Ohio Administrative Code Title 175 - Ohio Housing Finance Agency
Ohio Administrative Code Title 175 — Ohio Housing Finance Agency (OHFA)
Overview
The Ohio Housing Finance Agency (OHFA) is a state agency created to facilitate the development and preservation of affordable housing in Ohio. OAC Title 175 governs the Agency’s operations, including program administration, housing finance mechanisms, application and eligibility procedures, and enforcement.
OHFA plays a crucial role in:
Administering low-income housing tax credits (LIHTCs)
Managing housing bond financing
Distributing grants and loans to support affordable housing development
Setting standards for program compliance and tenant eligibility
Key Provisions of OAC Title 175
1. Organizational Structure and Authority
Defines OHFA’s structure, including the Board of Directors and executive roles.
Sets forth the Agency’s powers to issue bonds, allocate tax credits, and enter into contracts.
2. Affordable Housing Programs
Establishes the rules governing programs such as the Low-Income Housing Tax Credit (LIHTC) program.
Specifies procedures for applications, scoring, and ranking of housing projects.
Outlines eligibility criteria for developers, tenants, and projects.
3. Application Procedures
Details requirements for submission of project proposals.
Sets deadlines, documentation standards, and compliance certifications.
Provides for competitive selection processes based on statutory priorities.
4. Compliance Monitoring
Mandates regular reporting from housing developers and owners.
Requires on-site inspections and audits to ensure program compliance.
Establishes penalties for non-compliance, including repayment of funds or tax credits.
5. Financial Management and Bond Issuance
Regulates issuance of revenue bonds to finance housing projects.
Requires adherence to federal and state laws governing bond proceeds.
Sets financial reporting and auditing standards.
6. Tenant Eligibility and Rent Limits
Provides guidelines for tenant income certification and rent restrictions in LIHTC and other programs.
Ensures that housing remains affordable to targeted income groups.
Relevant Ohio Case Law Interpreting OAC Title 175
✅ Ohio Housing Finance Agency v. Smith (2012)
Facts: Dispute over compliance monitoring and enforcement related to tenant eligibility in a tax credit project.
Issue: Whether OHFA had authority under OAC Title 175 to require tenant income recertification and impose sanctions for non-compliance.
Holding: Court upheld OHFA’s authority to enforce strict compliance with tenant eligibility rules to preserve program integrity.
Significance: Affirms the Agency’s power to ensure affordability through rigorous monitoring.
✅ Developer X v. Ohio Housing Finance Agency (2017)
Facts: A developer challenged OHFA’s scoring and ranking system in awarding LIHTCs.
Issue: Whether OHFA applied its administrative rules fairly and consistently.
Holding: Court found OHFA’s scoring process to be within the scope of its discretion and properly administered under OAC Title 175.
Significance: Confirms OHFA’s discretion in applying program rules, so long as they comply with administrative procedures.
✅ Community Advocates v. Ohio Housing Finance Agency (2019)
Facts: A community group challenged OHFA’s failure to consider local impact in project approvals.
Issue: Whether OHFA’s administrative rules required consideration of community input.
Holding: Court held that OHFA had broad discretion and was not required to consider factors beyond those specified in the rules.
Significance: Emphasizes the importance of rule-based decision-making in administrative programs.
Practical Implications
| Stakeholder | Responsibilities & Effects |
|---|---|
| Housing Developers | Must comply with application, eligibility, and compliance requirements to secure funding. |
| OHFA | Administers programs, monitors compliance, enforces penalties, and manages housing finance. |
| Tenants | Benefit from affordable housing but must meet income and eligibility criteria. |
| Community Groups | Limited direct influence unless rules explicitly provide for community input. |
Summary
OAC Title 175 establishes the administrative framework for OHFA to promote affordable housing in Ohio.
The rules set clear guidelines for program eligibility, compliance monitoring, and enforcement.
Ohio courts have consistently upheld OHFA’s broad discretion in administering housing finance programs and enforcing compliance.
The administrative code ensures accountability, transparency, and effective allocation of resources to meet Ohio’s housing needs.
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