|OKLAHOMA CITY – Oklahoma Housing Finance Agency’s Board of Trustees approved during its May meeting reservations of four percent Affordable Housing Tax Credits and the issuance of tax-exempt multi-family bonds for the creation of 136 affordable apartments.
New Page, LLC was awarded a maximum of $1 million in four percent Affordable Housing Tax Credits and a maximum of $25 million in tax-exempt multi-family bonds to convert the former Page Woodson School, 600 N. High Ave. in Oklahoma City, into 68 apartments and to construct a new building to house an additional 68 apartments on the same property. All 136 units will be rented to residents earning no more than 60 percent of the area median income.
“This is a very important historic rehabilitation in Oklahoma City in an area experiencing a housing renaissance,” said OHFA Executive Director Dennis Shockley.
OHFA is authorized to issue tax-exempt bonds for the construction and rehabilitation of low and moderate income multi-family rental developments. Tax-exempt bonds provide a source of long-term below market interest rate financing since interest on the bonds is exempt from federal income taxes for investors.
The tax credit 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. Those credits are then sold to investors. Proceeds provide equity financing that ultimately results in reduced rents for tenants. OHFA serves as both the bond and tax credit issuer for this development.
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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