On August 27th, the Oklahoma Housing Finance Agency released the draft application process for Affordable Housing Tax Credits. The Board of Trustees will consider the application at their meeting on September 23 at 10:00 am. These competitive credits provide equity to developers creating affordable rental housing to households earning 60% or below the area median income (A family of four in Oklahoma county would be limited to earnings of $38,700 or below and in non-metro counties $32,450).
Three changes for 2016 are substantial: changing set-asides, removing leverage, and adding state tax credits to the tie breaker formula. A few minor changes include expanding development location to include any community experiencing 2.5% growth over a 4-year period, adding an option for tobacco free policy or use of mold guard drywall in bathrooms, kitchen and laundry. Noted below is a summary of application changes.
Key Dates: January 7, 2016 and June 30, 2016 by 4:30 pm
Maximum Awards:
- $650,000 for all counties within the Oklahoma Affordable Housing Act (aka State Tax Credit),
- $750,000 for Cleveland, Oklahoma and Tulsa counties, or, all counties in the event there is a lack of State Tax Credits
Set-Asides:
- 15% Nonprofit or based on 2015 allocation this would be $1,337,928 (if not awarded in this set-aside will be considered in next requested)
- 50% New Construction or based on 2015 allocation $4,459,758
- 35% Acquisition/Rehabilitation or based on 2015 allocation $3,121,831
Threshold Criteria:
- Financing can include Plan B only in case State Tax Credits not available.
Selection Criteria:
- Preference for developments that set aside half of the development for households at 50% or below the area median income—household of 4, OK county $32,350 or rural $27,050
- Amenities criteria expanded to include Tobacco free policy for the building(s)
- Energy Efficiency criteria expanded to include use of mold guard drywall.
- Historic criteria requires at least 50% of the proposed development’s units must be located in the historic building. OHFA staff will confirm with the State Historic Preservation Office for eligibility.
Tie Breaker: Funded based on lowest Federal and State Tax Credits per unit.