9% Low-Income Housing Tax Credit (LIHTC) Program

  • 9% LIHTC Program

United State Code: 26 U.S.C. §42
Code of Federal Regulations: 24 C.F.R. §§1.42-1 – 1.42-19T

The Low-Income Housing Tax Credit (LIHTC) program, created in 1986 and made permanent in 1993, is an indirect federal incentive used to finance the construction and rehabilitation of affordable rental housing. Although governed by the Internal Revenue Service (IRS), it is administered on a state-by-state basis through state housing credit agencies. As Ohio's state credit agency, OHFA retains responsibility for allocating federal LIHTCs to facilitate the development of affordable rental housing throughout the state.

The LIHTC gives investors a dollar-for-dollar reduction in their federal tax liability in exchange for providing investment equity to develop affordable rental housing. Investors' equity contribution helps developments maintain financial viability while restricting rents to affordable levels. In return, investors receive tax credits paid in annual allotments, generally over 10 years. LIHTC-financed developments must keep the units rent restricted and available to low-income tenants for at least 30 years.

Guidelines

Prior Year's Guidelines

2025 Qualified Allocation Plan Technical Assistance Webinar

Location and Data Resources for QAP Applicants

The resources below are designed to assist you with your 9% LIHTC application.

If you are unsure which pool your site is eligible for (Central City, Metro/Suburban, Rural), use the OHFA Property Locator Search Tool to look up details including census tract, geographic pool, opportunity index category, and opportunity index score.

Once you know the pool in which your site is located, use the relevant interactive map below to see how your site scores. Please note that the maps include only geographic scoring categories. The interactive map instructions provide a step-by-step guide designed to walk you through the process of using the maps for your application and include a Frequently Asked Questions section as well as a section on Data and Methodology. If you have questions regarding the maps after reading through these materials, please contact the Office of Research and Analytics.

2024-25 9% LIHTC QAP Map with 2025 Technical Amendments
2024-25 9% LIHTC QAP Map with 2025 Technical Amendment Data

Pending Applications & Funded Projects

Forms

Submitting an Application

Capital Needs Assessment Documents

Market Study Documents

Uniform Relocation Documents

Ancillary Programs

Post Award

Environmental Review

All projects receiving funding through OHTF, NHTF, 811, CDBG-DR, FHA Risk Share (via MLP), HOME-ARP or HOME must go through an environmental review process once awarded and before construction may commence. Any mitigations required must be completed before, during, or after construction, and evidence must be provided to OHFA. Details are available on Environmental Assessments and Review webpage.

10% Test

Rent Election

Closing

The goal of the legal team is to work with development partners to closing gap financing loans and grants awarded by the OHFA Board in an expedient manner. Before submitting the required documentation for closing, owners must have a fully executed Funding Agreement and/or Commitment Letter from the Office of Planning, Preservation, and Development.

Project Administration

Once a project has been approved by the board, and funding documents have been issued, it will transition to Project Administration.

Applicable Underwriting Guidelines By Year

Additional RC Documentation

8609 Request

Quarterly Construction Monitoring

OHFA monitors progress throughout construction. For more details please review Updates to OHFA Multifamily Construction Monitoring.

Submission of the OHFA Quarterly Construction Monitoring Form is required for 9% and 4% Housing Tax Credit and HDAP projects. The Report must be submitted on a quarterly basis beginning the first quarterly reporting period following OHFA Board approval through 100% construction completion. Reports are due January 1, April 1, July 1, and October 1 of each year until the project is placed in service. Outstanding submissions may impact a project's ability to receive future award funding and be reimbursed on a timely basis.

Applicable Design and Architectural Standards By Year
Clarifications to Design and Architectural Standards

HDAP Administration

The Office of Development's Project Administration team is responsible for overseeing Prevailing Wage Requirements, Environmental Review Process, Requests for Payments, construction monitoring and completing the Final Performance report.

Prevailing Wage

Developments receiving funding from OHFA may be subject to the Davis-Bacon Act or Ohio's prevailing wage law. The applicant will be responsible for compliance with any state and federal wage rates that may be applicable to the project. Appropriate wage rates must be factored into the applicant's construction budget.

Davis-Bacon Act

The Davis-Bacon Act may apply if the project receives HOME funding. Twelve or more HOME-assisted units in a development trigger federal Davis-Bacon wage rates.

State Prevailing Wage

Ohio prevailing wage law may apply if the project receives funding through the Ohio Housing Trust Fund or the National Housing Trust Fund. The ownership and number of units in the project will determine if the state prevailing wage law applies.

Requests for Payment

HDAP developments requesting a draw of funds must use the Request for Payment form provided below. Please note that all draws must be on an OHFA draw form and accompanied by the appropriate supporting documents.

In order to draw funds, your project must have closed with Legal, and you must have submitted an ACH Authorization, Signature Certification, and Signature Card to OHFA. Please note that the two signatures displayed on the card must match the individuals submitting a request for payment through DevCo.

Additional Requirements for HOME and NHTF

Contract Activity and Labor Standards Reporting

Projects which have been funded with HOME & NHTF dollars through HDAP will be required to submit a Notice of Contract Award (NOCA) and a Semi-Annual Labor Standards Enforcement Report (SALSER).

  • NOCA Form (55 KB Word File)
  • NOCA's must be submitted to OHFA with the first draw request.
  • SALSER must be completed annually.

Recipients should contact OHFA to obtain these forms.

Section 3

Starting with 2021 awards, all HOME and NHTF awards must complete documentation to comply with Section 3 requirements. Documentation, at minimum, includes: a) identifying the total hours, Section 3 hours and Section 3 targeted hours for all contractor employees working on the project monthly, b) identification of if the contractor has Section 3 business concern status, and c) to the greatest extent feasible, meet or exceed the benchmark goals.

For additional details on all Section 3 requirements review the Ohio Department of Development resource page. At minimum the following must be reviewed and utilized:

All Section 3 submissions to OHFA can be attached to the OHFA Quarterly Construction Monitoring Form. Contact your Project Administration Analyst with any questions.

Final Performance Report

All HDAP recipients must complete a Final Performance Report. The deadline for this report is noted in the funding agreement. However, housing credit projects which are completed in advance of the deadline must submit the Final Performance Report with their 8609 request.

Contact Information

Questions and correspondence regarding the 9% LIHTC program may be directed to:

Programming and Policy questions: QAP@ohiohome.org
Project-Specific Questions:
Application-Post Award: Your Assigned Development Analyst
During Project Administration (PA): Your Assigned PA Analyst
Development Division
Ohio Housing Finance Agency
2600 Corporate Exchange Drive, Suite 300
Columbus, OH 43231

Multifamily Housing Development Programs