Oklahoma Low-Income Housing Tax Credit (LIHTC) Program

Affordable housing is a fundamental requirement for community stability and development in Oklahoma. The Low-Income Housing Tax Credit (LIHTC) Program is a significant investment by the Oklahoma Housing Finance Agency (OHFA) in developing affordable housing throughout the state.

 

This is the ultimate guide for understanding the LIHTC program in Oklahoma, ensuring that developers, property managers, and tenants understand everything there is to know.

What is the Oklahoma LIHTC Program?    

The LIHTC Program encourages private developers to own and operate affordable rental housing. In Oklahoma, the program offers federal tax credits against costs incurred during development, making the possible costs of affordable housing projects worthwhile.    

How Does Oklahoma LIHTC Program Works? 

LIHTC provides two kinds of tax credits—4% and 9%:

 

• 9% Competitive Credits: Usually given for new construction or substantial rehabilitation projects.
  

 

• 4% Non-Competitive Credits: These are usually used with tax-exempt bonds and are best for acquisition and lesser rehab projects.

 

The Oklahoma Housing Finance Agency (OHFA) runs the program but distributes these credits through the Qualified Allocation Plan (QAP), which focuses on developments that address the state’s housing needs. 

Why the LIHTC Program is Critical in Oklahoma?

Oklahoma faces a broad spectrum of housing challenges, from affordability crises in urban settings to housing shortages in rural areas. The LIHTC program bridges housing gaps and ensures quality housing for low-income individuals and families. 

Key Benefits of the Oklahoma LIHTC Program 

• Creates New Affordable housing opportunities: It involves constructing new units and revamping other aging properties.  

 

• Strengthening communities: It offers safe, stable homes to vulnerable populations.  

 

• Helps Build Economic Growth: It provides jobs during the construction and management phases. 

 

• Addresses Local Needs: Targets specific needs in cities such as Oklahoma City, Tulsa, and Lawton.   

 

This program advances affordable housing development, thus lifting communities and the economy of the state.  

How to Apply for LIHTC in Oklahoma  

To become qualified for LIHTC funding, developers must have:

 

• Prove Financial Viability: Demonstrate that it is financially feasible by providing a detailed financial projection to ascertain its readiness in terms of money for the said project.

 

• Ensure Zoning Compliance: Ensure that the site meets local zoning standards. 

 

• Commit to Affordability: Commit to affording a minimum percentage of units to be considered for low-income households for at least 30 years.  

 

• Follow QAP Guidelines: State-specific housing priorities align with OHFA’s Qualified Allocation Plan.    

Application Process for LIHTC Program in Oklahoma

 

Step 1: Study the Qualified Allocation Plan (QAP) established by OHFA to better understand LIHTC scoring and set-asides.  

 

Step 2: Submit LIHTC application paperwork with accurate details, including site plans and financing details. Add project narratives.  

 

Step 3: OHFA has its yearly application period and accepts application during that period only. 

 

Step 4: Submittal for scoring and review through OHFA.  

 

Step 5: If selected, execute the acceptance and compliance standards through OHFA.  

 

For further details, visit their website: ohfa.org or directly contact them.  

LIHTC Program in Key Oklahoma Cities

 

Each City in Oklahoma has its own specific affordable housing challenges. LIHTC plays a crucial role in tackling those by targeted development work.

Oklahoma City 

Oklahoma City is the state’s largest metro area, with a great demand for low-cost housing. From LIHTC developments, low-income housing in OKC has been expanded to include income-based housing in OKC, low-income apartments in OKC, and Section 8 housing in Oklahoma City to satisfy the housing needs of low-income families and individuals. 

Tulsa 

Tulsa faces soaring housing prices and high demand for affordable rental housing. LIHTC projects provide low-income housing in Tulsa, Oklahoma, income-based apartments in Tulsa, Oklahoma, and apartments according to income in Tulsa, Oklahoma, and hence ensure the city’s affordability. 

Edmond 

The booming suburb benefits from the LIHTC programs that provide low-income housing in Edmond OK and Section 8 apartments in Edmond, Oklahoma, which also help families and seniors. 

Lawton 

With its significant military presence, Lawton sees high demand for low-income apartments in Lawton, OK, catering to families and veterans.  

Norman  

The large university population drives LIHTC development, yielding Section 8 apartments in Norman, generating income, and reducing poverty for students and low-income families. 

Impact of LIHTC in Oklahoma 

LIHTC has contributed significantly to housing affordability in the State of Oklahoma: 

 

• 12,500 affordable housing units were developed or rehabilitated. 

 

• $1.2 billion in State and Local economic benefits were generated. 

 

• 20,000 jobs were created during the construction phases.  

 

• Housing stability is provided to thousands of low-income families.

 

These statistics represent the progress made by this program in solving housing needs in the state.  

Section 8 Housing in Oklahoma

 

In addition to LIHTC, Section 8 housing in Oklahoma provides rental assistance to low-income renters. This federal program complements LIHTC developments by reducing tenants’ rent burdens and expanding the reach of affordable housing options.      

LIHTC Oklahoma Monitoring and Long-term Compliance 

Role of OHFA in Monitoring –

 

OHFA enforces compliance with LIHTC program requirements in the following ways:  

 

• Annual Tenant Certifications: Developers ascertain annual tenant income levels.  

 

• Property Inspections: Routine inspections ensure LIHTC compliance with housing quality standards.
  

 

• Extended Use Periods: Affordability is committed for 30 years or more.
    

• Time Constraint: Developers are compelled to keep records and adhere to OHFA requirements throughout the project lifecycle.  

Resources to Developers and Tenants

 

For Developers

 

• Qualified Allocation Plan (QAP): A complete guideline for the LIHTC application and scoring process.

 

• OHFA Compliance Manual: Step-by-step instructions to ensure compliance with program requirements.
  

 

For Tenant

 

• Find Affordable Housing with Oklahoma Housing Agency: Oklahoma low-income apartments, Tulsa low-income apartments, and other cities.

 

• Section 8 Assistance: Contact your local housing authority for rentals accepting Section 8.

Why Trust the LIHTC Program in Oklahoma?

The LIHTC program is the backbone of affordable housing in Oklahoma as it provides much-needed support to developers and tenants. Whether seeking low-income housing in OKC or even looking for low-income housing in Tulsa, Oklahoma, LIHTC ensures good quality, affordable housing to all pockets in the state.

 

Contact the Oklahoma Housing Finance Agency at www.ohfa.org or 405-848-1144 for more information.