Oklahoma Housing Finance Agency Awards Federal and State Housing Tax Credits

OKLAHOMA CITY – Oklahoma Housing Finance Agency’s Board of Trustees approved at its May meeting both federal and state reservations of Affordable Housing Tax Credits to build or rehabilitate affordable housing in Oklahoma. OHFA is the state’s tax allocating agency for AHTC. The state reservations are the first state tax credits allocated under the Oklahoma Affordable Housing Act, which created a state version of the federal AHTC Program. Passed last year by lawmakers, state tax credits are designed to alleviate the shortage of affordable housing throughout the state.

The following developers received a reservation of federal tax credits. The amount listed is received each year for the first 10 years of a project’s operating period. For example, a $500,000 reservation results in a total tax credit award of $5 million.

· $680,000 reserved for The Villas of Edmond, LP for the construction of 52 apartments for the elderly to be known as The Villas of Edmond in Edmond.

· $418,541 reserved for Autumn Creek Phase II, LP for the construction of 28 apartments for the elderly to be known as Autumn Creek Villas Phase II in Midwest City.

· $730,497 reserved for Tulsa Senior Housing II, LP for the construction of 56 apartments (14 quadplexes) for the elderly to be known as Northwind Estates II in Tulsa.

The following developers received two reservations, one for federal tax credits and an equal amount for state tax credits, each for the amount listed. As with federal tax credits, state tax credits are received each year for the first 10 years of a project’s operating period.

· $460,000 reserved for Legacy – Ada Partners, LP for the construction of 48 apartments for the elderly to be known as Legacy Senior Residences – Ada in Ada.

· $313,000 reserved for Will Rogers Housing Partners, LP for the acquisition and rehabilitation of 38 apartments to be known as Will Rogers Lofts in Claremore.

· $241,839 reserved for Heritage Park Homes III, LLC for the construction of 15 single-family homes to be known as Heritage Park Homes III in McLoud.

· $450,000 reserved for Legacy – Duncan Partners, LP for the construction of 48 apartments for the elderly to be known as Legacy Senior Residences – Duncan in Duncan.

· $470,577 reserved for Forestridge Heights, LP for the construction of 38 single-family homes to be known as Forestridge Heights in Enid.

· $394,215 reserved for Lakehurst Affordable Housing, LP for the construction of 35 single-family homes to be known as Lakehurst Village in Eufaula.

· $106,449 reserved for Hugo Affordable Housing III, LLC for the construction of 10 single-family homes to be known as Hugo Affordable Housing III in Hugo.

· $380,000 reserved for Burnside Estates, LP for the acquisition and rehabilitation of 32 apartments to be known as Burnside Estates in Hugo.

“The state tax credit allowed us to fund approximately two more developments than before,” said OHFA Executive Director Dennis Shockley. “The Oklahoma Affordable Housing Act is working like it should—adding more housing stock to rural communities.”

As Oklahoma’s largest provider of affordable housing, OHFA offers nine housing programs ranging from “OHFA Advantage” for home ownership to housing development and rental assistance. For more information about OHFA and its programs and services, visit www.ohfa.org.

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*Note to Editor

Projects are structured so that the sale of a project’s housing tax credits and other tax benefits provides a source of capital for the development of affordable rental housing. This equity investment reduces financing costs, thereby reducing operating expenses, which is passed along in the form of reduced rents. To qualify for tax credits, a project must both restrict rents on its rental units and rent to tenants whose incomes do not exceed income limits.

The AHTC program requires a 15-year tax credit compliance period. In addition, the project must enter into an agreement for an extended low-income housing commitment that continues at least 15 years after the end of the compliance period.

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