OHIO HOUSING FINANCE AGENCY APPROVES $2.25 MILLION FOR TWO AFFORDABLE HOUSING PROJECTS

FOR IMMEDIATE RELEASE
February 17, 2005

Columbus, OH -- Lieutenant Governor Bruce Johnson today announced that the Ohio Housing Finance Agency (OHFA), a division of the Ohio Department of Development (ODOD), approved a $250,000 Housing Development Assistance Program (HDAP) Loan and $2 million in Equity Bridge Loans for two housing projects in Ohio. The funds will be used to rehabilitate 40 rental-housing units and construct 32 single-family homes for low- and moderate-income Ohioans.

“The State’s assistance will provide low- and moderate-income Ohioans and their families quality, affordable housing that they otherwise may not have access to,” said Johnson, who also serves as Director of the ODOD. “It’s critical that we continue to provide financial resources to meet the demand for affordable housing in communities throughout Ohio.”

The Housing Development Assistance Program provides financial assistance to developers, helping them in rehabilitating and developing affordable housing for low- and moderate-income Ohioans. Funding for it is available through federal HOME and state Housing Trust Fund dollars. The Housing Development Loan Program provides Direct Loans, Equity Bridge Loans, Construction Deposit Loans, and Seed Money Loans to lower development costs of low- and moderate-income housing. Funds are provided through Ohio’s unclaimed funds program.

The recipients for funding are:

Engel Terrace, Beach City (Stark County) – Community and Economic Development Corporation will receive a $250,000 HDAP Loan at a 2 percent rate over a 33-year term and Engel Terrace Limited Partnership will receive a $1 million Equity Bridge Loan at a 2 percent rate over a 10-year term to acquire and rehabilitate a 40-unit housing project located at 500 4th Avenue in Beach City. Eighteen units will be affordable to households at or below 35 percent of the Area Median Gross Income, and the remaining units will be affordable to households at or below 36 percent of the AMGI. Twenty-percent of the units will be set-aside for extremely low-income households. Some units will have a patio and some will have extra storage space. Each unit will include a new kitchen, bathroom, air conditioning, windows, doors, siding, and roof. The sidewalks, parking areas and concrete drives will be repaired or replaced. The project will consist of a community center, which will contain a management office, laundry facility, kitchen, computer workstations, and a community room.

The site is located within walking distance of essential residential services. Neighborhood Development Services, Inc. will provide supportive services, and an onsite service coordinator for the residents of this community. Other agencies that have agreed to provide services include United Way of Central Stark County and Stark County Department of Jobs and Family Services. The developer of this more than $4.2 million project is Community and Economic Development Corporation

West Central Homes, Toledo (Lucas County) – West Central Homes LLC, will receive a $1 million Equity Bridge Loan at a 2 percent rate over a 10-year term to construct 32 single-family homes on scattered sites to be located in Toledo. The unit mix consists of 12 three-bedroom units and 20 four-bedroom units. All 32 units will be affordable to households at 47 percent of the AMGI. Three units will be available to households with an individual having severe and persistent mental illness. Kitchen amenities include a range, refrigerator, dishwasher and disposal. Each home will feature walk-in closets, air conditioning, washer/dryer hook-ups, wall-to-wall carpeting, a full basement and garage. The sites are located near essential residential services. Catholic Charities will provide supportive services. The developer of this more than $5.1 million project is Toledo Central City Neighborhoods CDC.

OHFA offers affordable housing opportunities for Ohioans, from rental assistance to homeownership. OHFA also provides access to financial resources for the development and management of safe, sanitary and affordable housing. The Agency's programs serve first-time homebuyers, renters, senior citizens and other populations with special needs who otherwise might not be able to afford quality housing. Controlled by a board appointed by the Governor, OHFA is a division of the ODOD. OHFA administers its programs through five offices: Administration; Finance; Homeownership Programs; Planning, Preservation and Development; and Program Compliance. The Agency's continued success is a result of the solid partnerships it has established with investment banking firms, developers, private investors, lenders, realtors, nonprofit organizations and homebuyers.