State program that provides incentives to builders, homebuyers has begun filling its houses

OKLAHOMA CITY — A program created three years ago to make new, more affordable housing has invested $170.4 million to increase housing access across the state, a new report found.

The Legislature granted $215 million to establish the Housing Stability Program initiative in 2023. The program, administered through the Oklahoma Housing Finance Agency, allocates money for the creation of single-family homes for purchase and multi-family rental houses.

The program currently has 1,058 homes available, under construction or soon to be built across 29 counties, according to the annual report.

Corey Bornemann, the housing development program manager, estimated 50 homes had been sold and about 20 had been leased.

“It’s really great because you’re seeing hundreds and hundreds of units that are under construction all across the state of Oklahoma,” Bornemann said. “It’s great to see units that wouldn’t have existed otherwise.”

To incentivize construction, the program offers builders two-year loans with a 0% interest rate.

The first two loans granted were fully repaid in May. The report says these repayments can be reinvested to the program, “creating ongoing return on the state’s investment instead of a one-time expense for the state.”

Buyers interested in one of the program’s homes can get a grant for 5% of the purchase price as down payment assistance. The money does not need to be repaid if the borrower remains in the house for three years.

So far, 11 buyers have received the down payment assistance, the report says.

The report found that 75% of the program’s funding went toward rural housing, with the other quarter funding housing in urban areas.

As of the end of February, the program had 81 homes available to buy in cities such as Ardmore, Kingfisher, Seminole, Wagoner and Oklahoma City, and the program is also now leasing its first units, with more expected to become available.

Homes constructed with program funds have price limits based on federal maximums, according to the program’s website. Single bedroom homes can’t cost over $208,049, whereas homes with four or more bedrooms max out at $359,263.

The program expects to commit all of its available funds for the first time this fall, according to the report, and plans to use loan repayments for new developments.