NCSHA 2016 Housing Credit Connect NATIONAL HOUSING TRUST FUND June 15, 2016

Governor Kasich sent designation letter to HUD on February 8, 2016 The Ohio Development Services Agency (ODSA) will administer NHTF funds The Ohio Housing Finance Agency (OHFA) will allocate the NHTF funds Final funding availability is ≈$174M nationwide, $3.74 M in Ohio NHTF ALLOCATION IN OHIO

25 PUBLIC FORUM February 2016 PUBLIC ENGAGEMENT PROCESS 24ADVISORYGROUP24ADVISORYGROUP MARCH ADVISORY GROUP 26 APRIL 2016 APRIL ADVISORY GROUP 19 MAY 2016 MAY SOFTRELEASE JUNE PUBLIC COMMENT JUNE PUBLIC HEARING JUNE 2016

State and Local Government Advocacy Organizations Developers and Owners Property Managers Syndicators, Investors Open Invitation, actively encouraged additions Advisory Group Members

In the first session, the Advisory Group identified three broad objectives. In the second session, subcommittees made strategic recommendations on how to execute these goals. From Idea to Implementation Achieving lower rents in tax credit properties Provide capital dollars to support small, non-LIHTC multifamily developments Preserve existing housing by leveraging 4% credits HDAP framework to provide capital in non-LIHTC deals HDAP framework to reduce hard debt in bond transactions HDAP framework + operating subsidy

Funded through a combination of Ohio Housing Trust Funds and HOME dollars, HDAP assists with the costs of developing or preserving affordable housing by providing essential gap financing. Three distinct programs exist: Housing Credit Gap Financing (9%), Bond Gap Financing(4%), and Housing Development Gap Financing (Non-LIHTC). As a scarce resource, funding rounds are highly competitive. What is Housing Development Assistance Program (HDAP)?

Funding is available in the maximum amounts set forth below, based on project need. All NHTF developments must set aside 10% (or 5) units to be affordable for households at 30% AMI. If also receiving traditional HDAP funds, must continue to set aside 40% of units affordable at 50% AMI. HDAP OnlyHDAP + NHTFNHTF Only Bond Gap$1,000,000$1,500,000$750,000 Non-LIHTC$500,000$750,000 NHTF Award Maximum Funding Amounts

Reducing hard debt enables developers to offer lower rents Modeling off an existing program provides greater likelihood of success Increasing volume cap utilization in 4% is a collateral objective Working within HDAP provides predictability to development community Targeting ELI generally without a subset population allows local tailoring May look to build off emerging fields: 811, green infrastructure, etc. Operating subsidies are desirable but costly given small Year 1 award Benefits

Experience, Capacity, and Feasibility as threshold requirements Scoring CategoryPtsPoint Breakdown Rent Affordability in Addition to Minimum Requirements 3030 Pts – Additional 10% units affordable at 30% AMI/FPL 20 Pts – Additional 5% units affordable at 30% AMI/FPL Geographic Diversity3030 Pts – Opportunity Index Rating “Very High” 20 Pts – Opportunity Index Rating “High” 10 Pts – Opportunity Index Rating “Moderate” Affordability Leveraging2020 Pts – Commitment of one of the following:  Section 8 or Rural Development Rent Subsidy  New Units with 811 Rent Subsidy Local Leveraging105 Pts – >50% Financing is from non-federal sources 5 Pts – Project does not request OHTF/HOME HDAP Duration of Affordability Period 1010 Pts – Budget demonstrates positive or breakeven cash flow through year 30

Tiebreakers designed to underscore core objectives, avoid over complicating. Seeking Ohio 811 Project Rental Assistance Program rental subsidy Receive the most points under the Geographic Diversity category Most units affordable at or below 30 percent AMI/FPL Offering units with 3+ bedrooms that are affordable at 30 percent AMI/FPL Tiebreakers

Received many strong suggestions that will be revisited in the coming years, particularly when the program is more fully funded: Operating Subsidies Pilot Programs for Transition Aged Youth TBD, continue public engagement KEEPING ON THE TABLE

Send comments at any time to Visit OHFA’s NHTF webpage: HUD’s NHTF Exchange webpage: COMMENTS AND ADDITIONAL INFORMATION

PRESERVE EXISTING AFFORDABLE HOUSING AT RISK OF NO LONGER BEING AFFORDABLE PROMOTE HOUSING OPPORUNITIES FOR SPECIAL NEEDS & UNDERSERVED POPULATIONS IMPROVE NEIGHBORHOODS THROUGH COMMUNITY & ECONOMIC DEVELOPMENT CREATE HOUSING OPPORTUNITIES & A RANGE OF HOUSING CHOICES ADVANCE LIVABILITY STANDARDS & SUSTAINABLE BUILDING PRACTICES