COLUMBUS, Ohio (WCMH) - Columbus City Council is looking at a policy proposal that aims to address the affordable housing crisis in addition to investigating the issue of widespread wholesaling.
Council President Shannon Hardin and Councilmember Shayla Favor hosted a hearing at city hall on Monday to discuss the Columbus Housing Community Reinvestment (CRA) policy proposal and wholesaler regulation. Community members and industry professionals were invited to provide input on the policy proposal as well as share stories and ideas on wholesaling.
The Columbus Housing Community Reinvestment policy is proposed by the Department of Development and would expand to almost every area of the city where builders can access tax incentives if they incorporate affordability into new housing units. This is different from the current policy, which limits these tax incentives to certain neighborhoods.
According to a notice from the council, this policy aims to address the affordable housing crisis in Columbus by acting as the city's primary tool to ensure long-term affordability and incentivize below-market-rate units.
A presentation from the Department of Development outlined the following bullet points as part of the CRA proposal:
The CRA proposal was on its first read on Monday evening. The policy will be on its second read and up for a vote at the council's meeting next Monday.
This hearing was also an opportunity for the council to discuss the issue of widespread wholesaling, which is the predatory practice of bulk buying that reduces the inventory of affordable housing stock. Wholesalers often misrepresent themselves as realtors or brokers and use aggressive tactics to get homes under contract.
A realtor who spoke at the hearing said that she worked with a local woman who was offered $20,000 by a wholesaler for her house. The woman hesitated at this offer, before reaching out to the realtor. Once connecting with a professional, the woman's home was sold for three times the amount that the wholesaler offered. This was one of the many testimonies given as evidence against the practice of wholesaling.
However, not all testimony was anti-wholesaling, as some spoke up in defense of the practice.
"People should be allowed to sell a house in a manner that suits them and their needs," one woman said. "Not everyone needs or wants a real estate agent and every situation is different."
The wholesaler policy exploration is currently still in its infancy. President Hardin is hoping to have legislation in the first quarter of 2024, but that is not finalized as of yet.
