In the event the bonds are to be used for the rehabilitation of existing buildings, the bond proceeds can cover the land and acquisition costs of the existing buildings, and the expenditures to rehabilitate or improve the existing building. The ORC also permits the issuance of bonds for acquisition and improvement of existing buildings. In order for OHFA to act as issuer of tax-exempt bonds, it must have a statement from the applicant that demonstrates to OHFA that the housing development will have public purpose associated with it. Per Chapter 175 of the Ohio Revised Code, the applicant must demonstrate to OHFA that the housing development will be decent, safe and sanitary, and that the occupants of the housing development will benefit from the savings resulting from the tax-exempt bond financing. In addition, the applicant must represent that obtaining this type of financing is critical to the success of the project.
Preliminary inducement entails all components of the threshold review.
It is during this phase that the project is underwritten for possible presentation to the Board. If the project meets all threshold requirements and a resolution is approved by the Board, OHFA's Executive Director executes the Notice of Intent form as issuer for the bonds. After a project has received a preliminary inducement resolution, the applicant must then apply for a reservation of tax-exempt bonding authority from the state's volume cap. The Agency will execute the volume cap reservation request and forward it to the Ohio Department of Development's Economic Development Division. Applicants must receive a volume cap reservation before they can proceed with final approval.