The Multifamily Lending Program (MLP) provides long-term, permanent financing for multifamily rental housing developments that serve low- to moderate-income residents. It is ineligible to be used during construction. For proposed MLP loans that do not involve Low-Income Housing Tax Credits (LIHTC), developers/owners that are new to OHFA must partner with an organization with whom OHFA has an established and satisfactory relationship.
Rent and income restrictions that mirror the LIHTC program are required during the term of the loan. All other LIHTC compliance monitoring rules also apply. Strong preference will be given to organizations with considerable and successful experience with OHFA programs and that have sufficient staff capacity, substantial financial resources and an excellent credit history.
There are three loan categories under the MLP:
- New LIHTC MLP loans, which work in conjunction with the LIHTC program by coupling the MLP with projects receiving a new allocation of 4% or 9% tax credits, for both new construction/adaptive reuse and the rehabilitation of existing units. New LIHTC loans cannot be paired with lease purchase developments.
- Existing LIHTC MLP loans, which are targeted toward existing developments previously funded under the LIHTC program and are between Year 10 and Year 20 of their compliance or extended use period, have minimal capital needs and no uncorrected non-compliance issues. These loans are intended for developments that would benefit from refinancing/restructuring their existing debt/partnership obligations, and would remain affordable for the balance of their Extended Use periods. Any significant capital needs identified in the Capital Needs Assessment must be addressed to OHFA's satisfaction prior to closing.
- Choice MLP loans, which are directed toward unique developments that help to meet OHFA's goals in achieving its affordable housing policy objectives, but are not coupled with the LIHTC program.
Available funding comes from OHFA reserves and recycled Tax Credit Assistance Program (R-TCAP) funds. MLP may be used in conjunction with the following programs:
- Housing Development Assistance Programs – Bond Gap Financing
- Housing Development Loan Program
- Housing Tax Credit Program
The MLP is ineligible to be coupled with the Housing Development Gap Financing program. If the MLP is used in conjunction with housing credits and the Housing Development Loan (HDL) Program, the only acceptable source of collateral for the HDL after construction is Qualified Investor Notes.
MLP Forbearance Initiative
On April 15, 2020, the OHFA Board of Directors, approved a short-term initiative designed to assist OHFA MLP borrowers facing potential economic hardship due to the COVID-19 pandemic. Borrowers who wish to seek temporary forbearance should submit the request letter, amendment to the loan agreement and the amendment to the promissory note to David Foust, Multifamily Lending Manager, at email@example.com. Please submit a separate email for each project for which forbearance is being requested. Please label the subject line of the email to read "[PROJECT] MLP Forbearance Request".
- MLP Loan Forbearance Request Letter (17 KB Word File)
- MLP Forbearance Amendment to Loan Agreement (25 KB Word File)
- MLP Forbearance Amendment to Cognovit Promissory Note (27 KB Word File)
- 2021 Multifamily Lending Program Guidelines (1.59 MB Adobe PDF Files) New
- 2020 Multifamily Lending Program Guidelines (429 KB Adobe PDF Files)
- 2019 Multifamily Lending Program Guidelines (445 KB Adobe PDF Files)
- 2018 Multifamily Lending Program Guidelines (9.91 MB Adobe PDF Files)
Questions and correspondence regarding the MLP may be directed to:
Ohio Housing Finance Agency
57 East Main Street
Columbus, Ohio 43215