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Cincinnati, Ohio, Issue 3, Affordable Housing Trust Fund Charter Amendment (May 2021)

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Cincinnati Issue 3
LocalBallotMeasures Final.png
Election date
May 4, 2021
Topic
Local charter amendments and Local housing
Status
Defeatedd Defeated
Type
Initiative
Origin
Citizens

Cincinnati Issue 3 was on the ballot as an initiative in Cincinnati on May 4, 2021. It was defeated.

A "yes" vote supported amending the Cincinnati city charter to require a permanent $50 million annual contribution of city funds to a Cincinnati Affordable Housing Trust Fund to provide for new construction, renovation of vacant property, renovation of existing units, operation costs, and direct services for housing affordable to households with certain income levels; and provide for a managing board for the affordable housing trust fund.

A "no" vote opposed amending the Cincinnati city charter to create a Cincinnati Affordable Housing Trust Fund and requiring a permanent $50 million annual contribution from the city.


A simple majority was required for the approval of Issue 3.

Election results

Cincinnati Issue 3

Result Votes Percentage
Yes 9,316 27.25%

Defeated No

24,869 72.75%
Results are officially certified.
Source


Measure design

Issue 3 was designed to institute the Cincinnati Affordable Housing Trust Fund, create a board of private citizens to manage the fund, provide guidelines for what projects could be financed by the fund, require a $50 million annual city contribution to the fund, and suggest revenue sources for the fund. The measure defined housing as affordable when “costs associated with residing in the home require no more than thirty percent of the household’s income."[1]

Housing project restrictions

Issue 3 included restrictions on the types of housing the fund could support and would have created eligibility requirements for beneficiaries of fund monies. The measure would have earmarked funds for housing affordable to households with an income at or below 60% of the Hamilton County median household income. Under the measure, a minimum of 50% of funds would have been spent on housing affordable to households at or below 30% of the Hamilton County median household income. The fund would have been designed to support construction, renovation, operational costs and direct services for housing units affordable to households with the specified income levels, with no more than 5% of funds being allocated annually to administration of the housing fund. Beneficiaries of fund monies would have been required to ensure via deed restriction that the housing supported by the fund remain affordable to households with certain income levels; pay all persons hired to construct, renovate, or operate units a wage consistent with Cincinnati's living wage ordinance; and follow certain guidelines when executing evictions.[1]

Revenue sources

The measure would have required a $50 million contribution to the fund in the first year, with the contribution to increase per the U.S. Bureau of Labor Statistics CPI-U: City Average for All Items annually. Possible funding sources suggested in the measure included:

  • revenue generated from the lease or sale of the Cincinnati Southern Railway;
  • a fee to be assessed to developers of residential projects that include four or more residential units and all commercial or non‐residential projects, with an option for the city council to provide financial credits;
  • a personal income tax on the award of stock options in publicly traded companies; and
  • the city’s general operating or capital funds.

The measure stated that nothing in the measure may be interpreted to permit the city council to raise the rate of income tax without first submitting the change to voters. The measure would have further established that any funds received from the Ohio or US governments could be deposited in the fund, but would have not counted toward the minimum annual $50 million appropriation requirement.[1]

Trust fund board

The measure was designed to provide for a Cincinnati Affordable Housing Trust Fund Board to manage and guide the fund. The board would have been comprised of eleven members from the following categories:[1]

  • One (1) member who is a developer of affordable housing or who is an affordable or fair housing professional to be nominated by the board of Housing Opportunities Made Equal of Greater Cincinnati, Inc. or its successor.
  • One (1) member who is a representative of a community development corporation who is also a resident of its neighborhood or service area, to be nominated by Homebase Cincinnati or its successor.
  • One (1) member who is a representative from a local charitable foundation serving city residents with low incomes, to be nominated by the President Pro Tem.
  • One (1) member who is a representative from a social service organization to be nominated by the Greater Cincinnati Coalition for the Homeless or its successor.
  • One (1) member who is a representative of an affordable housing advocacy organization to be nominated by Cincinnatians for Affordable Housing, Inc. or its successor.
  • Two (2) members who are current renters who qualify for low‐income housing assistance as determined by the then‐current criteria set by United States Department of Health and Human Services, nominated as follows:
    • One renter is to be nominated by the Greater Cincinnati Coalition for the Homeless or its successor.
    • One renter is be nominated by the President Pro Tem.
  • One (1) member who is a homeowner whose income does not exceed 200% of Poverty Guidelines for the 48 Contiguous States and the District of Columbia as most recently published in the Federal Register by the United States Department of Health and Human Services, who will be nominated by Cincinnatians for Affordable Housing, Inc. or its successor.
  • One (1) member who is a representative of a homeless advocacy organization to be nominated by the Greater Cincinnati Coalition for the Homeless or its successor.
  • One (1) member who is an attorney admitted to practice law in the State of Ohio to be nominated by Cincinnatians for Affordable Housing, Inc. or its successor.
  • One (1) members who has experienced homelessness to be nominated by the Greater Cincinnati Coalition for the Homeless or its successor.[2]

Nominated candidates would have been needed to be appointed by the city council to serve on the board for a term of two to four years and would have not received monetary compensation.

Text of measure

Ballot title

The ballot title for Issue 3 was as follows:

Shall the Charter of the City of Cincinnati be amended to require a permanent, annual contribution of fifty million dollars ($50,000,000) of City funds to a new restricted fund for housing that is affordable to persons with low incomes and for related purposes using funding sources otherwise dedicated to providing for essential City services and public infrastructure needs, to be administered by an unelected volunteer board by enacting new Article XVII, which also requires:

A. City Council shall appropriate no less than $50 million into the fund every fiscal year beginning July 1, 2021, to be paid from (1) the City's general operating or capital funds; (2) revenue from the lease or sale of the Cincinnati Southern Railway; (3) a proposed fee on developers of all commercial and some residential projects; or (4) a personal income tax on the award of stock options in publicly traded companies. The mandatory $50 million annual appropriation shall take priority over other funding needs of the City and could require the City to reduce City services and infrastructure projects by as much as $50 million annually compared to current City expenditures for general operating and capital projects. Any State or Federal funding received by the City and deposited in the fund shall not count toward the $50 million minimum annual contribution.

 B. The fund is restricted to the purpose of creating and preserving housing that is affordable for households earning 60% of Hamilton County's median household income, with half of the fund restricted to housing that is affordable for households earning 30% of Hamilton County's median household income; that the fund can be allocated to new construction, renovation of vacant property, renovation of existing affordable units, operation costs of affordable housing, and direct services, provided that housing supported by the fund, with the exception of owner-occupied single-family housing, must be permanently dedicated as affordable by deed restriction; that all persons hired to construct, renovate, or operate any units supported by the fund must be paid a living wage; and that supported housing organizations must commit that fund project landlords will be limited in their ability to pursue evictions. C. The fund will be controlled and managed by a board that will consist of eleven private citizens, nine of whom are selected by affordable housing and low income service organizations and two of whom are selected by the City Council President Pro Tem; who will serve staggered four-year terms; who will create the rules, regulations, and standards that govern the board. 

Full Text

The full text of this measure is available here.


Support

If you know of endorsements or arguments that should be posted here, email editor@ballotpedia.org.

Cincinnati Action for Housing NOW (May 2021).png

The campaign in support for Issue 3 was led by Action for Housing NOW.[3]

Supporters

Individuals

Organizations

  • The Metropolitan Area Religious Coalition of Cincinnati[4]
  • Affordable Housing Advocates[4]
  • Greater Cincinnati Homeless Coalition[4]
  • Peaslee Neighborhood Center[4]
  • Community Change[4]
  • Urban League of Greater Southwestern Ohio[4]
  • Ohio CDC Association[4]
  • Madisonville Community Urban Redevelopment Corporation[4]

Arguments

The following arguments were posted on the Action for Housing NOW website:[5]

Passing this initiative will mean 500 more homes for families who are currently spending more than they can afford for their housing. It will mean less gentrification. Less displacement. More stability for individuals, essential workers, and families who currently struggle against the inhumane and unethical policies that allow real estate developers and property managers to issue 30-Notices to Vacate.

This initiative is a housing opportunity for someone staying in their car, or living temporarily in a motel room. When the minimum wage does not raise to match the increasing cost of living, when the standard expectation is for some people to work multiple jobs to pay for housing, it is time for the community to initiate change. This Affordable Housing Trust Fund ballot initiative is the type of change that Cincinnati needs.[2]

Opposition

If you know of endorsements or arguments that should be posted here, email editor@ballotpedia.org.

Protect Cincinnati Vote No on Issue 3 (May 2021).png

The campaign in opposition to Issue 3 was lead by Keep Cincinnati Safe.[6]

Opponents

Individuals

  • John Cranley, Cincinnati mayor[7]
  • Matt Alter, Cincinnati Fire Fighters Union Local 48 president[7]
  • Maurice Brown, AFSCME Local 250 Union president[7]
  • Peter McLinden, Cincinnati AFL-CIO Labor Council executive secretary and treasurer[7]

Arguments

The following arguments were posted on the Keep Cincinnati Safe website:[6]

A Threat to Our Safety
This charter would force the city to reduce the size of the police force by 125 officers and shut down three fire engines. We have seen a record number of shootings and murders over the last few years, and we need all the first responders we can get.

A Blow to Our Social Services
This charter would cost $50 million, which makes up about 13% of the city's general fund. This high price would force the city to cut essential social and health services that provide critical care when we need it most, especially during COVID-19.

A Hit to Our Paychecks
We pay enough taxes as it is, but this bill will take more. If this charter passes, our income taxes would need to be raised by over 15%, and our property taxes would need to be raised by 20%.[2]

Path to the ballot

See also: Laws governing local ballot measures in Ohio

This measure was put on the ballot through a successful citizen initiative petition drive which submitted 9,541 signatures.[8] Cincinnati Action for Housing NOW led the effort to put Issue 3 on the ballot.[3]

Additional races on the ballot

See also: Mayoral election in Cincinnati, Ohio (2021)

The city of Cincinnati, Ohio, held a general election for mayor on November 2, 2021. A primary was scheduled for May 4, 2021. The filing deadline for this election was February 18, 2021. The top two vote-getters in the primary election will advance to the general election.

See also

External links

Footnotes