Funding Resources
Even with the cost savings tools provided in this guidebook, new construction is expensive and often requires a combination of funding sources to get projects off the ground. For houses that moderate-income families can afford, developers often aggregate capital from private investors, state and local government sources, and philanthropic support. The state and federal governments offer funding or attractive financing through programs that incent the creation of attainably priced housing units.
Information on funding and financing programs for developers is below.
State Resources
This program provides $50 million annually for four years to support the construction or rehab of affordable single-family homes. Projects must include at least five homes and meet specific affordability and design standards. Qualified buyers must use the homes as their primary residence, and the homes must remain affordable for 10 years. Developers can receive up to $100,000 per home in state tax credits, issued upon project completion and claimed over a 10-year period.
The Welcome Home Ohio program supports the purchase, rehabilitation, and construction of affordable single-family homes through land banks, subdivisions, and eligible developers.
The program includes WHO-P (grants for property acquisition), WHO-RC (up to $30,000 per property for construction or rehab), and WHO-TC (nonrefundable tax credits up to $90,000 per home, issued when a property is sold to a qualified buyer).
***In the 136th General Assembly, Ohio REALTORS® successfully advocated for expanding the eligibility to nonprofit developers to increase the number of Ohioans who can benefit from this important program.
***In the 136th General Assembly, Ohio REALTORS® successfully advocated for expanding the eligibility to nonprofit developers to increase the number of Ohioans who can benefit from this important program.
Brownfield Remediation Program
This grant program provides funding for the cleanup and redevelopment of brownfield sites: abandoned or underused industrial, commercial, or institutional properties where redevelopment is complicated by real or potential contamination. Grants may cover property acquisition, demolition, environmental remediation, and infrastructure upgrades needed to make a site development-ready. With approximately $50 million available in the current award round, funding is distributed on a first-come, first-served basis. Each county must designate a “Lead Entity,” typically the land bank, to apply and manage awards. Eligibility requirements and application procedures mirror those of the Building Demolition Program, with flexibility for counties of varying size and governance structures.
Building Demolition and Site Revitalization Program
This grant program supports the demolition of blighted, vacant, or abandoned commercial and residential buildings, excluding brownfield sites, to prepare land for future development. Each Ohio county is allocated a $500,000 set-aside, with the remaining funds awarded statewide on a first-come, first-served basis. Eligible properties include buildings previously used for residential, retail, office, manufacturing, institutional, or mixed-use purposes. To apply, each county must designate a “Lead Entity,” typically the county land reutilization corporation (land bank), or another entity approved by the board of county commissioners based on population criteria. If applicable, Lead Entities must also submit subrecipient agreements with other local partners. The program is designed to remove unsafe or obsolete structures and revitalize underused land for new community or private investment.
Transformational Mixed-Use Development Program
This program offers tax credits to support large-scale mixed-use developments that serve as catalysts for economic growth. Eligible projects include new construction or improvements to vacant buildings that combine residential, office, retail, recreation, parking, and similar uses. Developments can be a full project or a specific phase and must demonstrate major economic impact on the site and the surrounding area. Applications are grouped into two funding categories: “Major City” projects located within or near Ohio’s largest cities, and “General” projects located elsewhere, with funding decisions based on location and transformational potential.
Ohio Opportunity Zones Tax Credit Program
This program incentivizes investment in economically distressed areas across Ohio designated as Opportunity Zones under federal law. By investing cash into an Ohio Qualified Opportunity Fund (QOF), which then invests in qualifying property within a designated zone, applicants can receive a nonrefundable state tax credit equal to 10% of the invested amount. The goal is to drive capital into underserved areas and stimulate housing and business development.
The Ohio Housing Trust Fund is the state’s primary flexible funding source for expanding affordable housing opportunities and improving housing conditions for low-income Ohioans. It supports activities ranging from housing development, emergency repairs, and accessibility modifications to rental assistance, housing counseling, rehabilitation, and new construction. Funds are available to local governments, housing authorities, nonprofits, private developers, and lenders, with allocations guided by a seven-member advisory committee representing housing, lending, and local government sectors. The program prioritizes helping low-income working families and addressing housing needs across the state.Ohio Historic Preservation Tax Credit Program
This highly competitive program offers tax credits to support the private redevelopment of historic buildings across Ohio. With bi-annual application rounds in March and September, the program has already supported 734 projects involving nearly 1,000 historic buildings in 93 communities. To date, it has helped leverage over $10.9 billion in private investment and federal tax credits, fueling preservation-focused development statewide and revitalizing neighborhoods through adaptive reuse.
Appalachian Community Grant Program
This $500 million initiative funds transformational planning and development projects across Ohio’s 32-county Appalachian region using ARPA dollars. Administered by the Governor’s Office of Appalachia, the program supports projects that combine infrastructure improvements (like downtown revitalization, trails, and outdoor spaces), workforce development (including education and technical training), and healthcare investments (such as youth and behavioral health services). Eligible applicants include local governments, nonprofits, and educational institutions operating within the region. Funding is divided into Appalachian Planning Grants, including up to $250,000 per county for technical assistance, and Appalachian Development Grants, with no funding cap but a $1 million minimum project threshold. Projects must be implementation-ready and completed by October 31, 2026.Ohio Housing Finance Agency (OHFA)
The Ohio Housing Finance Agency is the state’s primary resource for financing affordable housing development, rehabilitation, and homeownership. OHFA supports first-time homebuyers, renters, senior citizens, and others seeking quality, affordable housing. The agency offers competitive fixed-rate mortgage loans, funds the development and preservation of affordable rental housing through the Housing Tax Credit program, and issues tax-exempt mortgage revenue bonds. Established as an independent state agency in 2005, OHFA plays a central role in expanding housing opportunities across Ohio.
Ohio Low Income Housing Tax Credit
The Ohio Low Income Housing Tax Credit (LIHTC) Program is a federal initiative administered by the Ohio Housing Finance Agency (OHFA) to encourage the development and preservation of affordable rental housing for low- to moderate-income households.
Through this program, developers of qualifying rental housing projects can apply for tax credits that provide a dollar-for-dollar reduction in federal tax liability. These tax credits are typically sold to private investors, generating equity to finance housing construction or rehabilitation. The program focuses on creating sustainable, quality housing while addressing the state's housing needs, including prioritizing projects that serve vulnerable populations or promote community revitalization. Eligibility and project selection are guided by OHFA’s Qualified Allocation Plan (QAP), which ensures that funds are distributed in alignment with state and federal priorities.
Housing Development Assistance Program
Administered by the Ohio Housing Finance Agency (OHFA), the Housing Development Assistance Program provides grants and loans to developers for the creation and preservation of decent, safe, affordable housing for very low- to moderate-income Ohioans. Funded through the HOME Investment Partnerships Program, the Ohio Housing Trust Fund, and the National Housing Trust Fund, HDAP supports both new construction and rehabilitation projects, helping expand housing opportunities across the state.
Housing Development Assistance Program
Administered by the Ohio Housing Finance Agency (OHFA), the Housing Development Assistance Program provides grants and loans to developers for the creation and preservation of decent, safe, affordable housing for very low- to moderate-income Ohioans. Funded through the HOME Investment Partnerships Program, the Ohio Housing Trust Fund, and the National Housing Trust Fund, HDAP supports both new construction and rehabilitation projects, helping expand housing opportunities across the state.
Community Housing Development Organization, Competitive Operating Grant Program
Administered by the Ohio Housing Finance Agency (OHFA) and funded through the federal HOME Program, the CHDO Competitive Operating Grant Program provides operating support to certified nonprofit housing organizations engaged in affordable housing development. Ohio receives an annual HOME allocation from HUD, with 15% set aside for CHDOs to develop housing. These funds are distributed as gap financing for Housing Tax Credit projects, supporting both rental and homeownership initiatives. State certification confirms an organization’s capacity to own, develop, or sponsor HOME-assisted housing and its deep connection to the community it serves.Residential Development Revolving Loan Fund (Coming Soon)
This $100 million fund will provide loans for infrastructure to support single-family housing in rural counties (population under 75,000). Homes built using these funds will be exempt from property taxes, with those payments redirected to repay the loan.
Residential Economic Development District Grants (Coming Soon)
With $25 million allocated, this upcoming grant program will help local governments near major economic development sites create housing solutions. To qualify, jurisdictions must adopt pro-housing policies that support workforce housing aligned with local growth needs.
Local Resources
CDFI Emerging Developer Programs
One challenge that many legacy cities face is a lack of developers willing to build modest-sized units on the small, infill lots available. Many home builders today often prefer large sites to achieve efficiency of scale. The development industry is complex and can be difficult for beginners to enter, which has prompted community development financial institutions (CDFIs) around the state to create programs to address this issue.
Emerging Developer Training programs offer skills training to aspiring local developers in the form of technical assistance, mentoring, and capital. Examples of such programs can be found in Cleveland, Summit County, and Franklin County. These programs are a valuable resource to communities looking to grow their ecosystem of local developers and expand the region’s capacity to build. Eligible participants should take advantage of all these programs have to offer.
Many CDFIs also provide competitive and risk-tolerant financing for housing projects in under served communities.
Ohio Community Reinvestment Area (CRA)
The CRA program allows municipalities and counties to offer real property tax exemptions to property owners who invest in the renovation of existing buildings or the construction of new structures within designated areas. These CRAs are created locally and must be approved by the state. The program is divided into two categories based on when the CRA was established, and those created before July 1994 operate under different rules from those formed after. This local tool is designed to encourage revitalization and reinvestment in residential, commercial, and industrial properties.
Historic Preservation Pipeline Initiative
This initiative offers small grants and technical assistance to help nominate historic buildings and districts to the National Register of Historic Places, a key step in unlocking redevelopment funding through the Ohio Historic Preservation Tax Credit. Open to property owners, local governments, and civic organizations, the initiative strengthens local redevelopment efforts by identifying and documenting underutilized historic properties. Three project types are eligible: $4,000 for individual building nominations, $12,000 for district nominations, and $12,000 for building integrity investigations. With $100,000 available per year, applications open July 1 and are accepted on a rolling basis until funds are fully allocated.
Tax Increment Financing is a local economic development tool used by townships, municipalities, and counties to fund public infrastructure improvements. By capturing the increased property tax revenue generated from new development, TIFs redirect those funds into a dedicated account to finance eligible infrastructure projects that directly benefit the development area. Establishing a TIF requires local legislation that designates exempt parcels, declares the public purpose, outlines the infrastructure improvements, and creates the fund for redirected revenues. Eligible improvements must directly address increased demand resulting from the development, either for individual parcels or designated incentive districts.
Community Housing Impact and Preservation Program
The CHIP Program provides competitive annual funding to Ohio’s non-entitlement communities to improve and expand affordable housing for low- and moderate-income residents. Administered in a single application round each year, the program allows eligible communities to address local housing needs through a flexible, community-wide approach. Activities may include rehabilitation, home repair, new construction, and other housing-related projects, all aimed at strengthening neighborhoods and fostering collaboration among local partners.
Housing Technical Assistance Program
The Housing Technical Assistance Program provides grants to political subdivisions, including cities, villages, townships, counties, and regional planning organizations, to modernize zoning regulations and streamline housing-related processes. Applicants must include a letter of support from their governing body or chief executive. The program is designed to help local governments update outdated policies, remove regulatory barriers, and create a more efficient environment for housing development.
Federal Resources
Federal Housing Administration (FHA) Loans
The Federal Housing Administration offers federally backed acquisition and construction loans for residential units. Acquisition loans can be used to purchase up to four units at one time and construction loans can be used to build or rehab a home with as little as a 3.5% down payment.
Low Income Housing Tax Credits (LIHTC)
Low Income Housing Tax Credits (LIHTCs) are the most widely used federal funding source for affordable housing, currently financing about 90% of all new affordable housing development. They help adjust the capital costs of development so that extremely low and very low rents from tenants still satisfy the developers' debt.
In Ohio, tax credits are awarded to the Ohio Housing Finance Agency (OFHA) who allocates the credits to projects through a competitive process. In return for the capital, there are strict affordability requirements developers must follow for 30 years. Units are restricted to those earning no more than 60% AMI and rent may not exceed 30% of the qualifying income.
Community Development Block
Grant Program (CDBG)
The CDBG Program provides annual formula-based grants to states, cities, and counties to create viable communities by supporting decent housing, a suitable living environment, and expanded economic opportunities for low- and moderate-income residents. Authorized under the Housing and Community Development Act of 1974, the program offers flexibility for communities to design local strategies, encourages coordinated planning among government and private partners, and builds local capacity through technical assistance. Its adaptable funding structure allows communities to address housing, infrastructure, and economic development needs based on their own priorities.
Learn more here.
Additional Federal Programs - HUD
Beyond the programs listed here, many other federal housing and community development resources are available through the U.S. Department of Housing and Urban Development (HUD). These include grants, loans, tax incentives, and technical assistance programs supporting affordable housing, community revitalization, and economic development.
Federal Home Loan Bank of Cincinnati’s Affordable Housing Program (AHP)
The Federal Home Loan Bank (FHLB) system was created in 1932 with the goal of lowering the cost of home ownership through government sponsored banks. Ohio is served by the Federal Home Loan Bank of Cincinnati.
The FHLB’s Affordable Housing Program (AHP) was introduced in 1990 and provides funding for rental and owner-occupied housing. Eligible uses include the purchase, construction, or rehab of owner-occupied units for those making up to 80% of the area median income. Rental housing is also eligible if at least 20% of the units are affordable and occupied by those making up to 50% of the area median income. The program provides funding for up to $60,000 per unit.
In 2024, the Federal Home Loan Bank of Cincinnati awarded over $49.5 million for the creation of 2,743 units of affordable housing through the Affordable Housing Program.
Learn more here.
Federal Home Loan Bank of Pittsburgh’s Affordable Housing Program (AHP)
The Affordable Housing Program (AHP) provides grants and subsidized loans for the acquisition, construction or rehabilitation of affordable housing for households with incomes at or below 80% of the area median income. Housing developers partner with FHLBank Pittsburgh members to apply for AHP funding, which is offered through one competitive funding round each year. Grants are awarded to the highest scoring projects.
AHP grants and loans can be used for:
Single- and multi-family housing
New construction and rehabilitation
Rental and owner-occupied homes
Scattered-site housing development
Transitional and single-room-occupancy housing
Learn more here.
Lenders
The following list of lenders have expressed support or interest in the goal of increasing housing production in Ohio through housing patterns, zoning updates, and/or pre-reviewed plans programs.
Ohio REALTORS ™ and GOPC have not vetted these lenders. This list, in no way, indicates endorsement.
Ohio REALTORS™ and GOPC are not periodically reviewing this list to confirm the information is current.
Please contact us if there is obsolete information.
Name:
Dawn Locigno
Jessica Rome
Bank:
First National Bank
New American Funding
Phone:
(440) 623-3050
(740) 630-4235
Product:
Consumer mortgages
Consumer mortgages