OHCS Proposes 60-Year Affordability Requirement for Most Programs

OHCS recently released a proposal to adopt a new 60-year standard term of affordability for projects receiving grant and/or loan funds through future CFCs, RFPs, and all other application processes. Currently, terms of affordability for OHCS programs range from 10 to 30 years. The new 60-year standard would feature a buyout clause allowing the property owner to end the affordability period at 40 or 50 years, but the owner would be required to pay back the entire grant or loan amount, with interest, in such cases. If approved, the proposed changes would apply to projects receiving tax credits, grants or loans from OHCS, excluding those with only bond financing or 4% LIHTCs.

The proposal comes after a year-long look at policies adopted by other states and localities. OHCS will present the proposal at the State Housing Council meeting on January 21, with action and additional discussion to take place at a future date. Public comment is requested no later than January 31. Click here for the full proposal and further details on commenting.

— Posted on 1/13/2011