Board authorizes pursuit of sales-tax-exemption process to help nonprofit multifamily developers

The board authorized staff to pursue a sales-tax-exemption route for certain nonprofit and affordable multifamily developers and directed staff to prepare an eligibility rubric for future approvals.

A presenter told the board the authority has received requests from new and out-of-area multifamily developers operating as nonprofits who asked whether the authority could act as a governmental conduit to secure a state sales-tax exemption. The presenter said this could materially reduce construction costs and help projects pencil for underwriting with Freddie Mac or other lenders.

"If you meet kind of the ad valorem exemption requirements, you're developing within the four corners of Oklahoma County, you would be eligible for this program," the presenter said, describing a proposed rubric that would mirror ad valorem standards for sales-tax eligibility.

Board members discussed administrative workload, possible fees to cover staff time and whether the authority should set standards for eligibility. One board member noted the savings could be substantial: for a hypothetical 200-unit project, administrative support valued at $10,000–$20,000 could save the developer several million dollars in sales tax.

The board voted to direct a named staff member, Jared, to complete and file the application with the Tax Commission and to develop a written guide for applicants; the motion was seconded and carried on a voice vote.

Next steps: Staff will draft the application and the eligibility rubric, return the materials for board review and post guidance on the authority website and to OHFA and local affordable-housing partners.

Attributions: Quotes and claims derive from meeting presentations and board discussion. No Tax Commission decision had been issued at the time of the meeting.