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HTCC PROGRAM OVERVIEW MARCH 4, 2015. HTCC Program Overview Agenda Program History and Objective Procedural Changes Application Process & Timeline Consolidated.

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Presentation on theme: "HTCC PROGRAM OVERVIEW MARCH 4, 2015. HTCC Program Overview Agenda Program History and Objective Procedural Changes Application Process & Timeline Consolidated."— Presentation transcript:

1 HTCC PROGRAM OVERVIEW MARCH 4, 2015

2 HTCC Program Overview Agenda Program History and Objective Procedural Changes Application Process & Timeline Consolidated Application Compliance Project Closeout Questions and Answers

3 Program History and Objective The Housing Tax Credit Contribution (HTCC) Program was initiated in 1987 with the passage of CGS by the Connecticut legislature for non-profit entities In 1995, CHFA assumed administration of the HTCC Program $185 million in HTCC funds have been awarded since programs inception

4 Program History and Objective The HTCC Program provides funding to non-profit developers undertaking housing programs such as: Rehabilitation or new construction of rental or homeownership housing that benefits very low-, low- and moderate-income families; Capitalizing a Revolving Loan Fund that lends money for housing developments for the construction or rehabilitation for individuals purchasing affordable homes; and/or Capitalizing a Workforce Housing Loan Fund that lends money to individuals and families purchasing a home in the city/town where they work

5 Program History and Objective Program criteria establishes set asides for supportive housing, workforce housing, and a general housing class Applications are rated and ranked based on the following criteria:  Readiness to Proceed  Use of Funds  Income Groups Serviced  Applicant Capacity/Goals Accomplished  Neighborhood Revitalization/Leveraging  Compliance Not to be strictly considered as gap funding

6 Palmer Square - Stamford Palmer Square: 76 Units Supportive / Family Housing

7 Alfred E. Plant – West Hartford Alfred E. Plant: 137 Units Elderly

8 Belden Street- New London Belden Street: 6 Units Family Housing

9 Cedarwoods Apartments - Willimantic Cedarwoods Apartments: 56 Units Supportive/Family

10 Highwood Square - Hamden Highwood Square 27 Units Supportive/Family

11 Procedural Changes The Procedures governing the Housing Tax Credit Contribution (HTCC) Program may be found at under Section V. TAX CREDIT PROGRAMS | C. HOUSING TAX CREDIT CONTRIBUTION PROGRAM including all CHFA policies and programmatic requirementswww.chfa.org CHFA’s Board of Directors recently approved changes to the published HTCC Procedures, which were approved by the State Department of Revenue Services.

12 Summary of Procedural Changes C-2(c) Definitions were expanded to include CDFI for clarity CDFI is defined: “CDFIs” means Community Development Financial Institutions. A CDFI is a specialized financial institution incorporated within the state as a nonprofit tax exempt financial institution, designated and certified by the CDFI Fund, a bureau of the United States Department of the Treasury

13 Summary of Procedural Changes C-12(e) New language was included to permit CDFIs and eligible nonprofit entities to retain an administrative fee from its interest earned.

14 Summary of Procedural Changes C-12(f) Added clarifying language as to the nature of the quarterly reports to be provided by CDFIs awarded funding for Revolving Loan Funds “…a quarterly compilation of the revolving loan fund(s) must be provided to the Authority.”

15 2015 Updates As of February 27, 2015 the following have been updated in preparation for the upcoming round:  Guidelines  Scoring sheet  Quarterly reports  2015 Income limits

16 Application Process and Funding Timeline

17 Process and Timeline The electronic application will be due on May 1, 2015 and must be received no later than 4:00 PM that day Applicants must use the CHFA-DOH Consolidated Application currently posted on our website Deficiency Letters will be sent in May with a two-week required response

18 Process and Timeline After the deficiency responses are received, applications will be scored against the program criteria Top scoring developments/programs will be recommended for reservations until the $10 Million pool is exhausted Announcements are expected in July, 2015 Approved applicants will have until September 2, 2015 at 4:00 PM to provide executed business firm commitments

19 Process and Timeline The business firm then makes the HTCC payment or “contribution” to the non-profit for housing development or revolving loan fund The non-profit applicant will provide evidence in the form of a notarized statement with a copy of the check and then CHFA will issue a tax credit voucher to the business firm

20 Process and Timeline After September 2, 2015, any uncommitted funds become available to the highest ranked applicants who are able to secure business firm commitments Business firm commitments for uncommitted funds will be due no later than October 1, 2015 at 4:00 PM HTCC reservations will be made to the next highest ranked applications.

21 2015 Timeline Review May, 2015  Applications received and deficiency letters are sent to applicants  Applicant have two weeks to respond July, 2015  List of eligible Housing Programs of non-profit corporations to which business firms contribute to posted on-line by CHFA September 2, 2015  Contributing Business Firm applications, set asides and Tier I recipients are due at CHFA offices in Rocky Hill, CT by 4:00 P.M.  Uncommitted funds become available to the highest ranked applicant who are able to secure business firm commitments October 1, 2015  Applications for Contributing Business Firms for uncommitted funds are due at the CHFA offices in Rocky Hill, CT by 4:00 P.M

22 Using the Consolidated Application

23 Funding Buttons Funding Buttons Tailor Application to Your Needs

24 Core Items Click “Core Items” button before starting Application

25 Click on the Program Type you are applying for (For example “HTCC”) Program Type will appear in yellow box (In this case no program type has been selected)

26 Boxes highlighted in yellow have drop-down choices

27 Submission Applications must be submitted electronically through the State of Connecticut BizNet Portal Applicants may not submit applications as hardcopy No Application materials will be accepted via Deficiency responses must also be submitted through BizNet Portal Only hard copy requirements are:  Plans & Specs  CHFA Application Fee (if applicable)

28 BizNet Portal Account Set-up  Owner  Team members “Program Cycles” Multiple Applications Signature Pages Uploading Documents Send CHFA/DOH ConApp

29 Compliance

30 HTCC Compliance After credits are awarded, program compliance begins HTCC compliance consists primarily of Quarterly Reports but may also include site visits and periodic inspection of sponsor records Quarterly Reports are due no later than the 15 th of April, July, October, and January in each year

31 HTCC Compliance Quarterly Reports must be submitted via to The reports are intended to document a development’s progress so it is essential that the reports are complete and the amount of funds spent to date is updated If there are material changes being contemplated to your development program, please contact CHFA immediately to obtain CHFA’s consent

32 HTCC Compliance As a reminder, failure to submit Quarterly Reports and/or respond to findings of non-compliance will have a negative impact on all future applications by the sponsor or all affiliated entitiesQuarterly Reports For example, the failure to provide timely Quarterly Reports can range from a warning to a reduction of up to 30 points on future applications Applicants who fail to timely provide four (4) quarterly reports or those with developments in material non-compliance may be ineligible to apply for funds and will be classified as programmatic non-compliant

33 HTCC Compliance More specifically, a failure to provide a Quarterly Report may result in a warning Failure to provide two (2) Quarterly Reports in one calendar year, may result in a 20 point penalty for two consecutive years Failure to provide three (3) Quarterly Reports may result in a 30 point penalty Failure to report four (4) quarters may make the applicant or affiliate ineligible to apply for funds for three (3) years

34 HTCC Closeout Upon project completion, each applicant is required to complete a project closeout form Applicants should provide Certificates of Occupancy and the original, notarized CHFA Certificates of Completion to: CHFA “Attn: Multifamily Department HTCC Program” Additional documents for this closeout may include a summary of expenditures and evidence of non-profit continued compliance

35 HTCC Closeout Failure to comply with closeout provisions may result in point penalties of five points (5 pts) for all subsequent applications for a period of two (2) consecutive HTCC funding rounds

36 Helpful Advice Cultivate potential relationships: the pool of investors is not deep Maintain program compliance Obtain CHFA consent for any program changes Be sure to close the project upon completion Don’t wait till the last minute to apply and upload to BizNet Applications must be submitted by 4:00 PM May 1, 2015

37 2015 HTCC Program Overview Questions & Answers


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