Senate committee approves bill to narrow OFA-HOME rule changes, require notice and prioritize nonprofits

The Senate Economic Development, Workforce and Tourism Committee voted 8-1 to pass the committee substitute for House Bill 18-23, a measure aimed at tightening communication and administrative processes between the Oklahoma Housing Finance Agency (OFA) and community housing development organizations (CHDOs).

Sponsor Senator Yac (presenting the committee substitute) said the measure "gives OFA the autonomy it needs to meet any new federal requirements pertaining to the administration of the HOME program, while also ensuring that OFA has the tools it needs to ensure the timely dissemination of new information and guidelines to its partners." The committee substitute consolidates notice requirements, shortens the required notice posting period from 60 days to 30, removes a proposed developer fee minimum, directs OFA to publish data explaining proposed requirement changes, restricts retroactive application of rule changes to HOME awards, and directs OFA to give preference to nonprofit organizations for certain grant awards.

Senators questioned whether the agency had signaled support for the committee substitute and sought clarification on how the nonprofit preference and HUD 15% CHDO set-aside would interact. The sponsor replied she could not state whether OFA supported the final language and emphasized this version represented a negotiated, final product from the House.

Key provisions enacted by the committee substitute:
- Direct OFA to publish data explaining proposed changes to program requirements and conditions.
- Require OFA to post notice of any changes to HOME-program eligibility at least 30 days prior to changes taking effect.
- Restrict retroactive application of program rule changes to past HOME awards.
- Direct OFA to give preference to nonprofits in grant awards and retain the ability to reserve more than the HUD-required 15% CHDO set-aside where appropriate.

The committee passed the bill by roll call (8 ayes, 1 nay); the chair declared the bill passed and it will be transmitted onward for further consideration.