OHIO HOUSING FINANCE AGENCY FISCAL YEAR JULY 1, JUNE 30, 2014

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1 2014 A N N U A L R E P O R T FISCAL YEAR JULY 1, JUNE 30, 2014

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3 2014 ANNUAL REPORT LETTER FROM THE EXECUTIVE DIRECTOR I am pleased to share the recent accomplishments of the Ohio Housing Finance Agency in the Annual Report for Fiscal Year As the state s affordable housing leader, OHFA continues to look for innovative ways to drive its mission and provide financing to help Ohioans find quality affordable housing. FY 2014 presented unique challenges in the housing market. Recovery continues at a slower than expected pace, particularly among young millennials. Concurrently, we transitioned to a market rate initiative from traditional bond financing and introduced new homeownership products including Closing Cost Assistance, Mortgage Tax Credits and Next Home. As a result, the Agency provided affordable mortgage financing to 2,550 low- to moderate-income homebuyers in 77 Ohio counties, investing $249 million in the state s economy. We are grateful for the continued support of our lender and real estate partners. Together we have helped more than 145,550 families achieve their dream of homeownership since OHFA s Save the Dream Ohio foreclosure prevention effort, funded by the U.S. Department of the Treasury Hardest Hit Fund, reached several milestones in its third year. The amount of assistance disbursed to struggling Ohio homeowners reached an all-time high of $300 million at the end of FY 2014, supporting more than 20,000 households. We anticipate the program s successful completion in FY 2015, more than two years ahead of the U.S. Department of the Treasury s 2017 program deadline. In August 2013, the Agency announced approval from the U.S. Department of the Treasury to dedicate $60 million of uncommitted program funds to assist with foreclosure prevention and the stabilization of property values through the removal of blighted and vacated properties. In February 2014, OHFA awarded $49.5 million to 11 Ohio land banks through the Neighborhood Initiative Program (NIP). By the end of June 2014, NIP enabled the demolition of 14 vacant and blighted homes. In FY 2014, the Agency reviewed more than 100 competitive applications for the Housing Tax Credit (HTC) program the largest driver of the production of new affordable housing for low-income households in Ohio. OHFA awarded $32 million to finance 53 Ohio developments, which created or preserved 3,600 housing units in 34 counties. Since 1987, OHFA has supported financing to develop and rehabilitate more than 104,500 affordable housing units as the state s administering agency for the federal HTC program. We remain committed to administer programs and deliver services with a high standard to meet the need for affordable housing in Ohio through consistent demonstration of integrity, partnership and purpose. Respectfully submitted, Executive Director 3

4 TABLE OF CONTENTS ABOUT THE... 6 A BRIEF HISTORY OF OHFA... 6 OUR MISSION... 7 OUR VISION... 7 OUR VALUES... 7 WHO WE ARE... 8 INTRODUCTION YEAR IN REVIEW SUMMARY OF AGENCY PRIORITIES AND GOALS DASHBOARD PERFORMANCE SINGLE FAMILY PROGRAM RESULTS SINGLE FAMILY PRODUCTS AND PROGRAMS HOMEBUYER EDUCATION CHARACTERISTICS OF OHFA S HOMEBUYERS HOMEOWNERSHIP PRESERVATION RESULTS HOMEOWNERSHIP PRESERVATION PROGRAMS MULTIFAMILY PROGRAM RESULTS MULTIFAMILY DEVELOPMENT AND PRESERVATION PROGRAMS HOUSING DEVELOPMENT ASSISTANCE PROGRAM HOUSING TAX CREDIT PROGRAM CAPITAL IMPROVEMENT PROGRAM COMMUNITY HOUSING DEVELOPMENT ORGANIZATION PROGRAM MULTIFAMILY BOND PROGRAM HOUSING DEVELOPMENT LOAN PROGRAM RECYCLED TAX CREDIT ASSISTANCE PROGRAM CAPITAL FUNDING TO END HOMELESSNESS INITIATIVE MULTIFAMILY HOUSING UNITS PLACED INTO SERVICE HOUSING INVESTMENT FUND MULTIFAMILY PROGRAM COMPLIANCE RESULTS COMPLIANCE MONITORING COMPLIANCE TRAINING INTERNAL INITIATIVES OPPORTUNITIES FOR APPENDIX A: CONTRACTS AND ACTUAL PAYMENTS FOR SERVICES OVER $100,000, FY

5 2014 ANNUAL REPORT LIST OF FIGURES Figure 1: Totals for OHFA s Programs, Figure 2: OHFA Board... 9 Figure 3: OHFA Senior Staff... 9 Figure 4: Quarterly Performance Dashboard Quick Review Figure 5: Closed First-Time Homebuyer Loans by County for FY Figure 6: Example of Assistance with an OHFA Loan Figure 7: First-Time Homebuyer Loan Products and Options Figure 8: Characteristics of OHFA s Homebuyers Figure 9: HHF Program Dollars Disbursed, by FY Quarter Figure 10: HHF Households Assisted by County, FY Figure 11: Number of Visitors to the Save the Dream Ohio website, FY FY Figure 12: HHF Wind Down Timeline Figure 13: Percent of Clients Served through Ohio s HHF Programs, Cumulative through FY Figure 14: Cumulative HHF Homeowners Assisted at the end of FY 2013 and FY 2014, by Program Figure 15: Number of Homeowners who Received NFMC Counseling by MSA*, FY Figure 16: Multifamily Units Funded FY 2014, by County Figure 17: Multifamily Housing Units Preserved by County, FY Figure 18: Housing Tax Credits Awarded by County, FY Figure 19: Map of Multifamily Housing Spotlights LIST OF TABLES Table 1: First-Time Homebuyer Loans by County, FY Table 2: OHFA Loan Options Table 3: OHFA s Lenders, FY 2014, In Order of Loan Amount Table 4: Results of NIP s First Funding Round Table 5: Multifamily Housing Developments Awarded Funding in FY Table 6: Multifamily Project Funds Awarded, FY Table 7: Multifamily Properties Placed Into Service, FY

6 KENTON STATION, KENTON ABOUT THE For more than 31 years, the Ohio Housing Finance Agency (OHFA) has served as the state s affordable housing leader, ensuring that Ohioans with low- and moderate-incomes have access to safe, quality and affordable housing. OHFA uses federal and state resources to fund fixed-rate mortgage loans and provide financing for the development of affordable rental housing. The Agency relies on its partnerships with private sector, public sector, and nonprofit entities to serve first-time homebuyers, renters, and populations with special housing needs. Since 1983, OHFA has empowered more than 145,550 households throughout Ohio to achieve the dream of homeownership. As the allocating Agency for the federal Housing Tax Credit program, OHFA has supported financing for more than 104,500 affordable rental housing units since A BRIEF HISTORY OF OHFA OHFA was founded in 1983 to create and preserve affordable housing opportunities for low- and moderate-income Ohioans. Numbers shown in Figure 1 indicate totals for the Agency s affordable housing programs in 2014 and during its 31-year history. Figure 1: Totals for OHFA s Programs, FY 2014 Cumulative Households Assisted Investment Households Assisted Investment First-Time Homebuyer Mortgages Rental Housing Units *Numbers have been rounded. 2,550 $248,727, ,550* $11.8 Billion* 4,562 $212,632, ,500* $2.2 Billion* 6

7 2014 ANNUAL REPORT OUR MISSION We Open the Doors to an Affordable Place to Call Home. OHFA uses federal and state resources to finance housing opportunities for low- and moderate-income families and individuals. Our programs develop, preserve, and sustain affordable housing throughout Ohio. OUR VISION We believe that every Ohioan should have a quality place to call home. Through stewardship of public trust, OHFA leads the state in providing access to affordable housing for low- to moderate-income households. OUR VALUES OHFA commits to delivering its programs with a high standard of excellence to continually meet the public need for affordable housing. Our mission statement, We Open the Doors to an Affordable Place to Call Home, provides focus for the daily work of the Agency. OHFA has emerged as a respected leader in affordable housing through consistent demonstration of integrity, partnership, and purpose. collaboration partnership commmunityoriented service mission-driven focus passion effectiveness innovation consistency results OHFA works as a team alongside others to meet the public need; we know that we can achieve more with our partners than on our own. OHFA s mission is meaningful and provides focus. We carry out our mission at a high level of performance to meet the needs of the public as well as our internal customers. OHFA accomplishes its mission and produces intended results; we get things done, and get things done right. accountability trust respect transparency OHFA is respected; our work is valued by partners and stakeholders. We are responsible for our actions and demonstrate ownership of our work

8 WHO WE ARE OHFA is a self-supporting state agency governed by an 11-member board. The board includes the Director of the Ohio Department of Commerce, the Director of the Ohio Development Services Agency, and nine public members who represent various housing sectors and the public. Agency staff, led by an Executive Director, conduct the daily operations that drive OHFA s mission. RESIDENT, DAYTON 8

9 2014 ANNUAL REPORT Figure 2: OHFA Board David Goodman Ohio Development Services Agency Andre T. Porter Ohio Department of Commerce Robert A. Alexander PNC Bank (Retired) Gregory Arcaro Frontier Community Services Patricia P. Cash PNC Bank (Retired) Catherine A. Cawthorn Fifth Third Community Development Corporation Betty J. Kemper The Kemper Company John J. Lynch Keller Williams Realty Bill Martin Barrington Homes Mark A. Totman International Union of Operating Engineers Local 18 Henry Warren, Jr. A-1 Carpet Cleaning Figure 3: OHFA Senior Staff EXECUTIVE OFFICES PROGRAM OFFICES OPERATIONS OFFICES Douglas A. Garver Executive Director Marlo Tannous Chief Legal Counsel Andrew Bailey Director of Planning, Preservation and Development Arlyne Alston Director of Communications and Marketing Sean W. Thomas Chief of Staff Christine Proebstl Executive Assistant to Douglas Garver Brian Carnahan Director of Program Compliance John Lloyd Director of Facilities Guy Ford Director of Legislative Affairs Brenda Walker Director of Internal Audit Jim Durham Director of Homeownership Clare Long Director of Human Resources Holly Holtzen Director of Research and Strategic Planning Donald West, Jr. Chief Financial Officer Stephanie Casey Pierce Director of Homeownership Preservation Steven McVey Chief Information Officer Errin Jackson Director of Debt Management

10 INTRODUCTION The Fiscal Year (FY) 2014 Annual Report showcases OHFA s activities and achievements covering the period from July 1, 2013 through June 30, The Agency s accomplishments were achieved through the superior work of OHFA s staff, partners, and stakeholders working together to meet the affordable housing needs of the state. This report showcases the critical role OHFA s programs play in building and sustaining communities while accounting for progress toward the stated goals of the FY 2014 Annual Plan. As such, the FY 2014 Annual Report is organized by the program-specific goals and strategies adopted by OHFA s Board in the plan for the corresponding year. YEAR IN REVIEW July 2013 The OHFA Board approved two projects to be financed through the Housing Investment Fund (HIF): the Permanent Supportive Housing initiative to expand permanent supportive housing in Ohio with 40 units for underserved populations, 20 units for rural communities, and 50 units for a project that provides rental subsidies to formerly incarcerated Ohioans in an effort to prevent homelessness, and the Life Skills Facility initiative to develop a mixed-use complex to prepare low-income adults and children with disabilities for independent. August 2013 OHFA announced approval from the U.S. Department of the Treasury to allocate up to $60 million of remaining Hardest Hit Funds to help stabilize local property values through the demolition of vacant homes across the state. The new demolition effort, Neighborhood Initiative Program (NIP), is designed to stem the decline in home values and prevent future foreclosures of existing homes in communities affected negatively by vacant and abandoned properties. September 2013 OHFA commemorated the three-year anniversary of Ohio s Hardest Hit Fund foreclosure prevention program. The OHFA Board approved the 2014 Qualified Allocation Plan (QAP), which provides developers with guidance on the Housing Tax Credit program. The 2014 QAP was developed with input from the public and affordable housing partners. October 2013 OHFA s Office of Affordable Housing Research and Strategic Planning received a $460,000 grant from the John D. and Catherine T. MacArthur Foundation to evaluate the effectiveness of federallyfunded mortgage payment assistance for unemployed homeowners. The MacArthur grant will allow OHFA to assess the long-term impact of mortgage payment assistance provided to unemployed homeowners, explore the lasting effects of housing stability on gainful employment, and shape policies at the state and federal levels. OHFA Executive Director Doug Garver announced the promotion of Sean Thomas to serve as OHFA's Chief of Staff. Thomas joined OHFA in 1993 and served as the Director of Planning, Preservation and Development at the time of his promotion. He holds a Bachelor of Arts in economics and political science from the University of Rochester and a certification from the National Development Council in Multifamily Housing Development Finance. October 2013 (Cont d) OHFA launched a new Market Rate Initiative, shifting from its traditional bond financed First-Time Homebuyer (FTHB) program. Under the Market Rate Initiative, OHFA's FTHB loans are subject to the market's current interest rate and may change daily to adjust with market fluctuations. OHFA made this shift due to a decline in the bond market. November 2013 OHFA co-sponsored the annual Ohio Housing Conference, attended by more than 1,600 professionals. The Ohio Housing Conference is one of the largest and most informative statewide housing conferences in the nation. December 2013 OHFA released a report on an evaluation conducted by the Corporation for Enterprise Development (CFED) and the Economics Center at the University of Cincinnati. The report, funded by OHFA, examined Cornerstone Corporation for Shared Equity s property management system, which encourages renters to fulfill their rental commitments while building financial assets. This model contributes to the financial well-being of residents and fosters a strong sense of the community. 10

11 2014 ANNUAL REPORT CONFERENCE, COLUMBUS HOMEBUYER, AKRON January 2014 The OHFA Board bid farewell to Henry Warren Jr., who had served on the Board since During his tenure, Mr. Warren served on the Finance and Single Family committees. February 2014 OHFA awarded 11 counties a total of $49.5 million to demolish vacant properties in blighted communities through the first funding round of the Neighborhood Initiative Program (NIP), part of Ohio s Hardest Hit Fund. March 2014 OHFA was awarded more than $560,000 to continue supporting the availability of foreclosure counseling and prevention services in Ohio through the National Foreclosure Mitigation Counseling (NFMC) program. April 2014 Save the Dream Ohio accepted its last Hardest Hit Fund registration on April 30, April marked the second highest month of registrations in the program s three-and-a-half-year history. OHFA said goodbye to Cindy Flaherty, who retired in April after serving as the Director of Homeownership for seven years. May 2014 OHFA announced the recipients of the 2014 Housing Tax Credit program to fund the construction, acquisition, and rehabilitation of affordable housing units in Ohio. More than $27 million in Housing Tax Credits were awarded to 46 developments that will add 2,918 affordable rental units for families, seniors and individuals with disabilities. OHFA launched a marketing campaign and interest rate reduction program to encourage new homebuyers to take advantage of the Agency s First-Time Homebuyer products. June 2014 In recognition of National Homeownership Month, OHFA's Board presented the Youngstown Neighborhood Development Corporation with the 2014 Spirit of Homeownership Excellence Award (SHEA). OHFA released the Health Impact Assessment (HIA), a report that examines the health implications of a proposed policy to align affordable housing inspections conducted by multiple agencies into a single, comprehensive inspection. The study examines the environmental, physical, and health issues associated with the proposed change in inspection frequency. Save the Dream Ohio reached a program milestone of 20,000 homeowners served. POINT VILLAGE APARTMENTS, RUSSELLS POINT RESIDENT, COLUMBUS

12 SUMMARY OF AGENCY PRIORITIES AND GOALS The FY 2014 Annual Plan was adopted by OHFA s Board on June 19, It provided a framework for OHFA s performance management process and identified strategic priorities as well as office-specific goals and strategies of the Agency s programs. Strategies were paired with performance measures that OHFA tracked quarterly using the Agency s Performance Dashboard Quick Review chart (see Figure 4). For FY 2014, OHFA s strategic priorities were: GROW THE FIRST-TIME HOMEBUYER PROGRAM WITH ATTRACTIVE AND FINANCIALLY SOUND LENDING PRODUCTS FOR LOW- TO MODERATE- INCOME HOMEBUYERS. PROVIDE RESOURCES AND TOOLS THAT PROMOTE SUSTAINABLE HOMEOWNERSHIP AND STRENGTHEN OHIO S RECOVERING ECONOMY. LEVERAGE STATE AND FEDERAL RESOURCES TO INCREASE AND PRESERVE SUSTAINABLE, AFFORDABLE MULTIFAMILY HOUSING FOR LOW- TO MODERATE-INCOME OHIOANS. CULTIVATE AN ORGANIZATION THAT ENGAGES EMPLOYEES IN ACHIEVING ITS MISSION AND STRIVES TO BE A PUBLIC-SECTOR EMPLOYER OF CHOICE. DASHBOARD PERFORMANCE The FY 2014 Annual Report reviews organizational effectiveness and helps OHFA s leadership determine if programs, activities, and policy decisions are producing desired results. The dashboard tracks the Agency s performance toward its FY 2014 goals as outlined in the FY 2014 Annual Plan. Indicators displayed on the quarterly performance dashboard highlight the achievements of OHFA s programs and provide a direction and context for improvement. The goals and performance measures outlined on page 13 are described in detail in the remainder of this report. 12

13 2014 ANNUAL REPORT Figure 4: Quarterly Performance Dashboard Quick Review SINGLE FAMILY PERFORMANCE MEASURES 1QTR 2QTR 3QTR 4QTR A. Number of First-Time Homebuyer loans 0 2, ,320 1,980 2,640 3,300 1, B. Percentage of lending partners that increase loan production* 0 15% 45% 30% 45% 60% 75% 75% 56% 15% 45% C. Number of homeowners funded through Save the Dream Ohio 0 1,800 3,600 5,400 7,200 8,768 9,000 1,780 2,333 2,301 2,354 D. Number of homeowners receiving foreclosure counseling* 0 2, ,400 2,100 2,800 3,500 1,408 1, MULTIFAMILY PERFORMANCE MEASURES 1QTR 2QTR 3QTR 4QTR 4,562 E. Total units funded 0 1,000 2,000 3,000 4,000 5, ,988 2,739 F. Total units preserved , ,200 1,800 2,400 3,000 G. Average number of business days to issue compliance reports H. Percentage of required inspections completed* 0 103% 20% 40% 60% 80% 100% HTC 18.5% GAP 9.6% HTC 13.9% GAP 9.4% HTC 28.6% GAP 35.4% HTC 41.6% GAP 48.4% LEGEND COMMENTS FY 14 ACTUAL FY13 ACTUAL FY14 GOAL A. Includes 342 loans from the traditional bond program. D. The number of homeowners receiving foreclosure counseling indicates the number of homeowners whose housing counseling was funded under NFMC Round 7. H. Housing Tax Credit (HTC) reviews are completed on a calendar year basis while gap financing reviews (GAP) are completed on a state fiscal year basis. The percentage of properties inspected exceeds 100 because new properties became active during the year, increasing the number of required properties from 471 to QTR EXPECTED 2QTR EXPECTED 3QTR EXPECTED 4QTR EXPECTED FOOTNOTES * Performance measure was not tracked on a quarterly basis prior to FY

14 SINGLE FAMILY PROGRAM RESULTS The Office of Homeownership administers programs and resources to expand access to single family homeownership opportunities for low- and moderate-income homebuyers in Ohio. In FY 2014, OHFA provided a diverse selection of affordable mortgage products, homebuyer education, and foreclosure prevention services impacting more than 14,300 households statewide. SINGLE FAMILY PRODUCTS AND PROGRAMS During a transition year in which long-time Director of Homeownership Cindy Flaherty retired and was succeeded in June by Jim Durham (formerly of Fifth Third Bank), the Office of Homeownership launched several new products and programs. In FY 2014, OHFA announced the availability of three new products Next Home, Closing Cost Assistance, and MCC-Plus 1 that aim to provide new options for low- to moderate-income first-time homebuyers seeking to purchase an affordable home. GOAL ONE Grow the First-Time Homebuyer program with attractive and financially sound lending products for low- to moderate-income homebuyers. STRATEGIES A. Build relationships with new lending partners for participation in the First-Time Homebuyer program. B. Educate real estate professionals about the benefits of OHFA s mortgage products. C. Strengthen relationships with existing partners through training and education. PERFORMANCE MEASURES FY 2014 RESULTS FY 2014 TARGETS Number of First-Time Homebuyer loans 2,550 3,330 Percentage of lending partners increasing loan production 45% 75% Number of Real Estate Agents earning continuing education units (CEUs) In FY 2014, OHFA provided affordable mortgage financing to 2,550 low- to moderate-income homebuyers in 77 counties for a total investment of $248,727,651 (see Figure 5 and Table 1). As in FY 2013, the largest dollar volume of loans was originated in Franklin County, followed by Summit, Hamilton, Cuyahoga, and Lorain Counties. In FY 2014, loans in those five counties comprised over 54 percent of OHFA s total loan portfolio. 1 These programs are described in detail in Table 2 on page

15 2014 ANNUAL REPORT Figure 5: Closed First-Time Homebuyer Loans by County for FY Number of First-Time Homebuyer Loans More than

16 County Number of Mortgages Table 1: First-Time Homebuyer Loans by County, FY 2014 Percentage of the Total Number of Mortgages Total Amount Percentage of the Total Mortgage Amount Average Mortgage Amount Adams % $ % $ - Allen % $ 481, % $ 96, Ashland % $ 1,273, % $ 79, Ashtabula % $ 1,677, % $ 76, Athens % $ 846, % $ 105, Auglaize % $ 267, % $ 66, Belmont % $ 97, % $ 97, Brown % $ 262, % $ 87, Butler % $ 9,299, % $ 106, Carroll % $ 38, % $ 38, Champaign % $ 246, % $ 82, Clark % $ 2,426, % $ 80, Clermont % $ 7,243, % $ 108, Clinton % $ 320, % $ 80, Columbiana % $ 511, % $ 85, Coshocton % $ 425, % $ 85, Crawford % $ 546, % $ 68, Cuyahoga % $ 18,901, % $ 91, Darke % $ 160, % $ 80, Defiance % $ 81, % $ 81, Delaware % $ 4,853, % $ 142, Erie % $ 1,633, % $ 81, Fairfield % $ 6,566, % $ 109, Fayette % $ 242, % $ 80, Franklin % $ 63,134, % $ 104, Fulton % $ % $ - Gallia % $ % $ - Geauga % $ 631, % $ 157, Greene % $ 1,138, % $ 94, Guernsey % $ 302, % $ 100, Hamilton % $ 19,593, % $ 98, Hancock % $ 295, % $ 98, Hardin % $ 146, % $ 73, Harrison % $ % $ - Henry % $ 193, % $ 96, Highland % $ % $ - Hocking % $ 449, % $ 112, Holmes % $ 93, % $ 93, Huron % $ 1,036, % $ 103, Jackson % $ 318, % $ 159, Jefferson % $ 78, % $ 89, Knox % $ 1,364, % $ 85, Lake % $ 3,767, % $ 96, Lawrence % $ 93, % $ 93, Licking % $ 8,108, % $ 105,

17 2014 ANNUAL REPORT County Number of Mortgages Percentage of the Total Number of Mortgages Total Amount Percentage of the Total Mortgage Amount Average Mortgage Amount Logan % $ 244, % $ 61, Lorain % $ 10,220, % $ 91, Lucas % $ 2,357, % $ 90, Madison % $ 119, % $ 91, Mahoning % $ 2,127, % $ 70, Marion % $ 2,674, % $ 70, Medina % $ 4,962, % $ 110, Meigs % $ % $ - Mercer % $ 64, % $ 64, Miami % $ 1,942, % $ 92, Monroe % $ % $ 0.00 Montgomery % $ 5,878, % $ 94, Morgan % $ 39, % $ 39, Morrow % $ 2,054, % $ 93, Muskingum % $ 2,867, % $ 79, Noble % $ % $ - Ottawa % $ 91, % $ 91, Paulding % $ 50, % $ 50, Perry % $ 1,034, % $ 79, Pickaway % $ 2,196, % $ 115, Pike % $ 120, % $ 120, Portage % $ 4,143, % $ 98, Preble % $ 81, % $ 81, Putnam % $ 207, % $ 103, Richland % $ 1,317, % $ 73, Ross % $ 1,522, % $ 117, Sandusky % $ 161, % $ 80, Scioto % $ 170, % $ 85, Seneca % $ 255, % $ 85, Shelby % $ % $ - Stark % $ 7,948, % $ 90, Summit % $ 23,203, % $ 91, Trumbull % $ 1,873, % $ 69, Tuscarawas % $ 1,044, % $ 94, Union % $ 1,488, % $ 124, Van Wert % $ 42, % $ 42, Vinton % $ % $ - Warren % $ 3,758, % $ 125, Washington % $ 78, % $ 78, Wayne % $ 1,588, % $ 93, Williams % $ % $ - Wood % $ 422, % $ 105, Wyandot % $ 50, % $ 50, Total 2, % $ 248,727, % $ 97,

18 OHFA s Office of Homeownership faced challenges in FY 2014 as low inventory of affordable houses, an apparent decline in interest in homeownership among young adults, and tight credit standards may have kept many potential first-time homebuyers out of the market. Further, OHFA shifted from offering products funded with proceeds from the sale of taxexempt bonds to a market-rate model in October of This change was necessitated by the drop in mortgage interest rates, which fell to the point that there was no longer a spread between the rate at which OHFA could borrow and the rate at which OHFA could lend. Therefore, OHFA chose to switch to pricing its mortgages to the Mortgage-Backed Securities (MBS) market. Subsequently, OHFA introduced one new program and two additional incentives to entice homebuyers to choose an OHFA loan (see Table 2 for a description of OHFA loan options). OHFA launched the Next Home program in February of 2014, offering competitive loans and down payment assistance to low- to moderate-income homeowners interested in moving to another home. The Next Home program is distinct from OHFA s other loan programs because it is available to homebuyers moving to another home, whereas OHFA s other programs are available only to first-time homebuyers or homebuyers purchasing in a target area. In May, OHFA introduced MCC-Plus to offer Mortgage Credit Certificates (MCC) which allow up to 40 percent of a homeowner s mortgage interest to take the form of a tax credit for the life of the loan to homeowners using an OHFA loan. Previously, MCCs were available only as a stand-alone product for homeowners using non-ohfa loans. In FY 2014, 177 people with non-ohfa loans used the MCC program, now known as MCC-Basic. Finally, in June, the Office of Homeownership launched the Closing Cost Assistance option, which increases the total potential assistance available to an individual borrower by allowing a homeowner to receive up to 2 percent of the loan amount for closing costs. This option, with Down Payment Assistance, may be combined with MCC-Plus, giving the homeowner an array of incentives (see Figure 6). Homeowners who use Closing Cost Assistance will have an interest rate of up to 0.25 percent higher than OHFA s regular mortgage rate. Table 2 describes OHFA s seven loan products and their target audiences. NEW WEBSITE: MY OHIO HOME In April 2014, OHFA launched a new website to target millennial homebuyers. The website, offers easy-to -understand information on OHFA s mortgage products; interest rates; and down payment, closing cost, and MCC incentives. Screenshots of MyOhioHome.org. 18

19 2014 ANNUAL REPORT Figure 6: Example of Assistance with an OHFA Loan Home Purchase Price: $100,000 With an OHFA Loan: Down Payment Assistance: $2,500 Closing Cost Assistance: $1, MCC - Plus (40%): $2,000 Total OHFA Assistance: $6,430 Table 2: OHFA Loan Options Product Eligibility Description First-Time Homebuyer Target Area Loan Ohio Heroes Grants for Grads Mortgage Credit Certificate (MCC-Basic) Mortgage Credit Certificate Plus (MCC- Plus) Home Rehabilitation and Repair 203(ks), 203(b) Next Home Low- to moderate-income First-Time Homebuyers Low- to moderate-income homebuyers purchasing a home in an economically distressed area* Military, firefighters, police officers, teachers, etc. who qualify for OHFA s First-Time Homebuyer program Recent graduates who qualify for OHFA s First-Time Homebuyer program Low- to moderate-income homebuyers* Low- to moderate-income homebuyers using an OHFA loan* Homebuyers who are qualified for an OHFA loan product* Low- to moderate-income homeowners* *Participant does not have to be a first-time homebuyer. A 30-year, fixed-rate mortgage loan at a competitive market rate with a Down Payment Assistance option of up to 2.5 percent of the home s purchase price, Closing Cost Assistance up to 2 percent of the loan amount, and up to a $2,000 mortgage tax credit annually. A 30-year, fixed-rate mortgage loan at a competitive market rate with a Down Payment Assistance option of up to 2.5 percent of the home s purchase price, Closing Cost Assistance up to 2 percent of the loan amount, and up to a $2,000 mortgage tax credit annually. This program also allows for higher homebuyer incomes and purchase amounts. A 30-year, fixed-rate mortgage loan with a 0.25 percent interest rate reduction below market rate, a Down Payment Assistance option of up to 2.5 percent of the home s purchase price, Closing Cost Assistance up to 2 percent of the loan amount, and up to a $2,000 mortgage tax credit annually. A 30-year, fixed-rate mortgage loan with a 0.25 percent interest rate reduction below market rate, a Down Payment Assistance option of up to 2.5 percent of the home s purchase price, Closing Cost Assistance up to 2 percent of the loan amount, and up to a $2,000 mortgage tax credit annually. Annual tax credit of 20 percent, 25 percent, or 30 percent or $2,000 of mortgage interest for the life of the mortgage. Annual tax credit up to 40 percent or $2,000 of mortgage interest for the life of the mortgage. A home improvement loan combined with a fixed-rate mortgage to allow a homebuyer to finance both the purchase and improvement of a home. A 30-year, fixed-rate mortgage loan at a competitive market rate with Down Payment Assistance. 19

20 In addition to launching new products, the Office of Homeownership focused on strategies to build its portfolio through strengthening relationships with key partners. Relationships with lenders and real estate professionals are critical to the success and reach of OHFA s First-Time Homebuyer program. In FY 2014, the Office of Homeownership added 15 new lending partners and worked to increase the number of loans each lender originated. By the end of FY 2014, 45 percent of participating lenders had increased or maintained the number of loans originated from FY 2013 to FY OHFA s top producers included American Eagle Mortgage, Fairway Independent Mortgage, NOIC/Concord Mortgage Group, Howard Hanna Mortgage, and Huntington Mortgage Group, which originated over $108 million combined in first-time homebuyer loans, nearly 44 percent of OHFA s loan portfolio (see Table 3). Table 3: OHFA s Lenders, FY 2014, In Order of Loan Amount Originator No. of Loans Loan Amount Percent of Total 2.5% Lender Compensation American Eagle Mortgage 400 $ 37,177, % $ 929, Fairway Independent Mortgage Corp. 295 $ 27,768, % $ 694, NOIC/ Concord Mortgage Group 206 $ 19,144, % $ 478, Howard Hanna Mortgage 136 $ 12,545, % $ 313, Huntington Mortgage Group 122 $ 12,160, % $ 304, First Federal of Lakewood 101 $ 10,045, % $ 251, Park National Bank of SW Ohio And Northern Kentucky 113 $ 10,006, % $ 250, American Midwest Mortgage 92 $ 8,254, % $ 206, Union Savings Bank 70 $ 7,346, % $ 183, American Mortgage Service 64 $ 6,913, % $ 172, Hallmark Home Mortgage 54 $ 6,631, % $ 165, FirstMerit Mortgage Corp. 76 $ 6,544, % $ 163, Union Home Mortgage Corp. 70 $ 6,352, % $ 158, Talmer Bank and Trust 54 $ 5,829, % $ 145, Arlington Bank 47 $ 5,546, % $ 138, Equity Resources Inc. 53 $ 5,453, % $ 136, State Bank And Trust Co. 46 $ 5,298, % $ 132, Sibcy Cline Mortgage Services 36 $ 4,108, % $ 102, Prime Lending 43 $ 4,017, % $ 100, Evolve Bank and Trust 35 $ 3,597, % $ 89, Insight Bank 36 $ 3,330, % $ 83, Wells Fargo Home Mortgage 22 $ 2,281, % $ 57, Warsaw Federal Savings And Loan 23 $ 2,281, % $ 57, Schmidt Mortgage Co. 25 $ 2,202, % $ 55, First Bexley Bank 17 $ 2,007, % $ 50, Victory Mortgage, LLC 15 $ 1,990, % $ 49, Amerifirst Financial Corp. 17 $ 1,943, % $ 48, Center Bank 15 $ 1,773, % $ 44, Residential Bancorp 19 $ 1,681, % $ 42, Residential Finance Corp. 16 $ 1,673, % $ 41, Guardian Savings Bank 17 $ 1,606, % $ 40, Wright Patt Credit Union 16 $ 1,593, % $ 39, Priority Mortgage Corp. 12 $ 1,584, % $ 39,

21 2014 ANNUAL REPORT 2014 Lender Appreciation Luncheon Columbus Originator No. of Loans Loan Amount Percent of Total 2.5% Lender Compensation US Bank Home Mortgage, NA 17 $ 1,546, % $ 38, Western Ohio Mortgage 15 $ 1,456, % $ 36, First Financial Bank, NA 16 $ 1,429, % $ 35, Cheviot Savings Bank 12 $ 1,121, % $ 28, Stonegate Mortgage Corp. 13 $ 1,114, % $ 27, First Security Mortgage 10 $ 1,030, % $ 25, Bank of England 9 $ 996, % $ 24, Citizens Home Loans of America 9 $ 818, % $ 20, Land Home Financial Services 10 $ 789, % $ 19, New Carlisle Federal Savings Bank 8 $ 755, % $ 18, Option Financial 9 $ 722, % $ 18, Equitable Mortgage Corp. 5 $ 605, % $ 15, WesBanco Bank, Inc. 4 $ 545, % $ 13, Loan One Mortgage 5 $ 498, % $ 12, Republic State Mortgage Co. 6 $ 466, % $ 11, Developers Mortgage 4 $ 420, % $ 10, First Equity Mortgage, Inc. 3 $ 393, % $ 9, Dollar Bank 5 $ 380, % $ 9, NVR Mortgage 2 $ 378, % $ 9, M/I Financial Corp. 2 $ 377, % $ 9, FBC Mortgage 3 $ 307, % $ 7, Cross Country Mortgage, Inc. 2 $ 291, % $ 7, Caliber Home Loans, Inc. 3 $ 284, % $ 7, American Savings Bank 2 $ 231, % $ 5, Wells Fargo Joint Ventures 2 $ 219, % $ 5, Summit Funding, Inc. 1 $ 181, % $ 4, CF Bank 3 $ 167, % $ 4, Primary Residential Mortgage 2 $ 155, % $ 3, Portage Community Bank 2 $ 141, % $ 3, Peoples Bank 1 $ 78, % $ 1, First American Mortgage/ Corridor Mortgage Co., LLC 1 $ 74, % $ 1, Academy Mortgage 1 $ 54, % $ 1, Total 2,550 $ 248,727, % $ 6,218,

22 During the past year, the Office of Homeownership also focused on boosting its relationship with the real estate community. From July 2013 through June 2014, OHFA instructed 523 real estate professionals on the use of OHFA s products and Fair Housing laws, an increase of 180 percent over FY OHFA s training also provides real estate professionals with one to three Continuing Education Units. Figure 7: First-Time Homebuyer Loan Products and Options Non First-Time Homebuyers 2% OHFA s efforts to offer new products and options to homeowners, market its products to millennials, and strengthen its partner relationships maintained OHFA s relevancy in a year in which the mortgage market was weak and first-time homebuyer purchases were low. In FY 2014, OHFA originated 2,550 traditional First-Time Homebuyer loans, 304 of which included a Grants for Grads incentive, 415 of which included an Ohio Heroes incentive, and 80 percent of which included Down Payment Assistance. Another 177 people used the MCC- Basic program. A little over 3.5 percent of the loan portfolio comprised homebuyers who originated a 203(ks) or 203(b) loan to finance home improvements and/or weatherization along with their mortgage (see Figure 7). OHFA originates conventional, Federal Housing Administration (FHA), Department of Veterans Affairs (VA), and U.S. Department of Agriculture (USDA) loans. In FY 2014, 92 percent of the loan portfolio was government assisted and 8 percent was conventional. Target Area 12% No Down Payment Assistance 20% First-Time Homebuyer Target Area Loan Down Payment Assistance First-Time Homebuyers 98% Other Areas 88% Down Payment Assistance 80% Ohio Heroes (with DPA) 11% Ohio Heroes (no DPA) 6% Grants for Grads (with DPA) 11% Program Options OHFA Loan (with DPA) 56% OHFA Loan (no DPA) 15% 22

23 2014 ANNUAL REPORT HOMEBUYER, REYNOLDSBURG HOMEBUYER EDUCATION GOAL TWO Participants in OHFA s First-Time Homebuyer program sustain homeownership. A. Implement a new First-Time Homebuyer education module. STRATEGIES B. Evaluate the performance of the First-Time Homebuyer loan portfolio on an ongoing basis.* PERFORMANCE MEASURES Implementation of the First-Time Homebuyer Education module FY 2014 RESULTS A new online education module is scheduled to launch in FY 15. Percentage of OHFA s First-Time Homebuyers receiving homebuyer education 93% *Includes the pre-purchase homebuyer education and post-purchase counseling models. The Office of Homeownership s second goal for FY 2014 aimed to help participants in its First-Time Homebuyer program sustain homeownership by implementing an updated First-Time Homebuyer education module and evaluating the performance of the loan portfolio. The office developed streamlined telephone counseling requirements for its partner housing counseling agencies that provide pre-purchase counseling for homebuyers. An updated online homebuyer education module is scheduled to launch in FY OHFA first-time homebuyers who receive Down Payment Assistance are required to participate in pre-purchase counseling with a HUD-approved housing counseling agency. OHFA worked with 24 of such agencies throughout Ohio in FY 2014 to deliver homebuyer education to 2,373 borrowers. This number represents an increase in the percent of homebuyers receiving homebuyer education from 85 percent in FY 2013 to 93 percent in FY This increase is due to a mid-year change in OHFA policy that now requires everyone receiving an OHFA loan to complete a homebuyer education course

24 CHARACTERISTICS OF OHFA S HOMEBUYERS Among the 2,550 homebuyers that purchased a home in FY 2014 using OHFA mortgage products, the average buyer purchased a home for $97,159, slightly less than the average purchase price of $98,825 in FY The average monthly mortgage payment increased from $ to $475.95*. The average household income of OHFA s homebuyers increased by 0.5 percent from $45,084 in 2013 to $45,323 in Figure 11 shows some characteristics of the average participant in OHFA s First-Time Homebuyer program. *This number represents the average principal plus interest payment for the 2,469 loans of the FY 2014 portfolio purchased by U.S. Bank as of August 26, Figure 8: Characteristics of OHFA s Homebuyers MEDIAN AGE 30 YEARS AVERAGE HOUSEHOLD INCOME $45,323 AVERAGE LOAN AMOUNT $97,159 MEDIAN CREDIT SCORE 688 GENDER 55% 45% 24

25 2014 ANNUAL REPORT ETHNICITY 7% OTHER/ 80% WHITE 11% BLACK REFUSED/ 1% HISPANIC UNKNOWN 1% ASIAN/ PACIFIC ISLANDER 50% 40% HOUSEHOLD SIZE 68% MILLENNIALS* 30% 20% 32% OLDER OHIOIANS 10% 0% PEOPLE IN HOUSEHOLD 68% SINGLE MARITAL STATUS 32% MARRIED HOME TYPE 91% SINGLE FAMILY 5% CONDO/ TOWNHOUSE 2% MANUFACTURED 2% 2-3 FAMILY OR PLANNED UNIT DEVELOPMENT (PUD) *Definitions for Millennials vary, but this group is generally defined as persons born between and , or ages 14 to 34. For the purposes of this report, anyone 34 or younger is considered a Millennial

26 HOMEOWNERSHIP PRESERVATION RESULTS The Office of Homeownership Preservation focuses on preventing foreclosures in the wake of the national economic recession, which led to thousands of homeowners out of work and upside-down on their mortgages (meaning the size of their mortgage exceeded the value of their home). In a normal economy, a homeowner who experiences a negative financial event, such as a layoff or the death of a wage-earning spouse, can simply sell his or her home and shop for something that is a better fit for his or her budget. But a drop in housing values has left many Ohioans unable to sell their homes. The Hardest Hit Fund (HHF), a multi-billion dollar program administered by the U.S. Department of the Treasury, was established in 2009 with 18 states, including Ohio, and the District of Columbia, to develop innovative programs to assist homeowners at risk of foreclosure. HOMEOWNERSHIP PRESERVATION PROGRAMS GOAL THREE Homeowners retain homeownership through assistance from the Save the Dream Ohio and National Foreclosure Mitigation Counseling (NFMC) programs. STRATEGIES A. Increase awareness of OHFA's foreclosure prevention resources. B. Manage relationships with operational partners. PERFORMANCE MEASURES FY 2014 RESULTS FY 2014 TARGETS Number of homeowners funded 8,768 5,000 Number of homeowners receiving counseling 2,947 2,

27 2014 ANNUAL REPORT Ohio s HHF program, Save the Dream Ohio, entered its third year in FY It was a big year for Save the Dream Ohio. The amount of assistance disbursed to homeowners accelerated rapidly (see Figure 9), from $8.6 million disbursed in July 2013, to an average of $11.2 million disbursed each month from August to December, to an average of $13.9 million disbursed each month from January to June Cumulative disbursements reached $150 million in July 2013, $200 million in December 2014, $250 million in March 2014, and just shy of $300 million by the end of June Also in June, the program reached a milestone of 20,000 homeowners served. Figure 10, below, shows the 8,758 homeowners assisted in FY 14 by county. Millions $50 $40 $30 $20 $10 0 Q1-11 Figure 9: HHF Program Dollars Disbursed, by FY Quarter Q2-11 Q3-11 Q4-11 Q1-12 Q2-12 Q3-12 Q4-12 Q1-13 Q2-13 Q3-13 Q4-13 Q1-14 Figure 10: HHF Households Assisted by County, FY 2014 Q2-14 Q3-14 Q4-14 Save the Dream Ohio, which is funded with HHF dollars, offers six types of financial assistance programs to homeowners: Rescue Payment Assistance: a lump sum payment up to $25,000 to a mortgage servicer to bring the first mortgage current. Mortgage Payment Assistance: up to $22,000 or 18 months of full mortgage payments on behalf of unemployed or underemployed homeowners. Modification with Contribution Assistance: a lump sum payment up to $35,000 to reduce the principal balance on a homeowner s mortgage to make it more affordable. Lien Elimination Assistance: a lump sum payment up to $25,000 to extinguish a first mortgage lien , Number of Assisted Households or more Homeowner Retention Assistance: payments totaling up to $25,000 to reduce or eliminate delinquent second mortgages, property taxes and/or association fees. Transition Assistance: payments up to $7,500 to the homeowner for relocation in connection with an approved short sale or deed in lieu of foreclosure

28 The conditions to disburse funds rapidly in FY 2014 were set by the early 2013 implementation of several recommendations from a 2012 Kaizen event 2, a statewide marketing campaign that drove thousands of new customers to an updated website (see Figure 11), and the establishment of the $60 million Neighborhood Initiative Program in August Anticipating this, OHFA announced that it would stop accepting new registrations for Save the Dream Ohio at the end of April In April, OHFA received more than 5,000 new registrations, a number second only to the number of registrations received in October of 2010, which was the month following the program s September 27 launch. OHFA expects to fund its last homeowners by March of 2015 (see Figure 12). Figure 11: Number of Visitors to the Save the Dream Ohio website, FY FY , , , ,000 80,000 60,000 40,000 20, , , The number of visitors increased by 20 percent from FY 2013 to FY 2014 Figure 12: HHF Wind Down Timeline April 30, 2014 END REGISTRATIONS END APPLICATIONS August 31, 2014 March 2015 LAST CLOSINGS LAST MPA PAYMENT* September 30, 2016 * The Mortgage Payment Assistance (MPA) program is an 18 month program; therefore, the last MPA payment is expected to be paid 18 months after the last homeowner closes on an assistance loan. 2 The Kaizen event, hosted by LeanOhio, used improvement methods of Lean and Six Sigma to reduce inefficiencies, improve customer service, and achieve measurable results. 28

29 2014 ANNUAL REPORT Numbers of Homeowners Assisted 18,000 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 Figure 13: Percent of Clients Served through Ohio s HHF Programs, Cumulative through FY <1% 3% 3% 4% Rescue Payment Assistance Lien Elimination Assistance 38% Mortgage Payment Assistance Modification with Contribution Assistance 52% Homeowner Retention Assistance Transition Assistance Figure 14: Cumulative HHF Homeowners Assisted at the end of FY 2013 and FY 2014, by Program* 10,031 17,115 Rescue Payment Assistance 7,392 12,527 Mortgage Payment Assistance Lien Elimination Assistance Modification with Contribution Assistance Transition Assistance Homeonwership Retention Assistance HHF Program *Because homeowners may participate in more than one program, the total number of participants by program is higher than the unique number of homeowners assisted , In FY 2014, the most popular HHF programs continued to be Rescue Payment Assistance a onetime payment to reinstate a delinquent mortgage and Mortgage Payment Assistance up to 18 months of mortgage payments for unemployed and under-employed homeowners. In fact, over 90 percent of assistance provided through HHF has been under one of those two programs (see Figure 13). Thanks to the agreement of several servicers to allow homeowners to reduce their mortgage payments on a permanent basis through a mechanism called Recast, which involves re-amortizing a mortgage loan after applying a lump-sum payment to the loan s principal balance, the Modification with Contribution Assistance (MCA) program gained momentum. At the end of FY 2013, just 116 homeowners had received assistance through the MCA program. That number rose to 883 in FY 2014 (see Figure 14)

30 Before and after: Neighborhood Initiative Program results in Cleveland. The Neighborhood Initiative Program (NIP), was launched in August 2013 with $60 million from Ohio s HHF program. NIP aims to stabilize local property values through the demolition of vacant homes across the state. In February, OHFA announced its first funding round to 11 banks (see Table 4). With an expected average reimbursement of $12,000 per property, the first round of funding could result in up to 4,125 abandoned properties acquired and greened 3. In June, NIP issued its first reimbursement for 14 successfully demolished and greened properties, all of which are located in Cuyahoga County. Land Bank Table 4: Results of NIP s First Funding Round Award Amount Cuyahoga County Land Reutilization Corporation $10,118,750 Lucas County Land Reutilization Corporation $ 6,000,000 Central Ohio Community Improvement Corporation $ 5,825,000 The Port of Greater Cincinnati Development Authority $ 5,065,000 Montgomery County Land Reutilization Corporation $ 5,055,000 Mahoning County Land Reutilization Corporation $ 4,266,250 City of Canton $ 4,235,000 Trumbull County Land Reutilization Corporation $ 3,221,250 Lorain County Port Authority $ 3,005,000 Summit County Land Reutilization Corporation $ 2,000,000 Richland County Land Reutilization Corporation $ 773,750 3 A greened property is one for which the land manager seeks to maintain the property in a way that enhances it aesthetically and provides economic value for surrounding properties. Per the NIP guidelines, eligible costs for greening include site enhancements over and above standard site restoration such as, landscaping, flowers, trees, fences, benches, and other architectural elements. 30

31 2014 ANNUAL REPORT In FY 2014, OHFA also continued its participation in the National Foreclosure Mitigation Counseling (NFMC) program, which provides housing counseling assistance to homeowners facing foreclosure. This program differs from HHF programs by providing in-depth budget counseling and action planning for homeowners in crisis, but no cash assistance. OHFA received $1.07 million, and its 17 subgrantees provided housing counseling services to nearly 3,000 homeowners (see Figure 15). In March, OHFA received over $560,000 for its eighth round of NFMC funding. Figure 15: Number of Homeowners who Received NFMC Counseling by MSA*, FY Akron Cleveland Huntington Parkersburg Springfield Wheeling Canton Columbus Lima Rest of State Steubenville Youngstown Cincinnati Dayton Mansfield Sandusky Toledo *NFMC MSAs are based on the 2000 Census

32 VILLAGE AT ARLINGTON, YOUNGSTOWN MULTIFAMILY PROGRAM RESULTS The Office of Planning, Preservation and Development (PP&D) increases the supply of quality, affordable rental housing by offering financial incentives to developers to construct new or rehabilitate existing rental housing for lowto moderate-income Ohioans. OHFA also helps property managers maintain safe, affordable housing environments through its compliance programs. In FY 2014, OHFA multifamily housing programs created and preserved 4,562 affordable units. Additionally, program compliance analysts inspected 481 projects, which included 6,802 buildings and 30,272 units to ensure that affordable housing communities were well managed and maintained a high quality of life for residents. MULTIFAMILY DEVELOPMENT AND PRESERVATION PROGRAMS GOAL FOUR Affordable rental housing units are available for low- to moderate-income Ohioans. STRATEGIES A. Identify policies and prioritize resources to increase unit production. B. Strengthen relationships with new and existing partners. PERFORMANCE MEASURES FY 2014 RESULTS FY 2014 TARGETS Total number of units funded, by population served 4,562 3,500 Total number of units preserved 2,739 1,

33 2014 ANNUAL REPORT In FY 2014, OHFA successfully completed seven rounds of funding for the development or rehabilitation of affordable rental housing throughout the state and awarded funds for 4,562 units, which exceeded the Agency s goal of 3,500 units (see Figures 16 and 17 and Table 5). OHFA exceeded its goal through an increase in the Multifamily Bond and 4% Housing Tax Credit efficiency policies in the 2014 QAP, which enabled OHFA to fund a greater number of projects. OHFA awarded funds through seven programs, described in more detail on pages 38 to 41: Housing Development Assistance Program (HDAP-Bond) Housing Development Gap Financing (HDGF) Housing Tax Credit (HTC) Program Capital Improvement Program (CIP) Community Housing Development Organization (CHDO) Operating Grants Recycled-Tax Credit Assistance Program (R-TCAP) Capital Funding to End Homelessness Initiative (CFEHI) Figure 16: Multifamily Units Funded FY 2014, by County Number of Units Funded No Units or more

34 Figure 17: Multifamily Housing Units Preserved by County, FY Number of Units Per County No Units or more 34

35 2014 ANNUAL REPORT Table 5: Multifamily Housing Developments Funded in FY 2014 State Funded Sources** Project Name City County Units HDAP - HTF* HDL* MF Bond* HDAP - HOME CFEHI* R-TCAP* HTC* Preservation Family Senior PSH Syndicator Appleseed Housing Ashland Ashland 11 $ 543 N N N Y Ashland Village Ashland Ashland 45 $2,000 $ 450 Y Y N N Andover Apartments Champaign County Andover Ashtabula 60 $ 350 $2,000 $ 467 Y Y N N OCCH Urbana Champaign 10 $ 393 N N N Y Tubman Towers Springfield Clark 99 $3,000 $ 787 Y N Y N OCCH Blossom Hill Elderly Housing Columbiana County East Liverpool Salem & East Liverpool Columbiana 30 $2,000 $ 800 $ 300 Y N Y N OCCH Columbiana 4 $ 235 N N N Y Hornsby House Lisbont Columbiana 10 $ 750 N N N Y A Place for Us Housing Cedar Redevelopment Phase II Historic Shoreway Apartments Villa Serena Apartments Clinton Circle Apartments Delaware County Lakeland Townhomes Cleveland Cuyahoga 54 $ 810 N N Y N Navistone Partners Cleveland Cuyahoga 30 $3,000 $ 544 N Y N N Cleveland Cuyahoga 21 $ 500 $2,000 $ 500 $ 165 Y Y N N Mayfield Heights Enterprise Community Investment, Inc. Enterprise Community Investment, Inc. Cuyahoga 242 $3,500 $ 990 Y N Y N OCCH Defiance Defiance 80 $ 350 $2,500 $ 576 Y Y N N OCCH Delaware Delaware 10 $ 393 N N N Y OCCH Millersport Fairfield 24 $2,500 $ 186 Y Y N N Fayette Landing Washington Court House Fayette 36 $ 350 $1,900 $ 339 N N N Y OCCH Columbus Scholar House Columbus Franklin 38 $3,000 $ 527 N Y N N Eastway Village Whitehall Franklin 32 $3,500 $ 795 N N Y N Faith Village/ Marysville Meadows Griswold Building Renovation Columbus Franklin 246 $1,000 $ 8,610 $1,500 $ 540 Y Y N N Columbus Franklin 91 $ 350 $3,000 $ 970 N N N Y Hilltop Homes II Columbus Franklin 40 $3,500 $ 787 N Y N N OCCH Ivywood Apartments Riverlodge II Apartments Columbus Franklin 124 $3,500 $ 966 Y Y N N OCCH Columbus Franklin 147 $3,500 $ 988 Y Y N N OCCH Trabue Crossing Columbus Franklin 52 $3,000 $ 814 N Y N N OCCH Van Buren Shelter Green County CIP Columbus Franklin 112 $3,465 N N N Y Fairborn Greene 10 $ 500 N N N Y *Numbers are in thousands. ** HDAP-HTF funds come from the Ohio Housing Trust Fund, which is administered by the Ohio Development Services Agency. HDL funds come from Unclaimed Funds, which is administered by the Ohio Department of Commerce. The Multifamily Bond program is funded by the sale of tax-exempt bonds and is administered by OHFA. A syndicator purchases the rights to future tax credits from a developer seeking to raise equity capital for its housing project. 35

36 State Funded Sources** Project Name City County Units HDAP - HTF* HDL* MF Bond* HDAP - HOME CFEHI* R-TCAP* HTC* Preservation Family Senior PSH Syndicator Anna Louise Inn Cincinnati Hamilton 85 $ 920 N N N Y City Gospel Mission Franciscan Housing III Franciscan Housing IV Knowlton Northside Senior Mt. Healthy Creative Living Parkway Apartments Roselawn Village Cincinnati Hamilton 110 $3,000 N N N Y Cincinnati Hamilton 35 $ 270 Y Y N N Cincinnati Hamilton 35 $ 423 Y Y N N OCCH Cincinnati Hamilton 54 $3,500 $ 953 N N Y N OCCH Mt. Healthy Hamilton 36 $3,500 $ 645 N Y N N Cincinnati Hamilton 34 $ 350 $2,000 $ 359 N N N Y Cincinnati Hamilton 157 $ 751 Y Y N N Sands Senior Apartments Cincinnati Hamilton 67 $3,500 $ 973 N N Y N City Real Estate Advisors, Inc. YWCA Cincinnati Hamilton 60 $2,000 N N N Y Glen Arbors Apartments Napoleon Henry 72 $ 500 Y Y N N Logan Place Logan Hocking 80 $3,500 $ 766 Y Y N N OCCH Apple Hill Apartments Jefferson County Lighthouse Haven Willoughbeach Terrace Village Square Townhouses Jackson Jackson 40 $ 350 $2,000 $ 350 Y Y N N OCCH Steubenville Jefferson 9 $ 464 N N N Y Steubenville Jefferson 10 $ 750 N N N Y Willowick Lake 50 $3,000 $ 721 N N Y N OCCH South Point Lawrence 28 $ 350 $2,000 $ 199 Y Y N N Hebron Heights Hebron Licking 48 $2,500 $ 329 Y Y N N New Sunrise Elyria & Lorain Lorain 10 $ 189 N N N Y Arlington by the Lake Commons at Garden Lake Neighborhood Properties Inc. Parqwood Apartments Vistula Heritage Village Londonerry Apartments Marian Commons PSH Toledo Lucas 51 $2,927 $1,500 Y N Y N Toledo Lucas 75 $ 600 $1,000 $ 994 N N N Y Toledo Lucas 8 $ 428 N N N Y Toledo Lucas 134 $1,000 $6,000 $1,500 $ 310 Y N Y N Toledo Lucas 250 $3,500 $ 792 Y Y N N OCCH London Madison 72 $ 350 $2,500 $ 552 Y Y N N OCCH Youngstown Mahoning 40 $ 350 $2,500 $ 582 N N N Y *Numbers are in thousands. ACRONYMS Capital Funding to End Homelessness Initiative (CFEHI) Housing Development Assistance Program (HDAP) Housing Development Gap Financing (HDGF) Housing Development Loan (HDL) program Housing Tax Credit (HTC) Program Housing Trust Fund (HTF) 36 Ohio Capital Corporation for Housing (OCCH) Permanent Supportive Housing (PSH) Recycled Tax Credit Assistance Program (R-TCAP)

37 2014 ANNUAL REPORT State Funded Sources** Project Name City County Units HDAP - HTF* HDL* MF Bond* HDAP - HOME CFEHI* R-TCAP* HTC* Preservation Family Senior PSH Syndicator Menwa Apartments Staunton Commons II Wadsworth Medina 70 $ 690 $3,050 $1,250 $ 179 Y N Y N Troy Miami 29 $2,500 $ 244 Y N Y N OCCH Briarwood Dayton Montgomery 32 $ 393 N N N Y Dayton YWCA PSH Dayton Montgomery 65 $ 350 $3,000 $ 920 N N N Y Hoover Cottages Dayton Montgomery 12 $ 2,100 N N Y N OCCH Roosevelt Homes II Cardington Place Apartments Valley View Place Dayton Montgomery 30 $3,000 $ 598 N Y N N OCCH Cardington Morrow 32 $ 350 $2,000 $ 232 Y Y N N Falls Township Muskingum 34 $ 350 $2,000 $ 447 N N Y N OCCH Kingston Mound Manor III Waverly Manor Circleville Twp Village of Waverly Pickaway 48 $ 1,250 $ 662 N N Y N PNC Bank Pike 33 $ 350 $1,500 $ 247 Y Y N N OCCH Maple Brook at Golden Pond II Residences at Eagles Point Cedar Wood Apartments Cross Creek Meadows II Commons at Little Bark Creek Fostoria Townhomes Sycamore Creek Apartments Kent Portage 63 $ 929 N N Y N Navistone Partners Eaton Preble 40 $3,000 $ 672 N Y N N OCCH Mansfield Richland 96 $ 250 Y Y N N Union TWP Ross 40 $ 1,250 $ 500 N Y N N US Bank Fremont Sandusky 66 $ 350 $1,500 $ 849 N N Y N Fostoria Seneca 40 $2,500 $ 378 Y Y N N OCCH Sidney Shelby 96 $ 500 Y Y N N 5th Street NW Canton Stark 7 $ 275 N N N Y Commons at Madaline Park II, The Friendship Terrace Greensburgh Manor Spring Hill Apartments - Phase I Parkman Landing for Seniors Akron Summit $3,000 $ 755 N N N Y OCCH Cuyahoga Falls Summit 39 $2,500 Y N Y N Green Summit 50 $3,500 $ 732 N N Y N OCCH Akron Summit 70 $3,500 $ 616 Y Y N N OCCH Warren Trumbull 60 $3,000 $ 745 N N Y N OCCH Tod's Crossing Warren Trumbull 64 $ 500 Y N Y N Putnam Howe Village Home Place Housing Wayne Homes Independent Living Belpre Washington 50 $2,500 $ 356 Y N Y N Wooster Wayne 13 $ 393 N N N Y Wooster Wayne 15 $ 679 N N N Y Total 4,562 $14,826 $116,900 $24,087 $ 6,500 $ 8,465 $ 9,988 $31, National Affordable Housing Trust 37

38 HOUSING TAX CREDIT PROGRAM The Housing Tax Credit program is a federal income tax incentive also known as the Low-Income Housing Tax Credit (LIHTC) program designed to increase the supply of quality affordable rental housing by assisting with the financing of development costs. The program is the largest driver of the production of new affordable housing for low-income households in Ohio and has facilitated the development of more than 104,500 affordable rental units since Annually, OHFA allocates Housing Tax Credits through a competitive process consistent with the Qualified Allocation Plan (QAP), which contains OHFA s procedures and policies for the distribution of Ohio s allocation of Housing Tax Credits for the corresponding year. In FY 2014, OHFA reviewed over 100 competitive applications and awarded $31,865,706, or $319 million over 10 years, to finance 53 projects using Housing Tax Credits. The projects which include six projects that used Housing Tax Credits but were awarded outside of the regular funding round aim to create or preserve 3,628 new housing units in 34 counties (see Figure 17). Funding priorities included preserving affordable housing, permanent supportive housing (PSH), redevelopment of vacant properties in foreclosure-stricken areas of the state, and development in new markets. Figure 18: Housing Tax Credits Awarded by County, FY 2014 $792 $721 $470 $576 $849 $2,508 $745 $378 $450 $2,503 $929 $582 $300 Amount of Housing Tax Credits Awarded, in Thousands $232 None Less than $500 $500 - $999 $672 $235 $1,519 $787 $552 $339 $4,237 $662 $186 $329 $447 $1,000 - $1,999 $2,000 or more $768 $356 $500 $3,681 $247 $350 $

39 2014 ANNUAL REPORT HOUSING DEVELOPMENT ASSISTANCE PROGRAM The Housing Development Assistance Program (HDAP) is a competitive program through which OHFA provides gap financing for the purpose of expanding, preserving, and improving the supply of quality affordable housing. HDAP leverages dollars from the Ohio Housing Trust Fund and the federal HOME program to provide low-interest, deferred payment loans, or in some cases grants to developers of affordable housing. HDAP program funds are divided into two types of funding: Housing Credit Gap Financing (HCGF), which can be combined with Housing Tax Credits to provide additional resources for the development of affordable rental housing; and Housing Development Gap Financing (HDGF), which is intended for rental and homeownership developments that do not apply for Housing Tax Credits and may be smaller in scope than HCGF. In FY 2014, OHFA awarded $21.3 million in HDAP funds for 39 projects in 29 counties. CAPITAL IMPROVEMENT PROGRAM The Capital Improvement Program (CIP) set aside $4 million of Housing Trust Fund and Ohio Department of Mental Health & Addiction Services (Ohio MHAS) dollars to rehabilitate Ohio MHAS-mortgaged permanent supportive housing units for persons with severe and persistent mental illness. In FY 2014, OHFA allocated $4.675 million for 10 properties in 10 counties (Ashland, Champaign, Columbiana, Delaware, Jefferson, Lorain, Lucas, Montgomery, Stark, and Wayne). The CIP program, which began as a pilot in 2012, has preserved a total of 298 units throughout 12 Ohio counties. LOFTS AT COURT AND MAIN, WASHINGTON COURTHOUSE

40 COMMUNITY HOUSING DEVELOPMENT ORGANIZATION PROGRAM Community Housing Development Organizations (CHDOs) are private, nonprofit, community-based organizations that are chartered under state or local law to develop affordable housing in the communities they serve. The State of Ohio receives a yearly allocation of funds from the HOME Investment Partnership Program, which is a federal program administered nationally by the Department of Housing and Urban Development and in Ohio by the Ohio Development Services Agency. Fifteen percent of the state s HOME allocation must be set-aside to be awarded to CHDOs to develop housing. OHFA distributes the set-aside for the State of Ohio through its programs. Up to an additional 5 percent of the state allocation may be awarded to CHDOs as capacity building operating grants. In FY 2014, HOME rules changed, impacting the way that OHFA certifies whether an organization is a CHDO and therefore qualified to receive an operating grant. To qualify for an operating grant, an organization must already be in the process of developing housing using OHFA-administered HOME funds. Because Housing Tax Credits and other OHFA awards are competitive, this allows OHFA some assurance that development will commence within 24 months of commitment in compliance with HOME regulations. OHFA awarded $514,282 to 14 CHDOs in 14 counties for operation and consolidation. GERMANTOWN VILLAGE, DAYTON 40

41 2014 ANNUAL REPORT MULTIFAMILY BOND PROGRAM The Multifamily Bond program provides low-cost debt financing to preserve and construct rental housing for low- to moderate-income households. Using the proceeds from the sale of tax-exempt bonds, OHFA finances acquisition, construction, and rehabilitation with below-market interest rates. In FY 2014, OHFA issued $24 million in multifamily bonds for 450 affordable rental housing units in Franklin, Lucas, and Medina counties. HOUSING DEVELOPMENT LOAN PROGRAM The Housing Development Loan (HDL) program is a source of financing for developers to leverage with Housing Tax Credits, HDAP, and the Multifamily Bond program. HDLs are provided to qualified developers to reduce construction loan interest, increase the equity generated from the sale of Housing Tax Credits, and address financing needs unsatisfied by other gap financing programs. In FY 2014, OHFA provided $116.9 million to 43 projects comprising over 2,600 units of affordable rental housing through the HDL program. RECYCLED TAX CREDIT ASSISTANCE PROGRAM The Recycled Tax Credit Assistance Program (R-TCAP) is capitalized through the repayment of loans made under the American Recovery and Reinvestment Act (ARRA), makes loans available to developers and owners of new and at-risk housing financed with Housing Tax Credits to develop or operate housing that preserves affordability for low-income households. In FY 2014, OHFA awarded nearly $10 million in R-TCAP funds to 12 projects for the preservation of over 1,000 affordable housing units. CAPITAL FUNDING TO END HOMELESSNESS INITIATIVE The Capital Funding to End Homelessness Initiative (CFEHI) is a one-time capital funding boost of $32 million to the local Continuums of Care to assist with their strategies to end homelessness in Ohio. Funds may be used for the capital costs to construct new or renovate and/or repair permanent supportive housing, transitional housing facilities, or emergency shelters. In FY 2014, OHFA awarded $8.4 million in CFEHI funds to support three projects located in Columbus and Cincinnati. Table 6: Multifamily Project Funds Awarded, FY 2014 Housing Tax Credit Program $318,657,060 Multifamily Funding Program Housing Development Loan Program Multifamily Bond Housing Development Assistance Program Recycled Tax Credit Assistance Program Capital Funding to End Homelessness $24,087,495 $21,326,020 $9,988,000 $8,465,532 $116,900,000 Capital Improvement Program $4,675,000 0 $50M $100M $150M $200M $250M $300M $350M

42 MULTIFAMILY HOUSING UNITS PLACED INTO SERVICE In FY 2014, 51 properties that were awarded Housing Tax Credits between 2009 and 2012 completed construction and were placed in service (see Table 7). Those 51 properties included 2,787 units that had received a total of $90.5 million from OHFA multifamily development programs. Pages 45 to 47 provide spotlights on six OHFA-funded properties that were placed into service in FY Table 7: Multifamily Properties Placed Into Service, FY 2014 Project Name City County Units State Funded Sources HDAP - HTF* HDL* MF Bond* HDAP - HOME HTC* NSP Round I & III Preservation Family Senior PSH Syndicator Beacon Pointe Hamilton Butler 60 $ 967 N Y N N Laynecrest MaNr of Medway Key Community Development Corporation Medway Clark 48 $ 561 Y Y N N OCCH Dimmitt Woods Batavia Clermont 40 $ 189 N N Y N OCCH Apartments at St. Richard Nrth Olmstead Cuyahoga 34 $ 676 N N Y N OCCH Cleveland Green Homes III Emerald Alliance VII Cleveland Cuyahoga 40 $ 966 N Y N N Cleveland Cuyahoga 40 $ 2,000 $ 1,100 $ 496 N N N Y Enterprise Community Investment, Inc. Key Community Development Corporation Garden Valley Phase III Cleveland Cuyahoga 69 $ 939 N Y N N OCCH Mother Teresa Commons Bedford Heights Cuyahoga 44 $ 3,500 $ 192 N N Y N New Circle Vistas Cleveland Cuyahoga 36 $ 1,750 $ 300 $ 649 Y Y N N National Affordable Housing Trust Enterprise Community Investment, Inc. Regency Square Cleveland Cuyahoga 66 $ 525 $ 4,000 $ 273 Y Y N N Vesta Equity Corporation University Tower Cleveland Cuyahoga 113 $ 500 $ 1,500 $ 1,000 Y N Y N OCCH Boulevard & Neal Terrace Cleveland Cuyahoga 164 $ 808 Y Y N N PNC Bank Delaware Place Delaware Delaware 63 $ 1,103 N N Y N OCCH Huron Senior Residence Huron Erie 45 $ 748 N N Y N OCCH Avondale Senior Village Dublin Franklin 100 $ 500 $ 1,000 N N Y N National Affordable Housing Trust CHN Central Columbus Franklin 67 $ 750 $ 726 N N N Y OCCH CHN East Columbus Franklin 76 $ 750 $ 812 N N N Y OCCH Commons at Livingston II Columbus Franklin 50 $ 557 N N N Y National Affordable Housing Trust Duxberry Landing Columbus Franklin 35 $ 294 $ 3,600 N Y N N OCCH Eastway Village Whitehall Franklin 66 $ 300 $ 855 N N Y N OCCH Elim MaNr Section 202 Elim MaNr Section 8 (BOND) Columbus Franklin 35 $ 3,300 $ 151 N N Y N Huntington Bank Columbus Franklin 63 $ 3,200 $ 192 N N Y N Huntington Bank Whittier Landing Columbus Franklin 40 $ 651 $ 2,933 N Y N N OCCH *Numbers are in thousands. 42

43 Project Name City County Units 2014 ANNUAL REPORT State Funded Sources HDAP - HTF* HDL* MF Bond* HDAP - HOME HTC* NSP Round I & III* Preservation Family Senior PSH Syndicator Jacob's Crossing Rio Grande Gallia 42 $ 900 $ 444 Y Y N N OCCH Lakeview Village I Middlefield Geauga 40 $ 550 $ 295 Y N Y N OCCH Abigail Apartments Cincinnati Hamilton 71 $ 1,013 $ 565 N Y N N OCCH Alston Park Apartments Grand Development Initiative Oak Park Apartments The Reserve on South Martin (BOND) Cincinnati Hamilton 60 $ 3,600 $ 246 $ 3,600 N Y N N OCCH Cincinnati Hamilton 39 $ 923 $ 572 N N N Y OCCH Lincoln Heights Hamilton 71 $ 857 Y Y N N OCCH Mt. Healthy Hamilton 60 $ 144 N N Y N OCCH Point Village Apartments Russells Point Logan 58 $ 630 $ 749 Y Y N N Raymond James Tax Credit Funds, Inc. LMHA Oberlin Homes Oberlin Lorain 51 $ 861 Y Y N N OCCH Cranes Landing Toledo Lucas 40 $ 300 $ 708 N N Y N OCCH The Village at Arlington II Youngstown Mahoning 60 $ 932 N Y N N OCCH Monroe Manor Woodsfield Monroe 40 $ 560 $ 416 Y N Y N OCCH Englewood Square Englewood Montgomery 41 $ 1,335 $ 86 N N Y N OCCH Fort McKinley Homes Dayton Montgomery 25 $ 160 $ 2,000 N Y N N OCCH Germantown Village Dayton Montgomery 60 $ 950 Y Y N N OCCH Roosevelt Homes Dayton Montgomery 43 $ 773 $ 1,550 N Y N N OCCH Twin Towers Crossing II Dayton Montgomery 40 $ 913 N Y N N OCCH Bedford Place Dresden Muskingum 35 $ 850 $ 2,000 $ 700 N Y N N OCCH Windsor Heights New Lexington Perry 26 $ 2,000 $ 288 Y N Y N OCCH Maple Golden Pond Streetsboro Apartments Kent Portage 68 $ 1,176 N N Y N Red Stone Equity Partners Streetsboro Portage 28 $ 550 $ 567 N Y N N OCCH Hunter House Canton Stark 48 $ 1,100 $ 784 N N N Y OCCH Mayfield Manor Canton Stark 144 $ 372 N N Y N Enterprise Community Investment, Inc. Villas at Windham Bridge Edgewood Village South Hartville Stark 42 $ 697 N N Y N OCCH Akron Summit 50 $ 400 $ 2,000 $ 734 N Y N N OCCH Schoenbrunn Greene Baltic/ Sugarcreek Tuscarawas 40 $ 698 $ 442 Y Y N N OCCH Montpelier Gardens Montpelier Williams 41 $ 1,000 $ 1,800 $ 95 N N Y N OCCH Crawford Place Upper Sandusky Wyandot 30 $ 220 $84,808 N Y N N OCCH Total 2,787 $ 9,243 $ 11,250 $19,400 $ 5,498 $30,860 $14, NSP refers to the Neighborhood Stabilization Program, which was a federal program administered by the U.S. Department of Housing and Urban Development. It was established in 2008 to provide grants to state and local governments for the purchase and redevelopment of foreclosed and abandoned houses. The NSP Fund was disbursed in three stages. The table above shows funds from NSP Round I in orange and funds from NSP Round III in blue. 43

44 Figure 19: Map of Multifamily Housing Spotlights Palm House Apartments Wooster, Wayne County Avondale Woods of Dublin Dublin, Franklin County Inglewood Court Columbus, Franklin County Fort McKinley Homes Dayton, Montgomery County Losantiville Apartments Cincinnati, Hamilton County Treewood Apartments Hillsboro, Highland County 44

45 2014 ANNUAL REPORT AVONDALE WOODS OF DUBLIN 5215 Avery Road Dublin, OH (Franklin County) National Church Residences Avondale Woods features of 100 fullyaccessible apartments for adults aged 55 years and older. In 2010, OHFA awarded $10 million dollars in Housing Tax Credits over ten years and $500,000 from the Ohio Housing Trust Fund towards the creation of this affordable housing development, the first of its kind in the City of Dublin. The development includes enhanced senior living components and extensive supportive services to ensure that residents can age in place over their lifetime. FORT MCKINLEY HOMES Scattered Sites Dayton, OH (Montgomery County) Oberer Residential Construction Fort McKinley Homes is an infill development of 25 single family homes on scattered sites in the Fort McKinley Neighborhood of Harrison Township. The project was designed to help stabilize the neighborhood and promote revitalization to combat blight and disinvestment in the area. The homes are part of the lease-purchase model. At the end of the compliance period of 15 years, the residents will be able to purchase the homes

46 INGLEWOOD COURT 3720 Sullivant Avenue Columbus, OH (Franklin County) Community Housing Network Inglewood Court is a permanent supportive housing community situated on a five-acre site in the urban Hilltop neighborhood. The site, which includes two acres of green space, walking trails, and a covered picnic area, provides 60 newly constructed one-bedroom apartments for people with severe and persistent mental illness, many with histories of homelessness. In 2011, OHFA awarded Inglewood Court $840,000 ($8.4 million over 10 years) in Housing Tax Credits and $500,000 in Ohio Housing Trust Funds. The community completed in 2013, was designed in compliance with LEED standards and offers behavioral healthcare services in partnership with Maryhaven, an employment center, and other vocational services in partnership with the Center for Vocational Alternatives. PALM HOUSE APARTMENTS 1183 Rebecca Street Wooster, OH (Wayne County) Miller Valentine Group The Palm House Apartments offers 62 newly renovated, fully accessible units in a rehabilitated development. The Wayne County development, which received $677,559 ($6.8 million over 10 years) in Housing Tax Credits in 2012, contributed to reinvestment in the area by being part of the comprehensive plan for the Founder s Settlement Area. The development includes important renovations to major machinery and building roofs, and the updates add accessibility and universal design features to the units. 46

47 2014 ANNUAL REPORT LOSANTIVILLE APARTMENTS Scattered Sites Cincinnati, OH (Hamilton County) Model Group This 100-unit rehabilitation of 14 historic buildings covering 16 parcels in downtown Cincinnati is part of a large-scale, urban redevelopment effort aimed at contributing to the transformation and comprehensive revitalization of the Over-the-Rhine and West End neighborhoods. In 2012, OHFA awarded $1,720,445 ($17.2 million over 10 years) in Housing Tax Credits, which Model Group combined with state and federal historic tax credits and private investment to fund the $22.3 million project. TREEWOOD APARTMENTS 808 Treewood Drive Hillsboro, OH (Highland County) Provident Management, Inc. Treewood Apartments received $333,859 ($3.3 million over 10 years) in Housing Tax Credits and an HDAP award of $827,000 in 2012 for the rehabilitation of a multifamily project in Hillsboro, Highland County. Originally built in 1976, the property had no major renovations until it received financing from OHFA. The development is an asset in a community with few options for rental housing

48 HOUSING INVESTMENT FUND OHFA established the Housing Investment Fund (HIF) in 2009 to support new approaches to address affordable housing needs. The HIF program is funded through OHFA s net revenues and aims to provide diverse affordable housing opportunities and services, improve service delivery to areas with few housing options, and identify replicable strategies for promoting affordable housing in Ohio. Projects spotlighted below advanced the policy development priorities identified in the FY 2014 Annual Plan. YOUNGSTOWN NEIGHBORHOOD DEVELOPMENT CORPORATION Award: $500,000 Project: Community Loan Fund Scope: The Youngstown Neighborhood Development Corporation's (YNDC) Community Loan Fund (CLF) supports financing for the purchase of owneroccupied housing in six vulnerable Youngstown neighborhoods by offering a first-mortgage financing source for families. The fund is supported by three financing pools: HOME funds from the City of Youngstown, HIF funds, and PNC Bank Funds. The Raymond John Wean Foundation has capitalized a loanloss reserve fund. The CLF reaches potential homebuyers through marketing, workshops and consumer education. It seeks referrals through neighborhood development corporations, housing counseling agencies, resident referrals, and citywide marketing. Pre- and postpurchase education and early-intervention delinquency counseling is integrated into the program, contributing to more stable households. So far, YNDC has provided a total of 18 first-mortgage loans. Each of the 18 homebuyers have attended preand post-purchase housing counseling sessions to ensure housing stability. In June 2014, OHFA presented YNDC with the Spirit of Homeownership to recognize the CLF as an initiative that promotes homeownership opportunities and accessibility across the state. ENTERPRISE COMMUNITY PARTNERS Award: $651,120 Project: Mobile Health Clinic Scope: Enterprise Community Partners is integrating a mobile primary health care clinic into its Housing First Permanent Supportive Housing (PSH) projects in Cuyahoga County that lack on-site primary health care. The mobile clinic will be staffed by a nurse practitioner and medical assistant who will perform wellness checks, dispense medicine, and provide health consultation. The medical staff will spend a half-day at each PSH project per week. Enterprise Community Partners will measure housing and health outcomes including retention rates, employment, blood pressure, and Body Mass Index (BMI). Currently, while the Mobile Health Clinic vehicle is being manufactured, the primary health care team is visiting patients in their apartments to initiate care relationships. The team also has identified the highest emergency room users in an effort to reduce inappropriate emergency room visits each year. 48

49 2014 ANNUAL REPORT RESIDENTS, YOUNGSTOWN MULTIFAMILY PROGRAM COMPLIANCE RESULTS GOAL FIVE OHFA s portfolio of multifamily housing is managed to exceed federal standards. A. Implement new methods for managing workflow. STRATEGIES B. Improve the quality of compliance monitoring reports to enhance understanding of project performance. C. Manage relationships with compliance partners. PERFORMANCE MEASURES FY 2014 RESULTS FY 2014 TARGETS Average number of business days to issue compliance reports Average number of business days to issue closeout letters Percentage of required inspections completed by funding source HTC % Gap % 100% Number by type of physical non-compliance 134* Percentage of properties receiving a follow-up call after a compliance review 15% 15% *Of the 134 instances of non-compliance found by OHFA site inspectors, one was found for an entire, site, two on building exteriors, 69 within dwelling units, one in a common area, and 35 for health and safety issues. OHFA inspectors did not record any instances of non-compliance for building systems

50 COMPLIANCE MONITORING As the allocating agency for the federal Housing Tax Credit program, OHFA has a responsibility to ensure owner and manager compliance with the rules and regulations of the program. In FY 2014, OHFA conducted on-site inspections of 481 projects comprising 6,802 buildings and 30,272 units financed with OHFA multifamily resources. Each site inspection involved a physical inspection and a file review of all compliance documentation. At the beginning of FY 2014, OHFA anticipated it would have 471 properties to inspect, but 10 new properties were added during the year. OHFA conducted a majority (71 percent) of its inspections in the third and fourth quarters of the fiscal year. In FY 2014, OHFA focused on reducing the amount of time it takes to issue its compliance reports and close out compliance reviews. OHFA s goal was to issue compliance reports within 20 business days. By the end of FY 2014, OHFA s Program Compliance team was issuing its reports in, on average, less than 12 business days. Program Compliance implemented a new system, DevCo Online, to track the properties that OHFA is required to inspect. Registration for the system started in March 2014, and by the end of the fiscal year, 1,398 active properties owned or managed by 193 organizations had registered in the system. All of the 2013 Housing Tax Credit and Gap Financing Annual Owner Certifications that OHFA received were submitted through DevCo Online. One-hundred ninety properties submitted 2013 tenant data for DevCo, and the remaining properties submitted data through an upload portal. The Program Compliance team continues to work with owners and property managers statewide to use DevCo for recording and tracking Tenant Income Certifications and Owner Certifications. COMPLIANCE TRAINING OHFA offers regular compliance training courses for property owners, compliance managers, and on-site leasing agents. In FY 2014, OHFA moved to a regional approach to increase access to its trainings. OHFA hosted eight trainings sessions attended by more than 240 people. The trainings aim to ensure that the management staff of affordable housing properties understands the compliance requirements of running properties that have received Housing Tax Credits and HDAP funding. ASSET MANAGEMENT ACTIVITIES As part of the responsibilities defined in the American Recovery and Reinvestment Act (ARRA), Housing Finance Agencies like OHFA are responsible for the asset management of funds directly placed with projects. Since 2009, OHFA has awarded funds to 81 projects throughout Ohio through the Tax Credit Exchange (TCE) program and the Tax Credit Assistance Program (TCAP). OHFA s Office of Program Compliance is responsible for the administration and asset monitoring of 74 TCAP/TCE and seven TCE-only projects. Most of the projects have other sources of funding that are asset-managed by a third party. For those projects, OHFA s Office of Program Compliance collects and evaluates quarterly financial statements and works with owners, property managers, and syndicators on compliance or financial issues. For the seven TCE-only projects, Program Compliance s role is similar to that of a syndicator, which means that OHFA staff work with the owners and property managers on issues such as vacancies, operating reserves and marketing. In FY 2014, all 81 projects complied with the ARRA legislation and the OHFA policy by verifying that they paid their real estate taxes and property insurance. All properties are subject to compliance reviews by an OHFA Compliance Analyst on a regular review cycle. Of the properties reviewed and closed in FY 2014, none had remaining outstanding compliance issues or all issues identified during the reviews were corrected. 4 Gap financing includes HOME, Ohio Housing Trust Fund (OHTF), and Financial Adjustment Factor projects. 50

51 2014 ANNUAL REPORT INTERNAL INITIATIVES In FY 2014, OHFA made organizational culture a strategic priority of the Agency and set goals aimed at improving employee engagement and cultivating and rewarding knowledgeable, high-performing and customer-service oriented workers. GOAL SIX OHFA employees are knowledgeable representatives of the Agency and serve as a resource to community partners. STRATEGIES A. Equip OHFA s workforce with the skill and acumen necessary to execute the Agency s mission. B. Consistently provide a high level of customer service and deliver requested business results. PERFORMANCE MEASURES FY 2014 RESULTS Number of employees attending technical trainings 43 Number of position openings filled by internal candidates 22 Number of resignations 8 Number of presentations delivered by staff to external audiences

52 GOAL SEVEN OHFA offers a rewarding work environment that inspires innovation and success. STRATEGIES A. Maximize employee potential and behavioral competencies. PERFORMANCE MEASURES FY 2014 RESULTS Number of employees attending internal trainings 108 Number of employees completing an Individual Development Plan (IDP) Number of employees with a performance evaluation category rating Exceeds Expectations Number of employees taking health and wellness leave 61 Percentage of employees participating in the annual engagement survey One way in which OHFA strived to cultivate a knowledgeable workforce was through offering technical trainings to its employees. In FY 2014, OHFA focused its Employee Development and Training Program on enhancing employee core competencies and guiding and motivating staff. OHFA launched a Management Team Coaching program to help managers address specific challenges and provided trainings on coaching and developing employees and building motivation and morale in the workplace. In response to employee requests, OHFA also offered training sessions on interviewing, managing career success, stress and life balance, time management, emotional IQ, and avoiding burnout. One hundred eight employees attended those trainings. Moreover, 43 employees attended technical trainings to improve skills in computer software like Microsoft Excel and Microsoft Access. Building upon its focus of offering and encouraging trainings, OHFA also began encouraging employees to develop Individual Development Plans (IDPs), which are uniquely tailored action plans that contain developmental activities aimed at enhancing an employee s competencies and capacity to take on broader leadership responsibilities. The IDPs are part of a new online, statewide performance review system, which was implemented by OHFA in FY Twelve employees completed IDPs in FY % 52

53 2014 ANNUAL REPORT In FY 2014, OHFA continued to complete employee evaluations with a statewide module called e-performance, which was launched by the Department of Administrative Services in January The system requires supervisors to evaluate employees based on goals described in OHFA s Annual Plan and competencies that contribute to job success. OHFA established Agency competencies upon which to rate all staff. In FY 2014, 41 employees were rated Exceeds Expectations by their supervisors. Another way in which OHFA worked to engage employees in 2014 was by establishing a new onboarding program to acclimate newly hired workers to the social and performance aspects of their positions and to help them learn the attitudes, knowledge, skills, and behaviors required to function effectively within OHFA. The program includes branding that reflects the values of the Agency and a plan that covers key items to address before the first day, on the first day, during the first week, and at 30, 60 and 90 days of employment with OHFA. OHFA hired 26 employees in 2014, 12 of which were internal OHFA employees who were promoted. Eighty percent of staff participated in OHFA s calendar year 2014 Engagement Survey, which represents a slight increase over the 78 percent participation rate in calendar year The survey showed improvement on 15 of the 16 questions posed to employees. The survey, which OHFA conducts annually, aims to measure the level of staff engagement by looking at work expectations, recognition and praise, professional development, Agency mission, and relationships with fellow employees

54 OPPORTUNITIES FOR 2015 Changes in OHFA leadership within the Board and senior staff, the winding down of the state s foreclosure prevention program, regaining market share amid rising prices and credit constraints that limit the first-time homebuyer market, and federal changes to programs that provide critical financing for affordable rental housing are among the challenges OHFA faces in the coming year. Those challenges, along with a review of the state s housing needs 5 and input from OHFA staff, board, and leadership helped OHFA develop the following list of strategic priorities for FY 2015, which are discussed in-depth in OHFA s FY 2015 Annual Plan 6 : Sustain and Advance OHFA through its Core Programs; Demonstrate Impactful and Measurable Results; Concentrate Efforts on the Highest Priority Housing Needs; Act as an Entrepreneur in Advancing OHFA s Mission; and Strengthen OHFA s Workforce Culture. 5 OHFA Housing Needs Assessment: Technical Supplement to the 2015 Annual Plan. July Available at: 6 OHFA 2015 Annual Plan. June 18, Available at:

55 2014 ANNUAL REPORT RESIDENTS, KENTON