Multifamily Bonds Extend Reach of Tax Credits

OHFA’s Multifamily Bond program provides developers access to tax-exempt bonds to finance affordable rental developments. First established in state administrative rules, the program produces an average of 900 new units each year.  A developer can finance a development at a lower interest rate than available through conventional financing because the interest paid to bondholders is exempt from federal income tax. In addition, the use of tax-exempt bonds also facilitates eligibility for the federal government’s 4% Affordable Housing Tax Credit Program if at least 50% of the development is financed with tax-exempt bonds.