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.


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.


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.


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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