Chapter 122:6-1 Ohio Low- and Moderate-Income Housing Trust Fund

As used in Chapters 122:6-1 to 122:6-6 of the Administrative Code:

(A) “Area median income” means the median income, adjusted by household size, identified by ODOD for the county in which a housing project is located.

(B) “CDD” means the community development division of the Ohio department of development.

(C) “Community housing improvement program” means the program established by ODOD to provide funding to local governments for affordable housing for low- and moderate-income persons and to help develop their capacity to administer housing programs.

(D) “Housing development project” means the acquisition, construction and/or rehabilitation of housing units.

(E) “Local government” means any county, municipal corporation or township.

(F) “Non-profit corporation” means a non-profit corporation incorporated pursuant to Chapter 1702. of the Revised Code and granted 501(c)(3) status by the Internal Revenue Service.

(G) “Non-profit housing development funding system” means the process established by ODOD which enables non-profit organizations to receive funds for housing projects from a variety of ODOD funding sources by submitting a single proposal.

(H) “OHCP” means the office of housing and community partnerships within the community development division of the Ohio department of development.

(I) “OLGS” means the office of local government services within the community development division of the Ohio department of development.

(J) “ODOD” means the Ohio department of development.

(K) “Rural areas” means political subdivisions of the state eligible to receive funding through the small cities community development block grant program as set forth in 42 USC 5302(a)(b).

(L) “Trust fund” means the state of Ohio low- and moderate-income housing trust fund.

HISTORY: Eff 4-16-92 (Emer.); 6-26-92

Rule promulgated under: RC Chapter 119.

Rule authorized by: RC 175.22(D)

Rule amplifies: RC 175.21 to 175.25

(A) GENERAL REQUIREMENTS

(1) Any non-profit corporation seeking funds from the trust fund to finance a housing development project shall make application through the non-profit housing development funding system administered by OHCP using the forms and meeting the criteria prescribed by ODOD.

(2) Any local government seeking to receive funds from the trust fund to finance housing rehabilitation, home repair, new construction of housing and related activities as specified by CDD, shall make application through the community housing improvement program administered by OLGS, using the forms and meeting the criteria prescribed by OLGS.

(3) Any local government, non-profit corporation, housing authority, private developer, or private lender seeking to use funds from the trust fund for housing activities other than those specified in paragraphs (B)(1) and (B)(2) of this rule, shall submit a proposal in response to a request for proposals issued at least annually each fiscal year by CDD.

(4) ODOD shall consult with the housing trust fund advisory committee on the allocation of trust fund monies among the non-profit housing development funding system, the community housing improvement program, the requests for proposals and the programs of the Ohio housing finance agency.

(B) ELIGIBILITY AND EVALUATION CRITERIA FOR THE RECEIPT OF FUNDS.

(1) Any non-profit corporation receiving funding from the trust fund through the non-profit housing development funding system shall use such funding to develop or improve housing affordable to households with incomes of thirty-five per cent of area median income or below.

(2) Any local government receiving funding from the trust fund through the community housing improvement program shall use such funding to develop or improve housing affordable to households with incomes of thirty-five per cent of area median income or below.

(3) Proposals submitted in response to a trust fund request for proposals will be evaluated by CDD and shall take into consideration all of the following criteria:

(a) Effectiveness of the proposal in targeting the priority housing activities listed in the request for proposals;

(b) Track record and expertise of the applicant;

(c) Effectiveness of the project in meeting the goals of the trust fund including but not limited to the following:

(i) Serving households with incomes of thirty-five per cent of area median income or below;

(ii) Providing at least forty-five per cent of all funds to non-profit corporations;

(iii) Providing at least thirty-five per cent of all funds to rural areas;

(d) Cost-effectiveness of the proposed activity, reasonableness of the funding request and extent to which funds will be repaid to the trust fund;

(e) Support for the proposal from other funding sources and leverage of other resources;

(f) Extent to which the project is consistent with a local neighborhood or community development strategy;

(g) Coordination of housing and social services where applicable;

(h) Feasibility of the proposed schedule, budget and project outcomes;

(i) Need for the proposed activity and the extent to which the project can serve as a model to be duplicated;

(j) Need for funding from the trust fund and availability of funding for the project from other sources; and

(k) Any other matter CDD deems relevant.

(4) CDD may, after consultation with the housing trust fund advisory committee, make funds available for housing projects and programs affordable to households with incomes up to eighty per cent of the area median income. However, in no case shall more than twenty-five per cent of all trust fund monies be used to serve households with incomes greater than fifty per cent of the area median income.

HISTORY: Eff 4-16-92 (Emer.); 6-26-92

Rule promulgated under: RC Chapter 119.

Rule authorized by: RC 175.22(D)

Rule amplifies: RC 175.21 to 175.25

(A) Up to twenty-five per cent of funds granted or loaned from the trust fund may be advanced to the recipient following execution of all required documents to the satisfaction of CDD.

(B) The remaining funds shall be paid to the recipient upon the complete and timely submission of financial and program reporting forms as required by CDD, with final payment contingent on successful completion of the activities funded with trust fund monies.

HISTORY: Eff 4-16-92 (Emer.); 6-26-92

Rule promulgated under: RC Chapter 119.

Rule authorized by: RC 175.22(D)

Rule amplifies: RC 175.21 to 175.25

(A) Each recipient of a grant or loan made from the trust fund for activities that will provide, or assist in providing, rental housing shall reasonably ensure that the rental housing will be affordable to those families and individuals targeted for the rental housing for the useful life of the rental housing project or for thirty years, whichever is longer;

(B) Each recipient of a grant or loan made from the trust fund for activities that will provide, or assist in providing, housing shall prepare and implement a plan to reasonably assist any families and individuals displaced by the housing project in obtaining decent affordable housing.

(C) Each recipient of a grant or loan made from the trust fund shall certify, by using the forms prescribed by CDD, that they will comply with all applicable state and federal laws including but not limited to fair housing and anti-discrimination statutes.

HISTORY: Eff 4-16-92 (Emer.); 6-26-92

Rule promulgated under: RC Chapter 119.

Rule authorized by: RC 175.22(D)

Rule amplifies: RC 175.21 to 175.25

(A) Each recipient of funds from the trust fund shall report periodically on program and fiscal activities in the manner prescribed by CDD.

(B) Prior to close-out of a grant or contract for use of funds from the trust fund, CDD staff shall conduct an on-site monitoring visit to assure that all provisions of the grant or contract have been met

(C) CDD shall establish a reporting system to assure that the long-term affordability requirements in paragraph (A) of rule 122:6-1-04 of the Administrative Code are met.

(D) ODOD shall submit a report to and meet with the housing trust fund advisory committee at least semi-annually regarding the status of projects and programs funded with the trust fund.

(E) ODOD shall annually solicit public comment on the activities, programs, policies and administration of the trust fund.

HISTORY: Eff 4-16-92 (Emer.); 6-26-92

Rule promulgated under: RC Chapter 119.

Rule authorized by: RC 175.22(D)

Rule amplifies: RC 175.21 to 175.25

(A) Any use of trust fund monies by the recipient in a manner which violates any term or condition of a grant or loan shall result in ODOD taking appropriate corrective action, including but not limited to immediate repayment and civil or criminal legal action.

(B) When repayment of a grant or loan is directed by odod, a repayment plan may be negotiated with ODOD or with the attorney general’s office as determined by ODOD. All monies received by ODOD shall immediately be returned to the low- and moderate-income housing trust fund.

(C) When repayment of a grant or loan is a condition of receipt of trust fund monies, all such repayments received by ODOD shall immediately be returned to the low-and moderate-income housing trust fund.

HISTORY: Eff 4-16-92 (Emer.); 6-26-92

Rule promulgated under: RC Chapter 119.

Rule authorized by: RC 175.22(D)

Rule amplifies: RC 175.21 to 175.25