The Ohio Housing Finance Agency (OHFA) updated its Bond Gap Financing (BGF) Frequently Asked Questions document. The following questions and answers have been added:
Does LIHTC equity qualify for leverage points?
No, LIHTC equity does not count as a non-OHFA or non-federal funding source for purposes of the BGF Leveraging criterion. As the LIHTC program is administered by OHFA, LIHTC equity is considered an OHFA funding source for purposes of this criterion.
Does General Partner equity qualify for leverage points?
General Partner equity does qualify as a non-OHFA, non-federal funding source for this criterion. HOWEVER, any GP equity used for points in the Leveraging category will not count toward the 5% developer fee that must be deferred or put back into the development as a capital contribution if claiming the 25% developer fee, as described below and stated in the 2020 Qualified Allocation Plan (“Developer Costs and Fees”).
Non-Competitive HTC Developer Fee Calculation
“Developer fee shall be no more than 25 percent of the total acquisition, rehabilitation, and new construction eligible basis. The developer fee itself is not included in this calculation. Developer fees in excess of 20 percent must be deferred or put back into the development as a capital contribution and must be included in the sources of permanent financing. All cost containment must be satisfied inclusive of developer fee.”
OHFA also released is draft program year 2020 Community Development Block Grant – Disaster Recovery (CDBG-DR) Action Plan for comment. Comments should be submitted to CDBG-DR@development.ohio.gov by August 9.
