CENTERBURG — A provision in the state’s recently enacted operating budget sets aside money to encourage the development of workforce housing.
The Residential Economic Development District (REDDD) Grant Program provides grants to municipalities, townships, and counties located within 20 miles of a major economic project that adopt pro-housing policies and approve workforce housing projects.
Village council members learned more about the program from Benesch Law representatives Rachel Winder and Holly Gross at their Oct. 6 meeting.
Winder believes the program could be a “win-win” for the village and a proposed housing development on Johnsville Road.
The program earmarked $10 million in grants for the Fiscal Year July 1, 2025, through June 30, 2026. It set aside another $15 million for FY 2026-27.
The Ohio Revised Code defines a major economic project as one that is expected to create at least 700 new permanent jobs and involves a minimum of $700 million in private investments.
Investments include new construction, renovating existing structures, equipment, and furniture, among others.
“You guys are just inside of 20 miles of Intel, so you already meet that definition,” Winder told the council.
“To be eligible for the REDD grant, governments need to adopt and implement pro-housing development policies. They have to approve a major workforce housing project, which you guys are hopefully well on your way of doing with the Hondros project.”
The grant project requires at least 100 residential units occupied by individuals or families.
“So single-family homes is what they’re looking for,” Winder said. “Again, the Hondros project perfectly fits in with that as well.”
Winder said the village does not have to complete the pro-housing policies or construction before asking for grant money, but it does have to have imminent plans in place.
What are pro-housing policies?
Pro-housing policies are varied. Winder said the more the village has, the higher the state will score its application.
Examples of pro-housing policies include:
•Increasing the speed at which the village reviews and approves permits
•Subsidizing or decreasing costs related to water and sewer connections
•Acquiring and readying sites for development
•Reducing or eliminating developer impact, inspection and planning fees
•Adopting a zoning plan that promotes higher density, smaller lot size, and minimum setback requirements
•Minimal or no parking requirements for developments that include residential units
•Including water or sewer infrastructure
•Including roads, bridges and flexible pavement types
•Promoting the use of nontraditional building structures such as modular or manufactured homes
“The higher score will be the ones with more density, smaller lot sizes, smaller setback requirements, less open space, and with inspection, plan, impact, or water and sewer tap fee reductions,” Winder said.
Holly Gross, an attorney with Bender Law, said, “There are a couple of things that potentially could necessitate a change to the zoning code, maybe the building code as well. That would be something that we would look forward to working on with you guys, taking a deeper dive into those.”
“As we consider density, it’s going to be important for the council to determine how tightly we feel comfortable putting things together.”
richard dzik, village administrator
Some policies merely include expedited review, interdepartmental cooperation, or a single contact person for the village.
“These are all considered pro-housing policies under the statute because they’re a win-win. They’re helping you spend hopefully less time with the back and forth, and they’re helping the development get up and running much faster,” Gross said.
How can the village use the money?
The budget became effective Sept. 30. Winder anticipates the Ohio Department of Development will release the rules before the Dec. 31 deadline.
“It’s capital for housing development through grants or loans, so that’s pretty expansive. The rules will help us narrow that down, I’m sure,” she told council members.
Gross said the REDD grant is unlike many economic development programs that award grants on a first-come, first-served basis.
“The legislature was very specific in the ways that they want the department to review these projects and how they have some real policy objectives in mind of how they would like the dollars to be awarded,” she said.
Uses include preparing the site for development and providing financial assistance for housing-related infrastructure such as roads, water, and sewer.
It also includes addressing additional public safety needs due to the population increase that new development creates.
“So some of the dollars can be used on EMS services, ambulance, fire, whatever you need to help with the additional population,” Winder said.
What is the housing project?
The proposed workforce housing project sits on 85.4 acres on Johnsville Road. The county auditor’s website lists Thistlegate 16 LLC as the owner.
Developer Linda Hondros said the plan is to partner with Arbor Homes for single-family units.
Drew Miller of Arbor Homes said the company builds two products.
The smaller homes feature five floor plans on 30-foot-by-30-foot pads and have a starting point in the low- to mid-$200,000s.
Arbor’s traditional product features 14 floor plans and ranges from 1,200 to 3,200 square feet. Starting prices are in the low-$300,000s.
“We’ve done some preliminary work internally, because we think it’s important to have the right layout and the right product,” Hondros said of subdivision plans.
“We don’t have anything finalized, but we are in the stage of moving forward, so we do have something.”
“I think the thing we have to consider as a village is how much do we want to relax certain requirements.”
RICHARD DZIK VILLAGE ADMINISTRATOR
Hondros said “time is of the essence, as usual,” noting that Winder and Gross have a “wonderful relationship” with the Department of Development.
“I think if they worked in conjunction with you folks, that they would be able to help write some of these rules,” she told the council.
What are the next steps?
Council members approved an agreement to annex the 85.4 acres into the village at their September meeting.
The village will annex the land under the Estate Residential designation. It must be rezoned to PUD (Planned Unit Development) to accommodate the subdivision.
Village Administrator Richard Dzik said the village can start the grant process with zoning. PUDs require developers to submit a final plan before moving forward.
“PUD actually does give planning and zoning and council a lot of control over the density,” Dzik said. “And that’s the only concern I have, whether council and our residents are comfortable with how how tight this development becomes.”
Dzik will work with Hondros and the council regarding potential changes to infrastructure and materials used. He said that causes him “a little bit of a pause because once the developer turns it over, it becomes the village’s problem.”
Solicitor Kyle Stroh noted the village is paying for its sewer plant and likely would not reduce sewer tap-in fees.
“Economically, residential development versus commercial development can have a greater impact on our services costs 20 years down the road,” he said, adding that the development will also impact the schools.
Centerburg resident Donald Wallace voiced concern about moving too quickly.
“My concern is how they put the cart in front of the horse and expect it to drive straight and working with a program that has no rules of engagement,” he said.
“My concern is if we move forward with it and the village takes the money, what are we going to be held to in terms of these rules?”
Wallace also feels there is a contradiction in the belief that there is a housing shortage and alleged that several other local developers are struggling to sell their product.
He urged Dzik to establish a written communication chain for documentation throughout the process.