Public Notice to Qualified Homebuyers Ohio Housing Finance

PUBLIC NOTICE TO QUALIFIED HOMEBUYERS OHIO HOUSING FINANCE AGENCY MORTGAGE CREDIT CERTIFICATE PROGRAM Notice is hereby given pursuant to the provisions of Treasury Regulation Section 1.25-7T promulgated under Section 25 of the Internal Revenue Code of 1986, as amended (the "Code"), that the Ohio Housing Finance Agency (the "Agency") will issue ($129,308,693.00) in Mortgage Credit Certificates for 2020-2021 (individually or collectively, "Mortgage Credit Certificates") pursuant to its Mortgage Credit Certificate Program. The Mortgage Credit Certificate will reduce the amount of federal income taxes otherwise due to the federal government from the homebuyer, and the homebuyer may be able to have more disposable income to make mortgage payments. The Mortgage Credit Certificate is not refundable; therefore, the benefit to the homeowner cannot exceed the amount of federal taxes owed in the year after all other credits and deductions have been taken into account. The homebuyers may reduce the amount of federal income tax withheld so as to benefit on a weekly or monthly basis from the Mortgage Credit Certificate. In order to be eligible to receive a Mortgage Credit Certificate, an individual must meet the following requirements: 1. A Mortgage Credit Certificate will be issued only to an eligible borrower in connection with the purchase of 1-4 unit single family properties ("Single Family Dwelling"). For this Program, a Single Family Dwelling means structurally sound and functionally adequate housing (of a type generally taxed as real estate) including fixtures intended for occupancy by one family, the real estate appurtenant thereto reasonably necessary to maintain the dwelling's basic livability and located in the State of Ohio. 2. A Single Family Dwelling to which the Mortgage Credit Certificate will be applied must be the eligible borrower's principal residence. 3. An eligible borrower may obtain a Mortgage Credit Certificate only if he/she has had no ownership interest in a principal residence during the three-year period prior to the date on which the mortgage or other security instrument applicable to the Single Family Dwelling to which the Mortgage Credit Certificate is provided has been executed by the eligible borrower. An exception to this requirement is available in certain Targeted Areas. Additionally, eligible borrowers must occupy the residence as their principal residence within 60 days after it is financed by a participating lender. 4. The eligible borrower's gross annual income and the acquisition cost of the Single Family Dwelling may not exceed family income limits and acquisition cost limits set from time to time which limits may be obtained from the Agency. 5. The Mortgage Credit Certificate may not be issued in connection with the acquisition or replacement of an existing mortgage. The Mortgage Credit Certificate will be issued only to an individual who does not have a mortgage on the Single Family Dwelling with respect to which the Mortgage Credit Certificate is issued at any time prior to the execution of the mortgage or other security instrument. A homebuyer receiving a Mortgage Credit Certificate in connection with a mortgage loan, may be subject to a "recapture" requirement upon the sale or disposition of the homebuyer's interest in the home. Sale or disposition generally means sale, gift or other transfer of the homebuyer's interest in the home. (However, it does not include transfers by reason of death, or conveyances from one spouse to another, or to a former spouse as the result of a divorce and there is no gain or loss included in income under Section 1041 of the Code.) The Internal Revenue Code provides that a party selling a home purchased with a Mortgage Credit Certificate-assisted mortgage loan may be required to pay to the federal government a certain amount upon the sale or disposition of the homebuyer's interest in the home. This "recapture tax" must be included with the federal income tax return for the year the sale or disposition occurs. This provision applies to any sale or disposition of the home within 9 years of the date of the closing on the Mortgage Credit Certificate-assisted mortgage loan. The amount of recapture tax that may have to be paid will be based, in part, on the homebuyer's income at the time of the sale or disposition. The information needed to compute the recapture tax will be provided within 90 days after the mortgage loan closing. Mortgage Credit Certificate applications will be processed on a first-come, first-serve basis. The application must be made through participating lenders, including banks and mortgage banking firms. A list of participating lenders is available to the public and is updated at least annually. Applications may be obtained from participating lenders. Homebuyers must be qualified for a Mortgage Credit Certificate pursuant to the Internal Revenue Code and the regulations, rulings, and interpretations issued by the Internal Revenue Service, which shall control in the event of conflict with other requirements. The homebuyer must meet the credit and underwriting criteria established by the participating lender that provides the mortgage loan. The Agency does not make mortgage loans in connection with Mortgage Credit Certificate's and makes no loan underwriting decisions. The applicant for a Mortgage Credit Certificate must sign all documents and affidavits which are needed to demonstrate the homebuyer's eligibility for a Mortgage Credit Certificate. For more information on the Ohio Housing Finance Agency Mortgage Credit Certificate Program, a copy of the participating lenders list and specifics regarding the above Notice, contact Sean Thomas at the Ohio Housing Finance Agency, 57 East Main St., Columbus, Ohio 43215-5115; Telephone (614) 466-8050 after March 18, 2020. 12-24/2019