OHFA one of first to receive funding from HUD and the Treasury Department for affordable housing initiatives

COLUMBUS, OH - May 26, 2009 - (RealEstateRama) — The Ohio Housing Finance Agency (OHFA) was recently among the first to be awarded funding from the U.S. Department of Housing and Urban Development (HUD) and the U.S. Department of Treasury under programs created through the American Recovery and Reinvestment Act (ARRA). The Agency will receive $83 million from HUD’s Tax Credit Assistance Program (TCAP) and $21 million from the Treasury Department as part of the Tax Credit Exchange (TCE) program. Both programs will allow OHFA to further establish affordable housing across the state.

“Funding safe, affordable housing is important to revitalizing Ohio’s housing industry,” said Ohio Governor Ted Strickland. “Not only will this help us increase the number of affordable housing units, but we can stimulate the economy through jobs in construction and rehabilitation of these housing communities.”

OHFA will apply the $83 million TCAP as low-interest loans or grants to developers who are awarded Housing Tax Credits in 2007, 2008 or 2009. To be eligible to receive funding, developers must have an investor for their tax credits secured, as these funds are intended to fill financing gaps left by lower equity investment.

Through the TCE program, OHFA applied to turn 10 percent of the Agency’s yearly allotment of Federal Housing Tax Credits into grant dollars to provide greater financial support to developers who have found it increasingly difficult to secure investors. OHFA will distribute grants to developments awarded credits in 2007, 2008 or 2009. In addition, the Agency has the authority to exchange any credits returned from 2007 and 2008 recipients to aid other developers.

“These programs will allow us to assist developers who are experiencing difficulties securing an investor or are receiving lower returns on current tax credits,” said Doug Garver, Executive Director of the Agency. “The future of affordable housing development in Ohio relies on these programs. Without them, many families would not have a safe, affordable place to call home.”

Information about how to apply for this funding will be available within the next few weeks at www.ohiohome.org.

OHFA utilizes federal and state resources to provide housing opportunities for families and individuals through programs designed to create, preserve, and manage affordable housing throughout the State of Ohio. The Agency is a self-supporting quasi-public agency governed by an eleven-member board, nine of whom are appointed by the Governor and confirmed by the Senate. Two additional seats on the board, by statute, are reserved for the Director of Development and the Director of Commerce, or their designees, and both serve as ex officio voting members.

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Media Contact:  Erin Biehl, ebiehl (at) ohiohome (dot) org
614.387.2863 (office) or 614.307.3772 (cell)

Tagged as: ARRA, HUD, OFHA, TCAP, TCE

 

 

 

 

USGBC - U.S. Green Building Council

HUD - U.S. Department of Housing and Urban Development

NAR - National Association of REALTOR

RealtyTrac

FHFA - Federal Housing Finance Agency

Freddie Mac

MBA - Mortgage Bankers Association