Policy in Action: From DC Halls to Regional Impact

KEY NEWS & INSIGHTS

No Jet Lag Here: This edition of the Pulse is coming to you fresh off the Cincinnati USA Regional Chamber’s annual DC Fly-In and we’re energized by bipartisan legislation that is aligned with our policy agenda. The Government Affairs & Advocacy Team led a group of 40 leaders to DC to meet with federal elected officials from our local delegation, Senate senior staffers, and political thought leaders. We advocated for housing, childcare, and immigration; we received updates on significant bipartisan legislation; and we heard analysis on major races this election cycle.

Yes, Bipartisan Legislation: In our last Pulse, we highlighted two bills co-sponsored by Senators Britt (R-AL) and Kaine (D-VA) focused on expanding the child care tax credit and boosting pay for the child care workforce. While in DC, we met with the Senators’ policy leads on these bills – Maggie McPherson (Britt) and Rebecca Howard (Kaine) who shared how the two offices worked to find common ground on the complex issue. We also met with Congressman Mike Carey (R-OH) representing the Columbus area, who shared more about his bipartisan housing bill co-sponsored with Congressman Jimmy Gomez (D-CA) representing the Los Angeles area. More on that bill below.  

What Happened Next: The Chamber’s Government Affairs Executive Committee voted to endorse all three bills, and we’ll focus on advocating for these bills this year and into the next Congress as we believe they will have a substantial impact on growth in our region.

FEDERAL GOVERNMENT

The Revitalizing Downtowns and Main Streets Act (RDMA): New legislation introduced by Representatives Mike Carey (R-OH) and Jimmy Gomez (D-CA) addresses affordable housing by facilitating the conversion of vacant commercial properties into residential units through a federal tax credit. This builds on Rep. Gomez’s 2021 bill and has a Senate companion from Senator Debbie Stabenow (D-MI). 

The tax credit covers 20% to 35% of eligible conversion costs, requiring at least 20% of new units for individuals earning 80% or less of median income for a minimum of 30 years. In low-income areas, this can be as low as 60% AMI, with rent capped at 30% of income. 

Larger credits are available for rural and economically distressed areas, allowing developers to combine this with other federal benefits like LIHTC and rehabilitation credits. 

The RDMA has been referred to the House Committee on Ways and Means and is awaiting its first hearing.

Why This Matters: Efforts to address the housing crisis are underway at local, state, and federal levels. It's crucial to provide developers with the tools to make transformative projects financially viable. In downtown Cincinnati, successful conversions like The Mercantile and The Textile Buildings have helped the city rank 5th nationally for new converted units in 2023, according to RentCafe. Additionally, Cincinnati has over 2,300 housing units in the pipeline, placing it 11th for upcoming conversion projects. 

These conversions not only activate vacant spaces in our downtown area but also help alleviate supply issues within our housing market.   

Important To Know: This bill has strong bi-partisan and bi-cameral support within the House and Senate. The Chamber’s Government Affairs & Advocacy (GAA) team will advocate for this bill after the Government Affairs Executive Committee voted to endorse this legislation at their September 26th meeting.  

STATE GOVERNMENT

Ohio HB 1: Governor DeWine called a special session of the General Assembly in May to change the deadline to certify the presidential candidate on Ohio ballots until after the Democratic National Convention. Included in that legislation was a ban on foreign nationals donating to ballot campaigns in the state of Ohio. 

 The Catch: It is already against state and federal law for foreign nationals to contribute to political candidates. The new Ohio law was meant to cover a loophole to ban foreign influence on state ballot issues. However, the lawmakers went a step further banning permanent legal residents from donating to campaigns. 

 A Judge Blocked It: Judge Michael Watson, a federal judge appointed by George W. Bush, blocked part of the law, stating in his opinion that legal permanent residents can serve in the military and pay income taxes and therefore should have their First Amendment rights protected. He pointed out that Congress’s ban on foreign national contributions had a carve-out for legal permanent residents for this reason.   

The Judge Explains: “It would be absurd to allow (or force) LPRs to fight and die for this country, on the one hand, and to prohibit them from making incidental expenditures for a yard sign that expresses a view on state or local politics, on the other.” 

Why This Matters: The law, which was supposed to go into effect on September 2 had a massive impact on many PACs in Ohio because most PACs do not ask donors to identify themselves as LPRs vs. U.S. citizens. While the Chamber does not have a PAC, we have members that do, and we heard from several PAC managers who expressed concern over this new law. Some PACs emptied their coffers the day before the deadline, while other PACs chose to stop donating to races in Ohio because of the extreme burden of reviewing the legal resident status of every donor that has given to the PAC in the past to audit which funds are now legal to give to campaigns. While this portion of the law has been blocked, we’ll continue to watch the developments closely. 

What’s Next: Governor DeWine suggested lawmakers revisit the foreign influence ban, but mirror Congress’s decision to create a carve-out for legal permanent residents. He also warned against making other voting law changes after a major overhaul of voting laws last year, saying, “There has to be some end to changing rules. We've done it. We do a good job. We count our votes pretty quickly. We do it in an accurate way. And I'm satisfied with our system." 

LOCAL GOVERNMENT

City of Cincinnati Small Business Survey: The City’s Department of Community and Economic Development and the Department of Economic Inclusion have released a survey to identify the needs and challenges of local small businesses. 

 The Objective: The city says the survey will help it “recognize gaps in support and concentrate efforts to find solutions that build a more robust entrepreneurial landscape in Cincinnati.” 

 To Participate: If you represent a small business within the City of Cincinnati, you can participate. The survey is completely anonymous. You are encouraged to share with fellow Cincinnati small businesses. LEARN MORE

 Seymour Station Affordable Housing: During the Cincinnati City Council meeting on September 11th, an affordable housing development was approved with a 6-1 vote. The vacant lot at 1931 Seymour, initially designated for condominiums, will now host The Seymour Station project, which will feature 150 affordable units across two buildings. These apartments will cater to diverse resident needs, offering a range from one to three-bedroom options for individuals earning between 50% and 70% of the Area Median Income (AMI). 

 Community Engagement: While some residents expressed concerns about the change from the original plan for this vacant lot, it's important to note that LDG Development, based in Louisville, KY, has taken over the project from the original developer. At the Equitable Growth and Housing Committee meeting on September 10th, LDG announced its commitment to negotiate a community benefits agreement with the Bond Hill Community Council. 

 Why This Matters: The Seymour Station project is an important development that helps address the city's pressing need for affordable housing and will help alleviate the housing supply constraints facing Cincinnatians. To sustain the growth Cincinnati has experienced for the first time in decades, residents need access to housing at all levels of income.  

 4th and Walnut: A new luxury hotel is set to be developed in downtown Cincinnati, transforming the vacant Fourth & Walnut Centre into a 280-room establishment at a cost of $174 million. The project is expected to create 381 permanent jobs and nearly 500 construction jobs.  

 What It Took: At the September 11th Cincinnati City Council meeting, a 15-year tax abatement was approved for the developer, Supreme Bright Cincinnati, LLC, providing a 52% discount on property taxes to help finance the project at a time when interest rates, materials, and labor are high. The developer is investing over $40 million of its own funds and has secured just under $90 million in additional private financing. 

 Finally Moving Forward: Construction had been delayed since 2018 due to rising costs and the pandemic, but officials anticipate a groundbreaking within 18 months. The hotel aims to address Cincinnati's growing demand for accommodations, supporting local events and attractions. 

Why This Matters: Downtown Cincinnati is experiencing significant revitalization, highlighted by the renovation of the Convention Center District. To sustain this momentum, the city urgently needs more hotel rooms in the urban core. Adding 280 hotel rooms will help meet the growing demand and encourage increased tourist spending, preventing visitors from turning to other regional options.  

Fun Fact: As noted by The Cincinnati Enquirer, the 4th and Walnut Centre, once the headquarters of First National Bank, was added to the National Register of Historic Places in 2017. Revitalizing this historic building preserves the vibrant culture of our downtown and ensures that valuable space is put to beneficial use. 

City Lobbying Registration and Reporting Changes: Cincinnati City Council passed an ordinance on September 18th to update the registration and reporting requirements for anyone advocating before Cincinnati City Council, the Mayor of Cincinnati, Cincinnati City Administration, or the City’s independent boards, commissions, and advisory bodies.   

What Has Changed: The registration process will be featured online, making it easier for advocates to access the needed forms. However, payment for the registration fees must still be submitted via check in the mail. Additionally, the registration fee has increased from $25 to $40. The Clerk of Council will provide digitized registration and reports for public records on the City website. The update will also create a new Ethics and Good Government Counselor position in the Law department to oversee this process. 

Timeline: The updates to the registration and reporting process go into effect in January 2025. 

Pilot Child Care Stipend Project: The State of Ohio has funded a pilot project in 5 counties to provide a match for employer child care stipends to help make child care more accessible. 4C for Children is the local partner overseeing this project in Hamilton County. 

Why This Matters: Access to child care is one of the top 3 barriers to recruiting and retaining employees. Recent Groundwork Ohio research found that 35% of parents reported having to change their work schedule and 24% had to cut back their working hours in the past year due to disruptions in their child care arrangement.  

Next Steps: If your company has a site located in Hamilton County, employs between 100-1,000 people and you are interested in exploring a child care stipend for your employees contact Vanessa Freytag, CEO of 4C for Children, at vfreytag@4cforchildren.org 

Hamilton County Tax Report: This week, Auditor Jessica Miranda and Treasurer Jill Schiller released a county-wide tax bill comparison report to clarify how tax dollars are collected and distributed. The report provides a breakdown of tax distribution for both last year and this year.  

Background: Considering the new property valuations of homes that caused tax bills to increase, many residents experienced this year and other factors leading to an increased cost of living, the report aims to provide transparency on property taxes and the roles of the Auditor and Treasurer offices as it relates to those property taxes.  

Access the Report: Visit the Hamilton County Auditor’s website and click on the tax distribution tab. 

ON THE BALLOT: 

The ballots are set in the State of Ohio – you can go here to find your local issues. We’ve covered State Issue 1 and Hamilton County levies in previous editions. July 2024 August 2024

ON THE HORIZON

TODAY - October 2: Chamber Advocacy Council - Empowering Families and Fueling Growth: Addressing Childcare Challenges in Our State and Region. Join leaders from the region to network and discuss policy impacting our region at the UC Gardner Neuroscience Institute, 5-6:30 P.M. At this session, we will hear from Joel Potts, the Chief Government, and External Affairs Officer for the newly established Ohio Department of Children and Youth, and Shannon Jones, who serves as Senior Advisor for Groundwork Ohio.

REGISTER NOW 

 October 15: Breathe Applications Due - Breathe will be a first-of-its-kind program. We’ve brought many of our region’s best partners focused on mental health together to create a powerful, informative, and useful cohort class that will help you be a better leader through an intentional focus on mental and physical well-being. Over the last several years, we’ve had conversations with C-Suite business leaders, policymakers, foundation executives, and University leaders who have told us about their growing focus on issues related to mental well-being. Many people have told us about their desire to be better prepared both personally and professionally for a business environment in which mental and physical wellness is front and center for employees and leaders. As we do with all our programs, we’ll create a space for progress, connection, sharing, and action that will improve our community and businesses. 

October 28: Impact Ohio Event - Through a partnership between the Cincinnati Regional Chamber of Commerce, Ohio Chamber of Commerce, and Jobs Ohio, this unique event will bring together key government officials, business leaders, and community stakeholders to discuss important issues and opportunities facing the Cincinnati Region. During this information-packed conference, attendees will hear first-hand from policy experts on current political activities and have an opportunity to network and participate in Q&A. Learn more and register here. Registration link coming soon.

 ARTICLES TO READ

Paycor Stadium Overhaul Plan: After the Cleveland Browns owners asked the state of Ohio to match $600 million for their stadium upgrades (or new construction), Hamilton County released plans for the Paycor Stadium upgrades, priced around $1.25 billion. This is one to watch as it will require state funds to help finance and several stadiums in the state are looking for state help. READ MORE 

 Councilman Reggie Harris Resigns to take Federal Housing Job – Most notable during his time on Council, Reggie Harris led the way for sweeping zoning reform in the city, an issue endorsed by the Chamber. Councilman Harris built partnerships across the city to advance a pro-growth agenda. He will take his expertise and passion for housing and economic development to the federal level to help deploy billions of dollars to local communities in the next few months. READ MORE