The General Assembly has been on recess since the completion of the budget process, which was completed and signed by June 30^th. While the General Assembly has been on recess though, OREIA has been working behind the scenes on many pieces of legislation.

The first is House Bill 103, which seeks to modify the circumstances under which a lien may be created to collect unpaid water rates and charges owed local authorities and to specify certain requirements prior to creation of the lien. At an interested parties meeting in July hosted by the sponsor Louis Blessing (R-Cincinnati) and Local Government Committee Chairman Larry Wolpert, local governments representing various water provider entities, the Legislative Service Commission (LSC) and OREIA all sat down to discuss the bill and where it was progressing. One of the issues that came to light during consideration in the spring testimony was a constitutional question of whether the General Assembly had the ability to have jurisdiction over the water systems of municipalities because of home rule status for cities. LSC provided research that was not beneficial to our cause and our efforts regarding home rule. In a follow-up conversation with Sponsor Blessing we decided to simplify the bill to avoid home rule restrictions and still accomplish OREIA’s goals. Our main objective is to not allow a water provider to use a county court system to do a water bill of not more than 90 days. Sponsor Blessing is researching language and preparing with LSC a new draft that essentially states that a County Recorder cannot accept a lien (on water bills) that is more than 90 days old. The General Assembly has purview over county operations, so we avoid home rule restrictions in the Constitution. We will continue our efforts with the sponsor and the Chairman on the bill.

A second piece of legislation that is of serious concern for the members of OREIA is House Bill 161, sponsored by Rep. Jim Raussen (R-Sharonville). House Bill 161, as introduced, seeks to permit a tenant to terminate a residential rental agreement without penalty if the tenant or the tenant's spouse is 62 years of age or older and, for medical reasons, enters a nursing home or other specified care facility. Although there may be precedent for allowing national guardsmen and military members who get called to active duty to break leases, the practice for senior citizens would be disastrous for members of OREIA. Given the number of Ohioans that will be in the “baby boom” segment in the coming years and in the rental property segment it could spell financial hardship for OREIA members and property owners who will be leery about renting to this age segment, but would have limited options against doing so since there are housing discrimination laws. Having this law in place could create a situation where there is possible revenue uncertainty because a lease for a person in this age bracket could be broken under certain circumstances. To date the bill has had just two hearings, a sponsor testimony and a proponent hearing. Governmental Policy Group and Michelle Wells had a conversation with the sponsor and the Chairman of the committee outlining how financially ruinous the bill would be and the terrible policy precedent that would be set by its passage and the bill has been shelved for the time being. We will continue to be vigilant with the bill and ensure that it does not advance any further.

A third piece of legislation that is also of great concern for the members of OREIA is House Bill 290, sponsored by Rep. Armond Budish (D- Beachwood) and lead co-sponsor Rep. Mike Foley (D-Cleveland). House Bill 290, as introduced, seeks to require a landlord or manufactured home park operator, in general, to supply electric, gas, water, and sewage disposal service and related fixtures and appliances and to pay the required amount due for the service in a timely manner unless the service to the tenant's or resident's dwelling unit is individually metered by a meter accessible to the tenant or resident, the landlord or operator notifies the tenant or resident in writing that the tenant or resident is liable for the cost of electric, gas, water, and sewage disposal service, the tenant or resident is the customer with the public utility supplying the service, and the cost that the tenant or resident is billed only the cost that the public utility assesses for supplying the service to the dwelling unit. This bill was just introduced over the summer break on July 27, 2007. As of date this bill has not been assigned to a committee nor has had any hearings. Michelle Wells and Governmental Policy Group have met and/or spoken with both Rep. Budish and Rep. Foley to advise them of OREIA’s strong opposition to this bill.

One final issue that has been working over the summer is the Governor’s Foreclosure Prevention Task Force, which was established to provide a unified response to improve prevention methods and manage foreclosure issues in the state. The task force was chaired by Department of Commerce Director Kim Zurz, and includes representation from the state, local governments, lenders, non-profit sector and private sector, including Michelle Wells of OREIA.

The task force members are to work on outreach and education for homebuyers and those facing foreclosure, proactive intervention to help homeowners facing imminent foreclosure, and financial resources and strategies to work out distressed mortgages to keep people in their homes. A draft report was issued on August 27^th and many of the panel's recommendations will require legislative or administrative changes. They include:

• -- Seeking a change in federal law that requires subprime mortgage servicers to offer escrow accounts.
• -- Streamlining the foreclosure process.
• -- Using public information to identify borrowers who might be at risk of foreclosure.
• -- Adjusting state receivership law beyond changes made in the budget act.
• -- Requiring immediate recording of deeds at sheriffs' sales.
• -- Assisting with land banking of properties.

The panel is to meet again Sept. 10 to take a final vote. Minority reports were to be submitted by Sept. 4.

As you can see from this brief report, it has been a very eventful summer break. We are expecting many upcoming hearings and meetings on these and other pieces of legislation. Please be prepared and prepare your members that many witnesses will be needed for upcoming testimonies. Do not wait for the last minute to educate your members on the legislative efforts of OREIA. Let’s be prepared and willing to get involved as needed.