OHFA released a proposed amendment to the 2017 Qualified Allocation Plan last week and will continue to accept public comments on the draft through February 6, 2016.
The amendment is proposed to provide support for projects which received an allocation in 2016 but are now no longer financially feasible due to changes in the equity market. Changes include:
- Setting aside $4,590,000 of the 2017 total allocation amount for 2016 projects facing financial challenges. Developers will be limited to receiving an additional 15% of their original allocation.
- Projects receiving additional credits will not be required to maintain commitments for points in the “Leveraging”, “Credits Per Affordable Unit”, or market rate incentive scoring categories.
- Owners must agree to defer a portion of the developer’s fee in accordance with a particular schedule.
- 2017 pools will be reduced proportionately.
- Per developer and per application credit limits for 2017 would be increased by 10%.
Feedback can be directed to [email protected] or can be delivered at the public hearing on January 25, 2017, at 10:30 in the Roger McCauley Board Room at OHFA’s offices.
If approved, new AHFA and Competitive Workbooks will be released incorporating revised pool caps and other updates. Interested applicants may continue to use the existing AHFA for planning purposes only, but the updated form will be mandatory at initial application. Further information will be released immediately following OHFA’s February Board Meeting.
If the amendment is not approved, OHFA staff will seek approval to extend the program calendar only, to provide our partners sufficient time to prepare an application in the required time frames.
