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Bill Summary · SB 424

Summary of SB 424 (136th General Assembly) — Ohio

Purpose and intent

  • The bill amends Section 349.01 to define and regulate the framework for establishing and operating “new community authorities” and associated programs and districts.
  • It creates a structured set of definitions for new communities, development programs, districts, authorities, and related terms to guide development, financing, and governance of planned communities that integrate industrial, commercial, residential, cultural, educational, and recreational facilities.

Key provisions and changes

  • Definitions introduced or clarified:
    • New community: A planned development containing facilities for multiple uses (industrial, commercial, residential, cultural, educational, recreational) designed with integrated utility and open-space planning.
    • New community development program: A comprehensive plan including land acquisition/development, facilities, and services to support the new community.
    • New community district: The land area described in the developer’s petition (section 349.03(A)) plus lands added through district amendments.
    • New community authority: A corporate body established under section 349.03, governed by a board of trustees (section 349.04).
    • Developer: Entity responsible for carrying out the development program, with land control through long-term leases (≥75 years), or ownership/control by a government entity (municipal/township/county/port authority) with ability to acquire land to address blight or prevent recurrence. Includes specific lease-term and forfeiture conditions tied to taxes, fees, and compliance with sanitary regulations.
    • Organizational board of commissioners: The governing board(s) that would oversee the district, with specific configurations depending on geographic scope (single county, multi-county, within a city, or certain township arrangements).
    • Land acquisition, land development, community facilities, cost, income source, community development charge, proximate community, and community activities: Expanded definitions to cover the scope of activities, funding, and charges associated with the new community program.
    • Community development charge: A charge method based on property valuation, resident income, or rent-related basis; mandatory tax treatment on improvements/receipts when based on rentals.
    • Proximate community: Rules determining which city or local government has influence or authority, based on location and population dynamics.
    • Community activities: Broad range of activities supported by the authority (cultural, educational, governmental, recreational, residential, industrial, commercial, distribution, and research).
  • Repeal and replacement: The bill repeals the current Section 349.01 and replaces it with the expanded, detailed definitions and framework outlined above.

Who/what is affected

  • Potential developers seeking to establish new communities in Ohio.
  • Municipalities, counties, townships, and port authorities that could host or participate in new community districts.
  • Property owners and tenants within proposed new community districts, given the possible imposition of community development charges.
  • Governance bodies, including boards of county commissioners or municipal authorities, responsible for exercising authority over new community districts.
  • Landowners and lessees within districts, due to leases, forfeiture provisions, and obligations related to taxes, fees, and compliance.

Procedural and timeline aspects

  • The bill provides the statutory framework for how new community authorities are established and governed (section 349.03 for establishment and 349.04 for governance, with the organizational board of commissioners defined in section 349.01(F)).
  • It specifies the scope of planning, land acquisition, development, and financing activities associated with a new community development program.
  • The bill is introduced for the 2025-2026 session and was referred to committee on May 13, 2026, indicating it will undergo committee review and potential amendments before any floor consideration.

Potential impacts to monitor

  • Funding and financing: How community development charges are assessed and whether they would be applied uniformly or variably across districts.
  • Tax treatment: Tax and assessment exemption implications for improvements if charges are based on rental income.
  • Governance: The process for selecting and coordinating among organizational boards of commissioners when districts span multiple jurisdictions.
  • Land use and blight mitigation: The balance between public objectives (revitalizing blighted areas) and private property rights, given long-term leases and forfeiture provisions.
  • Economic and land-use planning: The extent to which new communities achieve “well-balanced and diversified land use patterns” and integration with existing communities.

If you’d like, I can extract specific sections or create a side-by-side comparison with the current statute to highlight all changes.

Compiled from official sources — confirm details with the bill’s official record.

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