Episode 143: Ohio HFA Releases 2026 4% LIHTC Bond Gap Financing Draft

The Ohio Housing Finance Agency (OHFA) has released its first draft of program year 2026 guidelines for its 4% LIHTC with Bond Gap Financing (BGF) program, opening a short public comment window that closes August 27, 2026. For developers, syndicators, and lenders active in Ohio's four percent bond market, the draft guidelines — available in both clean and redline formats — directly govern deal feasibility for the coming program year. Key Takeaways: OHFA posted draft PY 2026 4% LIHTC with Bond Gap Financing guidelines for public comment on or before August 25, 2026. The public comment deadline is Thursday, August 27, 2026 — a narrow window of approximately two days from publication. Written comments must be submitted to [email protected]; no other comment channel is specified. Both a clean version and a redline of the draft guidelines have been published, enabling direct comparison to prior-year program terms. BGF is a subordinate debt program designed to close financing gaps in 4% LIHTC deals paired with private activity bonds — changes to loan terms, subsidy caps, or underwriting criteria affect senior debt sizing and syndicator pricing. Ohio four percent pipeline deals expected to close in PY 2026 should be stress-tested against draft BGF terms before the comment deadline. State HFAs routinely incorporate specific, deal-grounded written feedback into final guidelines — the comment process carries real influence. With the comment window closing in less than 48 hours from publication, Ohio market participants need to move quickly. Review the redline for material changes to eligible costs, maximum subsidy amounts, and underwriting standards. If draft provisions create structural problems for deals in your pipeline, submit written comments before Thursday. Final guidelines will govern program year 2026 transactions — there is no second opportunity to shape the terms once they are adopted. Subscribe to The Spring Street Brief for daily updates on affordable housing in America.