code.
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(H) "Housing for owner-occupancy" means housing that is
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intended for occupancy by an owner as a principal residence.
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"Housing for owner-occupancy" may be any type of structure and may
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be owned in any form of ownership.
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(I) "Housing trust fund" means the low- and moderate-income
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housing trust fund created and administered pursuant to Chapter
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174. of the Revised Code.
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(J) "Improvement" means any alteration, remodeling,
addition,
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or repair that substantially protects or improves the
basic
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habitability or energy efficiency of housing.
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(K) "Lending institution" means any financial institution
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qualified to conduct business in this state, a subsidiary
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corporation that is wholly owned by a financial institution
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qualified to conduct business in this state, and a mortgage lender
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whose regular
business is originating, servicing, or brokering
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real estate loans
and who is qualified to do business in this
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state.
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(L) "Loan" means any extension of credit or other form of
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financing or indebtedness extended directly or indirectly to a
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borrower with the expectation that it will be repaid in accordance
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with the terms of the underlying loan agreement or other pertinent
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document. "Loan" includes financing
the Ohio housing finance
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agency extends to lending institutions and indebtedness the agency
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purchases from lending institutions.
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(M) "Loan guarantee" means any agreement in favor of a
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lending institution, bondholder, or other lender in which the
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credit and resources of the housing finance agency or the housing
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trust fund are pledged to secure the payment or collection of
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financing extended to a borrower for the acquisition,
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construction, improvement, rehabilitation, or preservation of
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housing or to refinance any financing previously extended for
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those purposes.
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(N) "Loan subsidy" means any deposit of funds the Ohio
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housing finance agency holds or administers into a lending
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institution with the authorization or direction that the income or
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revenues the deposit earns, or could have earned at competitive
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rates, be applied directly or indirectly to the benefit of housing
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assistance or financial assistance.
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(O) "Low- and moderate-income persons" means individuals and
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families who qualify as low- and moderate-income persons pursuant
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to guidelines the agency establishes.
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(P) "Multifamily rental housing" means multiple unit housing
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intended for rental occupancy.
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(Q) "Nonprofit organization" means a nonprofit organization
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in good standing and qualified to conduct business in this state
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including any corporation whose members are members of a
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metropolitan housing authority.
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(R)
"Owner" means any person who, jointly or severally, has
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legal or equitable title to housing
together with the right to
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control or possess that housing. "Owner" includes a purchaser of
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housing pursuant to a land installment contract if that contract
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vests possession and maintenance responsibilities in the
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purchaser, and a person who has care or control of housing as
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executor, administrator, assignee,
trustee, or guardian of the
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estate of the owner of that housing.
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(S) "Security interest" means any lien, encumbrance, pledge,
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assignment, mortgage, or other form of
collateral the Ohio housing
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finance agency holds as security for financial
assistance the
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agency extends or a loan the
agency acquires.
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Sec. 175.04. (A) The governor shall appoint
a chairperson
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from among the members of the Ohio housing finance agency. The
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agency members shall elect a member as vice-chairperson. The
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agency members may appoint
other officers, who need not be members
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of the agency, as the agency deems
necessary.
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(B) Six members of the agency constitute a quorum and the
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affirmative vote of six members is necessary for any action the
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agency takes. No vacancy in agency membership impairs the right
of
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a quorum to exercise all of the agency's rights and perform all
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the agency's duties. Agency meetings may be held at any place
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within the state. Meetings shall comply with section 121.22 of the
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Revised Code.
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(C) The agency shall maintain accounting records in
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accordance with generally accepted accounting principals and other
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required accounting standards.
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(D) The agency shall develop policies
and guidelines for the
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administration of its programs and annually shall conduct at least
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one public hearing to obtain input from any interested party
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regarding the
administration of its programs. The hearing shall be
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held at a time and place as the agency determines and when
a
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quorum of the agency is present.
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(E) The agency shall appoint committees and subcommittees
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comprised of members of the agency
to handle matters it deems
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appropriate.
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(1) The agency shall adopt an annual plan to address this
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state's housing needs. The agency shall appoint an annual plan
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committee to develop the plan and present it to the agency for
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consideration.
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(2) The annual plan committee shall select an advisory board
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from a list of interested individuals the executive director
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provides or on its own recommendation. The advisory board shall
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provide input on the plan at committee meetings prior to the
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annual public hearing. At the public hearing, the committee shall
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discuss advisory board comments.
The advisory board may include,
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but is not
limited to, persons who represent state agencies,
local
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governments, public corporations, nonprofit organizations,
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community
development corporations, housing advocacy organizations
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for low-
and moderate-income persons, realtors, syndicators,
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investors,
lending institutions as recommended by a statewide
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banking organization, and other entities participating in the
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agency's programs.
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Each agency program that allows for loans to be made to
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finance housing for owner occupancy that benefits other than low-
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and moderate-income households, or for loans to be made to
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individuals under bonds issued pursuant to division (B) of section
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175.08 of the Revised Code, shall be presented to the advisory
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board and included in the annual plan as approved by the agency
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before the program's implementation.
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(F) The agency shall prepare an annual financial report
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describing its activities during the reporting year and submit
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that report to the governor, the speaker of the house of
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representatives, and the president of the senate within three
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months after the end of the reporting year. The report shall
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include the agency's audited financial statements, prepared in
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accordance with generally accepted accounting principles and
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appropriate accounting standards.
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(G) The agency shall prepare an annual report of its programs
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describing how the programs have met this state's housing needs.
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The agency shall submit the report to
the governor, the speaker of
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the house of
representatives, and the
president of the senate
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within three
months after the end of the
reporting year.
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(H) The agency shall prepare an annual report regarding the
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grants for grads program created under section 175.31 of the
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Revised Code describing the number and dollar amount of grants
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awarded, and the activities of the agency under sections 175.30 to
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175.35 of the Revised Code, during the previous calendar year. The
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agency shall submit the report to the governor, director of
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development, chancellor of the Ohio board of regents, president of
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the senate, and speaker of the house of representatives. | 153 |
Sec. 175.30. As used in sections 175.30 to 175.35 of the
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Revised Code: | 155 |
(A) "First home" or "home" means the first residential real
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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
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institution of higher education and who is eligible under division
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(B) of section 175.31 of the Revised Code to apply for a grant
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awarded under the grants for grads program. | 163 |
(C) "Grant" means a cash payment awarded to a grantee by the
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Ohio housing finance agency under section 175.32 of the Revised
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Code. | 166 |
(D) "Grantee" means an individual who has been awarded a
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grant under the program. | 168 |
(E) "Institution of higher education" means a state
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university or college located in this state, a private college or
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university located in this state that possesses a certificate of
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authorization issued by the Ohio board of regents under Chapter
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1713. of the Revised Code, or an accredited college or university
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located outside this state that is accredited by an accrediting
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organization or professional accrediting association recognized by
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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
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time of the individual's graduation from an Ohio public or
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nonpublic high school that is approved by the state board of
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education, and who is a resident of this state at the time of
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applying for the program; | 182 |
(2) An individual who was a resident of this state at the
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time of completing, through the twelfth-grade level, a home study
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program approved by the state board of education, and who is a
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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
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defense. | 196 |
(G) "Program" means the grants for grads program created
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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
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if the graduate: | 211 |
(a) Is an Ohio resident who has received an associate,
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baccalaureate, master's, doctoral, or other postgraduate degree
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from an institution of higher education; | 214 |
(b) Is able to provide to the agency evidence documenting the
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graduate's Ohio residency and documenting graduation from a high
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school and an institution of higher education; | 217 |
(c) Intends to live and work in this state for at least five
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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
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program and both graduates, if eligible, shall be included in the
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lottery pool under section 175.32 of the Revised Code. | 224 |
(3) A graduate who is married to an individual who has
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previously received a grant under the program is ineligible to
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apply for a grant under this section. | 227 |
(C) A graduate who is eligible under division (B) of this
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section to participate in the program shall file an application
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with the Ohio housing finance agency not later than the sixtieth
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day after the graduate's graduation date or date of completion of
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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
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by rule of the Ohio housing finance agency under section 175.34 of
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the Revised Code, but at a minimum shall include evidence of
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meeting the requirements in division (B) of this section. | 245 |
(E) A graduate who, at any time during the period from filing
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the application for a grant until a grant is awarded, has been
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found by the state to be delinquent in the payment of individual
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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
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grads fund. A grant shall be given to a graduate whose application
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has been determined by the agency to meet the requirements of
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section 175.31 of the Revised Code and to be timely and complete,
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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
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applicants who have filed applications within the six months
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immediately preceding the date on which the lottery is conducted.
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In addition, fifty alternate grantees shall be selected in
the | 270 |
random lottery to receive any additional moneys available in the
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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
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grants in a given six-month period, the lottery shall be dispensed
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with and all applicants the agency determines under this section
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to be eligible for grants shall be awarded grants. | 279 |
(C) The awarding of a grant shall be evidenced by written
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notification to the grantee, which notification shall clearly
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state the amount of the grant and the starting and ending dates of
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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
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received a notification under division (C) of this section shall
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be as follows: | 289 |
(1) For a grantee who received an associate degree, two
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thousand five hundred dollars; | 291 |
(2) For a grantee who received a baccalaureate degree, five
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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
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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 |