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RC Modification Policy Update
and Other Change Requests
The Office of Program
Compliance at the Ohio Housing Finance Agency (OHFA) has revised
several policies related to material project change requests. OHFA has
revised policies related to both the qualified contract process and
restrictive covenant change requests. With these policy updates, OHFA now requires that all requests for changes to properties be
submitted to OHFAprojectchanges@ohiohome.org(including
any changes in management company or owner).
Restrictive
Covenant Modifications
The revised policy for Restrictive Covenant Modifications
had many significant changes. The policy succinctly identifies options
available to a property as they are considering changes to improve
financial viability while maintaining long-term affordability. The
major changes to the policy include the following:
- Simplified submission requirements for
the requests
- Modification requests cannot alter the
applicable fraction
- Further defined and clarified the
annual follow-up requirements for approved modifications
- No longer accepting requests for
multifamily covenant releases
- Provided additional clarity regarding
post release requirements
- Lease Purchase sales are now conveyed
through Partial Releases.
- Lease Purchase sales must be submitted
through the online sale form.
- Updated the options available to
owners if a lease purchase unit is not sold to qualified existing
tenant
Qualified Contract Requests
This policy outlines the
submission requirements, review process and OHFA's responsibility for Qualified Contract Requests.
Starting with allocations after 1995, all owners waived the right to a
qualified contract in new allocations. Owners should review the
Restrictive Covenant, Placed in Service Date, 8609s and respective
Qualified Allocation Plan (QAP) to determine whether the development is
eligible for a qualified contract request.
The
Restrictive Covenant Modification Policy and the Qualified Contract
Policy are both effective March 5, 2018. The policies and all forms
required for submissions related to these policies, as well as other
change requests, are available on the Asset Management and Project Changes webpage.
Concerns or questions regarding a particular change request must be
submitted to OHFAprojectchanges@ohiohome.org.
Any request or question submitted will be follow-up by staff in the
Asset Management Office of Program Compliance.
Industry partners, including
OHFA's Program Compliance Advisory Committee, were consulted and
provided input in the revision of these policies. Questions regarding
this message may be directed to Betsy
Krieger, Director of Program Compliance.
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