OHC offers recommendations to enhance the draft Procedure for Valuation of Federally Subsidized Residential Rental Property. Key points include:

Affordable Housing Valuation Calculator

• Proposes an online calculator that mirrors statutory requirements to ensure consistency and accuracy in applying ORC 5715.01.
• Suggests the calculator be optional or hosted in collaboration with another state agency to mitigate application errors by property owners and county auditors.

Capitalization Rate Definition and Timing

• Recommends removing the reference to the Appraisal Institute and instead using accessible sources such as RealtyRates.com for determining the national multifamily capitalization rate.
• Urges setting the rate based on the most recent data available by January 2 (or no later than February 1) to align with the March 1 submission deadline.

Other Income Definition

• Requests eliminating the phrase “but not limited to” to provide an exhaustive list of income sources.
• Emphasizes excluding pass-through grant income and interest earnings on restricted accounts to avoid inflating property income figures inaccurately.

Additional Filing and Valuation Recommendations

• Calls for clearer language regarding the method of filing, including email submission deadlines.
• Suggests adjustments in valuation procedures to allow property owners to challenge presumptive values and to establish firm timelines for County Auditor responses.

OHFA's Letter to the Ohio Department of Taxation