On May 21, the OHFA Board approved 9% Low-Income Housing Tax Credits (LIHTCs) for 25 developments creating or preserving 1,468 apartments for families, older Ohioans, and individuals at risk of homelessness. The Board awarded more than $39.1 million in annual federal 9% LIHTCs for these developments which are in 17 cities and 17 counties throughout Ohio.
The 9% LIHTC is a limited resource and competitively allocated to create or preserve affordable housing throughout Ohio. OHFA receives an annual allocation of tax credits from the IRS, which is determined by a population-based formula. Development teams that receive tax credits sell them to investors to help pay for the construction or rehabilitation of a housing development. A 9%-tax credit allocation can cover 70% or more of development costs, which is why the tax credits are in high demand.
For the last three years, OHFA has received application requests totaling more than three times the amount of tax credits OHFA can allocate in a year. With such high demand, when an application isn’t funded, the OHFA team is available to talk with the development team about other financing programs that may be a fit for its project.
Recently Congress passed legislation increasing each state's 9% LIHTC allocation, giving OHFA more opportunities to help finance affordable housing in Ohio. While the announcement of the 2026 9% LIHTC awards are complete and ground-breaking and ribbon-cutting ceremonies for previous awards are underway, OHFA is working on the 2027 9% LIHTC Qualified Allocation Plan (QAP) Technical Amendment. The QAP outlines the state's priorities and scoring criteria for next year's program, and OHFA will hold listening sessions with developers, syndicators, government leaders, and housing advocates to inform 2027 priorities.
OHFA has a history of respecting meaningful input. The current two-year QAP highlights the need for geographical diversity when creating or preserving housing for Ohio's low- to moderate-income families through a regional distribution of tax credits.
In the coming months, OHFA will start preparing the 2027 9% LIHTC QAP Technical Amendment for the next round of 9% LIHTC awards. Check back for more updates on this process.
