Not every housing story is about one big building. Sometimes the news is a long list of projects, big and small, spread across the state, and that's what came out of the Oklahoma Housing Finance Agency's board meeting last month.
At its Sept. 23 meeting, the agency's Board of Trustees approved housing awards that will bring more than 1,500 rental units and homes for buyers to communities across Oklahoma, according to a release from the agency. The money comes through several different programs, and each one works a little differently.
The big apartment deals
The largest numbers come from the agency's multifamily bond program, which pairs bonds with 4% federal housing tax credits. The agency says that combination gives developers both equity and low-interest debt to build or fix up large apartment communities.
Oak Grove, a 306-unit development in Oklahoma City, received a federal housing tax credit award and multifamily bonds for both new construction and the purchase and rehab of existing units.
Several other projects got final approval for bond issuance after earlier winning tax credits:
- The Shane, Oklahoma City: 412 new rental units
- The James, Oklahoma City: 223 new rental units
- The Norris on Mingo, Tulsa: 306 new rental units
- London Square Village Apartments, Oklahoma City: purchase and rehab of 200 existing units
Small builders, small towns
The part of this list that might matter most to the little guy is the Oklahoma Housing Stability Program. It offers 0% interest construction loans for new single-family homes and for rental housing.
Through the program's Homebuilder side, Deep Fork Community Action Foundation in Okmulgee was approved for seven homes, Two Structures LLC for five homes in Edmond, Yukon, Oklahoma City and Weatherford, and Prairie Sky LLC for eight homes in Guthrie. The agency says buyers of those homes may be eligible for an extra 5% in down payment assistance.
On the rental side, the Community Housing Association for Rehabilitative Measures and Effective Development in Seminole was approved for 16 single-family rental homes, and PlaceKeepers LLC of Oklahoma City for eight.
The agency also handed out federal HOME grants to six groups for small projects in Oklahoma, Woods, Logan, Choctaw and Pottawatomie counties. Most are for one to four homes or units each, both rentals and homes for sale. Housing for Communities and the OKC Housing Services Redevelopment Corporation, for example, will each build three homes for buyers in Logan County.
Pivot Inc. of Oklahoma City received a National Housing Trust Fund award to build nine tiny homes for young people aging out of foster care. Three more projects got trust fund awards that depend on winning tax credits in November: Sandstone Flats, 24 apartments in Beckham County; MHMP 25 Archer Hills, 51 single-family rental homes in Tulsa County; and Oxford Avenue Villas, 36 duplexes in Garfield County.
Why it matters for Contractors
The big Oklahoma City and Tulsa apartment projects will mean hundreds of units' worth of framing, concrete, roofing, MEP and finish work. Bond and tax credit deals like these tend to come with plenty of paperwork and close owner oversight, so contractors chasing them should be ready for that. The agency's release doesn't name general contractors for these projects, and we aren't guessing at them here.
For small builders, though, the more interesting news may be the Homebuilder Program itself. A 0% construction loan takes a big bite out of the carrying costs that can make a small spec home hard to pencil out, especially in rural towns where margins are thin. The fact that companies building five to eight homes at a time are getting approved shows this isn't only for big players.
The agency says it is currently accepting applications only for the rural set-aside of the Homebuilder Program. If you build homes in a small Oklahoma town and have been waiting for the numbers to work, that set-aside is worth a phone call to the agency to learn how it works.
The tax credit awards expected in November could also shake loose more work, including the three projects whose trust fund money depends on them. Keep an eye on that round. It's a good preview of which apartment and rental jobs will be heading to bid next year.