Ohio began accepting applications for the brand new Single Family Housing Tax Credit Program last month. The Single Family Housing Tax Credit from Ohio offers $50 million a yr for 4 years to spice up inexpensive housing within the state. The last date to use for the credit is April 5.

Single Family Housing Tax Credit from Ohio: what’s it?

Gov. Mike DeWine approved the Single-Family Housing Tax Credit from Ohio in essentially the most recent state budget. This system uses public-private partnerships to spice up the stock of inexpensive, single-family housing for the state’s growing workforce.

Applications for this system might be accepted by the Ohio Housing Finance Agency (OHFA) until 4 p.m. on April 5. This system offers $50 million annually for 4 years to bridge the financing gap to develop or substantially rehabilitate housing within the state. Projects that come into existence on or after July 1 will qualify for the brand new credit.

Each eligible project could receive a credit of as much as $50,000 per dwelling. The credit might be issued on the completion of the project. Eligible projects will have the ability to assert the credit annually over a 10-year period with an annual amount totaling one-tenth of the entire approved credit.

The credit amount is the difference between the entire development cost of the project and the market value of all dwellings which are a part of the project.

Reasonably priced housing is a significant concern for state lawmakers, and so they are hopeful that the Single Family Housing Tax Credit will go a protracted option to address the problem.

Last yr, a report from the COHHIO (Coalition on Homelessness and Housing in Ohio) and NLIHC (National Low Income Housing Coalition) stated that 448,000 extremely low-income households within the state are facing a shortage of about 270,000 inexpensive and available rental units. In other words, there are only 40 inexpensive units for each 100 households.

Who can apply?

Application for projects must include no less than five single family dwellings to be constructed or blighted structures. The dwellings might be contiguous or “scattered” and every dwelling should have no less than two bedrooms and one and one-half baths.

Furthermore, each dwelling should be sold to a certified buyer who meets this system’s requirements. The client must use the dwelling as their primary residence. Also, the sale price of the dwelling should be inexpensive, i.e., not greater than 30% of the client’s monthly income, and the value should remain inexpensive for ten years after the initial sale.

Visit the OHFA website or email [email protected] to get more information on the Single Family Housing Tax Credit from Ohio.

You may as well attend the webinar that the Ohio CDC Association and Ohio Conference of Community Development are co-hosting on the Single Family Housing Tax Credit from Ohio. The webinar is scheduled for March 18, 2024 at 2:00 p.m. Visit this link to register for the webinar.