July 08, 2010
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Oklahoma Housing Finance Agency
 
ADA, OKLA. – Without federal stimulus dollars, the residents of Oxford Square Apartments in Ada might still be living with black mold and asbestos. Extensive renovation began on the 29-year old apartment complex in 2008 but nearly stopped when money ran out.
 
 Ada Square, L.P. received $275,558 in Affordable Housing Tax Credits from Oklahoma Housing Finance Agency for the project but couldn’t sell them to investors for cash when the economy bottomed out. Without cash, the project stalled.
  
“We were about 40 percent into it when we realized we didn’t have an investor to buy the tax credits,” said Brenda Brand, a financial analyst for Red-Wood Development, half of the ownership group Ada Square, L.P. “Our original investor had no interest because they had no market to sell the tax credits.”
  
The owners could not go after conventional financing. They needed a subsidized loan in order to keep the apartments affordable to low-income families.
  
“Literally, I spent two months on the phone or emailing different syndicators and investment companies trying to sell the deal,” Brand added. “There was no interest in smaller rural deals.”
  
Fully aware of the housing crunch, Congress took action and passed the American Recovery and Reinvestment Act in February 2009. Under ARRA’s Section 1602 Exchange Program that OHFA administered, Ada Square, L.P. exchanged $265,558 in AHTC for $2.2 million in cash.
 
“We wouldn’t have completed the project without the Exchange funds,” Brand said.
 
Contractors finished removing the mold and asbestos. They also made numerous other upgrades that included bathroom renovations and the installation of central heat and air, new cabinetry, new carpet and new vinyl flooring. The construction of a community building provides residents with a central place to gather. It features a large space with a kitchen area, tables and chairs, a laundry room, computer room and a small gym. The owners also modified three apartments into handicap accessible units.
 
Oxford Square Apartments became the first development completed with ARRA funds administered by OHFA.
 
“OHFA will not let rural Oklahoma down,” said OHFA Executive Director Dennis Shockley. “We worked hard to deliver these funds quickly so cities like Ada can get the affordable housing they need.”
  
As a recipient of AHTC, tenants of Oxford Square Apartments must meet certain income requirements to live at the complex. The one-bedroom apartments rent for $415 and the two-bedroom apartments rent for $505. 
 
As Oklahoma’s largest provider of affordable housing, OHFA offers nine housing programs ranging from “OHFA Advantage” for home ownership to housing development and rental assistance. For more information about OHFA and its programs and services, visit www.ohfa.org <http://www.ohfa.org/> .
 
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