HOUSING REFORM PROVIDES EXPANDED RESOURCES TO STRUGGLING OHIO FAMILIES AND COMMUNITIES

The Ohio Housing Finance Agency (OHFA) commends Congress and President Bush for the passage of comprehensive housing legislation that will provide assistance for Ohio families and neighborhoods caught in the crossfire of the foreclosure crisis. The American Housing Rescue and Foreclosure Prevention Act (H.R. 3221) was signed by President Bush earlier today and will help borrowers facing foreclosure and communities blighted by abandoned properties.

“The efforts taken by the President and Congress, in particular Ohio’s Delegation, to pass this Act exemplify the strong partnerships necessary to strengthen our communities,” said Doug Garver, Executive Director of the Agency. “During these challenging economic times, it is imperative that we act quickly to capitalize on the federal resources now available and provide help for struggling homeowners and neighborhoods.”

The Act provides several resources, including: an $11 billion 2008 Housing Bond cap increase; a 10 percent Housing Credit cap increase for 2008 and 2009; permanent Alternative Minimum Tax relief for Housing Bonds and Credits; temporary Mortgage Revenue Bond refinancing authority; Housing Bond program changes; Government Sponsored Enterprise reform; establishment of a state-administered affordable housing fund; Federal Housing Administration (FHA) modernization; a new FHA foreclosure prevention refinancing program; $180 million in foreclosure mitigation activities; and $3.92 billion in grant funds to help states and localities turn around foreclosed properties.

OHFA has worked throughout the foreclosure crisis to provide critical resources to those who need it most. Opportunity Loan was introduced last year as a 30-year, fixed-rate refinancing option for borrowers who have adjustable rate mortgages, interest-only products or who have had an unplanned life event such as a divorce or change in employment. Flexible underwriting guidelines allow for late payments and additional assistance is available to help with closing costs or prepayment penalties.

Last year, the OHFA Board awarded a $3.1 million grant from Agency resources to help the NeighborWorks® Foreclosure Prevention Rescue Program. This program allows 12 Ohio NeighborWorks® organizations to offer flexible loans to moderate-income borrowers facing foreclosure. In 2008, OHFA was awarded a grant that enables the Agency to provide more than $3 million to increase foreclosure counseling throughout the state. This grant utilizes money appropriated to NeighborWorks® America by Congress and helps 18 community-based organizations around the state reach more families in need. These initiatives and OHFA’s partnerships in Governor Strickland’s Foreclosure Prevention Task Force and the statewide Save the Dream initiative, led by the Department of Commerce, have provided help to struggling borrowers throughout the state.

With the passage of this important housing reform, OHFA will be able to offer additional resources and stability to Ohio families and communities.

OHFA utilizes federal and state resources to provide housing opportunities for families and individuals through programs designed to create, preserve, and manage affordable housing throughout the State of Ohio. The Agency is a self-supporting quasi-public agency governed by an eleven-member board, nine of whom are appointed by the Governor and confirmed by the Senate. Two additional seats on the board, by statute, are reserved for the Director of Development and the Director of Commerce or their designees, and both serve as ex officio voting members.