Developers, council and mayor discuss keeping LIHTC projects local; council moves forward on Welcome Home Ohio funding

David Funk, an Athens native and founder of Capstone Property Management, told the Planning and Development Committee on Jan. 13 that Low-Income Housing Tax Credit (LIHTC) projects have generated large developer fees and construction revenue in Athens County but that most of the economic benefit has not circulated locally.

Funk said LIHTC projects can be lucrative for experienced developers because tax credits are syndicated into equity; he cited a recent senior project with $19 million in total cost, a roughly $3 million developer fee and per-unit costs around $376,000. He told council that Athens County’s Appalachian set-aside makes the county a frequent target for out-of-area LIHTC developers and that the usual scoring systems tend to concentrate projects in a narrow geographic area.

Funk suggested exploring a local partnership or nonprofit model that could keep more of the construction and developer income in Athens County, increase local contractor participation and possibly target lower area median income (AMI) tiers—30% AMI or households on Supplemental Security Income (SSI). He offered to serve as an initial developer “guinea pig” for a community-backed project if the mayor, county foundation or other regional partners would help assemble financing and support services.

Mayor McCarrie and committee members called the idea promising. The mayor said the Athens County Foundation, Hapcap and other local stakeholders are already discussing housing projects, and suggested those groups could convene to shape a local development strategy. Committee members suggested using local workforce partners such as Hocking College and Tri-County vocational programs to recapture jobs locally.

Later in the meeting the council introduced two ordinances relating to housing finance. Member Swank introduced an ordinance authorizing the Service Safety Director to enter a development services agreement with Community Building Partners LLC and to accept a Welcome Home Ohio purchasing program grant of $2,024,000, and to appropriate the funds. The administration said the Welcome Home Ohio program would support construction of roughly eight owner-occupied homes priced to be affordable to qualifying buyers; the ordinance directs appropriations and authorizes the director to expend up to $2,024,000 from the Athens enhancement fund.

Council members discussed program restrictions and enforcement: Member Thomas noted the program’s occupancy and resale restrictions, including primary-owner requirements and a 20-year restriction intended to limit immediate conversion to rentals. The administration and developers said the program is intended to be a starting point rather than a comprehensive solution to the area’s housing shortage.

No final vote on the Welcome Home Ohio ordinance occurred on Jan. 13; the ordinance was filed for first reading and includes an amendment to reflect the exact $2,024,000 appropriation. David Funk emphasized the long-term vision: pilot a locally led LIHTC or similar project that creates local jobs, retains developer fees in the county and produces housing targeted to lower-income households.