A Canal Winchester state lawmaker has offered a solution to what she has characterized as Ohio’s “looming housing crisis” through legislation that would link residential development to economic development in specially designated districts.

Republican Sen. Michele Reynolds recently shared details of Senate Bill 184, which establishes Residential Economic Development Districts and a Housing Accelerator Fund to encourage major workforce housing projects in areas of the state that otherwise may not attract such development.

“Ohio stands at a critical juncture,” Reynolds said during a Senate Housing Committee hearing. “As major investments flow into our state, we face an unprecedented housing shortage that threatens to undermine our economic growth. Despite the clear need for more housing, local governments often lack both the incentive and resources to approve or build new residential development.”

According to the bill, a Residential Economic Development District, or REDD, comprises all parcels within a 20-mile radius of a project that consists of at least $700 million in private investment and is reasonably expected to improve the economic well-being of the surrounding area.

Citing data from JobsOhio, the state’s private, non-profit economic development corporation, Reynolds said between 20 and 25 current projects in urban, suburban and rural communities around the state meet the threshold set by the bill.

She said local control policies favoring existing residents over future growth, restrictive zoning and public pushback against new homes are the primary barriers that prevent adequate housing development.

“The fundamental issue is twofold: Local governments have little incentive to build or approve new housing developments, and communities lack resources to address the immediate infrastructure needs that new housing creates,” the lawmaker said.

The Housing Accelerator Fund, to be established in the state treasury, would be funded by appropriations made by the General Assembly and other revenue, including applicable investment earnings, testimony provided.

The state Development director would be directed to use the fund exclusively to provide grants to eligible counties, townships and municipal corporations located in REDDs.

“These grants will address urgent infrastructure needs that often present barriers to housing development,” Reynolds said. “Communities can use funds to reduce sewer and water tap fees to lower development costs, extend sewer and water services to enable new housing areas, conduct traffic studies and make roadway improvements to accommodate growth and prepare sites to accelerate development timelines.”

She said one of the desired effects of the bill is to incentivize zoning reform through prioritizing applications from communities that adopt pro-housing zoning policies.

“Rather than mandating these reforms, SB 184 creates financial incentives for communities willing to modernize their approach to zoning, balancing the need for housing development with respect for local

decision-making,” Reynolds said. “The director of Development will establish model zoning standards to guide these efforts, helping communities implement best practices that facilitate housing growth.”

A provision of the bill promotes the use of non-traditional building structures such as modular or manufactured homes as a pro-housing development policy that communities may adopt in an effort to strengthen grant applications.

“Manufactured homes offer several advantages in our current climate: They can be built more quickly than traditional site-built homes, often cost 20-30 percent less per square foot and meet the same safety and quality standards while providing affordable homeownership opportunities,” Reynolds said. “By explicitly including manufactured housing in the legislation, we’re encouraging communities to expand housing options beyond conventional construction methods.”

SB 184 awaits further consideration by the committee.