New 2026 Oklahoma Housing Finance Agency (OHFA) Tax Credit Developer Requirements to Unlock More Affordable Housing Growth

In February, Housing Forward in partnership with the City of Tulsa, The Anne & Henry Zarrow Foundation and Smart Growth America released the Smart Growth Tulsa report, an analysis of Tulsa’s housing needs and opportunities. Since the report’s release, many of the recommendations made to expedite housing development have seen significant progress, through advocacy, collaboration and partnership between the City of Tulsa, Housing Forward, developers, housing nonprofits and influencers like Housing Partnership Network, Incremental Development Alliance and more.   

This article is part of a multi-part series highlighting how these recommendations are being implemented as our community works to move housing forward in Tulsa. 

Smart Growth Recommendation: Eliminate unnecessary regulatory barriers and simplify discretionary review processes to facilitate housing growth 

What’s Changed: Each year, Oklahoma Housing Finance Agency (OHFA) reviews and updates the application process for LIHTC (Low Income Housing Tax Credit) developments. Based on extensive communication with experienced affordable housing developers, Housing Forward advocated with the OHFA Board of Trustees to change requirements previously included on the application regarding out-of-state developers, allowing experienced developers to be able to scale more affordable housing developments across the state.   

Previously, out of state or ‘New to Oklahoma’ developers were capped at a maximum of two developments a year, and a third if partnering with an Oklahoma co-developer or co-manager. This requirement lasted until developers passed a post-construction inspection, typically around three or four years. These requirements hampered development growth in Tulsa because developers new to the state were often starting to build their pipeline in Oklahoma City due to market dynamics.  

Now “New to Oklahoma” requirements have been more clearly defined and a new tiered system which is less restrictive allows developers with demonstrated LIHTC experience in other states to be able to apply for up to five developments. These new changes go into effect on 1/1/2026 and will allow developers to be able to build more affordable multifamily housing developments across the state, producing more housing, faster. Additionally, these changes are an opportunity to better allocate Oklahoma’s share of 4% housing tax credits – currently an underutilized resource, occasionally even unused entirely and returned to the federal government.  

Next Steps:  

• Engage developers to ensure they understand new tiered requirements and opportunities for additional projects.  

• Track impact on affordable housing pipeline in Tulsa. 

• Analyze how and where tax credits are deployed to increase Oklahoma’s housing supply.