(The Center Square) – A bipartisan group of Ohio lawmakers wants to give taxpayer money to local communities that adopt pro-housing policies they say will create a healthier housing market.

Sponsors say the new bill introduced Tuesday would stabilize both home prices and rents and "revolutionize" how local governments approach housing supply by using state policy and resources to encourage innovation and access.

"Everyone in Ohio deserves a safe place to call home that they can afford to live in. Our housing market isn't working as there are too few places to rent and not enough houses to buy, making everything more expensive. This bill is about pursuing bipartisan solutions to address the urgent challenges that people in Ohio are experiencing when it comes to finding a place to live," Rep. Dani Isaacohn, D-Cincinnati said.

The bill creates a new housing fund at the Ohio Housing Finance Authority, which would hand out grants to local governments if they adopt some of the policies. Communities could select which policies work best for them, including Eliminating parking minimums, reducing single-family zoning, providing density bonuses and speeding up permitting processes.

"This is not a partisan issue, but a generational one, and we are proud to have a broad range of support from across Ohio for this legislation," Rep. Adam Mathews, R-Lebanon, said. "Rep. Isaacsohn and I are younger members of this General Assembly, and we want to build a future where people can find their own piece of the American dream right here in Ohio. This bill would mark a huge step forward in making Ohio both the heart and home of it all."

Local governments would be required to use the money to boost home ownership, get sites ready for development, support tenants or other housing policies.

Lawmakers said the fund aims to be revenue neutral and is funded by reducing the state's tax expenses by ending eligibility for the non-business tax credit for property owners who do not live in the houses they own.

In 2022, Ohio's homeownership rate fell below the national average for the first time on record, while the number of vacant units available for sale or rent also declined.