Ohio Housing Finance Agency 2010 Annual Report

2010 ANNUAL
REPORT
Ohio Housing Finance Agency
We Open the Doors to an Affordable Place to Call Home

A Letter from the Governor
As our nation continues to recover from the worst recession of our lifetimes, I remain firmly committed to assuring that all
Ohioans have access to affordable housing. In particular, we must continue to stay focused on stabilizing Ohio’s housing market
by implementing foreclosure prevention methods, educating new homebuyers about sustainable homeownership and preserving
affordable rental units across the state.
Creating affordable housing solutions for Ohio’s world-class cities, suburbs and rural communities has been an important goal of my
administration. The Ohio Housing Finance Agency’s (OHFA) unflagging pursuit of affordable housing for all Ohioans has helped to
revitalize communities, prevent foreclosures, create 77,000 affordable rental housing units, and secure mortgage loans for 140,000
homebuyers. OHFA, in particular, has strengthened Ohio’s housing market by providing $3.1 million in loans for troubled borrowers
facing temporary financial difficulties, and worked with developers to create and preserve family, senior and permanent supportive
housing communities.
As the state’s housing leader, OHFA has also helped lead Ohio’s housing market recovery by distributing critical federal funds for the
stabilization of homeowners and communities. OHFA’s diligent administration of stimulus dollars created and saved more than 5,000
jobs in the state, provided homes for 4,000 families, spurred economic activity, and invested in the state’s long-term growth.
OHFA will, and must, continue to provide vital services for each of the diverse neighborhoods of our state. We must continue
providing low-cost mortgages to homeowners, assisting property managers, investing in neighborhood restoration through the
distribution of federal funding, and working closely with developers to create and preserve affordable housing.
Together, we are making Ohio a better place to live and work, knowing that decent, safe and affordable housing is critical to doing so.
Sincerely,
Ted Strickland
Governor, State of Ohio
3

A Letter from the Board Chairperson and
Executive Director
The Ohio Housing Finance Agency (OHFA) proactively identifies and addresses
the state’s affordable housing needs and challenges. OHFA offers affordable
mortgage options, education for potential homebuyers, foreclosure prevention
methods and capital to develop, preserve and sustain affordable rental units.
For more than 25 years, our work with partners and stakeholders has helped
shape affordable housing programs and policy at the state and national levels.
Through OHFA’s First-Time Homebuyer Program, we offer banks and mortgage
companies a variety of loan products and services for potential homebuyers. Our
mission is not only to help borrowers achieve homeownership, but also to keep
them in the homes they worked hard to obtain. In addition to administering the
First-Time Homebuyer Program, OHFA is an active partner in Governor Ted
Strickland’s Save the Dream Ohio initiative, which helps existing homeowners
stay in their homes by providing education, information and resources on
foreclosure prevention.
Through our partnership with Governor Strickland, the Ohio Department of
Commerce and Save the Dream Ohio, the Agency helped secure $320 million in
federal funding from the U.S. Department of Treasury’s Housing Finance Agency
Innovation Fund for the Hardest-Hit Markets. Foreclosures are being prevented
with the help of Agency resources and strong partnerships while homebuyers are
being educated about sustainable homeownership, creating the foundation for
recovery.
OHFA is proactive in initiatives to stabilize neighborhoods devastated by
foreclosures and to address the resulting abandoned and vacant properties. As
the state’s housing leader, OHFA was among the first in the nation to allocate and
disburse $201 million in federal stimulus funding from the Tax Credit Exchange
and Tax Credit Assistance Program created in the American Recovery and
Reinvestment Act. The Agency’s efforts to invest in neighborhood stabilization
through the distribution of federal funds and work with housing developers led
to the construction and rehabilitation of 81 communities.
We will use the opportunities realized and the wisdom gained in the national
housing crisis to continue our mission to open the doors to an affordable place
to call home for low- to moderate-income Ohioans. Looking forward, we will
achieve our mission by maintaining partnerships with lenders, real estate agents,
affordable housing developers, nonprofit organizations and others who create and
ensure the availability of affordable housing.
As chairperson and executive director, and on behalf of the eleven-member
OHFA Board, we are proud to present the fiscal year 2010 annual report.
Sincerely,
Kimberly A. Zurz
Board Chairperson
Douglas A. Garver
Executive Director
4

About the Ohio Housing Finance Agency
Each year, the Ohio Housing Finance Agency (OHFA) helps thousands of Ohio
families open the doors to an affordable place to call home through programs
designed to provide low-cost mortgages for homeowners, financial incentives for
developers to increase affordable rental housing and to help property managers
maintain safe, decent, housing environments.
OHFA is a self-supporting quasi-public agency governed by an elevenmember
board. The Agency uses federal and state resources to provide
housing opportunities for low- to moderate-income families and
individuals. OHFA is also an active partner in the interagency team which
coordinates the Save the Dream Ohio initiative designed to stop preventable
foreclosures. By working with leading housing industry partners and
stakeholders, OHFA has helped shape affordable housing policy at the state
and national levels since 1983.
5

OHFA Board Members
An 11-member Board administers the Ohio Housing Finance Agency. The Board consists of
the Director of the Ohio Department of Commerce (or designee), the Director of the Ohio
Department of Development (or designee) and nine public members. The Governor appoints the
nine public Board members for staggered six-year terms to represent various housing sectors and
the public.
Kimberly A. Zurz
Chairperson
Director
Ohio Department of Commerce
(ex officio)
Mark K. Milligan
Vice Chairperson
Principal
Passage Management
Patricia P. Cash
Senior Vice President, Client and
Community Relations Director
PNC
Darrell Gammell
Business Representative
Plumbers & Pipefitters Local 189
William J. Graves
Community Development Director
Ohio Department of Development
(ex officio)
Betty J. Kemper
President
The Kemper Company
John J. Lynch
Broker
Keller Williams Realty
Roger W. McCauley
Retired Executive Director
Corporation for Ohio
Appalachian Development
J. Gordon Priemer
J&M Real Estate Advisors, Inc.
Bill Martin
President
Barrington Homes
Henry Warren, Jr.
President
A-1 Carpet Cleaning
6

OHFA Executive Staff
OHFA's experienced executive staff facilitates the Agency's mission by overseeing and directing
the programs and operations that help increase the availability of affordable housing opportunities
in Ohio.
Douglas A. Garver
Executive Director
dgarver@ohiohome.org
Blaine Brockman
Assistant Executive Director
bbrockman@ohiohome.org
Brian Carnahan
Director of Program Compliance
bcarnahan@ohiohome.org
Robert W. Connell
Director of Debt Management
rconnell@ohiohome.org
Barbara J. Creech
Director of Operations
bcreech@ohiohome.org
Cynthia A. Flaherty
Director of Homeownership
cflaherty@ohiohome.org
Guy Ford
Director of Legislative Affairs
gford@ohiohome.org
Martin D. Smith
Director of Human Resources
msmith@ohiohome.org
Marlo Tannous
Chief Legal Counsel
mtannous@ohiohome.org
Kelly Taylor
Director of Communications
and Marketing
ktaylor@ohiohome.org
Sean W. Thomas
Director of Planning,
Preservation and Development
sthomas@ohiohome.org
Paul D. Vawter
Chief Information Officer
pvawter@ohiohome.org
Donald E. West, Jr.
Chief Financial Officer
dwest@ohiohome.org
7

To us, it isn’t just a house.
IT’S YOUR HOME.

STATISTIC
OHFA’s Homeownership Loan Programs have helped over 140,000 Ohioans
obtain safe, quality and affordable housing.
“When I became a
homeowner, it was
like a dream come
true. I’ve always
wanted a home to
call my own.”
10

Expanding Ohio’s Homeownership Options
Incentivizing
College
Graduates to
Stay in Ohio
The Ohio General
Assembly authorized
OHFA to administer
Grants for Grads,
a program to
incentivize college graduates to stay in Ohio and earn a return
on their educational investment. OHFA leveraged its First-Time
Homebuyer Program as a framework to help create the program
parameters for Grants for Grads, requiring applicants to purchase
their first home in Ohio with the intent to live and work in the
state for at least five years after graduation. In addition to a
mortgage with a favorable interest rate, qualifying graduates may
get a grant in the form of a forgivable second mortgage for two
and a half percent of the home’s value to assist with down payment
or closing costs. Grants for Grads benefits borrowers and provides
positive economic impact for the state.
The Grants for Grads Program participation was five percent of
OHFA’s total loan volume in FY10. Through June 30, 2010, 74
Grants for Grads loans totaling $8.7 million were closed with an
additional 40 loan applications in progress. By facilitating the
Grants for Grads Program,
OHFA has positioned the state
to meet the needs of future
graduates as they make plans
to build their personal and
professional lives in Ohio after
college.
Encouraging
Homeownership
OHFA created the Homebuyer
Tax Credit Advantage (HTCA)
Second Mortgage Program to
provide an additional down
payment assistance option.
The HTCA is a 15-year second
mortgage for three percent of
the home purchase price with an
incentive for borrowers to pay
their loan off early using their
federal first-time homebuyer
tax credit. Mortgage Credit
Certificates (MCCs) are another
option for first-time homebuyers.
The MCC Program allows
borrowers to take a direct federal
tax credit on a percentage of
their mortgage interest. OHFA
created the MCC Real Estate
Owned (REO) Program to help
qualified homebuyers purchase
single-family properties from
a financial institution that
acquired the property through
foreclosure or from the U.S.
Department of Housing and
Urban Development (HUD),
Fannie Mae, Freddie Mac, U.S.
Department of Veteran Affairs
(VA), or U.S. Department of
Agriculture-Rural Development
(USDA-RD).
Reaching Underserved
Populations
OHFA strives to meet the needs
of underserved populations
by delivering affordable
housing solutions. The Agency
has expanded marketing
efforts, incorporating
minority-focused research
commissioned from the
Ohio State University’s John
Glenn School of Public Affairs
through OHFA’s Office of
Affordable Housing Research.
Strategic relationships
have been established with
minority-targeted print and
broadcast media outlets across
the state. By working with
trusted, established outlets
within these communities, we
have more effectively targeted
the messaging to resonate
with their audiences. OHFA’s
minority homebuyer rates
have significantly increased in
FY10.
11

To us, it isn’t just a property.
IT’S YOUR COMMUNITY.

Continuing Our Commitment to Ohio Neighborhoods
Using Federal Resources to Revitalize
and Preserve Ohio Communities
Efforts to stimulate and revitalize neighborhoods across
the state were facilitated through OHFA’s distribution
of federal stimulus funds. The American Recovery and
Reinvestment Act (ARRA), signed into law in February
2009, included two funding sources for Housing Tax
Credit projects: the Tax Credit Assistance Program
(TCAP) and the Tax Credit Exchange (TCE).
OHFA received $83 million through TCAP to provide low-interest loans or grants for developments
awarded Housing Tax Credits in 2007, 2008 or 2009. The Agency also received $116 million as part
of the TCE program to create affordable housing throughout the state. Through the TCE program,
OHFA converted a portion of the Agency’s annual share of Federal Housing Tax Credits into grant
dollars to provide greater financial support to developers who have found securing investors for the
tax credits increasingly difficult. These additional funds enabled developers to immediately begin
construction and provide safe, quality affordable housing and economic stimulus throughout the
state. The Agency committed to fund 80 stalled developments which provided approximately 4,000
units of affordable housing and created and saved over 5,000 jobs throughout the state.
Supporting Affordable Housing Programs
The Agency established the Housing Investment Fund (HIF)
in 2008 to encourage housing initiatives throughout the state
and meet housing needs that were not met by other programs.
In FY10, OHFA approved $3.9 million in funding from HIF to
support eight affordable housing programs throughout the state.
Stabilizing Neighborhoods through
Acquisition and Rehabilitation of
Multifamily Housing
In an effort to stabilize the U.S. housing market, the Obama
Administration awarded OHFA $27 million as part of the
Treasury/Government Sponsored Enterprise (GSE) Housing
Finance Agency (HFA) Initiative for multifamily housing in
the state. OHFA issued its first tax exempt bond through the
program in FY10 for $5.6 million to finance the acquisition and
rehabilitation of a multifamily residential rental community.
Additionally, the Neighborhood Stabilization Program (NSP), a federal program designed in
response to the foreclosure crisis, assisted with the development and rehabilitation of foreclosed or
abandoned properties. With these resources, totaling over $28 million, OHFA funded eight projects
consisting of over 260 units.
14

STATISTIC
The Housing Tax Credit Program has facilitated the development of over
1,400 affordable properties with more than 77,000 rental housing units in
Ohio since 1987.
“This property has
really changed the
tenants’ lives because
if they didn’t have this
type of housing , they
would be homeless on
the street.”
15

July 2009
Awarded over $26
million in tax credits for
38 affordable housing
developments
August 2009
Approved $3.2 million
of American Recovery
and Reinvestment Act
(ARRA) funds for the
development of 74
newly-constructed units
of affordable housing
September 2009
Distributed $34 million
of ARRA funding
for 521 units of
affordable housing in 14
developments
October 2009
Released the 2010
Qualified Allocation
Plan (QAP) to guide
the development of
affordable housing
throughout the state
Launched the statewide
Grants for Grads
Program
Awarded $17 million
of ARRA and OHFA’s
Housing Development
Assistance Program
(HDAP) funding for
331 units of affordable
housing in 10
developments
November 2009
Distributed more than
$20 million through
ARRA and HDAP
to create 907 units of
affordable housing in 15
developments
Hosted the 2009 Ohio
Housing Conference
with the Ohio Capital
Corporation for
Housing (OCCH) at
the Greater Columbus
Convention Center
Approved the issuance
of up to $28 million in
Multifamily Mortgage
Revenue Bonds
December 2009
Launched the Office
of Affordable Housing
Research
Awarded over $3 million
in ARRA funding for
56 units of affordable
housing in one
development
16

January 2010
Distributed $292,000
of Housing Credit Gap
Financing (HDGF) for
six units of affordable
housing
February 2010
Approved over $4
million in Multifamily
Housing Revenue Bonds
to be issued in an effort
to preserve a 150-unit
development
Distributed more
than $59 million of
ARRA and HDAP
funding for 859 units of
affordable housing in 14
developments
Awarded $1.9 million in
HDGF for 157 units of
affordable housing
March 2010
OHFA was awarded
$172 million in federal
assistance for foreclosure
prevention
Approved over $38
million in ARRA and
HDAP funding for
674 units of affordable
housing in 14 housing
developments
Distributed $190,000 for
four units of affordable
housing through HDGF
April 2010
Closed the first multifamily
bond transaction for $5.6
million under the Obama
Administration’s Treasury/
GSE HFA Initiative
Received $1.3 million for
foreclosure prevention
from the National
Foreclosure Mitigation
Counseling Program
(NFMC)
Approved $7.5 million
in ARRA and HDAP
funding for 140 units of
affordable housing in three
developments
May 2010
Approved more than
$25 million for the
development of more
than 320 units of
affordable housing
through ARRA and
HDAP
Awarded $5.3 million
in Neighborhood
Stabilization Program
(NSP) funding for
70 units of affordable
housing in two Ohio
communities
June 2010
Recognized outstanding
homeownership
programs in Cincinnati
and Toledo
Approved $8.3 million
for the development
of more than 72 units
of affordable housing
through ARRA, HDAP
and the Housing
Development Loan
Program (HDL)
Partnered with The
Ohio State University
for the Homeownership
Investment Program
Awarded $1.9 million in
HDGF funding for 30
units of affordable housing
Distributed over $22
million of NSP funds for
200 units of affordable
housing in six Ohio
communities
17

To us, it isn’t just funding.
IT’S YOUR FRESH START.

STATISTIC
Ohio has been awarded $320 million for Restoring Stability: A Save the Dream
Ohio Initiative (Ohio’s Hardest-Hit Fund) to help prevent home foreclosures.
“OHFA can give
another person the
same opportunity that
they’ve given me.”
20

Addressing Housing Issues through Partnerships
Helping Struggling Homeowners
Ohio has been awarded $320 million through the
Housing Finance Agency (HFA) Innovation Fund for the
Hardest-Hit Housing Markets (the Hardest-Hit Fund), an
extension of the Troubled Asset Relief Program (TARP),
administered by the U.S. Department of Treasury under the
Emergency Economic Stabilization Act of 2008. Restoring
Stability: A Save the Dream Ohio Initiative will help
homeowners who have experienced a financial hardship
and are struggling to make their monthly mortgage payments. OHFA worked with Governor Ted
Strickland’s office, the Ohio Department of Commerce and Save the Dream Ohio partners to develop a
comprehensive, statewide strategy.
Preventing Foreclosures
In addition to Ohio’s Hardest-Hit Funds, OHFA administered the National Foreclosure Mitigation
Counseling Grant (NFMC) and oversaw 21 housing counseling agencies around the state. In FY10,
OHFA was awarded $1.3 million to support foreclosure prevention counseling efforts and to ensure
that local housing counselors could assist borrowers who are facing difficulties making their mortgage
payments.
The success of OHFA’s existing foreclosure prevention efforts are
largely attributed to our partnerships with other state agencies
through the Save the Dream Ohio (SDO) initiative. As an active
partner in Ohio’s multi-agency foreclosure prevention effort,
OHFA works to prevent foreclosures not only by administering
NFMC funds, but through our in-house counseling department
which handles a large volume of individual borrowers.
Preserving Ohio’s Rental Housing Stock
The Ohio Preservation Compact (OPC), a statewide partnership
created to address the rising demand for affordable rental housing
in the state of Ohio, is a consortium of OHFA, the Coalition
on Homelessness and Housing in Ohio (COHHIO) and the
Ohio Capital Corporation for Housing (OCCH). By providing
predevelopment loans for existing properties through the Ohio
Preservation Loan Fund, organizing a comprehensive database
of affordable housing properties in the state, and partnering with
HUD, USDA RD and the development community, OPC has
identified properties most in need of rehabilitation and worked
to evaluate the most efficient and cost-effective disposition for
communities across the state. OPC’s collective goal is to preserve
14,000 affordable rental housing units over the next 10 years.
21

To us, it isn’t just work.
IT’S OUR MISSION.

Addressing Ohio’s Housing Needs
Researching and Analyzing Affordable
Housing Data
OHFA launched its Office of Affordable Housing
Research (OAHR) to facilitate the formation,
implementation and evaluation of affordable housing
policies and initiatives throughout the state. OAHR
uses data to prioritize statewide housing needs, guide
policy and ensure that low- to moderate-income families
receive the assistance they need to reside in safe, decent
environments.
The office has focused its research on supporting underserved and minority populations and
the evaluation of several federally-funded programs. OHFA’s research office partnered with the
John Glenn School of Public Affairs and other colleges and universities around the state to study
collectively the impact of affordable housing and effective policy-making procedures.
OAHR was instrumental in crafting Ohio’s proposal to the U.S. Department of Treasury for the
Hardest-Hit Fund. OAHR led an unprecedented collaborative information-sharing network
comprised of multiple state agencies including Governor Strickland’s office and the Ohio
Departments of Commerce, Development, Job and Family Services and Taxation. This network
developed the methodology behind the identification of areas of the state considered to be ‘hardesthit,’
as defined by the U.S. Department Treasury. To view the full proposal, visit OHFA’s website at
www.ohiohome.org.
Establishing Partnerships to Benefit Local
Communities
A rapidly declining housing market and national recession
proved to be insurmountable obstacles for businesses unable to
strategically respond to new demands. OHFA and its partners
realized the need for operational changes that would allow for
the creation of innovative solutions to unprecedented challenges
while meeting the affordable housing needs for Ohio families.
The Agency’s continued success would not be possible without
the combined efforts of our partners in the public and private
sectors who share our commitment to affordable housing. In
addition to our long-standing partnerships, OHFA formed new
affiliations to meet the needs of all Ohioans. Our collaborations
with several state agencies, property developers and managers,
colleges and universities, real estate professionals, community
groups, industry experts, stakeholders and lending institutions
strengthened housing opportunities in the state and helped to
shape the future of affordable housing.
The active involvement of our partners at local, state and federal
levels has not only helped to revitalize Ohio’s housing market, it
also allowed OHFA to accomplish our mission to open the doors
to an affordable place to call home.
24

STATISTIC
OHFA proudly provided affordable housing options for nearly 11,000
Ohioans in FY10.
Our mission:
“We open the doors
to an affordable
place to call home.”
25

57 East Main Street
Columbus OH 43215
Toll Free: 888.362.6432
www.ohiohome.org