SB 424

As Introduced
136th General Assembly
   Regular Session  S. B. No. 424
       2025-2026
  Senators Reynolds, Lang
  To amend section 349.01 of the Revised Code  1
  regarding new community authorities.  2
 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
     Section 1. That section 349.01 of the Revised Code be  3
amended to read as follows:  4
     Sec. 349.01. As used in this chapter:  5
     (A) "New community" means a community or development of  6
property in relation to an existing community planned so that  7
the resulting community includes facilities for the conduct of  8
industrial, commercial, residential, cultural, educational, and  9
recreational activities, and designed in accordance with  10
planning concepts for the placement of utility, open space, and  11
other supportive facilities.  12
     (B) "New community development program" means a program  13
for the development of a new community characterized by well-  14
balanced and diversified land use patterns and which includes  15
land acquisition and land development, the acquisition,  16
construction, operation, and maintenance of community  17
facilities, and the provision of services authorized in this  18
chapter.  19
     A new community development program may take into account  20
S. B. No. 424  Page 2
As Introduced
any existing community in relation to which a new community is  21
developed for purposes of being characterized by well-balanced  22
and diversified land use patterns.  23
       (C) "New community district" means the area of land  24
described by the developer in the petition as set forth in  25
division (A) of section 349.03 of the Revised Code for  26
development as a new community and any lands added to the  27
district by amendment of the resolution establishing the  28
community authority.  29
       (D) "New community authority" means a body corporate and  30
politic in this state, established pursuant to section 349.03 of  31
the Revised Code and governed by a board of trustees as provided  32
in section 349.04 of the Revised Code.  33
       (E) "Developer" means any person, organized for carrying  34
out a new community development program who owns or controls,  35
through leases of at least seventy-five years' duration,  36
options, or contracts to purchase, the land within a new  37
community district, or any municipal corporation, township,  38
county, or port authority that owns the land within a new  39
community district, or has the ability to acquire such land,  40
either by voluntary acquisition or condemnation in order to  41
eliminate slum, blighted, and deteriorated or deteriorating  42
areas and to prevent the recurrence thereof. "Developer" may  43
also mean a person, municipal corporation, township, county, or  44
port authority that controls land within a new community  45
district through leases of at least seventy-five years'  46
duration. "Developer" includes a lessor that continues to own  47
and control land for purposes of this chapter pursuant to leases  48
with a ninety-nine-year renewable term, so long as both of the  49
following apply:  50
S. B. No. 424  Page 3
As Introduced
       (1) The developer's new community district consists of at  51
least five leases described in this section.  52
       (2) The leases are subject to forfeiture for all of the  53
following:  54
       (a) Failing to pay taxes and assessments;  55
       (b) Failing to pay an annual fee of up to one per cent of  56
rent for sanitary purposes and improvements made to streets;  57
       (c) Failing to keep the premises as required by sanitary  58
and police regulations of the developer.  59
       (F) "Organizational board of commissioners" means any of  60
the following:  61
       (1) For a new community district that is located in only  62
one county, the board of county commissioners of that county;  63
       (2) For a new community district that is located in more  64
than one county, a board consisting of the members of the board  65
of county commissioners of each of the counties in which the  66
district is located, provided that action of the board shall  67
require a majority vote of the members of each separate board of  68
county commissioners;  69
       (3) For a new community district that is located entirely  70
within the boundaries of a municipal corporation or for a new  71
community district where more than half of the new community  72
district is located within the boundaries of the most populous  73
municipal corporation of a county, the legislative authority of  74
the municipal corporation;  75
       (4) For a new community district that is comprised  76
entirely of unincorporated territory within the boundaries of a  77
township with a population of at least five thousand, and which  78
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As Introduced
is located in a county with a population of at least two hundred  79
thousand and not more than four hundred thousand, or located  80
within the boundaries of a limited home rule township that  81
adopted a resolution under section 5709.73 of the Revised Code  82
before January 1, 1995, and which is located in a county with a  83
population of more than four hundred thousand, the board of  84
township trustees of the township;  85
       (5) In the event that more than one body meets the  86
definitions set forth in divisions (F)(1) to (4) of this  87
section, "organizational board of commissioners" means the  88
organizational board of commissioners with which the original  89
petition was filed or another body meeting the definitions set  90
forth in divisions (F)(1) to (4) of this section appointed in a  91
resolution adopted by the organizational board of commissioners  92
with which the original petition was filed.  93
       (G) "Land acquisition" means the acquisition of real  94
property and interests in real property as part of a new  95
community development program.  96
       (H) "Land development" means the process of clearing and  97
grading land, making, installing, or constructing water  98
distribution systems, sewers, sewage collection systems, steam,  99
gas, and electric lines, roads, streets, curbs, gutters,  100
sidewalks, storm drainage facilities, and other installations or  101
work, whether within or without the new community district, and  102
the construction of community facilities.  103
       (I) "Community facilities" means all real property,  104
buildings, structures, or other facilities, including related  105
fixtures, equipment, and furnishings, to be owned, operated,  106
financed, constructed, and maintained under this chapter or in  107
furtherance of community activities, whether within or without  108
S. B. No. 424  Page 5
As Introduced
the new community district, including public, community,  109
village, neighborhood, or town buildings, centers and plazas,  110
auditoriums, child care centers, recreation halls, educational  111
facilities, health care facilities including hospital facilities  112
as defined in section 140.01 of the Revised Code,  113
telecommunications facilities, including all facilities  114
necessary to provide telecommunications service as defined in  115
section 4927.01 of the Revised Code, recreational facilities,  116
natural resource facilities, including parks and other open  117
space land, lakes and streams, cultural facilities, community  118
streets and off-street parking facilities, pathway and bikeway  119
systems, pedestrian underpasses and overpasses, lighting  120
facilities, design amenities, multi-family rental housing,  121
office buildings, hotel and hospitality facilities, retail  122
buildings and facilities, or other community facilities, and  123
buildings needed in connection with water supply or sewage  124
disposal installations, or energy facilities including those for  125
renewable or sustainable energy sources, and steam, gas, or  126
electric lines or installation.  127
       (J) "Cost" as applied to a new community development  128
program means all costs related to land acquisition and land  129
development, the acquisition, construction, maintenance, and  130
operation of community facilities and offices of the community  131
authority, and of providing furnishings and equipment therefor,  132
financing charges including interest prior to and during  133
construction and for the duration of the new community  134
development program, planning expenses, engineering expenses,  135
administrative expenses including working capital, and all other  136
expenses necessary and incident to the carrying forward of the  137
new community development program.  138
       (K) "Income source" means any and all sources of income to  139
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As Introduced
the community authority, including community development charges  140
of which the new community authority is the beneficiary as  141
provided in section 349.07 of the Revised Code, rentals, user  142
fees and other charges received by the new community authority,  143
any gift or grant received, any moneys received from any funds  144
invested by or on behalf of the new community authority, and  145
proceeds from the sale or lease of land and community  146
facilities.  147
        (L) "Community development charge" means:  148
        (1) A dollar amount which shall be determined on the basis  149
of the assessed valuation of real property or interests in real  150
property in a new community district, the income of the  151
residents of such property subject to such charge under section  152
349.07 of the Revised Code, if such property is devoted to  153
residential uses or to the profits, gross receipts, or other  154
revenues of any business including, but not limited to, rentals  155
received from leases of real property located in the district, a  156
uniform or other fee on each parcel of such real property in a  157
new community district, or any combination of the foregoing  158
bases.  159
        (2) If a new community authority imposes a community  160
development charge determined on the basis of rentals received  161
from leases of real property, improvements of any real property  162
located in the new community district and subject to that charge  163
may not be exempted from taxation under section 5709.40,  164
5709.41, 5709.45, 5709.48, 5709.73, or 5709.78 of the Revised  165
Code.  166
        (M) "Proximate community" means the following:  167
        (1) For a new community district other than a new  168
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As Introduced
community district described in division (M)(2), (3), or (4) of  169
this section, any city that, as of the date of filing of the  170
petition under section 349.03 of the Revised Code, is the city  171
with the greatest population located in the county in which the  172
proposed new community district is located, is the city with the  173
greatest population located in an adjoining county if any  174
portion of such city is within five miles of any part of the  175
boundaries of such district, or exercises extraterritorial  176
subdivision authority under section 711.09 of the Revised Code  177
with respect to any part of such district.  178
       (2) A municipal corporation in which, at the time of  179
filing the petition under section 349.03 of the Revised Code,  180
any portion of the proposed new community district is located.  181
       (3) For a new community district other than a new  182
community district described in division (M)(2) or (4) of this  183
section, if at the time of filing the petition under section  184
349.03 of the Revised Code, more than one-half of the proposed  185
district is contained within a joint economic development  186
district created under sections 715.70 to 715.83 of the Revised  187
Code, the township containing the greatest portion of the  188
territory of the joint economic development district.  189
       (4) For a new community district other than a new  190
community district described in division (M)(2) or (3) of this  191
section, if at the time of filing the petition under section  192
349.03 of the Revised Code the proposed new community district  193
is comprised entirely of unincorporated territory within the  194
boundaries of a township with a population of at least five  195
thousand, and which is located in a county with a population of  196
at least two hundred thousand and not more than four hundred  197
thousand, or located within the boundaries of a limited home  198
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As Introduced
rule township that adopted a resolution under section 5709.73 of  199
the Revised Code before January 1, 1995, and which is located in  200
a county with a population of more than four hundred thousand,  201
the township in which the proposed new community district is  202
located.  203
       (N) "Community activities" means cultural, educational,  204
governmental, recreational, residential, industrial, commercial,  205
distribution and research activities, or any combination  206
thereof.  207
       Section 2. That existing section 349.01 of the Revised  208
Code is hereby repealed.  209