Applications Open October 31, 2023 for Ohio Building Demolition and Site Revitalization Program

On July 4, 2023, Governor Mike DeWine signed Amended Substitute House Bill 33 (H.B. 33 or the Budget Bill), which creates the biennial budget for state fiscal years (SFY) 2024-2025 (July 1, 2023-June 30, 2025). The Budget Bill amended section 122.6512 of the Ohio Revised Code and provides the Ohio Department of Development (Development) $150,000,000 for the Building Demolition and Site Revitalization Program (Demo Program), with $500,000 set-aside per county and the remaining funds available on a first-come, first served basis.

Here are the key facts and applicable deadlines:

• Development has already identified the eligible lead applicants under the amended statute, and provided the list by county (FY24-Demolition-Lead-Entities.pdf).
• Applications open on October 31, 2023 and close on April 1, 2024.
• Development, during its webinar on October 16th, noted that awards may be made prior to the close of the application period if Development has received applications from all 88 eligible lead applicants.
• Lead applicants should only plan to file one application (which may require balance between waiting to apply and seeking a larger portion of the first-come, first served awards over the set-aside).
• Eligible sub-recipients include other local governments, nonprofit organizations, community development corporations, regional planning commissions, community action agencies, etc. (Development verbally confirmed during the webinar that for-profit entities are eligible sub-recipients).
• The lead applicant must have an agreement with each sub-recipient and include the agreement in the application.
• The Demo Program guidelines from Development were released last week (FY24-Demolition-Program-Guidelines.pdf). A redline showing the changes against the prior guidelines (FY2022) is available here.
• Consistent with the last round of funding, brownfield properties are not eligible. Development expects to release brownfield program guidelines shortly.
• As before, after the initial $500,000 per county (which does not require cost-share/matching funds), the grants can be for up to 75% of a project’s total cost for demolition of blighted, vacant or abandoned commercial and residential buildings on sites that are not brownfields.
• The new guidelines provide that structures used for agricultural purposes (and not as part of an eligible project) are not eligible.
• All work must be completed by May 1, 2025, with grant-eligible work beginning no earlier than July 4, 2023 (though cost-share/matching funds back to July 4, 2021 may be included).
• Additional information is available from Development at Building-Demolition-Program.

Vorys encourages you to contact your Vorys attorney or advisor with questions about this incentive provision. Please feel free to contact the following Vorys attorneys: Scott Ziance, 614.464.8287, sjziance@vorys.com; Aaron Berke, 330.208.1017, asberke@vorys.com; Chris Knezevic, 614.464.5627, cjknezevic@vorys.com; Sean Byrne, 614.464.8247, spbyrne@vorys.com; Jon Stock, 614.464.5647, jkstock@vorys.com or Elissa Wilson, 614.464.6224, rewilson@vorys.com.