The 2024 Oklahoma Legislature is back in action.  There are a few bills that may be of immediate interest to our members.  We will have a more detailed tracking list out soon for our membership.  Please make sure to let us know if there are any legislative issues that are of importance to your business.

PRIORITY BILLS:

HB3499-West – This bill will require property owners to review the criminal history of potential renters and outline the factors to determine if the applicant is suitable.  This bill will require OHFA to collect data from property owner and to provide annual statistics.  Requires all LIHTC properties to have a defined criminal history screening policy related to felony convictions and housing of felons can only be denied if an individualized review shows that the safety of residents and the property are at risk.  At Issue:  Coalition members have expressed some concern related to an unfunded administration burden and the subjective nature of the bill leading to potential inconsistent application and Fair Housing issues. Current Status: This bill has passed the A&B Revenue & Taxation Subcommittee.  This may move on to full committee next week.   

If this bill affects your business, you may want to take action soon. 

HB4018-McBride – This bill is an industry request to allow any unused State LIHTC credits related to the Oklahoma Affordable Housing Act to be rolled over to the next year or any returned State LIHTC credits to be reallocated. Current Status:  This bill has been referred to the A&B Finance-Revenue & Taxation Subcommittee and will be heard on Monday, February 26, 2023 at 10:30am in Room 206. 

BILLS OF INTEREST:

HB3956-Blancett – This bill will establish the Oklahoma Affordable Housing Commission to address housing needs for various income levels. The bill defines income brackets, appointees and outlines responsibilities.  Creates a revolving fund to support housing initiatives.  Current Status:  Referred to A&B Select Agencies Subcommittee. 

SB1755-Haste – This bill creates an affordable housing taskforce to study the current and future policy needs of the state to address affordable housing.  Current Status: Not yet assigned to committee.

HUD will hold a webinar February 27 that provides an in-depth review of Notice CPD-23-103: Departmental Policy for Addressing Radon in the Environmental Review Process published by HUD on January 11, 2024. Under this new policy notice, radon gas must now be considered in the contamination analysis required under HUD’s contamination regulations at 24 CFR Part 50.3(i) and 58.5(i). The policy goes into effect 90 days after publication for all non-tribal recipients. For all tribes, Tribally Designated Housing Entities (TDHEs), and Department of Hawaiian Homeland recipients, it goes into effect two years after publication. The policy is part of HUD’s continuing efforts to better address the risk of residential radon exposure in HUD-supported housing and other buildings. This webinar allows time for Q&A. Attendees will be able to submit questions in advance when registering. Register today!

Audience

This webinar is intended for HUD grantees, specifically staff who are involved with environmental reviews.

Schedule and Registration

HUD Policy for Addressing Radon in the Environmental Review Process
February 27, 2024 3:00 - 4:30 PM EST

Register Now!

For more information: Radon and HUD-Assisted Projects Webinar Series Registrar | trainings@hudexchange.info

Applications are now being accepted from developers with plans to construct for-sale or rental housing as part of the Oklahoma Housing Stability Program. Available applications include:

• Oklahoma Homebuilder Program - $100.7 million available for the new construction of single-family homes for purchase
• Oklahoma Increased Housing Program - $63.55 million available for the new construction of single-family and multifamily rental homes

For more information about the program and for application details, visit ohfa.org/housingstability.

A Note for Potential Homebuyers

The funds for down payment and closing cost assistance in the Oklahoma Housing Stability Program are specifically reserved for homebuyers who purchase homes built through the Oklahoma Homebuilder Program. It's important to note that these funds will only be available once the houses are built. For details about OHFA's current offerings for down payment and closing cost assistance, please visit ohfa.org/homebuyers.

 

Permanent Rules Hearing, Feb. 16

Gov. Kevin Stitt approved emergency rules for the Housing Stability Program, January 25. As part of the rule-making process, the Oklahoma Housing Finance Agency will hold a public hearing regarding the permanent rules, Feb. 16.

Housing Stability Program Permanent Rules Hearing
Friday, February 16 at 10 a.m.
Oklahoma Housing Finance Agency Board Room
100 N.W. 63rd Street
Oklahoma City, OK 73116

Last week the U.S. House of Representatives successfully passed the "The Tax Relief for American Families and Workers Act of 2024" (H.R. 7024) with an overwhelming majority of 357-70.

If enacted, this legislation would:

• Restore the 12.5 percent allocation increase for 2023 – 2025. This allocation increase was initially enacted in 2018 but expired in 2021. The provision in this agreement would not extend the 12.5 percent retroactively for 2022, but would restore it retroactively for 2023 and keep the provision in place for the next two years.
• Lower the 50 percent bond financing threshold to 30 percent for Private Activity Bond (PAB) allocations made in 2024 – 2025.

Together, the approved provisions are estimated to finance the production or preservation of over 200,000 additional affordable homes, according to Novogradac. Enacting these provisions would also position our priorities for potential extension in 2025, when Congress is expected to enact major tax legislation due to the expiration of the individual tax provisions that were included in the Tax Cuts and Jobs Act of 2017 and now this current tax legislation.

Next Steps:

The bill will now head to the U.S. Senate for consideration. TAAHP will need your help when the time comes to get this legislation over the finish line. Please stay tuned for a call to action when this important legislation is up for a vote in the Senate. Contact your legislators to urge them to VOTE YES in support of increasing the supply of affordable housing.

OKLAHOMA CITY - Gov. Kevin Stitt approved emergency rules for the Housing Stability Program (HSP), Jan. 25. The Oklahoma Housing Finance Agency (OHFA) will begin accepting applications for the new program Mon., Jan. 29.

The HSP, created by legislation authored by Rep. Kevin Wallace and Sen. Chuck Hall, provides $215 million to fund the construction of new single-family homes for purchase and for single and multifamily rental homes. It also offers down payment and closing cost assistance for homebuyers who purchase homes produced by the Oklahoma Homebuilder Program.   

“With the approval of the emergency rules, Governor Stitt demonstrates his profound understanding of the housing issues faced by Oklahomans and his commitment to addressing the housing shortage in rural and urban communities throughout the state,” said Mike Buhl, chairman of the OHFA Board of Trustees. 

Visit ohfa.org/housingstability for application details.

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The U.S. Department of Housing and Urban Development (HUD) has released guidance related to the Housing Opportunity Through Modernization Act, commonly referred to as HOTMA.

Under the HOTMA final rule, CPD programs that reference or use 24 CFR 5.603, 24 CFR 5.609, 24 CFR 5.611, 24 CFR 5.617, or 24 CFR 5.618 are subject to new or different requirements beginning January 1, 2024 (this includes the LIHTC, HOME, NHTF, & HOPWA programs).  Additionally, HUD issued conforming regulations to 24 CFR parts 92, 93, 570, and 574 that are also effective January 1, 2024. On December 13, 2023 HUD Issued the following notice: Federal Register: Housing Opportunity Through Modernization Act: Implementation of Sections 102, 103, and 104; Extension of Compliance Date.

This Notice allows PHAs the flexibility to establish their own compliance date for sections 102 and 104 of HOTMA as early as January 1, 2024, and no later than January 1, 2025. OHFA has elected to implement HOTMA no later than January 1, 2025 for compliance with all Housing Development programs.

To fully implement and comply with the HOTMA final rule no later than January 1, 2025, CPD program administrators must develop and/or update program guidelines, including policies, procedures, and internal systems, and conduct software updates to incorporate the new income and asset requirements prior to implementing these requirements for their programs. CPD program administrators must also identify ways in which CPD grantees can obtain income determinations from other HUD programs in order to implement program flexibilities that were built into the HOTMA final rule for those programs.

Over the next year, OHFA will be updating our program guidelines, including policies, procedures, and internal systems, and conduct software updates to implement HOTMA across our Housing Development Programs. Once updated, OHFA will sponsor a training for all owners/managers on the new implementation and guidance for HOTMA.

ACTION is excited to announce that key Housing Credit provisions from the AHCIA have been included in a $78 billion deal on a tax package struck by House Ways and Means Committee Chair Jason Smith (R-MO-08) and Senate Finance Committee Chair Ron Wyden (D-OR) and released publicly this morning. The tax package contains two key Housing Credit provisions:

1. Temporary restoration of the 12.5 percent cut the Housing Credit suffered in 2022 after a temporary allocation increase expired. The deal would increase 9 Percent Credit authority for calendar years 2023 through 2025. State Housing Credit Agencies would need to use the additional 2023 authority by the end of 2024, as states have two years in which to use annual authority before it is redistributed through the National Pool.
2. Temporary change to the Private Activity Bond (PAB) threshold test, lowering it from 50 percent to 30 percent for 4 Percent properties financed with multifamily Housing Bonds that have an issue date before 2026. To qualify, buildings must be placed in service after December 31, 2023.

The bill includes language to address questions about properties receiving bond authority from multiple bond issuances in different years by allowing buildings in the financing process that have already received a portion of the bond authority they need to benefit from the 30 percent test, as long as at least five percent of their aggregate basis is financed with bonds that have an issue date in either 2024 or 2025. It also provides that acquisition / rehabilitation buildings in which the acquisition aspect of the development placed in service prior to December 31, 2023, get to qualify for the 30 percent test on the cumulative basis of the acquisition and rehabilitation, so long as the rehabilitation placed in service date is in 2024 or later.

 

ACTION is deeply grateful to Chairs Wyden and Smith, the lead sponsors of the Affordable Housing Credit Improvement Act (AHCIA), and to all Members of Congress who advocated for these provisions in the deal.

 

AHCIA Senate lead sponsor Maria Cantwell (D-WA) said, "This is the biggest investment in housing in 35 years--and greatly needed. It will provide over 200,000 new units nationwide over the next two years. In the State of Washington, it will mean over 6,000 new units. The supply catch-up will help working families in both urban and rural areas across the country, and I'm appreciative of Sen. Wyden and Rep. Smith for including this critical investment in the deal announced today."

 

"The Low-Income Housing Tax Credit continues to be an important tool to drive investment in the affordable rental housing market, strengthening communities and generating economic development in areas that need it most. I am pleased that provisions from our Affordable Housing Credit Improvement Act were included in the Tax Agreement, which will provide a much-needed boost in housing supply and benefit seniors and working families in Illinois and throughout the country," said AHCIA House lead sponsor Darin LaHood (R-IL-16).

 

But we still have work to do, as the deal's enactment is not guaranteed. Reporting from Punchbowl News suggests that the two minority lead tax negotiators, House Ways and Means Ranking Member Richie Neal (D-MA-01) and Senate Finance Committee Ranking Member Mike Crapo (R-ID), are yet to sign off on the package. While both support the Housing Credit, other aspects of the bill could impact their position on the package overall.

 

Also, the precise path to passage remains unclear. Potential avenues include positioning it as a standalone bill or attached to another legislative vehicle like an appropriations deal, both of which present logistical challenges. Moreover, time is short. Congress must enact the bill before the 2023 tax filing season starts on January 29.

 

Thank you to all ACTION members and partners who have been working to advocate for the inclusion of these provisions in this tax framework. Your hard work has paid off and this is a positive step forward! We will continue to keep members updated on opportunities to weigh-in as we move forward. For now, be sure to thank Members of Congress who support the AHCIA and conveyed that support to tax committee leads.

Based on the input received regarding the Oklahoma Housing Stability Program, the Oklahoma Housing Finance Agency has made significant changes to the program's structure and rules. All draft documents and updates related to the Housing Stability Program can be found on the OHFA website.

Once finalized, this program will provide $215 million for the following purposes:

• New construction of single family homes for purchase
• New construction of single family and multifamily rental housing
• Homebuyer down payment and closing cost assistance

Rural and urban communities across the state will benefit from the new program.

The public is invited to provide feedback by attending an online input session, Tuesday, November 29.  Comments are also being accepted through December 5 on a dedicated discussion board.

Draft Documents Added November 8

Draft Rules:

Emergency Draft Rules - Redlined Version

Emergency Draft Rules - Clean Version

Oklahoma Homebuilder Program Draft Application:

Oklahoma Homebuilder Program Draft Application-Redlined Version

Oklahoma Homebuilder Program Draft Application - Clean Version

Oklahoma Increased Housing Program Draft Application:

Oklahoma Increased Housing Program Draft Application -Redlined Version

Oklahoma Increased Housing Program Draft Application -Clean Version

A program timeline for November and December 2023 has also been posted.

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Take the 2024 Oklahoma Housing Conference Session Survey- Your input is needed to help the Oklahoma Housing Conference Committee plan the sessions for the 2024 conference. Please take a few minutes to complete our survey and be entered into a drawing to win a $100 Visa Gift Card.

Survey closes on Monday, November 6.