Tuesday, March 13, 2012

OHFA issues RFP for study of affordable housing tax credits

The Ohio Housing Finance Agency (OHFA) has issued a request for proposals (RFP) for an economic impact study of the Ohio Low-Income Housing Tax Credit program.

OHFA is interested in learning the short- and long-term return on investment to state and local government generated by the program – specifically in terms of employment, tax revenue, and other value added – and what economic investments would not have occurred without its application.

The Housing Tax Credit program is an annual tax incentive program designed to increase the supply of affordable rental housing by offsetting developers' costs of acquiring, rehabilitating, or constructing new residences to be occupied by low- to moderate-income individuals and families.

The amount of credits awarded depends on the total development cost to be financed. Developers sell the credits to investors to raise funds to help cover their costs, and the individual or corporate investors can subtract the amount of the credit from their federal income taxes.

In exchange for the credits, developers are required to maintain income and rent restrictions for 15 years.

Since 1987, OHFA has used the program to facilitate the development of more than 87,400 affordable rental housing units in the state.

Locally, credits have been awarded to such projects as the Abigail Apartments, Dana Hotel and North Rhine Heights in Over-the-Rhine; St. Paul Village I and II in Madisonville; the Grand Development Initiative in East Price Hill; the Anna Louise Inn, Downtown.

Proposals are due no later than 4 P.M. on April 2. The OHFA board will select the winning firm on May 16, and the four- to six-month study is scheduled to begin on June 1.

Previous reading on BC:
More than $3.4M awarded for Ohio affordable housing development, assistance (3/17/11)
OHFA awards $2M in affordable housing tax credits to Anna Louise Inn, North Rhine (7/5/10)
$1.76M HOME loan to aid St. Paul Village rehab (6/23/10)
Two Cincinnati projects win federal tax credits (7/7/09)
Model Property Development seeking federal funds for fourteen-building rehab (7/3/07)