2021 Second Quarter Agency at a Glance

OHFA UPDATE - PAGE 4 - 2021 SECOND QUARTER OFFICE OF MULTIFAMILY HOUSING The Office of Multifamily Housing’s Development division officially announced the 2021 9% Competitive Housing Tax Credit Awards on May 19, 2021 at the OHFA Board meeting. OHFA awarded $31.5 million in annual housing tax credits to 36 projects in 17 different counties and 25 different cities throughout the state. The 36 developments, 28 new construction and eight preservation, included 1,921 affordable housing units, serving families, seniors, individuals with disabilities, transition-aged youth and individuals in recovery. Among the developments funded in the 2021 round is Cleveland Scholar House, a 40-unit new construction development for families in Cleveland. Cleveland Scholar House will create opportunities for parents enrolled in higher learning institutions and their children by combining access to affordable housing with onsite supportive services and high-quality daycare. The project proposes to follow a two-generation model to interrupt the cycle of poverty for both parents and children. Also located in Cleveland, Karam Senior Living represents a similarly unique partnership between Detroit Shoreway Community Development Organization and the Cleveland Public Library. Karam Senior Living will serve low-income seniors through the development of a safe, adaptable, service enriched housing development and community hub. This development will provide 51 units of affordable housing along with spaces for connection and wrap-around services through the new Walz branch of the Cleveland Public Library system. The library branch will be developed concurrently on the same site. ADDRESSING SUPPLY CHAIN ISSUES AND ESCALATING CONSTRUCTION COSTS Supply chain issues resulting from the COVID-19 pandemic and other market disruptions have led to material and labor shortages and spikes in lumber prices and other supplies. The national average for the percentage increase in the hard construction budget line item for housing projects is 33%, a devastating figure for developments already inherently on the margins. These challenges have led to escalating construction costs and unanticipated funding gaps in projects that were awarded funding in 2019 and 2020. Because of the aforementioned challenges, OHFA put forward a Board- approved plan to address the crisis, which includes an addendum to the 2020-2021 Qualified Allocation Plan, to provide additional financial resources. The QAP addendum provides support and resources to competitive Housing Tax Credit developments that received binding reservation agreements in 2019 or 2020, but are no longer financially feasible due to unforeseen increases in lumber prices and other materials. OHFA has set aside Housing Development Loan funding and up to $4 million of the tax credits. The additional funding will be available to applicants first come, first served; owners may request up to $100,000 in additional tax credits and up to $1 million in additional HDL funding. Although OHFA recognizes that the increased construction costs are outside of our owner and development partners’ control, the Agency seeks to limit requests and the amount of the requests to those that are truly necessary. Therefore, receipt of additional credits will result in ramifications for development teams in the 2022 Competitive Housing Tax Credit Round. For each additional $1 of LIHTC awarded, the development team LIHTC award limit will be reduced by 1.5x in the upcoming 2022 9% Competitive Round, or 2023 for those not applying next year. OHFA will not impose additional negative points or score ramifications. STAFFING UPDATE We are excited to announce promotions and a new hire! Karen Banyai has served as the Development Operations Manager while also leading the Asset Management division on an interim basis. She officially transitions to leading the Asset Management division full time effective July 5, 2021. Karen’s extensive experience and indispensable knowledge of OHFA- financed projects will be incredibly valuable as the division continues to grow, develop policies and procedures, and respond to an ever-growing portfolio. Samantha Makoski will become the Planning and Policy Manager, filling the role previously held by Diane Alecusan. Sam has been with OHFA since December of 2014, serving as a Housing Grant Analyst II, reviewing and underwriting 9% LIHTC projects. Her public administration and political science background, lengthy LIHTC experience, and knowledge working on programs serving vulnerable populations will be a tremendous asset when developing the Qualified Allocation Plan and other program guidelines. She officially begins her new role on July 5, 2021. Taylor Koch returns to OHFA as the new Housing Tax Credit Manager. He previously served as the Senior Asset Manager at OHFA in the Office of Program Compliance and most recently as a Senior Underwriter at New York State Homes and Community Renewal Agency . This position replaces the Operations Manager position held by Karen, but Karen will continue to work closely with Taylor and the tax credit underwriting and architectural teams. DEVELOPMENT DIVISION UPDATE KELAN CRAIG DIRECTOR OF MULTIFAMILY HOUSING