Ohio EPA Releases Intended Use Plan for 2018 Water Pollution Control Loan Fund

By Jon Honeck, Ph.D. Senior Policy Fellow

The Ohio Environmental Protection Agency (OEPA) has released its Draft Program Management Plan for the Water Pollution Control Loan Fund (WPCLF) for program year 2018.  The WPCLF is the main source of funding for the design and construction of publicly-owned wastewater and stormwater control projects in Ohio.  The WPCLF is a “revolving” loan fund that allows repaid funds to be loaned out again to new borrowers. The plan calls for the Fund to make a total of $520 million in loans in 2018, a level below that of recent years.   

The US EPA provides annual funding to support states water infrastructure revolving loan funds.  The subsidy allows the WPCLF to lend at below-market interest rates and to provide a limited number of projects with principal forgiveness.  For example, the October 2017, standard discount rate on a twenty-year loan is 1.81%.  Small communities with populations below 10,000 that also meet economic hardship criteria can receive interest rates of 1% or less.   The plan reserves up to $29.9 million for principal forgiveness to address critical needs of economic hardship areas with combined sewer overflow needs or failing home sewage treatment systems.

OEPA extends a zero percent interest rate to borrowers with regionalization projects that connect communities that are served by failing septic systems or wastewater treatment facilities that are otherwise incapable of meeting Clean Water Act requirements.  Regionalization of smaller water systems is a crucial way to meet regulatory requirements and control costs. 

Greater Ohio Policy Center is working with the Ohio Water Development Authority, Ohio EPA, and other water infrastructure stakeholders in the Small Communities Environmental Infrastructure Group (SCEIG) to find ways to promote shared services and partnering among small communities. 

A ranked list of priority projects is published along with the plan.  Interested parties can comment on the WPCLF plan at a public hearing on November 20, 2017.  For more information, please see the Ohio EPA website.

GOPC Executive Director Visits with Ohio Congressional Leaders

GOPC Executive Director, Alison Goebel, met with staff for Congressman Tiberi and Congressman Turner to urge them to maintain critical community revitalization programs in the forthcoming federal budget.  Goebel was one of thirty leaders participating in a Hill Day for smart growth groups from around the country. 

Programs that have been critical to the stabilization and revitalization of Ohio’s small and large communities are under threat, including Low Income Housing Tax Credits, and Community Development Block Grant funding (CDBG) and HOME dollars, which support everything from greening programs to affordable housing preservation.  TIGER grants, the funding source for a number of innovative transportation projects that make Ohio’s communities more attractive and competitive, are also under threat. 

Staff in Congressman Tiberi’s office and Congressman Turner’s office both acknowledged the importance of these programs to their districts and the entire state of Ohio. 

With more than 45 congressional visits scheduled, GOPC and its peer organizations are hopeful that these invaluable programs remain in place moving forward.

GOPC Shares Expertise on Housing Policy Panel in Cleveland

Last week, GOPC’s Manager of Government Affairs Jason Warner had the opportunity to join a distinguished panel of experts at the Cleveland State University College of Urban Affairs as part of their series Ohio Fair Lending/Vital Communities Brown Bag: What Happened in Housing at the Statehouse This Year?. Joining Warner on the panel were Bill Faith, the Executive Director of the Coalition on Homelessness and Housing in Ohio (COHHIO), Nate Coffman, Executive Director of the Ohio CDC Association, and Holly Swisher of the Ohio Housing Finance Agency (OHFA). The panel was moderated by Byron Soloman of NOBLE. Ms. Swisher provided the attendees with an update on the work OHFA has been involved with assisting homeowners in housing counseling to stave off foreclosure and assisting communities with the demolition of decaying properties.

Warner spoke to the panel about the various initiatives in the budget process related to lead mitigation and inspection programs. The budget made important progress in lead abatement by allocating $4.8 million annually for abatement activities and associated testing, as well as establishing a new residential rental unit registry and will provide a list of certified lead-safe rental units across the state. There was also a move to attempt to override local government home rule authority by granting the sole and exclusive authority of the regulation of lead abatement, including the licensing of lead abatement professionals, to the Ohio Department of Health. This change, had it been accepted, would have usurped local ordinances which had been enacted in cities like Toledo and Cleveland, as well as setting back progress that had been made in state regulations concerning lead mitigation. The changes were opposed by a broad coalition of organizations, and ultimately were removed from the budget. However, a standalone bill that seeks to enact the exact same changes, House Bill 299, was introduced in late June and was recently assigned to the House Health Committee, meaning discussions on this issue will likely continue in the near term.

Warner also had an opportunity to provide attendees with a brief update on the continued negotiations at the Statehouse regarding the MCO sales tax and the proposed increase in the state HIC fee to replace that lost funding. While discussions are ongoing among legislative leaders and the administration, no agreement has been reached and if no agreement is in place by the end of the year, counties and transit agencies across the state will see a dramatic decrease in revenues, resulting in the need for either cuts at the local level, or alternative revenue enhancements to replace the lost funding.

Finally, Faith and Coffman explained their recent efforts to include an amendment to the budget which would have provided a substantial increase in funding for the Ohio Housing Trust Fund. The amendment, which was crafted with the input and support of the leadership of the Ohio House of Representatives, would have provided long-term, sustainable funding to the trust fund through the use of non-GRF funding. In addition, the amendment provided $6 million per year to fight the states growing opiate crisis to expand housing options for low-income people exiting addiction treatment programs. Unfortunately, the amendment was removed by the Ohio Senate and was not resurrected during the budget conference committee negotiations. However, organizations such COHHIO and the Ohio CDC Association continue to advocate for this change, and Faith and Coffman encouraged attendees to continue to reach out to their legislators to educate them on the importance of providing long-term, sustainable funding to the trust fund.

GOPC thanks CSU for a great discussion about the importance of educating lawmakers on issues around housing and advocacy efforts year-round. To learn more about GOPC’s work in this policy area, be sure to check out the Advocacy page on our new website.