State Housing Council Approves 60-Year Affordability Term

The State Housing Council voted in favor of approving OHCS’ proposed 60-year affordability term. Beginning with the 2012 Consolidated Funding Cycle (CFC), owners of rental properties that receive any OHCS grant of loan funds (excluding those with only bond or 4% LIHTC financing) will be required by a deed restriction to maintain the property as affordable for the full 60 years. Owners with properties that have expiring rental assistance contracts will also be required to apply for and accept, if approved, renewals. The initial proposal included the possibility of a buyout after year 40 or 50, but OHCS removed the provision prior to the council vote. Instead, in cases where legitimate factors make the full term infeasible, an owner may apply for an exception or modification. The OHCS director will review all such requests, while the State Housing Council would hold final approval authority. Click here for a summary from the OHCS Director’s Bulletin or click here for the State Housing Council meeting minutes.

— Posted on 2/28/2011