OHFA Annual Plan - Ohio Housing Finance Agency

• Purchase and rehabilitate homes and residential properties that have been abandonedor foreclosed upon, in order to sell, rent or redevelop such homes and property;• Establish land banks for homes that have been foreclosed upon;• Demolish blighted structures; and• Redevelop demolished or vacant properties (including new construction).Land Banks/Demolition• Establish land banks for homes that have been foreclosed upon; and• Demolish blighted structuresAffordable Rental Housing Initiative• Purchase and rehabilitate homes and residential properties that have been abandonedor foreclosed upon, in order to sell, rent or redevelop such homes or property; and• Redevelop demolished or vacant properties.The Ohio Department of Development recently published for public comment the Draft FY2008 Ohio Consolidated Plan Amendment: Action Plan for the Neighborhood StabilizationProgram (NSP). In this document, ODOD announced plans to allocate $116,859,223of NSP funds by April 1, 2009. Of these funds, ODOD will allocate 10 percent towardsadministration with 60 percent of those funds allocated to award recipients. Another 25percent ($29,214,900) will be allocated as a rental reserve through an Affordable RentalHousing Initiative (ARHI). The ARHI will encourage the redevelopment of demolished,foreclosed or vacant structures into affordable rental housing serving households withincomes at or below 50 percent of area median income and provide additional resources toboth the Ohio NSP direct award recipients, where vacant rental properties are abundant, aswell as in rural communities through a nonprofit organization.Key features of note include a requirement of a minimum discount of 15 percent for eachresidential property purchased with NSP funds and the finance mechanism for any directassistance to homebuyers will be in the form of zero percent interest loans, which may bedeferred and forgiven over time.ODOD will mitigate the loss of low- and moderate-income housing units demolished,rehabilitated or converted with Ohio NSP funds by requiring housing units to be vacant atleast 90 days prior to the purchase of a unit for demolition, rehabilitation or conversion.In addition, Ohio NSP award recipients may only acquire property through voluntaryacquisition.ODOD will address eligible applicants with the balance of funds by compiling a list of Ohio’scounties, 35 entitlement cities and those Ohio cities eligible to receive Ohio Small CitiesCDBG funds, including direct NSP recipients, and rank jurisdictions in order of need basedon an established formula described in ODOD’s proposed amendment to the ConsolidatedPlan. This formula uses FACL foreclosure data, 2000 Census, subprime loans and rates,defaults and rates, delinquencies and rates and USPS vacancy rates.Based on the ranking resulting from application of the formula, ODOD will determine if andhow much in additional funds should be allocated to direct NSP recipients. After subtractingthe amount allocated to direct NSP recipients, ODOD will award the balance to Ohio’s othereligible jurisdictions. The Ohio NSP funds, except those awarded for ARHI, will be awardedto eligible program applicants through an application process to assist persons/familieswith incomes at or below 120 percent of the area median income. Full applications will be98