1. Ohio Capital Finance Corporation
Recovery Housing Lending Product

2. OCFC MISSION STATEMENT
Ohio Capital Finance Corporation provides flexible financing products and utilizes partnerships for the expansion and preservation of affordable housing to advance community development while ensuring that all residents regardless of income live satisfying lives and contribute to their community.

3. OHIO CAPITAL FINANCE CORPORATION - EXPERIENCE
Established in 2002
$451M+ loan production
575 loans closed
23,500 units financed
Community Development Financial Institution (CDFI)
Member of the Federal Home Loan Bank of Cincinnati

4. OCFC FUNDERS Federal Funding Philanthropic Funding
US Department of the Treasury’s Community Development Finance Institution Fund
(CDFI Fund)
Technical Assistance
Financial Assistance
Capital Magnet Funds
OCFC is applying for a Financial Assistance grant which would specifically assist Recovery Housing projects…stay tuned in 2019!!!
Philanthropic Funding
JP Morgan Chase- PRO Neighborhoods Competition
McArthur Foundation.

5. OCFC PRODUCTS AND SERVICES
OCFC offers the following loan products from its various loan funds to serve developers and sponsors of affordable housing in the region:
Predevelopment Loan*
Acquisition Loan*
Equity Bridge Loan*
Permanent Loan
Year 15 Bridge Loan
Neighborhood Transformation Loan
*Products pertinent to Recovery Housing

6. OCFC PRODUCTS AND SERVICES - CONTINUED
Technical Assistance:
Available to all OCFC borrowers
Provided on as-needed basis
No charge for services
Technical assistance may include the following:
Determining the financial feasibility of the project
Discussion of required steps to develop and finance the project
Reviewing market studies, appraisals, environmental studies and other information to determine feasibility of the project
Reviewing financing applications and budgets to determine project feasibility
Review of construction plans and contracts
Conducting site inspections

7. RECOVERY HOUSING LENDING GUIDELINES
All projects must be multi-family properties
Projects must be located in OCFC’s geographic region (OH and KY)
The borrowing entity is the LLC or LP
But may be nonprofit, public housing authority or for-profit entities- cannot be individuals
Minimum loan amount is $100,000
Maximum loan amount is $5,000,000
Interest rate is Prime Rate minus 0.5% or approximately 4%
Term- up to 24 months
There are no prepayment penalties with any loan
Loan fees can be included in loan amount
Developer Fees and Operating Costs are not eligible for funding

8. RECOVERY HOUSING LENDING GUIDELINES
All Loans must have a likely and plausible payoff strategy (i.e. State and Local Funds, equity, or philanthropic dollars must already be committed)
All projects must have at least 80% of the units affordable to and occupied by residents earning less than 60% of area median income
Interest accrues and is due and payable upon repayment of the loan
Borrower is responsible for all third-party fees
All Loans are expected to close and fund within 90 days of approval
Loan Extensions may be granted upon written request from the borrower

9. COLLATERAL AND FEES Collateral
Guarantee from individual, parent of borrower, developer or another entity with net worth
First Mortgage during construction and until payoff- need to work with OMAS on subordination of their mortgage until project is completed
Fees Paid by Borrower
Origination Fee – greater of $1,000 or 1%
Servicing Fee – greater of $1,000 or 1%
Third party fees (including, but not limited to): Lender legal fees
Title and Recording Fees
Appraisal Fees
Other
All fees are paid at closing, but can be wrapped into loan amount

10. APPLICATION REQUIREMENTS
Application details:
- Anticipated Closing & Payoff Dates
Loan Type and Loan Amount (fees will be automatically calculated)
Project Information
Borrower Information
Project Contact Information
Guarantor Information (if applicable)
Accounting Contact
Bank Account Information (for wiring funds)
Title Company Information
Certification

11. APPLICATION REQUIREMENTS- CLOSING CHECKLIST

12. APPLICATION REQUIREMENTS- CLOSING CHECKLIST

13. SOURCES = USES APPLICATION REQUIREMENTS - CONTINUED
In a separate spread sheet you will need to enter in all of the Sources and Uses of Funds - you can modify or change fields as necessary to explain what the funding will be used for.
SOURCES = USES

14. APPLICATION REQUIREMENTS - CONTINUED
Draft resolutions should be sent prior to execution for review by OAHLF.
Please note:
All projects will be required to have insurance naming the Ohio Affordable Housing Loan Fund I, LLC as additional insured for the Liability Policy and Loss Payee and Certificate Holder for the Property Insurance.
This may be an additional cost and should be discussed upfront with your insurance carrier and budgeted for.

15. CONTACT US
For an Application, Closing Checklist, Term Sheets, Rate Quotes or questions please contact:
Ohio Capital Finance Corporation
Millie Davis, Vice President
(614) EXT 131