MANSFIELD — Efforts to build affordable housing for seniors at the site of the former Ocie Hill Neighborhood Center hit a roadblock this week.
The project was not selected for a 9-percent low income housing tax credit from the Ohio Housing Finance Agency.
It was the second tax credit application by Wisconsin-based developer Volker for affordable housing at Ocie Hill. The company previously applied for a 4-percent tax credit through OHFA, but was waitlisted for funds in November.
The site is owned by the Richland County Land Bank, which has a tentative purchase agreement in place to sell the land to Volker — if the company secures the necessary financing for an affordable housing project.
The Land Bank board extended that agreement earlier this year to March 1, 2027.
“We are disappointed that the Ocie Hill project did not receive an award. However, we’re determined to make the Ocie Hill project work,” said Greg Baron, Volker’s managing director of development.
“Volker will continue to discuss options moving forward with the Land Bank. Volker would love to continue partnering with the Land Bank on an affordable housing project at this important location,” he said.
Land bank executive director Amy Hamrick echoed Baron’s sentiments, saying she was disappointed not to receive the tax credits.
She said Ocie Hill’s location may have caused its funding application to receive a low score.
“For whatever reason that census tract doesn’t score as well,” she said.
CHN Housing Partners receives funds for affordable senior housing on Third Street in Mansfield
Another Mansfield development, also aimed at affordable senior housing, was awarded funds.
Mosaic Senior Apartments will be located at 314 W. Third St., behind Mosaic Church. The total project cost is expected to be about $18.3 million, according to a press release from the developer, CHN Housing Partners.
The proposed three-story building would offer housing for adults 62 and older earning between 30 and 80 percent of the average median income.
The 55,000-square-foot building would include 65 one-bedroom units, elevators and common areas like a community room, business center, laundry room and outdoor patio, according to the application.
CHN Housing Partners will be the lead developer, owner and property manager. Resident supportive services, also provided by CHN, will include an on-site resident services coordinator whose primary job is linking residents with services in the community.
Mosaic Senior Apartments is expected to close financing and begin construction in the summer of 2027 and the building is estimated to open in the fall of 2028, the company said.
CHN also received a $534,478.47 allocation of the city of Mansfield’s HOME Investment Partnerships Program funds, which were approved by City Council in April. Those funds come from the federal government and are allocated by states and municipalities to support housing needs.
Mansfield Mayor Jodie Perry said she was excited to see OHFA investing in Mansfield and Richland County.
“We know that affordable housing is much needed around here and I do think that the Third Street project really presents a lot of exciting opportunities,” she said. “We’re at the beginning of the process, so there’s a lot of things still to be worked out.”
Nevertheless, Perry said she was disappointed the Ocie Hill project was not awarded funds.
“There is really strong community support for that project from the neighborhood,” she added. “I believe the developers will do a good job with that one, so I very much still would like to see that project move forward. But the process is what it is. We will continue to work on it.”
How does the 9-percent LIHTC credit work?
LIHTC credits serve as an indirect incentive to finance the construction and rehabilitation of affordable rental housing, according to OHFA’s website. The program is administered at the state level.
Developers and their investment partners claim tax credits over a 10-year period to offset the costs associated with construction or rehabilitation of housing developments. In exchange for the credits, owners must maintain rents that are affordable and limit occupancy to residents with low- to moderate-incomes for a minimum of 30 years.
Owners often sell these tax credits to banks and other lending institutions in order to secure upfront capital to complete the project.
The Mosaic Senior Apartments project was awarded a maximum of $18 million in tax credits over 10 years, according to CHN Housing Partners.
OHFA reviewed 62 applications for its most recent round of 9-percent LIHTC credits and ultimately granted funds for 25 developments across 17 cities and 17 counties, according to a department press release.
Recipients were selected based on the policies and goals of the program, including affordability, geography, accessible design, supportive services, leveraged economic investment and proximity to amenities.
Mosaic Senior Apartments and Ocie Hill projects were the only two applications submitted in Richland County. Mosaic Senior Apartments was one of only two projects awarded to rural counties in OHFA’s northeast region, which also includes large metro areas like Cleveland and Youngstown.
The Mosaic Senior Apartments application received the lowest score of approved projects in the northeast region at 65.82.
The Ocie Hill project received the second lowest score in the region at 40.81.
OHFA scores applications based on its Qualified Application Plan, which is updated every two years to outline program guidelines and minimum project requirements, according to OHFA.
“OHFA’s current 9-percent LIHTC program is largely based on geographic scoring,” Baron said.
“For the current QAP, the Ocie Hill site’s geographic scoring was not strong enough in comparison to other applications submitted for funding this round.”
