In response to the four percent LIHTC rate fix, developers may request an extension of the final application deadline of January 7, 2021 for Ohio Housing Finance Agency’s (OHFA) 2020 Bond Gap Financing Round (BGF) by contacting their assigned BGF analyst.  

OHFA will allow extensions through February 1, 2021. However, extensions beyond this date will be considered by OHFA on a case–by–case basis and approved only if compelling need for a further extension can be demonstrated.  

Increases in LIHTC equity may be handled in the following ways: 

  • Reduction/recapture of Housing Development Assistance Program funds; 
  • Reduction/recapture of Housing Development Loan funds;  
  • Increases in project scope; and 
  • Deeper rent and income targeting. 

OHFA will work to review and respond quickly to requests, but please note that these requests will be processed as time permits. 

Four Percent Only Projects (without BGF)
For four percent only projects that have completed the LIHTC review, whether or not a 42(m) letter has been issued, are eligible to realize more LIHTC equity so long as the tax–exempt bonds have not been issued. To request re-evaluation, please call Karen Banyai, operations manager, at 614-752-4185.  

For those projects that have already been issued a 42(m) letter, OHFA does not intend to reissue 42(m) letters. However, OHFA will accommodate requests for a supplemental letter acknowledging that the agency has performed a preliminary review and an anticipated new credit allocation amount due to the four percent rate minimum floor. The new credit allocation in the letter will be based on the locked in four percent rate and the eligible basis submitted with your final application. The final allocation amount is, as it has always been, subject to change at re-underwrite at 8609.  

For those projects that have received their final underwrite, but have not yet been issued a 42(m) letter, OHFA will issue the 42(m) letter based on the locked in four percent rate and the eligible basis submitted with your final application upon request. The final allocation amount is, as it has always been, subject to change at re-underwrite at 8609.  

OHFA will work to review and respond quickly to requests, but please note that these requests will be processed as staff time permits. 

Things to remember 

  • Projects that have been issued a 42(m) letter and have already issued tax exempt bonds are ineligible per the legislation.  
  • For projects that have received Final Bond approval from the OHFA Board, and the bond amount will increase due to the four percent rate lock, Board approval may be required again. 
  • For developers whose applications proposed a developer fee of 25 percent for purposes of generating additional eligible basis, the developer fee must now be capped at 20 percent.  
  • All competitive, threshold and underwriting criteria are still applicable.