Ohio Housing Finance Agency requests operating funds and reports strong demand for state tax credits

Bill Beagle, executive director of the Ohio Housing Finance Agency, told the House Development Committee that OFA needs modest operating appropriations and stands ready to deploy state and federal housing tools to increase affordable housing supply.

Beagle summarized OFA’s budget request: “OFA is requesting an appropriation of $18,900,000 for fiscal year 26 and 19,600,000 dollars for fiscal year 27,” and said the agency’s operations are funded by user fees and federal program support rather than general revenue.

Why it matters: Beagle described strong demand for the state low-income housing tax credit (LIHTC) and a single-family housing development tax credit, saying OFA received 22 applications in the first year of the state credit and reserved roughly $87.5 million of $100 million to create an estimated 859 affordable rental apartments. He told members the agency can expand program capacity if the legislature increases funding or makes program authorization permanent.

Program performance and compliance: Beagle said OFA closed roughly $900 million in loans to date and expected to exceed $1 billion by the end of the fiscal year. On compliance, he said OFA conducted about 402 physical inspections in FY24 and aims to inspect properties on a rolling, roughly three-year cycle.

Questions and follow-ups: Members asked whether the state LIHTC should be made permanent or increased; whether unclaimed funds still play a role in OFA programs; and about the balance between urban and rural investments. Beagle said the state credit is an effective tool that could use more resources and that OFA can deploy additional dollars if they are appropriated. He offered to provide details on how unclaimed funds have been leveraged.

What’s next: Committee members signaled interest in further information about OFA program metrics, district-level impacts and whether the state credit should be extended or increased.