OHFA 2020 Summer Newsletter

OHFA UPDATE - PAGE 3 - SUMMER OFFICE OF MULTIFAMILY HOUSING Despite challenges brought on by the COVID-19 pandemic, the Office of Multifamily Housing’s Development Division has had a busy summer. The team has steadily kept everything moving for our partners while continuing to work from home. Program and Policy Manager Diane Alecusan has led the planning and public input process for technical revisions of OHFA’s 2020-2021 Qualified Allocation Plan and seamlessly adapted the process to be virtual. In keeping with a two-year QAP and our intent to minimize changes year over year, revisions to the document are minimal and focused primarily on clarifying language and minor alterations to scoring criteria. With the first draft released on June 30 and a virtual public stakeholder forum held on July 15, OHFA has maintained its commitment to a thorough public engagement process that provides stakeholders an opportunity to weigh in on potential changes. A summary of comments were posted to OHFA’s webpage . OHFA also sent a survey on COVID-19 impacts, previous experience with the QAP and targeted questions regarding first-draft changes. Staff released the second draft on Mon., Aug. 24, and per the requirements of the Ohio Administrative Code 175-8, OHFA held a virtual public hearing on Thurs., Aug. 27. Staff presented the final draft of the QAP to OHFA’s Multifamily Committee and the full Board on Sept. 16 for consideration and final approval. In July, staff learned that the Department of Housing and Urban Development approved OHFA’s application to participate in HUD’s Section 542(c) Housing Finance Agency Risk Sharing Program. Under the program, qualified state and local HFA’s may originate and underwrite affordable housing loans including new construction, substantial rehabilitation, refinancing, and housing for the elderly. The program provides full Federal Housing Administration mortgage insurance to enhance Agency bonds to investment grade. HUD permits agencies to elect to share from 10-90% of the potential loss on a loan with the department. Eligible borrowers include investors, builders, developers, public entities, and private nonprofit corporations or associations. OHFA’s approval as a Level I participant will enable the Agency to originate, service and dispose of multifamily mortgages while utilizing our own underwriting standards, loan terms and conditions. OHFA will be participating in a program orientation with HUD in the coming weeks and we anticipate an initial multifamily bond issuance in the first quarter of 2021. The Bond-Gap Financing Round opened on September 3. Applicants have the ability to apply for 4% Housing Tax Credits, Multifamily Bonds, Housing Development Loans and various forms of HDAP, including federal HOME funds, National Housing Trust Funds and Ohio Housing Trust Funds. OHFA has approximately $19 million in HDAP and approximately $20 million in HDL to distribute as part of this funding round. The gap financing team will begin reviewing applications immediately, will release preliminary competitive scores on October 8, and will announce awards on October 15. DEVELOPMENT DIVISION UPDATE KELAN CRAIG DIRECTOR OF MULTIFAMILY HOUSING