OHIO HOUSING FINANCE AGENCY | SPRING 2015 NEWS INDEX Page 1 Message from the Executive Director Page 2 Starting at Home Conference Encourages New Alliances 2016 – 2017 Qualified Allocation Plan Page 3 Ohio 811 Project Rental Assistance Program Page 4 NIP Update: Successes Start Early Page 5 Shale Drilling and Housing Program Compliance Update Page 7 Lender Spotlight – Huntington Mortgage Group Page 8 Grand Openings and Ground Breaking Page 9 Employee of the Quarter Service Milestones WAYS TO KEEP IN TOUCH: JOIN OUR EMAIL LIST: MESSAGE FROM THE EXECUTIVE DIRECTOR With spring’s arrival, we feel great optimism for the future of affordable housing, and in the Ohio Housing Finance Agency’s (OHFA) role as the state’s affordable housing leader. The Agency’s activities over the last quarter have offered a fresh look at familiar programs and initiatives in order to provide more value to our partners and more options for working with OHFA than ever before. The Agency’s first two-year Qualified Allocation Plan continues to benefit from input provided by our stakeholders, with staff taking great care to incorporate many recommendations from those who attended public hearings in March and April. A third draft is expected in May. Please check our website for details. Last month, the Department of Housing and Urban Development awarded OHFA $11.9 million to support an innovative housing initiative. The Ohio 811 Project Rental Assistance program allows extremely low-income persons with significant and long-term disabilities to live independently in affordable housing linked to voluntary support services. Owners and consumer groups will want to attend OHFA-led training in late summer for the program’s start in early 2016. Read about Ohio 811 on page 3. The Agency was also awarded $470,535 through the National Foreclosure Mitigation Counseling (NFMC) program to continue the availability of foreclosure counseling and prevention services. The NFMC program, created by Congress in 2007, is designed to help homeowners at risk of foreclosure by connecting them to trained counselors. The program is administered by NeighborWorks America, an independent, congressionally chartered nonprofit organization based in Washington, D.C. The funds will enable trained housing counseling agencies to provide approximately 1,800 counseling sessions to Ohio families struggling to pay their mortgages. The Neighborhood Initiative Program (NIP), launched a year ago, has proven itself as a valuable resource to 21 land banks across the state. The $60 million investment to stabilize home prices and improve local landscapes is projected to remove 5,000 dilapidated structures in three years. The feature on page 4 illustrates OHIO HOUSING FINANCE AGENCY | SPRING 2015 NEWSLETTER what a difference the NIP has made in many Ohio communities. The current OHFA advertising campaign is attracting hundreds of new visitors to the First-Time Homebuyer website — myohiohome.org. Last month, more than 85 percent of the traffic was new! OHFA digital ads appear on Facebook, Google, Zillow.com and Realtor.com. We also have radio ads running on WNCI 97.9 FM, WBWR 105.7 FM and WZCB 106.7 FM in the Columbus market. If you haven’t seen the TV spot we produced in-house to promote the First-Time Homebuyer program during OHFA’s spring advertising campaign, please visit OHFA’s YouTube channel to view the commercial. You may have already seen the spot during Columbus Blue Jackets broadcasts on Fox Sports Ohio, but they’ll also appear in Cincinnati Reds broadcasts, beginning May 7. US Bank, which services OHFA’s First-Time Homebuyer loans, has added the servicing of OHFA’s Next Home government loan. The favorable interest rate pricing has resulted in renewed attention to this mortgage for low- and moderate-income Ohioans shopping for their next residence, who also need down payment and closing cost assistance. Along with our current ad campaign, it’s another reason OHFA’s homeownership programs continue to trend upward as 2015 unfolds and why we’re happy to introduce a new “Lender Spotlight” feature on page 7. We’re encouraged that our first research-based housing conference, Starting at Home, has attracted a capacity crowd. The two-day event is April 29 and 30 and features philanthropists, researchers, policymakers and politicians to guide future partnerships in affordable housing. Finally, we welcome the return of Alan F. Scott to the OHFA Board. He was one of three founding principals of the NRP Group, one of the nation’s largest multifamily and Low Income Housing Tax Credit developers. We will certainly benefit from his considerable experience and passion for affordable housing. PAGE 1 OHIO HOUSING FINANCE AGENCY | SPRING 2015 NEWSLETTER STARTING AT H OME CONFERENCE E NCOU RAGES NEW ALLIANCES ARLYNE ALSTON — DIRECTOR OF COMMUNICATIONS AND MARKETING Using Philanthropy, Research, and Practice to Build a Better Ohio The Ohio Housing Finance Agency (OHFA) joins the Ohio Capital Corporation for Housing (OCCH) to present Starting at Home: Using Philanthropy, Research and Practice to Build a Better Ohio. The two-day conference takes place on Wednesday, April 29 and Thursday, April 30 at the Renaissance Columbus Downtown Hotel. “This conference is truly the first of its kind in that we will bring together people from all walks of life who are passionate about affordable housing – from philanthropists and researchers to policymakers and politicians – to set an interdisciplinary agenda that will guide future partnerships,” said OHFA executive director Doug Garver. “Research shows that affordable housing is a powerful social determinant of health, education, financial stability, neighborhood revitalization and local governance.” Headlining the event are keynote speakers Christopher Krehmeyer, president and CEO of Beyond Housing, a NeighborWorks America organization in St. Louis, MO, and Chris Estes, president and CEO of National Housing Conference in Washington, D.C. Conference sessions highlight over 40 national, state and local speakers. The two-day event features housing-related sessions focused on the implications affordable housing has on education, healthcare and community stabilization, plus strategic discussions about how to identify opportunities for collaboration and policy development. For more information on Starting at Home, contact Bryan Grady at [email protected]. 201 6 – 201 7 Q UA L I FI ED ALLOCAT ION PLAN MYIA BATIE — PP&D PROGRAM AND POLICY MANAGER Following the March 5 release of the 2016-2017 Qualified Allocation Plan (QAP) draft, the Office of Planning, Preservation and Development (PP&D) held its first public hearing on March 18 to receive public comment on proposed actions regarding the Housing Tax Credit program and QAP. The public hearing represents a formal opportunity for Agency stakeholders to offer testimony or comment. All public remarks are recorded in written form. Meeting minutes from the hearing are available on the OHFA website. Representatives from seven organizations provided comment concerning the proposed allocation plan. In addition to comments offered at the hearing, the Agency has received a number of formal written comments, all of which were processed and incorporated in the second draft of the allocation plan, released for public review and comment on April 8. Much of the input received has related to the competitive selection criteria used to differentiate applications in the proposal review process. Especially in those areas where there was apparent and broad consensus from a wide range of stakeholders, staff took great care to incorporate recommendations in the second draft of the QAP. Another public hearing was held on April 15. Minutes from that hearing will be posted on the website soon. PP&D moves forward with its planning efforts for the Agency’s first two-year QAP with the preparation of a third draft expected in May. PAGE 2 OHIO HOUSING FINANCE AGENCY | SPRING 2015 NEWSLETTER O HI O 8 11 PROJECT RENTAL ASSI STANCE PROGRAM SEAN THOMAS — CHIEF OF STAFF The Department of Housing and Urban Development (HUD) has awarded the Ohio Housing Finance Agency (OHFA) $11.9 million to support an innovative rental assistance initiative, the Ohio 811 Project Rental Assistance program. The program will allow extremely low-income people with significant and long-term disabilities to live independently in affordable housing linked to voluntary services and supports. By providing these services in home-based settings, the state receives dramatic health care savings for these individuals. OHFA, along with the Ohio Department of Medicaid (ODM), Ohio Department of Developmental Disabilities (DODD), and Ohio Department of Mental Health and Addiction Services (OhioMHAS), will implement this grant. OHFA and ODM will create an advisory committee composed of key stakeholders, including residents, to ensure regular feedback and continuous improvement. OHFA will use the grant funds to award rental assistance contracts to owners of multifamily rental properties funded with Housing Tax Credits. New and existing properties with no current restrictions for persons with special needs are eligible, and up to 25 percent of the units in a property may receive the rental subsidy. The 20-year term contracts will be fully funded for the first five years. Funding after year six will be subject to annual federal appropriations. An estimated 50 to 75 projects of over 500 subsidized units will receive contracts. OHFA is targeting 60 percent of the units in Cuyahoga, Franklin, Hamilton, Lucas, Mahoning, Montgomery, Stark and Summit counties. The remaining 40 percent will be distributed throughout the state based on the availability of units. ODM, with assistance from DODD and OhioMAS, will create and maintain a referral network to match persons in need with available housing units throughout the state. Households that are eligible for assistance must earn 30 percent or less than the area median income, and support at least one person between age 18 and 62 who suffers from a physical disability, intellectual and/or developmental disability, or chronic mental illness. Priority will be given to individuals who are transitioning from institutional settings. ODM will coordinate the supportive services needed by the residents and ensure service availability. Over the next five months, the interdepartmental team will receive training from HUD on the program, hire new staff to coordinate the operations, develop internal systems and procedures, and create the application process for owners of existing properties who wish to participate in the program. Trainings for owners and consumer groups will be scheduled for late summer. For more information and updates, please visit OHFA’s 811 webpage often. Ohio’s program is slated to start at the beginning of 2016. PAGE 3 OHIO HOUSING FINANCE AGENCY | SPRING 2015 NEWSLETTER N I P UP DATE: S UCC ESSES STA RT EARLY CARLIE BOOS — NEIGHBORHOOD INITIATIVE PROGRAM COMPLIANCE MANAGER The Neighborhood Initiative Program (NIP), which launched just one year ago, is OHFA’s latest venture in foreclosure prevention and community development. This $60 million investment in Ohio neighborhoods stabilizes home prices and improves local landscapes by demolishing and greening vacant and blighted structures. In coordination with 21 county land banks, and with support of the Greater Ohio Policy Center and Thriving Communities Institute, OHFA anticipates eliminating 5,000 dilapidated structures in just three years. Land banks may receive up to $25,000 per unit in exchange for a three-year, forgivable mortgage. NIP goes far beyond previous demolition programs by fostering a strong foundation for reinvestment and recovery. After teardown, land banks must green the site. To support greening efforts, OHFA provides up to $6,000 for innovative projects that range from community gardens and parks to renewable energy projects and public art installations. OHFA ensures that these projects do not fall into disrepair by providing maintenance funds and sound oversight. The Agency further incentivizes productive land reuse by releasing liens with little or no repayment as long as land is transferred to a neighbor to expand their yard, to a nonprofit, to a developer or to a municipal entity. Because land banks must acquire ownership of these properties, and because the average acquisition process takes 12 months, few outcomes could be projected at this early stage. Underscoring the intense need for this program, however, our partners truly excelled and have already posted remarkable achievements: • Acquiring 2,705 units for demolition, which is 223 percent higher than the required minimum of 1,208 at this period • Removing and greening 805 vacant and abandoned houses • Drawing down over $9 million in funding (approximately 15 percent of our total award) • Processing over 40 side lot transfers to neighboring owner occupants While the numbers show success, local stories reveal the true value of NIP: • Carol McFarland, the owner of a small landscaping company, was forced to watch the neighboring house decay for years, jeopardizing her own property value. With funding from NIP, the Cuyahoga County Land Bank took control of the vacant property, eliminated the eyesore and ultimately transferred the newly seeded and fenced land to Ms. McFarland. Carol said, “it was the “best Christmas present I’ve ever received.” • In Warren, the land bank removed 169 Washington Street, a property in such disrepair that it became a deterrent for local customers of nearby businesses. • In Euclid, the city expanded a public golf course after demolishing the abandoned home that abutted it. • In Columbiana County, residents are making long-delayed improvements to their own properties knowing that NIP will add security and cohesiveness to their neighborhood. OHFA is proud to work with an excellent group of land banks who are leading the recovery effort in their communities. We eagerly welcome spring and all the new opportunities it will bring. For more information on the Neighborhood Initiative Program, visit us online. PAGE 4 Above are two examples of homes in Cleveland that have been demolished and turned into green spaces with help from NIP. OHIO HOUSING FINANCE AGENCY | SPRING 2015 NEWSLETTER Harrison County | Photo by: Robert Gordon, Ohio University S HA L E DRI L LING AND HOU S ING BRYAN GRADY — RESEARCH ANALYST At the OHFA Board meeting in March, Robin Stewart from Ohio University’s Voinovich School of Leadership and Public Affairs presented findings from The Impact of Shale Development on Housing and Homelessness in Eastern Ohio, a report authored by her research team and funded by OHFA. This document is part of an ongoing effort by the Office of Affordable Housing Research and Strategic Planning to evaluate challenges posed by an influx of energy industry workers entering a constrained housing market. The OU team spoke with 128 people representing 66 organizations operating in and around the eight-county region with the most drilling activity. Participants included public agencies and officials, nonprofit organizations, real estate professionals, advocate groups, financial institutions and charities. The final report distilled the experiences and opinions of those who have seen housing impacts firsthand, along with data about the housing conditions in the area, and provided policy recommendations for OHFA and others to act upon. Stewart highlighted that it was not uncommon to see rents double in the last five years in the shale region. Tenants receiving Housing Choice Vouchers are often unable to find housing at fair market rent, because energy companies are willing to pay much more to house their workers. A lack of infrastructure and capacity, both physical and human, in rural areas makes development of new housing difficult. And finally, uncertainty about how long drilling activity will last in the area, and whether drilling will lead to oil and gas processing jobs, makes attracting private investment difficult. Stewart recommended further outreach efforts with lender and real estate partners in the region and the continuation of special consideration for development programs that support projects serving the population of the area. She suggested that projects initially could be constructed as family housing, with features that would allow for easy conversion to affordable housing for seniors in the future to serve an aging population. The full report can be found online. P R OG RA M COMPLIANCE U PDATE BETSY KRIEGER — DIRECTOR OF PROGRAM COMPLIANCE Housing Credit and HOME Issues The Office of Program Compliance (PC) continues to evaluate our policies to ensure they are properly aligned with the HUD’s 2013 final Home Rules. One policy change concerns the use of OHFA’s mandatory Employment Verification form. Effective March 1, 2015, the OHFA Employment Verification form will no longer be mandatory for use by owners of OHFA-funded tax credit properties with or without HOME funds. The form will still be available in the optional forms section of the OHFA website and we will still encourage its use. The change in policy is due to HUD’s requirement of using of income source documentation for HOME-assisted units. Two months of pay history, such as paystubs, must be used for the income source documentation. As a result of the policy change, PC offers the following guidance to ensure proper employment calculations: • In order to calculate annual income as per the HUD 4350.3, owners and/or property managers will need either a full third-party verification of employment income or as many as six pay stubs for LIHTC- only properties. OHFA’s change in policy, effective March 1, 2015, allows owners and/or property managers to obtain second-source documentation without first attempting third party verification. CONTINUED ON PAGE 6 PAGE 5 OHIO HOUSING FINANCE AGENCY | SPRING 2015 NEWSLETTER CONTINUED FROM PAGE 5 • Pay stubs must be in consecutive order and in the same time parameters as the certification. For properties with HOME funding, the HOME requirement is to evidence two months of earnings. Depending on how often the individual is paid, this may mean having to gather as many as eight pay stubs in order to satisfy both the HUD and HOME requirements. ○○ If the applicant has worked at his or her present job for two months or less or cannot provide the required amount of pay stubs to meet both the HUD and HOME requirements, the household is not a good choice for a HOME unit. If the HOME units can float at the property, then owners and/ or property managers are advised to select another eligible household as a HOME unit. ○○ If the applicant has worked at his or her present job for fewer than four months and cannot provide the required amount of paystubs for LIHTC units, owners and/or property managers should follow HUD 4350.3, appendix 3, page 10 for other allowable source documents. An OHFA Clarification Record should also be used. Owners and property managers should not hesitate to contact the compliance analyst assigned to their property with questions regarding income calculations. PC’s Asset Management office will develop an Extended Use needs assessment tool to determine the frequency of site visits. The tool will be based upon factors related to the project (e.g., owner or management company change or systemic compliance issues) and its market to identify relevant risks and the potential impact of those risks. The Asset Management office will also review property financial statements as necessary to assist with potential ‘work-out’ plans. The inspections will include a sampling of 10 percent of the tenant files, units and project buildings, or more as required. PC staff will prepare a written report of review findings for the owner and property manager. If an owner fails to respond and/or correct deficiencies, the owner may be placed as Not in Good Partnership. Additional information and guidance will be issued on this new policy over the next several months. Spring Has Sprung-A Perfect Time to Conduct Inspections of Your Property Now that the harsh winter is behind us, the spring season is the perfect time for owners and property managers to conduct a thorough physical inspection of resident units, common areas and buildings. Spring also marks the beginning of increased property inspections by PC Staff. It is highly recommended that owners and property managers take a proactive approach to review their property in order to reduce the incidents of physical noncompliance and the issuance of Form 8823 to the Internal Revenue Service. New Monitoring Procedures for Extended Use Properties Are Coming 2015 Regional Compliance Forums April 21 in Columbus PC has changed monitoring procedures for properties in Extended Use or for those that have completed the original 15-year compliance period. Effective January 1, 2016, Extended Use projects will have both a physical and file review conducted on either a three-year or five-year rotation cycle. Owners of Extended Use properties will also be required to submit an Annual Owner Report through DevCo online and report all tenant events, including both in-place and newmove in residents. In past years, PC staff would conduct a review of an Extended Use project only if OHFA was notified of compliance issues or the capacity of the developer/ manager was in question. Additionally, owners of Extended Use properties would submit an Annual Owner Certification for new move-in tenants only. The Compliance Forums are an interactive opportunity to learn about updates to OHFA’s compliance and monitoring policies, hear about the 2016-2017 Qualified Allocation Plan (QAP) and other initiatives, discuss landlord tenant issues and learn about the new HUD 811 award. What factors influenced the policy change? OHFA has seen a substantial increase in the financial and physical deterioration of many projects in the Extended Use period, including increased vacancies, over-leveraged debt and lack of funds to turn units or to make capital improvements. In order to protect OHFA assets, ensure the property is safe for the residents and community, and help assist with the financial viability of the property, it is necessary to begin active monitoring to include a tenant file review and physical inspection of the buildings and units. PC hosted a Regional Compliance Forum on Tuesday, April 21, 2015 from 1:30 p.m. - 3:30 p.m. at our Columbus office, located at 57 East Main Street. This forum was the first of six meetings scheduled around Ohio in the upcoming months. The forums are free, but registration is required in order to guarantee seating. Upcoming forum dates and locations are listed below: Date May 21 City Cleveland Jennings Center for Older Adults June 25 Akron Village at New Seasons July 21 Dayton Canterbury Court August 27 Findlay USDA Building September 30 Cincinnati PAGE 6 Location TBA OHIO HOUSING FINANCE AGENCY | SPRING 2015 NEWSLETTER L EN DER SPOT LIGHT – H UN TI N GTO N MORTGAGE GROU P SARA BARTON — COMMUNICATIONS AND MARKETING Helping people make the move to a home of their own has been the goal of OHFA’s First-Time Homebuyer program since 1983. Over the past 32 years, the program has closed more than $11 billion in loans, helping 145,550 homebuyers throughout the state. This success is largely dependent on OHFA’s statewide network of outstanding lending partners, such as Huntington Mortgage Group, which has participated in the program since its inception. Huntington received the MVP Award from OHFA for originating the most volume in the 2013-2014 fiscal year with $4.1 million in Grants for Grads awards. Huntington borrowers have also purchased homes via the Ohio Heroes and First-Time Homebuyer programs, bringing the yearly total to $12.1 million. Huntington has a dedicated team of Huntington-certified and trained loan officers, underwriters, processors and closers on the OHFA mortgage products, in addition to a statewide bank presence that allows them to reach a larger audience of borrowers. Realtors can take a Continuing Education credit course on OHFA products from Huntington sales and service specialist Marcy Ash. “OHFA has helped us assist First-Time homebuyers achieve the dream of homeownership,” says Ash. “Especially those borrowers who needed a helping hand with down payment and closing costs. They made enough income to afford homeownership, but when rent is higher than a monthly mortgage payment, it is difficult to save to purchase a home. OHFA is that missing link for many borrowers.” OHFA’s down payment assistance and closing cost assistance offer fast turn times and easy-to-determine eligibility with minimal documentation for lenders. According to Ash, “Most everything is also automated and streamlined, which is a bonus in a high volume, fast-paced environment like ours.” Ash also compliments OHFA’s process, reservation system, website, staff, communication and, of course, the program benefits offered to borrowers. “OHFA is also very passionate about continuous improvement and finding new ways and programs to help a diverse set of borrowers,” says Ash, who instituted certification training on OHFA products for Huntington loan officers. She has also certified specific underwriters, processors and closers on OHFA products. “We truly value our partnership with OHFA and their staff,” says Ash. “[Our typical experience with OHFA is] always pleasant, customer-focused and prompt.” Profile of Huntington First-Time Homebuyer Using OHFA Products Profile of OHFA First-Time Homebuyer AVERAGE HOUSEHOLD INCOME AVERAGE HOUSEHOLD INCOME $47,579 GENDER 65% SINGLE 51% $45,323 GENDER 49% MARITAL STATUS* 68% SINGLE 29% MARRIED 55% 45% MARITAL STATUS 32% MARRIED *Does not include divorced, widowed or single parent stats. PAGE 7 OHIO HOUSING FINANCE AGENCY | SPRING 2015 NEWSLETTER G RA N D O P E N I N G S AND GR O U N DB R E AK I N G S Doug Garver attends ribbon cutting at Griswold Building. Bridge Point Senior Village | Photo Courtesy of Preferred Properties U.S. Representative Pat Tiberi speaks at the grand opening of Chimes Terrace. KELAN CRAIG — PP&D BUSINESS MANAGER Bridge Point Senior Village - Toledo, Lucas County A cold, yet sunny fifth day of spring marked the culmination of nearly two decades of work after the initial idea for Bridge Point Senior Village was conceived. A light snowfall the night before did not prevent Preferred Properties executive director Yvonda Bean, HUD Cleveland field office director Pamela Ashby and new Toledo Mayor Paula Hicks-Hudson from being among the dignitaries on hand to celebrate the grand opening of Bridge Point. Located on the outskirts of Toledo, Bridge Point is now home to 11 senior households. OHFA provided $300,000 in Housing Development Assistance Program (HDAP) funding, while the development team leveraged funding from the HUD 202 program and the City of Toledo. The property is owned and managed by Preferred Properties, a State-Certified Community Housing Development Organization (CHDO). Preferred Properties will provide supportive services with assistance from the local Area Agency on Aging. All residents will receive rental assistance, made possible by the HUD 202 award. OTHE R G R AN D O P ENINGS AND GROUND BREAKINGS SARA BARTON — COMMUNICATIONS AND MARKETING OHFA staff also attended events celebrating the following affordable housing communities during the winter and early spring: Chimes Terrace Johnstown, Licking County Renovation of a senior community comprised of 60 apartments, which will allow seniors to age in place while maintaining connections to health- and other communitybased services. Developer: National Church Residences HDAP: $450,000 Housing Credit Program: $625,425 Griswold Building Columbus, Franklin County Renovation of six floors to create 90 permanent, affordable, and supportive service-enriched apartments for formerly homeless women. Developer: YWCA Columbus HDAP: $350,000 Housing Credit Program: $970,000 ARE YOU PLANNING AN EVENT FOR AN OHFA-FUNDED PROJECT? PLEASE LET US KNOW. PAGE 8 OHIO HOUSING FINANCE AGENCY | SPRING 2015 NEWSLETTER S PR IN G 201 5 EM P LOY E E O F T H E Q UART ER R. Kelan Craig Business Manager, Office of Planning, Preservation and Development During the annual Spring All Staff Meeting, OHFA named Kelan Craig, PP&D business manager, as the spring 2015 Employee of the Quarter. According to his nominator, “Kelan is widely known for his sense of humor and positive attitude and he consistently delivers prompt and courteous service to his OHFA team and to OHFA partners, exceeding expectations and furthering collaboration. Kelan’s management style and personality have developed trust and admiration from the PP&D team, particularly his approachable demeanor and willingness to always make the time to listen to colleagues and provide feedback, as needed.” “Kelan lives the OHFA mission. His prior experience with working on resident issues at the Coalition on Homelessness and Housing in Ohio (COHHIO) and his volunteer activities outside of the office enable him to continue being a steward to OHFA’s vision. The care and respect he shows to staff and partners, he also shows to other service organizations and residents on the streets of Columbus. His dedication to the individuals OHFA serves is truly praiseworthy.” Congratulations, Kelan! SERI VC E MI L E STO NE S Congratulations to the following employees, who received pins to commemorate years of service to OHFA. 15 Years of Service Vicky Hoffman Homeownership 5 Years of Service Tara Campbell Program Compliance PAGE 9
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