Ohio Housing Finance Agency 2020 Fall Newsletter
OHFA UPDATE - PAGE 3 - FALL OFFICE OF MULTIFAMILY HOUSING Despite the ongoing challenge of working from home, OHFA’s Development division has continued to work hard to maintain an excellent level of customer service for our partners. Some recent projects include, but are not limited to: reviewing and approving 4% Housing Tax Credit applications; reviewing and approving architectural plans; processing draw requests for Housing Development Assistance Program loans; preparing Housing Development Loan and HDAP requests for board approval; processing and collecting HDAP loan repayments; reviewing, approving and issuing IRS Forms 8609; executing Rental Assistance Contracts for the Ohio 811 Project Rental Assistance Program and referring tenants to available units; performing Subsidy Layering Reviews; revising and updating program guidelines. Obviously, we have been keeping ourselves busy as we ride out this pandemic. We do have an exciting announcement going into 2021: HUD awarded OHFA nearly $6.9 million in HUD 811 Project Rental Assistance Program funding. Ohio’s 811 program supports very low-income individuals with disabilities in securing a safe and affordable place to live through provision of rental assistance payments. This grant will help OHFA expand our 811 program, which has already secured commitments for 485 units across the state, by an additional 250 units in the coming years. In spite of the challenges of this year, we’ll be leaving 2020 with a new Agency record and several notable projects under our belt. In September, OHFA held its 2020 Bond Gap Financing round, with staff performing underwriting and threshold reviews for 16 projects seeking $33 million in HDAP in the form of Ohio Housing Trust Funds, National Housing Trust Funds and HOME funds. On October 22, OHFA announced the award of more than $18.1 million in HDAP funding to nine projects, including 895 units of much-needed affordable housing. Our agency also awarded nearly $6 million in Housing Development Loans to five projects during this round. Additionally, five new construction projects were funded in this round, an annual record for our agency – and quite a feat given the difficulty of pulling together enough gap financing to successfully finance a 4% new construction project. Here’s hoping that 2021 gives us another record year! The planning and public input process for OHFA’s 2020-2021 Qualified Allocation Plan technical revisions was adapted to be fully virtual; the Board approved the QAP on September 16. Subsequently, OHFA has released the new Multifamily Underwriting Guidelines, the Design and Architectural Standards, the Affordable Housing Funding Application, the Development Team Pre- Approval Form, among other documents associated with the 2021 Competitive and Non-Competitive HTC rounds. The application deadline for the 2021 Competitive 9% HTC round is Thursday, February 11, 2021. Application materials and the 2021 Frequently Asked Questions, released on December 14, 2020, are available on the OHFA website . OHFA has approximately $29.75 million in 9% competitive housing tax credits to award in the 2021 round, along with approximately $50 million in Housing Development Loans. A new program is in the works for 2021, following OHFA’s approval to participate in HUD’s Section 542(c) Housing Finance Agency Risk Share Program. As a Level I participant, OHFA will originate, service and dispose of multifamily mortgages while utilizing our own underwriting standards, loan terms and conditions. We anticipate being able to provide FHA Risk Share loans through our Multifamily Lending Program starting with the 2021 Competitive 9% Housing Tax Credit Round. The proposed new program incorporates a few key differences from our current MLP program. Those changes include the following: larger loans up to $6 million; borrowers must pay a mortgage insurance premium of .25% annually on the outstanding principal balance; projects must receive a Part 58 Environmental Review (identical to a HOME Part 58 Environmental Review); and, OHFA may permit an amortization schedule of longer than 30 years on a case-by-case basis. We will be sharing more information about our new FHA Risk Share in the coming weeks. The Development division’s program calendar for 2021 is as follows: • 9% Competitive: February 11, 2021 • 4% Non-Competitive Round 1: January 4-8, 2021 • 4% Non-Competitive Round 2: April 5-9, 2021 • 4% Non-Competitive Round 3: July 5-9, 2021 • 4% Non-Competitive Round 4: October 4-8, 2021 OHFA anticipates holding its 2021 Bond Gap Financing Round in June; opening its Housing Development Gap Financing round from May through July 2021; and, holding a special round for Community Development Block Grant – Disaster Relief in the city of Dayton and Montgomery County in the third quarter of 2021. We are looking forward to a new year of creating affordable housing communities for Ohioans, and we’re grateful for your partnerships as we do. DEVELOPMENT DIVISION UPDATE KELAN CRAIG DIRECTOR OF MULTIFAMILY HOUSING
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