Oklahoma Housing Finance Agency Affordable Housing Programs

Affordable Housing Programs Affordable housing programs have one fundamental function – to cover the difference between the cost of developing, owning and operating the housing and the amount low or moderate income households can afford to pay. Over time, a number of mechanisms have been used to close the gap. Some reduce the cost of production and some the cost of financing. Others are designed to supplement a household’s ability to pay for the housing.

What OHFA Does The Oklahoma Housing Finance Agency (OHFA) is a nonprofit public trust that provides affordable housing financing resources and guidance to developers/builders and homebuyers/renters. OHFA does not build, own or manage affordable housing; we finance it.

Resources Our resources are primarily federal funds where we have been designated administrator of those monies by the federal government. Developers/Builders Affordable Housing Tax Credits Tax Exempt Bonds and 4% Tax Credits HOME Investment Partnerships Program Oklahoma Housing Trust Fund National Housing Trust Fund Homebuyers/Renters Single Family Mortgage and Down Payment funds Section 8 Rental Assistance

Affordable Housing Tax Credits Federal Ten Year Tax Credits for profit and not for profit developers to create affordable rental housing (not for homeownership) Families at 60% AMI or below Restricted rents based on bedroom size Can be used for new construction or rehabilitation, single-family or multifamily Units must remain affordable for 30 years plus Equity, not debt An IRS Program, not a HUD Program

Tax Exempt Bonds/4% Tax Credits At least 50% of the development must be financed with tax-exempt bonds, subject to the private activity bond cap OHFA must be the issuer and applicants must use the OHFA-selected team of bond professionals. Any substitution must be approved by OHFA, and the fees cannot exceed those of OHFA’s professionals. Two stage application process: -Inducement -Final

Oklahoma Housing Trust Fund Can be used for: New construction rental or homeownership units Acquisition/rehabilitation or conversion Housing infrastructure For profit and non-profit entities Almost $5 million in program funds Up to 65% may go to rural areas and no less than 35% to Oklahoma and Tulsa Counties No loan limit – only limited by how much is available at the time 100% LTV Non-recourse

Oklahoma Housing Trust Fund (cont.) 24 month construction loans 2% interest rate Must meet income requirements / 80%-120% AMI Three year period of affordability $500 non-refundable application fee

National Housing Trust Fund (new) Can be used for: New construction of rental units Acquisition/Rehabilitation of rental units Operating reserves up to $350,000 Must serve Extremely Low-Income families at 30% of AMI or less No interest, forgivable loans $3 million annually in program funding

Contact OHFA for more information or if you have questions. www.ohfa.org Darrell Beavers, Housing Development Team Leader darrell.beavers@ohfa.org or 405-419-8261 Darcy Green, Housing Development Team Program Supervisor darcy.green@ohfa.org or 405-419-8145

New Page -Oklahoma City -128 units (68 in new-60 in historic building) -2 Buildings, 1 historic rehabilitation – 1 new construction $1,500,000 in LIHTC + $21,000,000 MF Bonds $32,000,000 total Development costs 9,778,538 LIHTC equity 3,578,016 Federal Historic Credits equity 3,439,215 State Historic Credits equity 5,650,000 TIF from Oklahoma City Redevelopment Authority 7,350,000 Freddie Mac TEL Loan-MF Bond amount to be permanent 2,204,231 Deferred Developer fee