Multifamily Bond Program, Ohio

Through the issuance of tax-exempt mortgage revenue bonds, Ohio Housing Finance Agency’s Multifamily Bond program (also known as tax-exempt bonds) provides lower-cost debt financing for the acquisition, construction, and substantial rehabilitation of multifamily housing and single-family housing for low- and moderate-income residents. The program can be effective as a sole financial resource; however, many developers choose to combine tax-exempt bond proceeds with the Housing Tax Credits program.

Nonprofit and for-profit developers of affordable housing can apply for the Multifamily Bond program. A 501(c)(3) organization must wholly own all developments receiving funding. Because of the costs of issuing bonds, the Multifamily Bond program is most appropriate for developments that are larger in scale, usually exceeding 100 units in size. All potential users are advised to consult legal counsel for more on the specifics and benefits of bond financing.

The program is essentially a low-interest construction/permanent loan program. OHFA issues tax-exempt bonds, and the proceeds from the sale of the bonds are used to fund construction loans and mortgage loans at below-market interest rates. In exchange for the benefits of the bonds, developments must meet federal and state restrictions on occupancy and the use of the proceeds from the bonds.

Contributed By: 
National Housing Trust

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