Ohio started accepting applications for the new Single Family Housing Tax Credit Program last month. The Single Family Housing Tax Credit from Ohio offers $50 million a year for four years to boost affordable housing in the state. The last date to apply for the credit is April 5.
Single Family Housing Tax Credit from Ohio: what is it?
Gov. Mike DeWine approved the Single-Family Housing Tax Credit from Ohio in the most recent state budget. The program uses public-private partnerships to boost the stock of affordable, single-family housing for the state’s growing workforce.
Applications for the program will be accepted by the Ohio Housing Finance Agency (OHFA) until 4 p.m. on April 5. The program offers $50 million annually for four years to bridge the financing gap to develop or substantially rehabilitate housing in the state. Projects that come into existence on or after July 1 will qualify for the new credit.
Each eligible project could receive a credit of up to $50,000 per dwelling. The credit will be issued at the completion of the project. Eligible projects will be able to claim the credit annually over a 10-year period with an annual amount totaling one-tenth of the total approved credit.
The credit amount is the difference between the total development cost of the project and the market value of all dwellings that are part of the project.
Affordable housing is a major concern for state lawmakers, and they are hopeful that the Single Family Housing Tax Credit will go a long way to address the issue.
Last year, a report from the COHHIO (Coalition on Homelessness and Housing in Ohio) and NLIHC (National Low Income Housing Coalition) stated that 448,000 extremely low-income households in the state are facing a shortage of about 270,000 affordable and available rental units. In other words, there are just 40 affordable units for every 100 households.
Who can apply?
Application for projects must include at least five single family dwellings to be constructed or blighted structures. The dwellings could be contiguous or “scattered” and each dwelling must have at least two bedrooms and one and one-half baths.
Moreover, each dwelling must be sold to a qualified buyer who meets the program’s requirements. The buyer must use the dwelling as their primary residence. Also, the sale price of the dwelling must be affordable, i.e., not more than 30% of the buyer’s monthly income, and the price should remain affordable for ten years after the initial sale.
Visit the OHFA website or email [email protected] to get more information on the Single Family Housing Tax Credit from Ohio.
You can also attend the webinar that the Ohio CDC Association and Ohio Conference of Community Development are co-hosting on the Single Family Housing Tax Credit from Ohio. The webinar is scheduled for March 18, 2024 at 2:00 p.m. Visit this link to register for the webinar.
