Ohio Affordability Rush, Midwest Bids Heat up

What Is Welcome Home Ohio in 2026: and Who Qualifies?

How did Ohio’s housing affordability crisis push the state into direct market intervention by 2026.

Welcome Home Ohio was created in House Bill 33, signed July 4, 2023, to steer units toward owner occupants through grants and tax credits. In FY26, individual properties can receive grants of up to $100,000.

State Program Under Strain

The Department of Development administers $100 million in General Revenue grants plus $50 million in credits. In Florida, Boynton Beach’s Cottage District is converting vacant lots into 41 workforce homes, showing how targeted redevelopment can expand attainable ownership.

Three tracks—Purchasing, Rehab or Construction, and Tax Credit—can each receive up to $25 million per year.

Together, they target 2,150 homes, signaling Community Impact.

Who Qualifies, and Where

Eligible applicants include land banks, land reutilization corporations, and electing subdivisions.

Prior participation is scored, and Montgomery County’s land reutilization corporation illustrates regional execution and Rural Outreach.

Homebuyers must meet an 80 percent AMI ceiling.

Welcome Home Ohio Rules: $220K Cap, 800 Sq Ft, Occupancy, Course

With eligibility established, Welcome Home Ohio’s 2026 enforcement posture is defined by compliance rules that can invalidate an award after closing. Grant support can reach up to $90,000 per household.

Size and property form constraints intensify underwriting.

Qualifying homes now require 800 square feet of habitable space.

Manufactured homes qualify, while mobile homes do not.

Eligible properties are single unit single family or within buildings of up to 10 single family units.

Occupancy and training rules invite post closing scrutiny.

The owner must live in the home as a primary residence, with no rooms or accessory spaces rented for three years.

Agencies may run occupancy audits and deny aid if leasing is detected.

Financial literacy and homeownership counseling must be completed within required timelines.

Course enforcement is tied to eligibility and may include penalties.

The 15-Year Deed Restriction Twist: Resale, Repayment, and Profit Limits

Although the grant may feel final at closing, Welcome Home Ohio’s 15-year deed restriction keeps the transaction under a long compliance shadow. Portland’s recent statewide zoning reforms show how rule changes can reshape housing outcomes, but they also underline how compliance frameworks can remain complex for years after a deal closes.

Resale Controls

For 15 years, resale is limited to buyers at or below 120% of local AMI, with a documented ability to finance.

The deed runs with the land, requiring primary owner occupancy and creating successor liabilities.

Repayment and Profit Limits

ODOD is a third-party beneficiary and may seek injunctive relief for nonqualified transfers or any renting.

Penalty calculations start with WHO funds or tax credits tied to the home, then decline by one third per compliant year (or 20% in some cases).

Hardship waivers may follow divorce, disability, illness, or income loss, and restrictions end after year 15.

2026–2027 Funding and Deadlines: WHO-P/RC, Loans, Tax Credits

In the 2026–2027 biennium, Welcome Home Ohio enters a deadline-driven funding cycle under House Bill 96.

Cleveland’s Medical District is simultaneously adding 1,200 new units backed by $400 million, underscoring how healthcare-anchored districts are reshaping Midwest supply.

A total of $91.2 million is allocated to WHO Purchasing and WHO Rehab or Construction grants.

Grant Rounds Tighten

Each program receives $22,812,500 per fiscal year through 2027.

The target is 1,134 homes.

Competitive application rounds run each year.

Second rounds occur only if dollars remain unawarded.

That structure makes application timing a gating risk.

Missing a round can delay a project by a full cycle.

Credits and Loans Face Hard Stops

$20 million in WHO tax credits is available.

However, no credits may be issued after June 30, 2027.

Eligibility hinges on a recent Certificate of Occupancy.

Projects that finish late risk losing access.

OLIHTC authority also ends June 30, 2027.

It ties to federal LIHTC and 42(m) letters.

These deadlines shape how credits can be stacked with HDAP, HDL, and MLP loans.

Timing and documentation become critical to closeout.

Best Ohio Submarkets for Welcome Home Ohio Deals (and Why)

House Bill 96 deadlines are forcing Welcome Home Ohio underwriting to become a geography-first exercise.

Capital allocation is concentrating where preservation and owner-occupied conversions can clear quickly.

Central Ohio Pressure

The Central Shortage is most acute, with only 58 affordable units per 100 renters at or below 50 percent AMI in 2024.

Inflation-adjusted two-bedroom rents rose 22 percent since 2019 to $1,174.

That rent pressure is pushing OHFA toward rapid rental preservation.

In Cleveland, properties average only 11 days before going pending, underscoring swift buyer action even as listings increase.

Secondary Market Pricing Shock

Dayton cashflow stands out, with median prices 30 to 40 percent below the national average.

The opportunity is renovation-driven value add.

Toledo and Akron offer similarly low entry costs plus durable rental demand.

Cincinnati can work, but it requires tighter demand checks amid urban core revival.

Toledo pricing is projected to remain low through 2026.

Assessment

Welcome Home Ohio is reshaping 2026 statewide pressure as investors and first time buyers chase capped pricing and limited inventory.

The $220,000 limit, occupancy rules, and requirement narrow eligibility but intensify bidding within compliant stock.

The 15 year deed restriction constrains exits through resale controls and repayment, forcing underwriting discipline.

Funding windows for WHO P and RC, plus loans and tax credits, raise deadline risk.

Submarkets with older entry level homes face the sharpest competition.

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