In response to the amendment to HB 153, I issued the following statement of strong opposition:

“We need to be clear about the impact of the Senate’s proposal to cut the Housing Trust Fund in order to provide county recorders more funding for their ‘general purposes.’ While we recognize that local government budgets are under pressure, shoring up county recorders’ budgets by cutting funding for housing and community economic development programs is not the answer. Ohio Housing Trust Fund dollars are invested in public-private partnerships all over this state and leverage millions of dollars in private investment in order to support our most vulnerable citizens. We strongly encourage the Ohio legislature to reject this proposal to raid $5 million per year from the Housing Trust Fund in order to support one office of county government.”

The amendment to HB 153 would have a large impact on the Ohio Housing Trust Fund as up to $10 million per biennium could be lost -  harming Ohio’s homeless and most vulnerable populations. A recent economic impact report conducted by the real estate research firm Vogt Santer Insights, indicated that in its 20 years, the Ohio Housing Trust Fund has fueled Ohio’s economy by an estimated $2.6 billion with associated earnings of over $829 million for almost 32,000 workers.

Take action today by contacting your state senator and asking them to oppose the cut to the Ohio Housing Trust Fund.  A listing of state senator phone numbers can be found at http://www.ohiosenate.gov/

A copy of the amendment is below for your information.

R.C. 317.321, 319.63
 
Increases from 1% to 10% the amount of Housing Trust Fund fees collected that the county auditor may retain as an
administrative fee, and requires such amounts to be deposited in the county general fund for the general needs
of the county recorder, rather than for the administration of the Housing Trust Fund fee.

 Fiscal effect: Increases the amount of Housing Trust Fund fees retained by counties and correspondingly
decreases the amount directed to the state Low- and Moderate-Income Housing Trust Fund (Fund 6460). Also
increases the amounts available for the general purposes of county recorders.

Here is an excerpt from the article:

“By any definition the New Markets program has exceeded expectations.

Not only has it created a successful model of for-profit, business-driven expansion of investment, job creation and economic opportunities in distressed communities with government and the community partnerships playing key supportive roles — it has done so in tough times when private capital has been hard to find due to the credit crunch and slowing economy.

Continuing this program is in the best interest of businesses, taxpayers and communities hit hard by recent economic conditions.”

To read the rest of the article, click here.

To learn more about Finance Fund projects funded through the NMTC, click here.

The Innovations in American Government Award highlights exemplary models of governments’ innovative performance and serves as a catalyst for continued progress in addressing the nation’s most pressing public concerns. 

Finance Fund has been awarded more than $160 million in NMTC funding since 2004. NMTC funding is used to offer low-interest financing for projects that enhance Ohio’s economic vitality. Through our New Markets program, we have leveraged $249.2 million on an investment of $101.8 million for 33 projects, which have created 2,816 full-time jobs and served 536 children.

 Click here to read the full release from the U.S. Department of the Treasury.

Some of the various products and programs featured in the article were:

~ PreDevelopment Program – funds “soft costs” on housing and economic development projects

~ Finance Fund Capital Corp – a lending arm of Finance Fund

~ Cars for Jobs and Diplomas – also known as ByCar, provides matching grants to low-income individuals in need of a vehicle to get to school or work

~ New Markets Tax Credits (NMTC) – Low-interest financing for low income community businesses

Also, several success stories from around the state were shared, such as our work with:

~ Franklinton Development Association – Finance Fund provided predevelopment grant program to fund environmental analysis’ and lead and asbestos inspections in the neighborhood’s properties

~ Homes on the Hill – By tapping into the predevelopment grant program, the west and southwest sides of Columbus secured funding to rehab and construct housing and business property

~ Save-A-Lot – Utilizing the NMTC through Finance Fund, Columbus’ Near East Side received a much-needed grocery store

~ ZenCha Tea Salon – Finance Fund supplied a NMTC loan to allow this small business to thrive by funding its location

 To read the article, click here.

On May 27, in Jackson, Ohio, my staff and I ventured to picturesque Jackson, Ohio, located in the Appalachian foothills, to celebrate the economic development success of another fruitful partnership—Ohio Basic Minerals.

Patrick McDonald, Ohio Basic Minerals CEO, and Jeff Schrader, founder of the original Schrader and Sons Sand and Gravel, spoke to the crowd of local and state dignitaries, Ohio Basic Minerals employees and business partners. Mr. Schrader cut the ribbon to symbolize the grand opening of the newly revitalized and renovated facility, funded by more than $2.45 million from our Finance Fund Capital Corporation (FCAP) and New Markets Tax Credits (NMTC). The event made a splash in the media—read more about Ohio Basic Minerals’ success and exciting new developments

Columbus Dispatch
May 24, 2010
Minerals plant expansion to lead to 30 new jobs

Jackson County Times-Journal
May 25, 2010
Ohio Basic Minerals celebrates expansion

Columbus Business First
May 28, 2010
Finance Fund helps sand, gravel maker expand in southeast Ohio

Jackson County Times-Journal
May 28, 2010
OBM celebrates plant expansion

According to the New Markets Tax Credit Coalition,  last week, the House and Senate were working on a tax extender agreement that may also include certain small business tax and infrastructure provisions.

Both Chambers have passed H.R. 4213, the Tax Extenders Act of 2009, which both include $5 billion in Credit authority for New Markets in 2010, and other individual and business tax provisions. In addition, the House recently passed the Small Business and Infrastructure Jobs Tax Act of 2010 (H.R. 4849) which included Alternative Minimum Tax (AMT) relief for NMTC investors on Qualified Equity Investments (QEIs) made from March 15, 2010 through January 1, 2012. This bill also included an extension of Recovery Act terms for Build America Bonds through 2013 (estimated to cost $7.5 Billion) and exemptions from AMT for interest earned on tax-exempt and other private activity bonds.

According to the NMTC Coalition, last week the House began working on an extender package for HR 4213, which contains NMTC extension and potential provisions included in the HR 4849, including Build America Bond provisions and AMT relief for New Markets. “One of the reasons for this piecemeal approach is that some of these provisions (although not NMTC) are controversial and unlikely to win approval in the Senate Finance Committee.”

We look forward to the outcomes of these votes in hopes that NMTC extensions are granted to sustain and strengthen this vital program that has provided important development resources to numerous Ohio businesses and neighborhoods. For more information, visit www.NewMarketsTaxCreditCoalition.org.

On Wed., April 21, we proudly hosted several state legislators, community leaders and Finance Fund project partners at the Capital Club in downtown Columbus. It was an excellent opportunity to share how Finance Fund has positively impacted some of the state’s most distressed communities.

We highlighted four partnership “success stories,” including Ohio Basic Minerals in Jackson; Save-a-Lot grocery store in Columbus; Noble Learning Center in Caldwell; and Miami Valley Child Development Centers (MVCDC) in Dayton. Each project touted key Finance Fund goals – job creation, safe childcare access and neighborhood revitalization.

We shared important information about the New Markets Tax Credits (NMTC) program. Last October, we were awarded $50 million in NMTC funding, with $30 million designated specifically for non-metropolitan, rural areas in Ohio. Funding is still available for qualifying projects – we strongly urge those interested to contact us for more information on a possible partnership with us.

We thank our distinguished guests for their presence, and look forward to new partnerships that will lead to more jobs, revitalized communities and safer access to care.

Mark Pinsky, President & CEO of Opportunity Finance Network, the nation’s CDFI network, hailed this move as a step in the right direction, but stressed that CDFI loan funds should share in this money, too:
Community development banks and credit unions deliver capital and services where other financial institutions don’t. This program is a capital lever that can lift up thousands of businesses that need credit to thrive. The CDFIs that participate will make capital flow where it’s not flowing today. Last October, the President expressed a desire to support non-depository as well as depository CDFIs. The next step is clear: extend support to CDFI loan funds and venture funds.

At Finance Fund, we echo this position and advocate for a similar program for non-regulated CDFI loan funds. Why? Because Finance Fund is a certified CDFI, which provides us with access to financial and technical award assistance from the federal CDFI Fund. Since its inception in 1994, assistance has totaled more than $500 million for community development. As a CDFI, we’re recognized as a financial organization with a primary mission of promoting community development in under-served communities in the United States, through credit, capital, and financial services.

CDFIs are a vital way that under-served communities achieve economic development and neighborhood revitalization. And considering the recessionary climate we’re in today, now is the time to bolster business and economic development by providing CDFIs (like Finance Fund) with the resources to leverage more capital to resurrect strong businesses and communities. This ruling is positive, but CDFIs need the financial covering of T.A.R.P. funds, too.

It was a busy week for our government leaders. President Obama made a stop here in the Buckeye State at the Lorain County Community College (LCCC) to talk jobs and the economy; Gov. Strickland delivered the State of the State address highlighting more of the same, and finally, Obama outlined strategies for healthcare, clean energy and – you guessed it – jobs, jobs, jobs.

Clearly our country and our state are in a time of economic hardship. We have an unemployment rate hovering at 10% – give or take – and large and small businesses alike are “trimming the fat,” so to speak, by laying off workers and stretching their current employees thin to cover business demands.

So what can a state and a nation that’s been stuck under the dark cloud of a dismal economy do? Just as Gov. Strickland said, we must believe in Ohio. Finance Fund continues to believe in our great state. We’re doing all we can to be a bright spot in the doom and gloom of the financial crisis.

Finance Fund is an organization that’s been making strides for Ohio development and job creation since 1987 – with no “red” or “blue” strings attached. In fact, we’ve leveraged more than $759 million to Ohio small businesses, nonprofits and Head Start programs, which has created thousands of jobs and benefitted the lives of countless Ohioans. Here are some vital stats:

- FF has granted more than 2,457 awards to countless community-based organizations
- FF has enabled access to more than 15,312 units of affordable housing for low-income people;
- More than 8,991 full-time jobs
- Over 3,033 early care and education spaces (classrooms) for 69,377 children

For 23 years, we’ve identified needs and put our money where our mouth is:

- We supported the Heritage Marketplace/Save-a-Lot grocery store revitalization, with a $1 million New Markets Loan, resulting in 18,900 square feet of redeveloped space, 46 full- and part-time jobs, and access to affordable groceries for 25,000 people.

- Additionally, Finance Fund loaned Ohio Basic Minerals $2.45 million for a site renovation of the manufacturing plant. Thirty-five renovation jobs were created, seven in-house jobs were maintained and 30+ jobs will be added by 2012.

We truly believe that in order to grow and cultivate a strong economy and business climate, we must believe in our businesses and provide them with essential resources and guidance to flourish.

Our outlook is strong – we’ve got more funding available to eligible businesses and nonprofits this year, and we’re enthused to begin lending in order to create more jobs and stimulate economic and community development. We have more than $75 million in loan funds and nearly $3 million in grants and linked deposits to place into Ohio’s distressed communities in the next 12 months. Obama talks change; Strickland keeps believing and both plan for more small business stimulus programs. But Finance Fund continues to “make action happen” by lending to businesses, creating jobs and fostering revitalization.