On June 3, 2014, Governor Mary Fallin signed SB2128 – the Oklahoma Affordable Housing Act, that provides for the allocation of $4 million per year in nonrefundable state low-income housing tax credits (68-2357.403). The act, administered by the Oklahoma Housing Finance Agency, dictates that credits are used to raise private equity to finance affordable housing for families and seniors, help in counties with populations of 150,000 or less (HB1411 removed this criterion effective 11.1.19) and provide affordable rent for low-to-moderate-income Oklahomans, typically those earning 60% or less of the Area Median Income.

The tax credit is claimed annually over a ten-year period, beginning when the buildings are placed in service. Owners and managers of low-income housing tax credit properties must ensure that residents meet eligibility requirements set forth by federal regulations (Internal Revenue Code Section 42). The tax credits (both state and federal) are subject to recapture if any violations of the eligibility restrictions are discovered. If any portion of the federal tax credits are recaptured, this will trigger recapture of the proportionate amount of the state tax credit. The Oklahoma Affordable Housing Act is subject to review every five years by a committee of nine members. The Governor, the President Pro Tempore of the Oklahoma State Senate and the Speaker of the Oklahoma House of Representatives are each authorized to appoint three members to the committee.