Don't miss this month's Office of Program Compliance updates!

 

 

 

RC Modification Policy Update and Other Change Requests

 

The Office of Program Compliance at the Ohio Housing Finance Agency (OHFA) has revised several policies related to material project change requests. OHFA has revised policies related to both the qualified contract process and restrictive covenant change requests. With these policy updates, OHFA now requires that all requests for changes to properties be submitted to OHFAprojectchanges@ohiohome.org(including any changes in management company or owner).

 

Restrictive Covenant Modifications

 

The revised policy for Restrictive Covenant Modifications had many significant changes. The policy succinctly identifies options available to a property as they are considering changes to improve financial viability while maintaining long-term affordability. The major changes to the policy include the following:

  • Simplified submission requirements for the requests
  • Modification requests cannot alter the applicable fraction
  • Further defined and clarified the annual follow-up requirements for approved modifications
  • No longer accepting requests for multifamily covenant releases
  • Provided additional clarity regarding post release requirements
  • Lease Purchase sales are now conveyed through Partial Releases.
  • Lease Purchase sales must be submitted through the online sale form.
  • Updated the options available to owners if a lease purchase unit is not sold to qualified existing tenant

Qualified Contract Requests

 

This policy outlines the submission requirements, review process and OHFA's responsibility for Qualified Contract Requests. Starting with allocations after 1995, all owners waived the right to a qualified contract in new allocations. Owners should review the Restrictive Covenant, Placed in Service Date, 8609s and respective Qualified Allocation Plan (QAP) to determine whether the development is eligible for a qualified contract request.

 

The Restrictive Covenant Modification Policy and the Qualified Contract Policy are both effective March 5, 2018. The policies and all forms required for submissions related to these policies, as well as other change requests, are available on the Asset Management and Project Changes webpage. Concerns or questions regarding a particular change request must be submitted to OHFAprojectchanges@ohiohome.org. Any request or question submitted will be follow-up by staff in the Asset Management Office of Program Compliance.

 

Industry partners, including OHFA's Program Compliance Advisory Committee, were consulted and provided input in the revision of these policies. Questions regarding this message may be directed to Betsy Krieger, Director of Program Compliance.

 

 

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