OHFA 2021 First Quarter Agency at a Glance

OHFA UPDATE - PAGE 3 - FIRST QUARTER OFFICE OF MULTIFAMILY HOUSING Despite the ongoing challenges of working from home during the COVID-19 pandemic, the Office of Multifamily Housing’s Development division has had a busy and productive quarter. Staff continues to accomplish the following tasks: • review and approve 4% Housing Tax Credit applications; • review and approve architectural plans; • process draw requests for Housing Development Assistance Program loans; • process and collect HDAP loan repayments; • review, approve and issue IRS Forms 8609; • execute Rental Assistance Contracts for the Ohio 811 Project Rental Assistance Program; • perform Subsidy Layering Reviews; • revise and update program guidelines and associated documents, etc. Many of our development partners are eagerly awaiting the release of the 2021 9% Competitive Housing Tax Credit Awards on May 19, 2021. Proposal application reviews are currently underway by the 9% team. Preliminary scores and any underwriting concerns will be sent to applicants by April 5; applicants will have until April 12 to respond, at which point reviews will resume and be finalized prior to the May announcement. The 2021 application list and proposal summaries are available on OHFA’s website . The advent of spring brings with it an array of new program guidelines and the seedlings of a new two-year Qualified Allocation Plan. The Program and Policy Team is in the early stages of development of the 2022-2023 QAP, and OHFA recently posted an outline of the stakeholder engagement process, including a tentative calendar. Working backward from an anticipated Board approval date of September 15, 2021, the stakeholder engagement process began back on January 1, when staff opened the QAP mailbox for pre-draft comments. OHFA, in an attempt to further align its agency goals and calendar, is merging its Annual Plan and QAP development process, commencing with a joint virtual public forum on May 5 from 1:00 PM – 3:00 PM, where feedback will be solicited for both agency documents. OHFA intends to release two drafts before the final draft goes before the OHFA Board for approval. A formal public comment period will follow the release of each draft. Stakeholders should subscribe to the Office of Multifamily Housing’s email list to receive updates on the QAP planning process throughout the coming year. The final version of the 2021 Housing Development Gap Financing Program guidelines are available on OHFA’s website . The HDGF Program is for developers who are seeking to construct or rehabilitate small, multifamily housing developments (between 4 and 24 units in size) and who are not seeking Housing Tax Credits. OHFA will begin to accept Intents to Apply on May 3, 2021 through July 30, 2021. Partners can find program requirements in the most current HDGF Guidelines and application materials on the Applications, Forms, and Guidelines page. Applicants seeking 4% Housing Tax Credits, bond financing, and OHFA gap financing for their developments apply through the Bond Gap Financing program, which offers gap financing in the form of Ohio Housing Trust Funds, National Housing Trust Funds and HOME Funds. The first draft of the 2021 Bond Gap Financing Guidelines are now available on the OHFA website . Public comments are due March 19, 2021. OHFA anticipates releasing the final draft on April 2, 2021. The tentative deadline for 2021 BGF proposal applications is June 18, 2021, with award announcements projected on August 6, 2021. Since the start of the New Year, there has been speculation that the National Housing Trust Fund allocations for 2021 will be twice as much (or more) as last year. Preliminary estimates published by the National Low Income Housing Coalition, a national advocacy organization that educates, organizes and advocates to ensure decent, affordable housing for all, suggests that Ohio could receive nearly triple the amount of last year’s allocation, potentially increasing to $21.4 million from $8.7 million. This significant increase bodes well for OHFA’s 2021 BGF and HDGF rounds and would guarantee an increase in the volume of affordable housing units that are newly constructed or preserved. As you may recall, OHFA was approved by HUD to become an HFA Risk Share lender last July. This designation enables our agency to expand our Multifamily Lending Program and originate and underwrite affordable housing loans, including new construction, substantial rehabilitation, refinancing, and housing for the elderly, while providing full FHA mortgage insurance. OHFA is able to originate, service and dispose of multifamily mortgages while utilizing the agency’s own underwriting standards, loan terms and conditions to which our development partners are accustomed. OHFA has revised its MLP Guidelines to reflect the necessary adjustments to transition to the FHA Risk Share Program and released guidance related to new, higher loan maximums, rate changes, fees, environmental review requirements, etc. Stay tuned for additional information regarding our MLP. If you have any questions about the program, contact David Foust, Multifamily Lending Manager, at dfoust@ohiohome.org . The Development staff looks forward to working with our partners in the coming weeks and months as business and life return to something more akin to normal! DEVELOPMENT DIVISION UPDATE KELAN CRAIG DIRECTOR OF MULTIFAMILY HOUSING