LIHTC program policies are outlined in the Qualified Allocation Plan (QAP)
Competitive 9% Housing Tax Credit Program
Developers constructing or rehabilitating affordable housing statewide can apply for an allocation of 9% Housing Tax Credits. Due to the demand for 9% credits, OHFA typically funds only 25 to 30 percent of all applications submitted. In addition, because of the cost of applying for the program and the extensive compliance requirements, the program is best suited for rental housing developments with 25 or more units.
Non-Competitive 4% Housing Tax Credit Program
Developers constructing or rehabilitating affordable housing statewide can apply for an allocation of 4% Housing Tax Credits. The Internal Revenue Code (IRC) requires that developments awarded 4% Housing Tax Credits must utilize multifamily bonds financing for more than 50 percent of the total project cost.
When used with the 9% LIHTC, HDAP funds are referred to as housing credit gap financing. Program requirements are found in OHFA’s Qualified Allocation Plan
Bond Gap Financing (BGF)
Developers using non-competitive (4 percent) credits in conjunction with multifamily bonds may compete for HDAP funds in the BGF round. Program requirements are found in the most current BGF Guidelines.
Developers seeking to construct or rehabilitate small, multifamily housing developments (including fewer than 25 units) and not seeking Housing Tax Credits may compete for HDAP funds in the HDGF round. Program requirements are found in the most current HDGF Guidelines.
The Housing Development Loan (HDL) program provides short-term, low-interest loans to developers who have an award of housing credits through either the competitive (9 percent) Low-Income Housing Tax Credit round or the Bond Gap Financing (BGF) round. Funding comes from the Ohio Department of Commerce, Division of Unclaimed Funds. Program requirements are found in the most current HDL Program Guidelines.
The Multifamily Lending Program (MLP) provides long-term, permanent financing for multifamily rental housing developments that serve low- to moderate-income residents. It is ineligible to be used during construction. For proposed MLP loans that do not involve Low-Income Housing Tax Credits (LIHTC), developers/owners that are new to OHFA must partner with an organization with whom OHFA has an established and satisfactory relationship.
Rent and income restrictions that mirror the LIHTC program are required during the term of the loan. All other LIHTC compliance monitoring rules also apply. Strong preference will be given to organizations with considerable and successful experience with OHFA programs and that have sufficient staff capacity, substantial financial resources, and excellent credit history.
AHP can be used to fund both ownership and rental projects. Grants are awarded on a competitive basis in one offering each year. Applications are typically accepted between June and August, with awards in November.
HUD provides capital advances to finance the construction, rehabilitation, or acquisition with or without rehabilitation of structures that will serve as supportive housing for very low-income elderly persons, including the frail elderly and provides rent subsidies for the projects to help make them affordable.
Through the Section 811 Supportive Housing for Persons with Disabilities program, HUD provides funding in the form of Capital Advances to nonprofit sponsors for the purpose of developing rental housing with the availability of supportive services for very low- and extremely low-income adults with disabilities.
The Community Reinvestment Area (CRA) Commercial Abatement program offers a partial property tax abatement to companies and developers building or renovating a residential, commercial, industrial, or mixed-use facility in cases where the new or renovated facilities will result in job creation.
NOFA is a public gap financing tool that leverages private financing to develop quality housing throughout the city. Through NOFA, DCED provides subordinated, fixed-interest, long-term loans for up to 40% of total project cost, up to $1 million. Program participants must secure the remainder of project financing prior to the submission of a NOFA loan application. Applicants must also provide an equity commitment of at least 5% of total project cost to be eligible for NOFA.
Tax Increment Finance Districts are a tax increment structure that blankets a larger number of sites, typically centered on neighborhood business districts. The increment collected in these districts can be used to make public improvements that benefit or serve the district in which the increment was collected. Presently, the City of Cincinnati has 35 tax increment districts in 21 neighborhoods. In accordance with Ordinance 206-2020 passed by City Council on June 24, 2020, 25% of funds within TIF districts are to be used for affordable housing projects. The city has 35 tax increment districts.