Multifamily bond Program
The Multifamily Bond program (also known as tax-exempt bonds) is another tool OHFA uses to increase affordable housing opportunities for Ohioans. Through the issuance of tax-exempt mortgage revenue bonds, the program provides lower-cost debt financing for the acquisition, construction, and substantial rehabilitation of multifamily housing and single-family housing for low- and moderate-income residents. The program can be effective as a sole financial resource; however, many developers choose to combine tax-exempt bond proceeds with the Housing Tax Credits program.
Who Can Apply
Nonprofit and for-profit developers of affordable housing can apply for the Multifamily Bond program. A 501(c)(3) organization must wholly own all developments receiving funding. Because of the costs of issuing bonds, the Multifamily Bond program is most appropriate for developments that are larger in scale, usually exceeding 100 units in size. All potential users are advised to consult legal counsel for more on the specifics and benefits of bond financing.
How the Program Works
The program is essentially a low-interest construction/permanent loan program. OHFA issues tax-exempt bonds, and the proceeds from the sale of the bonds are used to fund construction loans and mortgage loans at below-market interest rates. In exchange for the benefits of the bonds, developments must meet federal and state restrictions on occupancy and the use of the proceeds from the bonds. For complete details about the program, please review the Multifamily Bond program Guidelines.
2013 Multifamily Bond Program Guidelines (670 KB Adobe PDF File)
Applying for the Multifamily Bond Program
All applicants must complete an Affordable Housing Funding Application (AHFA). The AHFA can also be used to apply for the Housing Tax Credit program, Housing Credit Gap Financing (HCGF), Housing Development Loan program, and Neighborhood Stabilization program. You may request the AHFA (in Excel format) on cd or by email by contacting the Office of Planning, Preservation and Development at 614.466.0400.
Questions concerning the Multifamily Bond program should be directed to:
Ohio Housing Finance Agency
57 East Main Street
Columbus, Ohio 43215