The Oklahoma Housing Finance Agency (OHFA) has voted to suspend its HOME Investment Partnerships Program, halting new applications and pending approvals as uncertainty grows סביב proposed legislative changes in the state.
The decision, taken by the agency’s Board of Trustees on Monday, comes as Oklahoma House Bill 1823 advances through the state legislature. Having passed the Oklahoma House of Representatives on 12 March, the bill has now been referred to the Senate for further consideration.
The suspension will affect both new applicants and those whose submissions have not yet reached the stage of a fully executed Written Agreement. The HOME programme, funded by the U.S. Department of Housing and Urban Development (HUD), plays a central role in supporting affordable housing initiatives across the state.
The agency said the move was necessary to assess the potential operational and compliance implications of the proposed law, particularly given the inclusion of an emergency clause that would bring the legislation into immediate effect if signed by Governor Kevin Stitt.
“Suspending the HOME program is not a decision we take lightly,” said Mike Buhl, chairman of the OHFA Board of Trustees. “Given the emergency clause attached it is imperative that we conduct due diligence to determine the impact of this legislation if it were to pass.”
The proposed bill introduces a series of statutory requirements that would significantly alter how the programme is administered. While the HOME programme operates under federal oversight, states retain flexibility in implementation — a balance that OHFA officials suggest could be disrupted under the new framework.
During the board meeting, Darrell Beavers, OHFA’s housing development director, outlined several areas of concern regarding the bill’s current provisions.
Among the most notable is a requirement mandating a minimum 15% developer fee on all activities. Officials argue this could limit financial flexibility and potentially affect project viability, particularly in lower-margin developments aimed at affordable housing.
The legislation would also prevent OHFA from adopting programme standards that exceed those set by HUD. While federal guidelines establish baseline requirements, state agencies often implement stricter measures to ensure quality, accountability, and long-term sustainability. Removing this discretion, according to OHFA, could weaken oversight.
Another key provision would prohibit the agency from lending funds — a tool widely used across multiple states to maximise the impact of limited federal resources. By recycling funds through loans, housing agencies can support a greater number of projects over time. The proposed restriction could therefore reduce the overall reach of the programme.
In addition, the bill introduces what OHFA describes as duplicative public comment requirements. The agency already conducts extensive engagement, accepting public input for nearly six months each year. Additional layers of consultation could slow decision-making without necessarily improving transparency.
Further concerns centre on a requirement for OHFA to accept third-party guarantors for applicants who lack sufficient financial capacity. While this could broaden access for some developers, officials warn it may also introduce additional risk into the programme.
Perhaps most significantly, OHFA has raised concerns that the legislation could interfere with established federal oversight mechanisms. The HOME programme is subject to rigorous monitoring by HUD, including compliance reviews and audits. OHFA notes that it has maintained a strong track record in this regard, with decades of clean audits.
The agency’s decision to pause the programme reflects the scale of these concerns, as well as the potential for immediate regulatory change should the bill be enacted.
For stakeholders in the housing sector — including developers, local authorities, and community organisations — the suspension introduces a period of uncertainty. Projects in the pipeline may face delays, while new proposals will be held back pending clarity on the regulatory environment.
The Senate’s forthcoming deliberations will therefore be closely watched, not only within Oklahoma but also by housing policy observers more broadly, as the outcome could signal a shift in how federal housing funds are administered at the state level.
Until then, OHFA has indicated it will continue evaluating the potential impact of the legislation, with a view to ensuring compliance while safeguarding the effectiveness of its housing programmes.
