Low Income Housing Tax Credits & Preservation in Ohio, 2016-17

Ohio's 2016-17 Qualified Allocation Plan (QAP) includes seperate pools for new construction and preservation. The Ohio QAP also awards point incentives for preservation.

Set-Asides

Ohio’s 2016-17 QAP has a funding target of $4 Million for proposed developments located in an urban county and involving acquisition and substantial rehabilitation of multifamily housing developments with HUD subsidies.

Ohio also has a $3 Million funding target for proposed developments located in non-urban counties and involving acquisition and substantial rehabilitation of multifamily housing developments with HUD or USDA-RD subsidies.

Point Incentives

Preservation projects are eligible for up to 20 development based points. 5 points are awarded for each of the following criteria:

  • Developments in which a financially troubled asset will be acquired by an applicant who will serve as the owner/ manager for the entire period of compliance.
  • Developments that have been maintained through good management but contain major components that are past their effective useful life. Major components shall refer to the following: structural integrity, building envelope, roof and site drainage, plumbing and sanitation systems, mechanical systems, electrical systems, elevators, and parking surfaces.
  • Developments that have been acquired by the applicant for the purpose of rehabilitation and for which the as-is condition does not meet Uniform Physical Condition Standards (UPCS) and/or the most current REAC score endangers sustained operations under a federal assistance program. Dwelling unit and common area inspection findings must include three or more life threatening health and safety deficiencies.
  • Developments which have a significant risk of conversion to unregulated (market) use.

Ohio’s 2016-17 QAP also offers up to 15 points for projects that will preserve federal subsidies, based on the percentages of units with existing subsidy. 15 points for 95-100% or 50 units, 13 points for 85-94% or 40 units, 10 points for 75-84% or 30 units.

Points are awarded separately for the rural preservation pool. Up to 10 points are awarded to projects that preserve HUD or USDA subsidy. 10 points for projects where 80-100% of the units have subsidies, 8 points for 60-79, 6 points for 25-59%

5 points will be awarded to projects that the Ohio USDA Rural Development office has designated as priorities.

Extended-Use

All developments must commit to an extended use period of a minimum of 30 years of affordability at the time of application. If an allocation of housing tax credits is awarded, the owner must file a Restrictive Covenant (provided by OHFA), which waives the right of the owner to petition OHFA to have the extended use period terminated.

Basis-boost

Developments in the preservation pools that earn 30 points for State Preservation Priorities are eligible for the 130% basis boost.

Distressed Communities

Ohio’s 2016-17 QAP also offers up to 10 points for exceptional developments. Of the multiple categories, 3 points are offered for projects integrating land use and economic development strategies that will lead to economic investment in areas in need of revitalization. Preference to projects that:

  • Create new housing opportunities through redevelopment of abandoned or deteriorated commercial or industrial buildings and/or sites
  • Streetscape and infrastructure improvements that improve pedestrian access and safety
  • Enhance access to public transit in areas that are lacking adequate service

Ohio’s 2016-17 QAP also offers up to 20 location-based points for preservation projects. Each criteria offers 5 points:

  • Developments located in a county where 30 percent or more of households experience one or more housing problems, as defined by reference to the 2016 Ohio Housing Needs Assessment (see Exhibit 4-5 Prevalence of Housing Problems). Households with housing problems include those that (1) occupy substandard units, (2) are overcrowded, and/or (3) have a cost burden of greater than 30 percent of annual median income for gross housing costs. A list of eligible counties will be made available on the OHFA website.
Contributed By: 
National Housing Trust

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