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2011 TDHCA Multifamily Application Training Workshop.

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Presentation on theme: "2011 TDHCA Multifamily Application Training Workshop."— Presentation transcript:

1 2011 TDHCA Multifamily Application Training Workshop

2 Workshop Format This workshop is for general guidance for the 2011 multifamily programs. There will be a Q&A at the end – feel free to ask question as we go along. It is advised to get development specific guidance in writing. Department rules and statutes supersede the workshop information. Applicants are responsible for understanding ALL rules, statutes and regulations applicable to the programs under which they apply. 2

3 December 1 st 8:30Staff and Attendee Introductions 8:45Program Timelines / Eligibility 9:15Regional Allocation 9:45Pre-Application 10:00 Break 10:15 Application Process 10:45 Threshold 11:30 LUNCH 12:30Threshold (continued) 1:00 4% HTC (for Bond Issuances) 1:15Real Estate Analysis 2:45Break 3:00Selection Criteria

4 December 6 th 1:00Staff Introductions 1:15Program Timelines / Regional Allocation 1:45Electronic Application 2:15Threshold Criteria 2:30Break 2:45HOME Layering 3:154% HTC/Bond 3:30Selection Criteria

5 2011 Regional Allocation Estimated State Credit Ceiling is $52 million 85% of the State Credit Ceiling to be divided between the 13 State Service Regions and further split into urban and rural areas Statewide rural collapse (first) Statewide urban/rural collapse (second)

6 13 State Service Regions

7 15% At-Risk development - $ 7.8M 5% TRDO USDA - $2.6M 10% Nonprofit - $5.2M 20% Rural developments - $10.4M ($500,000 minimum in each region) 2011 Allocation Set-Asides

8 At-Risk Set-Aside Requirements Development must be at risk of losing affordability from financial benefits available to the Development. The 2011 QAP was changed to delete all from this statement. For example, if you have a property with an existing Section 236 loan that is eligible for prepayment, and you also have a Section 8 HAP contract that is not expiring, you would be considered eligible under the At-Risk Set-Aside because at least one of the subsidies is eligible for prepayment or expiring.

9 USDA Set-Aside Requirements Intent to Requests are no longer accepted. If you are submitting an application under the USDA Set-Aside a pre-application must be submitted by January 7, Must be funded through TRDO-USDA. Developments financed (in whole or in part) through TRDO- USDAs §538 Guaranteed Rural Rental Housing Program will not be eligible under this set-aside. Any proposed Rehabilitation or Reconstruction of an existing §515 Development that retains the §515 loan and restrictions, will be considered under this set-aside.

10 One Mile / Three Year Rule Applies to counties over 1 million in population. Developments proposing New Construction or Adaptive Reuse within one mile of another Development serving the same population that received Housing Tax Credits in the previous three years. Local Resolution (Due April 1, 2011). § (a)(3) Texas Government Code and §49.8(2)(B) 2011 QAP. Texas Statutory Limitations

11 2 X Per Capita Municipality, ETJ or County that has twice the state average of units per capita supported by Housing Tax Credits or Private Activity Bonds. Local Resolution (due April 1, 2011). § (a)(4) Texas Government Code and § 49.8(2)(A) 2011 QAP.

12 Texas Statutory Limitations One Mile / Same Year Rule Applies to counties over 1 million in population. Two Applications being proposed in the same Application Round that are within one mile of each other, only one Application can be awarded. § Texas Government Code and § 49.4(c)(12) 2011 QAP.

13 $2 million limitation $2 million limitation to any Applicant, Developer, Related Party, Affiliate or Guarantor (unless the Guarantor is also the General Contractor and is not a Principal of the Applicant, Developer, Related Party or Affiliate). $2 million request limitation per single Application. § Texas Government Code and § 49.5(b) 2011 QAP. Texas Statutory Limitations

14 Texas Development Limitations Census tracts with >30% of the households served by Housing Tax Credits. 16 Unit Minimum 252 Unit Max with 200 LI Unit Max 252 Unit LI & Total Max for Bond deals 80 Unit Max for Developments in Rural areas (applies to both Bond & HTC).

15 Texas Development Limitations Ineligible Applicants: An Applicant is ineligible if any Applicant, Development Owner, Developer or Guarantor involved with the Application has been: voluntarily or involuntarily removed from a rent or income restricted multifamily Development by a lender, equity provider, or any other owners or investors as a Principal during the previous ten (10) years, however designated, or any combination thereof or if any litigation to effectuate such removal has been instituted, and is continuing at the time of Application the Department shall be promptly notified by the Applicant. voluntarily or involuntarily removed from a rent or income restricted multifamily Development by a lender, equity provider, or any other owners or investors as a Principal during the previous ten (10) years, however designated, or any combination thereof or if any litigation to effectuate such removal has been instituted, and is continuing at the time of Application the Department shall be promptly notified by the Applicant. For information considered and addressed in a report to the Executive Director refer to 49.4(a)(9)(A)-(D) of the QAP. For information considered and addressed in a report to the Executive Director refer to 49.4(a)(9)(A)-(D) of the QAP. No person shall be debarred except by formal action taken by the Board. No person shall be debarred except by formal action taken by the Board. Debarment under this provision will be for a period not to exceed 5 years. Debarment under this provision will be for a period not to exceed 5 years.

16 Texas Development Limitations Ineligible Applications: The Department will terminate an Application: If more than 50% of the Developer Fee is deferred as reflected in the Sources and Uses exhibit in the Application or the commitments from the lender or syndicator. ( § 49.4(b)(11)) If more than 50% of the Developer Fee is deferred as reflected in the Sources and Uses exhibit in the Application or the commitments from the lender or syndicator. ( § 49.4(b)(11))

17 Texas Development Limitations Ineligible Developments: Any Development located in an Urban Area involving any New Construction of additional Units proposing: more than 30% of the total Units are one bedroom and/or Efficiency Units; or more than 55% of the total Units are two bedroom Units; or more than 40% of the total Units are three bedroom Units ; or more than 5% of the total Units are four bedroom Units; or Only two and three bedroom Developments; or More than 70% 2 bedroom in Qualified Elderly Developments.

18 Texas Development Limitations Ineligible Developments Qualified Elderly Development with two or more floors without elevators for any units or living space above the first floor. Any Development with any buildings with four or more floors without elevator service. Any Development that violates the Integrated Housing Rule § 1.15 of the Texas Administrative Code. Any Development that contains residential units that violates the general public use requirement under Treasury Regulation §

19 Texas Development Limitations Ineligible Developments Previously noted negative site features will now be considered an Ineligible Development. Previously noted negative site features will now be considered an Ineligible Development. To the extent an Application has a negative site feature noted in § 49.4(c)(11) of the QAP the Applicant should notify the Department as soon as possible. The Department will terminate the Application pursuant to the QAP and the Applicant will be allowed the opportunity to appeal to the Board. To the extent an Application has a negative site feature noted in § 49.4(c)(11) of the QAP the Applicant should notify the Department as soon as possible. The Department will terminate the Application pursuant to the QAP and the Applicant will be allowed the opportunity to appeal to the Board. NOTE: the sooner the pre-application is submitted (i.e. prior to the January 7, 2011 deadline) could allow for the Applicant to be on the January Board agenda for consideration of the appeal. NOTE: the sooner the pre-application is submitted (i.e. prior to the January 7, 2011 deadline) could allow for the Applicant to be on the January Board agenda for consideration of the appeal.

20 Texas Development Limitations Ineligible Developments – Development Amenities - §49.4(c)(14) All New Construction Units must be wired with RG-6 COAX or better and CAT3 phone cable or better, wired to each bedroom, dining room and living room; All New Construction Units must be wired with RG-6 COAX or better and CAT3 phone cable or better, wired to each bedroom, dining room and living room; Laundry Connections*; Laundry Connections*; Blinds or window coverings for all windows; Blinds or window coverings for all windows; Screens on all operable windows*; Screens on all operable windows*; Disposal and Energy-Star rated dishwasher (not required for TRDO-USDA or SRO Developments; Rehabilitation Developments exempt from dishwasher if one was not originally in the unit)*; Disposal and Energy-Star rated dishwasher (not required for TRDO-USDA or SRO Developments; Rehabilitation Developments exempt from dishwasher if one was not originally in the unit)*; Energy-Star rated refrigerator; Energy-Star rated refrigerator; Oven/Range; Oven/Range; Exhaust/vent fans (vented to the outside) in bathrooms; Exhaust/vent fans (vented to the outside) in bathrooms; Energy-Star rated ceiling fans in living areas and bedrooms; Energy-Star rated ceiling fans in living areas and bedrooms; Energy-Star rated lighting in all Units which may include compact florescent bulbs; Energy-Star rated lighting in all Units which may include compact florescent bulbs; Plumbing fixtures (toilets and faucets) must meet design standards at 30 TAC § *; Plumbing fixtures (toilets and faucets) must meet design standards at 30 TAC § *; All Units must be air-conditioned*; and All Units must be air-conditioned*; and Fire sprinklers in all Units where required by local code*. Fire sprinklers in all Units where required by local code*.

21 30% Increase in Eligible Basis QCT tract with >30% of the households served by Housing Tax Credits are not eligible for 30% increase in eligible basis. The Development qualifies for and receives Renewable Energy Tax Credits. A four story or greater Development with structural parking that is proposed to be located within one-quarter mile of existing major bus transfer centers, regional or local commuter rail transportation stations, and/or Transit Oriented Districts that are accessible to all residents including Persons with Disabilities

22 Competitive Housing Tax Credit Timeline

23 2011 Competitive Housing Tax Credit Timeline 12/20/ Application Acceptance Period Begins 12/20/ Application Acceptance Period Begins 01/07/ Pre-Applications Due 01/07/ Pre-Applications Due 02/15/2011 Experience Certification Request Delivery Deadline 02/15/2011 Experience Certification Request Delivery Deadline

24 2011 Competitive Housing Tax Credit Timeline 03/01/ Full Applications Due 03/01/ Full Applications Due 03/01/2011Unit of General Local Govt Resolutions in Connection with Points Under § 49.9(a)(5) Due. 03/01/2011Unit of General Local Govt Resolutions in Connection with Points Under § 49.9(a)(5) Due. 03/01/2011Third-Party Reports Due (includes Phase I ESA, PCA and Appraisal, if applicable) 03/01/2011Third-Party Reports Due (includes Phase I ESA, PCA and Appraisal, if applicable) 04/01/2011Local Resolutions Due & Market Analysis Report Due 04/01/2011Local Resolutions Due & Market Analysis Report Due

25 2011 Competitive Housing Tax Credit Timeline Mid-MayFinal Scoring Notices Issued Mid-MayFinal Scoring Notices Issued Late JuneRelease of Eligible Applications for Consideration for Award in July Late JuneRelease of Eligible Applications for Consideration for Award in July Late JulyFinal Awards Late JulyFinal Awards Mid-AugCommitments Issued Mid-AugCommitments Issued 11/01/11Carryover Documentation Due 11/01/11Carryover Documentation Due 07/01/1210% Test Documentation 07/01/1210% Test Documentation 12/31/13 Placement in Service 12/31/13 Placement in Service

26 Application Materials 2011 Application Checklist (fka ASPM) 2011 Competitive HTC Pre-Application 2011 Uniform Application 2011 Quantifiable Community Participation Packet 2011 Experience Certification Packet

27 Application Reference Material 2011 Tax Credit Procedures Manual Application Checklist Definitions Program Rules Commitment Notice Documentation, Carryover, 10% Test, etc HTC Reference Manual

28 Definitions – Format 2011 QAP contains definitions specific only to Housing Tax Credit Applications. Definitions that were in the QAP that could be applicable to other Department multifamily programs are now in the 2011 Definitions for Housing Program Activities Rule (10 TAC §1.1) As part of the Tax Credit (Procedures) Manual we will include a document that lists all definitions applicable to a HTC Application (i.e. those found in §2306, §42, REA Rules, MF Bond Rules, etc.)

29 New Definitions (§49.3) Transit Oriented District – A mixed-use residential and commercial area, located within a radius of one-quarter mile from an existing or proposed transit stop, designed to encourage pedestrian activities and maximize access to public transportation. Tax Credit (Procedures) Manual – The manual produced and amended from time to time by the Department which reiterates the rules and provides guidance for the filing of tax credit related documents.

30 New Definitions (§1.1) Unit of General Local Government – A city, town, county, village, tribal reservation or other general purpose political subdivision of the State. Reconstruction – The demolition of one or more residential buildings in an Existing Residential Development and the reconstruction of an equal number or less of Units on the Development Site.

31 Revised Definitions (§1.1) Adaptive Reuse– The change-in-use of an existing non-residential building (e.g., school, warehouse, office, hospital, hotels, etc.), into a residential building. Adaptive Reuse does not include the demolition of the external walls of the existing building. All units must be contained within the original walls of the existing building. Porches and patios may protrude beyond the exterior walls. Ancillary non-residential buildings, such as a clubhouse, leasing office and/or amenity center may be newly constructed outside the walls of the existing building or as detached buildings on the Development Site. Governmental Instrumentality- A legal entity which is created by a Unit of General Local Government under statutory authority and which instrumentality is authorized to transact business for the Unit of General Local Government.

32 Revised Definitions (§1.1) Rehabilitation - The improvement or modification of an Existing Residential Development through alteration, incidental addition or enhancement. The term includes the demolition of an Existing Residential Development and the Reconstruction of a Development on the Development Site, but does not include Adaptive Reuse. (§ (26-a)) More specifically, Rehabilitation is the repair, refurbishment and/or replacement of existing mechanical and structural components, fixtures and finishes. Rehabilitation will correct deferred maintenance, reduce functional obsolescence to the extent possible and may include the addition of: energy efficient components and appliances, life and safety systems; site and resident amenities; and other quality of life improvements typical of new residential developments.

33 Document Submission All original submissions of the Pre-Application, Application and 3rd Party Reports must be submitted via CD-R. The Department will not accept these documents via FTP submission.

34 Document Submission The following information may be submitted directly on the Departments FTP Server after an Electronic Filing Agreement has been submitted: Deficiencies Post Award Submissions

35 Pre-Application Electronic Submission Applicant must deliver one (1) CD-R containing a PDF copy and Excel copy of the complete pre-application. The pre- application will NOT be accepted via FTP. The correct Pre-Application Fee must be submitted with the pre- application in order for the pre-application to be accepted by the Department. Pre-Application Fee is $10 per Unit.

36 Pre-Application Submission Pre-Application must be accompanied by a paper certification with an original signature in the form provided in the pre-application. Pre-Applications that are submitted in person or by mail must be received by 5:00 p.m. (CST) on Friday, January 7, 2011.

37 Pre-Application Requirements Pre-Application – Tab Multifamily Document and Payment Receipt Pre-Application – Tab Electronic Filing Agreement Pre-Application – Tab Competitive Housing Tax Credit Pre-Application Certification Pre-Application – Tab 4 Competitive Pre-Application Submission Form Pre-Application – Tab 5 Competitive HTC Pre-Application Self-Scoring Form. Note: Pursuant to §49.7(a)(2)(A), an Applicant may not adjust the Self Score Form in an Administrative Deficiency without a specific request from TDHCA. Therefore, it is important that care is taken when requesting points.

38 Pre-Application Requirements Tab 6 - Evidence of Site Control through March 1, A recorded warranty deed with a corresponding executed settlement statement (unless an identity of interest) A contract for lease (45 yr minimum term) A contract for sale or purchase option (for entire time Application is under consideration) Evidence must be in the name of the Development Owner. If not in the name of the Development Owner, then the documentation must reflect an expressed ability to transfer the rights to the Development Owner. If a contract is provided as evidence of site control, the closing date must be highlighted or flagged. If the date is not explicitly stated, but rather is triggered by other dates or periods, submit an outline of the dates that must be used to derive the closing date.

39 Pre-Application Requirements Tab 7 – Applicant Disclosure Should the Applicant believe they have a potential violation of eligibility pursuant to 49.4 of the 2011 QAP this provide the Applicant the opportunity to bring this to the Departments attention. Any disclosure will be subject to review. It is strongly encouraged that the Applicant submit this information to the Department prior to the January 7, 2011 Pre-Application deadline.

40 Pre-Application Requirements Tab 8 – Public Notification Information Form Tab 9 – Certification of Notifications at Pre-Application Form Note: All notifications must be made in accordance with the language outlined in the Neighborhood Organization Request and Public Notifications Format available in the Templates application materials on the Departments website Request for Neighborhood Organizations by December 20, 2010

41 Pre-Application Notifications Required Notification Entities: All Neighborhood Organizations on record with the county or state whose boundaries include the proposed Development Site; Superintendent of the school district; Presiding officer of the board of trustees of the school district; Mayor of any municipality; All elected members of the Governing Body of any municipality; Presiding officer of the Governing Body of the county; All elected members of the Governing Body of the county; State senator of the district containing the Development; and State representative of the district containing the Development.

42 Full Application Submission Applicant must deliver one (1) CD-R containing a PDF copy and Excel copy of the complete Application (Volumes 1-4). The Application will NOT be accepted via FTP. NOTE: Volume 4 not required for 4% HTC Applications Applicant must deliver each 3 rd Party Report on a separate CD-R. The correct Application Fee must be submitted with the pre-application in order for the pre-application to be accepted by the Department. Application Fee is $30 per Unit. ($20 if a Pre-Application was submitted) Qualified Community Housing Development Organizations (CHDO) and Qualified Nonprofit Organizations that control the managing general partner are be eligible for a 10% reduction in required application fees. You must provide a copy of 501(c)(3) or (4) IRS documentation at the time of submission.

43 Full Application Submission Full Application Deadline is by 5:00 p.m. (CST) Tuesday, March 1, After the Application is submitted on CD-R, the Department will issue a User ID and password specific to the application for uploading deficiency responses and other required items. Only if a Pre-Application was not submitted.

44 Full Application Submission Authorization to Release Credit Information Form. Must be completed and signed for each organization that is a General Partner, Developer or Guarantor and each Natural Person that has an ownership interest of 10% or more in the Development Owner, General Partner, Developer, or Guarantor. Nonprofit entities, public housing authorities and publicly traded corporations are only required to submit documentation for the entities involved; documentation for individual board members and executive directors is not required for this exhibit.

45 Mail and Delivery Information For US Mail delivery: TDHCA – Multifamily Finance Division P.O. Box Austin, TX For Overnight or Courier delivery: TDHCA - Multifamily Finance Division 221 East 11th Street Austin, TX Do NOT have U.S. Mail delivered to physical address. Capitol mailroom will not deliver.

46 Application Review Process All Applications will first be reviewed to confirm eligibility under §49.4 (regarding Ineligibility) and §49.6(b) (regarding Set-Aside). All Applications will be reviewed according to the Selection Criteria. Applications that are competitive in their respective sub-regions will be reviewed according to the Threshold Criteria. Applications that are competitive and meet Threshold will be transferred to the Real Estate Analysis division for Financial Feasibility review. Final Scoring Notices will be issued in Mid-May. Each step in the review process may generate Administrative Deficiencies.

47 Administrative Deficiencies Purpose: to provide clarification or correction to information originally submitted in the Application. If exhibits and other information required under 49.8 (Threshold) are not originally submitted with the Application (i.e. no financing commitment) staff will recommend termination. If exhibits and other information is missing in part from the Application (i.e. financing commitment not executed by the lender) staff will request the missing or corrected information via an Administrative Deficiency. Same process applies to Scoring Criteria – if information to substantiate points claimed for a scoring item is missing entirely staff will not award points. If information is missing in part staff will request missing information via an Administrative Deficiency and award points if resolved to the satisfaction of the Department.

48 Administrative Deficiencies Deficiencies may be issued throughout the Application process. Must be corrected within 5 business days from date the deficiency letter is issued. 5 points will be deducted from score for each day deficiencies remain unresolved after 5:00 p.m. (CST) on the 5 th day for the date the deficiency letter is issued. Application will be terminated if deficiencies remained unresolved after 5:00 p.m. (CST) on the 7 th day from the date the deficiency letter is issued.

49 Administrative Deficiencies 4% HTC / Tax-Exempt Bond Transactions Must be corrected within 5 business days from date the deficiency letter is issued. A penalty fee of $500 will be imposed for each day deficiencies remain unresolved after 5:00 p.m. (CST) on the 5 th day for the date the deficiency letter is issued. Application will be terminated if deficiencies remained unresolved after 5:00 p.m. (CST) on the 10 th day from the date the deficiency letter is issued.

50 Previous Participation Review Applicants that are competitive in their respective set-aside or sub-region and meet the requirements of threshold will be reviewed for compliance with all Department programs and commitments in accordance with §49.4(a)–(c). Any Applications found to be in Material Non-Compliance in accordance with Chapter 60 are ineligible for funding under the Housing Tax Credit Program.

51 Completing the Application Notice of ALL Updates and Announcements are communicated through the TDHCA List Serve and To register with the Departments List Serve, go to the following address: Select TDHCA List (lower left corner) Enter your address and follow the instructions

52 Application Requirements 2011 Payment Receipt 2011 Electronic Filing Agreement 2011 HTC Application Certification paper certification with an original signature in the form provided in the Application.

53 Volume 1, Tab 1 Part A & B. Activity Overview & Applicant Information These two forms have been consolidated into one. Part C. Funding Request Correctly select the appropriate items. Requested Amount of Housing Tax Credits- this cell will be auto-filled from the Development Cost Schedule. Annual amount of Housing Tax Credits cannot exceed $2,000,000. §49.5(b) Development Narrative – Describe Development Plan

54 Volume 1, Tab 2 Part A. Populations Served Part B. Rent Schedule If the Development includes loft/efficiency units, label these units as 0 bedrooms. If any non-rental income is included, specify the source(s) of the income. Do not state as Misc., Other, or etc. or include any such terms in the descriptions. New conditional formatting has been added. Part C. Utility Allowances Support documentation must be included (i.e. Current PHA utility allowances sheet or local utility provider estimate specific to development). Indicate on the documentation from the service provider those items which are included in the utility allowance figure.

55 Volume 1, Tab 2 (continued) Part D. Annual Operating Expenses Compare the expenses shown in this section to the underwriting criteria. If they differ considerably, submit a justification of the variance. Part E. 30 Year Rental Housing Operating Pro Forma Part F. Building/ Unit Type Configuration Units and square footage must match Part B. Rent Schedule Unit configuration per building must conform to building floor plans and site plan matrix Number of buildings must match the site plan.

56 Volume 1, Tab 3 Part A. Development Cost Schedule Must be signed by Development Owner and Contractor. The Owners Requested Credits is a calculated cell, however, it has been unlocked to allow the Applicant to enter a value other than the calculation, if necessary. NOTE: Annual amount of credits cannot exceed $2M. If projected site work costs include unusual or extraordinary items or exceed $9,000 per Unit, then the Applicant must provide: A detailed cost breakdown prepared by a Third Party engineer or architect, and A letter from a certified public accountant allocating which portions of those site costs should be included in Eligible Basis and which ones may be ineligible.

57 Volume 1, Tab 3 (continued) Part B. Offsite Costs Breakdown This form is only applicable if offsite costs are included in Part A. Development Cost Schedule. Must be signed by registered engineer or architect. Part C. Site Work Costs This form is only applicable if the subtotal site work cost from Part A. Development Cost Schedule is above $9,000 per unit.

58 Volume 1, Tab 4 Part A. Summary of Sources and Uses Financing participants must be listed in the right-hand column. Total sources of funds must equal total uses of funds. Total sources in the Permanent Loan Stage column must match Volume 1, Tab 3 Part A. Development Cost Schedule Total Development Cost. Amounts listed must match amounts listed in Part B. Financing Participants, the Financing Narrative, Commitment Letters and Syndicator Letters.

59 Volume 1, Tab 4 (continued) Part B, Financing Participants The sources and amounts of funds indicated on this form must match those indicated on Part A. Summary of Sources and Uses of Funds. Financing Narrative Sources and amounts of funds must match Part A. Summary of Sources and Uses of Funds. Commitment Letters Evidence must be consistent with Part A. Summary of Sources and Uses of Funds

60 Volume 1, Tab 5 Part A.1. Applicant and Developer Ownership Chart (use form as template) Two Organizational charts are needed: Development Owners ownership structure including Organizations and Persons Organizational charts must go down to the level of natural persons that are Principals and include Special Limited Partnerships. Part A.2. Applicant Unique Identifier Number Tax Id #s must be provided for all formed entities and Social Security #s for all individuals, including nonprofit board members. Do NOT submit Form A.2 with the electronic version of the Application. This information must be submitted separately.

61 Volume 1, Tab 5 (continued) Part B. List of Organizations with Owner Interest Part C. List of Principals of Organizations with Ownership Interest Part D. Certification of Principal or Development Owner (this form and Volume 1, Tab 7, Part C have been consolidated) Part E. Previous Participation and Background Certification Organizational Charts must show % of ownership. Organizational Charts are used to determine who must submit additional Documents Part B must include each organization and DBA on the charts. Part C must include each organization and natural person on the charts. Part D must be submitted separately for each organization and natural person on the chart.

62 Volume 1, Tab 7 Part A. HTC Application Supplement Choose either the 20/50 election or the 40/60 election. Election is binding and will be recorded in the LURA. Election will be reported on IRS forms Part B. Confirmation of Set-Aside and Allocation Eligibility Part C. HTC Consultant Certification Part D. 9% HTC Applicant Credit Limit Documentation and Certification

63 Volume 1, Tab 8 Relevant Development Information and Public Notification Information and Certification Forms These forms must be submitted at full Application, even if a pre- application was submitted and met the Threshold requirements. Relevant Development Information Form (Parts 1 and 2) Public Notification Information Form (pgs. 1-4) Applicant must certify that there are no changes from the pre- application.

64 Volume 2, Tab Existing Residential Development Certification Form Site Packet Information Form A copy of the site plan. The site plan must indicate adjacent street names, existing/proposed buildings, parking, ingress, egress, and encroachments. Photographs of site features (street signs, billboards, existing structures, etc.) that will help staff correctly identify the site during the site inspection. City map clearly indicating other existing affordable developments; retail centers; medical complexes; recreational facilities; schools and education facilities; employment centers; public transportation. The Census Tract number should be indicated. Written directions to the site from the nearest state or interstate highway.

65 Volume 3, Tab 1 Volume 3, Tab 1 Parts A-D are included in the Uniform Application. All forms must be signed and dated. Parts A-D are required for all development types. Part A.1. Development Certification Form Part A.2. Architect Certification Form Part B. Specifications and Amenities Parts C.1 and C.2 Common Onsite Amenities (Threshold) Minimum points are required to meet threshold according to development size. Rehabilitation or SRO developments will receive 1.5 times the point value Scattered site developments must include sufficient common amenities to satisfy Threshold site by site. Part D. Unit Amenities

66 Volume 3, Tab 1 The Compliance and Asset Oversight Rules, Chapter 60 Subchapter A proposes more detail and guidance to the common amenities listed in the QAP and specifically what they are looking for when they perform their onsite final construction inspections. Some of the detail has therefore been removed from the common amenities listed in the QAP. These rules are proposed to be on the December 17, 2010 Board agenda for approval.

67 Volume 3, Tab 2 Architectural drawings - §49.8(6)(A) through (C). Site plan Building floor plans (NOT required for Developments involving Rehabilitation in which the Unit configurations are not being altered) Building elevations (NOT required for Developments involving Rehabilitation in which the Unit configurations are not being altered) Unit floor plans

68 Volume 3, Tab 3 Part A. Site Information Part B. Scattered Site Information- form must be completed for multiple site Applications. NOTE: for Scattered Sites group all documentation (tax assessment, site control, etc.) per site. Tax Assessment: Behind this tab also place the current tax assessment documentation from the taxing entities for the entire proposed site. (Required by all Applicants). Must include tax rates for each applicable taxing jurisdiction.

69 Volume 3, Tab 3 (continued) Evidence of Site control must be valid for the entire period the Development is under consideration, which is: July 29, 2011 for Competitive Housing Tax Credit Developments. For Tax Exempt Bond Developments, site control must be valid through the scheduled inducement Board meeting for Pre-Applications, and at full Application must be 90 days from the date of the bond reservation with the option to extend through the scheduled TDHCA Board meeting.

70 Volume 3, Tab 3 (continued) Evidence of site control must be in one of the following forms: A recorded warranty deed (with corresponding executed settlement statement) A contract for lease (45-year minimum term) A contract for sale or purchase option Identity of interest items as applicable Site control must: Be in the name or the Development Owner (or documentation must reflect an expressed ability to transfer the rights to the Development Owner) Have the closing date highlighted Have exclusive option to extend Scattered site Applications must include the required information for each site

71 Volume 3, Tab 3 (continued) Evidence of zoning Evidence must be consistent with Volume 3, Tab 3 Site Information form Evidence must be one of the following: If no zoning exists, a letter stating the development is consistent with the local consolidated plan, comprehensive plan or other local planning document; A letter stating the development is permitted under the current zoning; A letter stating the applicant has applied for the appropriate zoning; or For Rehabilitation developments that is currently a non- conforming use. Approval of final zoning is required at the time the Commitment or Determination Notice, if appropriate zoning is not evidenced at the time of Application. No extensions of final zoning are permitted pursuant to the 2011 QAP.

72 Volume 3, Tab 3 (continued) Legal Description and Title Commitment/ Policy: Must not be older than six months from the application submission deadline (acceptance for bond transactions. Evidence must one of the following: Title policy in the name of the development owner; Title commitment in name of development owner and policy in name of seller or lessor; or Scattered sites must have title policy for each site. Census Tract Map clearly showing the development site and the eleven digit census tract number. Must be consistent with Volume 3, Tab 3, Part A Site Information form.

73 Volume 3, Tab 4 Certification of Notification If a pre-application was submitted and met the notification requirements and no changes have occurred pursuant to the 2011 QAP that require re-notification, then no additional notification with the exception of signage or alternative is required at Application.

74 Volume 3, Tab 4 (continued) If no Pre-Application was submitted, did not meet threshold, was withdrawn or was terminated, the following dates apply: January 21, 2011: Request for Neighborhood Organizations must have been made (or for Tax-Exempt Bond or Rural Rescue Applications not later than 3 months prior to submission of Volume 3 of the Application) February 22, 2011: Deadline for response letter from Elected Officials. (or For Tax-Exempt Bond Developments by 7 days prior to the submission of the Application) Sample letters are located with the 2011 Application Materials in the Templates. The Certification of Notification is located in the Uniform Application (Volume 1, Tab 8).

75 Volume 3, Tab 4 (continued) Notifications Re-notification is required if there is a change in the Application, whether from Pre-Application to Application or as a result of a deficiency that: reflects a total Unit increase of greater than 10%; an increase of greater than 10% for any given level of AMGI; a change to the population being served (elderly or general); or

76 Volume 3, Tab 4 (continued) Signage on Property: A Public Notification Sign must be installed on the Development site. The sign must identify that a residential development is being proposed and must provide contact information for the Applicant in the form of a phone number or web address where they can obtain more information. The Applicant must make reasonable efforts to maintain the sign on the site until the day that the Board takes final action on the Application for the Development.

77 Volume 3, Tab 4 (continued) Signage on Property: For Competitive Tax Credit Applications, the Public Notification Sign must be installed on the Development Site prior to submitting the full Application on March 1, 2011 as certified in the Certification of Notification form in the Application. For Tax-Exempt Bond Developments, regardless of the Priority of the Application or the Issuer, the sign must be installed within thirty (30) days of the Departments receipt of Volume I as certified in the Certification of Notification form in the Application.

78 Volume 3, Tab 4 (continued) Alternative to Signage: (In areas where the Public Notification Sign is prohibited by local ordinance, code or restrictive covenant) As an alternative to installing a Public Notification Sign and at the same required time, the Applicant shall mail written notification (as evidenced in the Certification of Notifications). This written notification must include the information otherwise required for the sign as provided in the Application (Template provided in Public Notification Formatuse the Written version).

79 Volume 3, Tab 5 Organizational Documentation: Each entity shown on the organizational chart provided in Volume 1 Tab 5 must provide the following documentation: For entities that are not yet formed but are to be formed either in or outside of the state of Texas, a certificate of reservation of the entity name from the Texas Secretary of State.

80 Volume 3, Tab 6 Experience Certification All Applicants are required to submit an Experience Certificate as part of their Application. The Experience Certificate is issued by the Department and must be requested by February 15, 2011 for Competitive 9% HTC Applications or be requested at the time of Application submission for Tax-Exempt Bond Developments or other Multi-Family Programs. All applications require one of the eligible participants to hold a 2011 Experience Certificate. A new Experience Certificate for 2011 will be required! Required documentation for an Experience Certificate is explained in detail in §49.8(4) of the 2011 QAP. Any questions relating to the Experience Certification process can be directed to Valentin DeLeon at (512)

81 Volume 3, Tab 6 Experience Certification- What has changed from 2010? The Principal requesting the certificate must have previous experience with the same type of construction as the Application is proposing single-family, multifamily, new construction, rehabilitation). The Principal requesting the certificate must have acquired their experience in connection with a development with at least 80% as many units as the Units in the Development for which Application is being made, in no event less than 36 units. Example: In order to develop 135 rehab, multifamily units, you must provide evidence of successfully of developing 108 rehab, multifamily units. The Department will, in issuing an Experience Certificate, state any limitations. Persons who establish that they have participated in the development of 200 units or more will not be further restricted by size. Experience of multiple parties may not be aggregated. Rehabilitation experience must have been substantial and involved at least $15,000 of direct cost per Unit.

82 Volume 3, Tab 7 Acquisition, Rehabilitation and Identity of Interest Form Parts A- C included in the Uniform Application. Rehabilitation Developments Property Condition Assessment due by March 1, 2011 (unbound, not behind this tab) Evidence of rental assistance (if existing or continuing)

83 Volume 3, Tab 7 Occupied Developments Submit at least one of the following: Historical monthly operating statements Two most recent consecutive annual operating statement summaries Most recent consecutive 6 months of operating statements and the most recent annual operating summary All monthly or annual operating summaries available; In addition to one of the above, submit the following: Rent roll Evidence of notification of tenants Identification of the number of qualified elderly tenants (for Qualified Elderly Developments) Relocation Plan and Budget Evidence of submission of relocation plan to appropriate governmental agency

84 Volume 3, Tab 7 (continued) Acquisition Developments Appraisal due by March 1, 2011 (unbound, not behind this tab) Appraised values must be consistent with Volume 1, Tab 3 Development Cost Schedule

85 Volume 3, Tab 7 (continued) Identity of Interest Documentation of the original acquisition cost must be submitted: Documentation must be in the form of a settlement statement; or The sellers most recent audited financial statement indicating the asset value for the proposed Property. If the original acquisition cost is less than the acquisition cost claimed in Volume 1, Tab 3 Development Cost Schedule, the following must be submitted: An Appraisal must be submitted by March 1, 2011; and Evidence of any other verifiable costs of owning, holding, or improving the Property that when added to the original acquisition cost justifies the Applicants proposed acquisition amount.

86 Volume 3, Tab 8 Nonprofit Organizations and CHDO Participation. All Nonprofit or CHDO Applications must submit the following forms: Part A: Evidence of Nonprofit Organization and CHDO Participation Part B: List of the Nonprofit Organizations Board Members, Directors and Officers IRS Determination Letter

87 Volume 3, Tab 8 Additionally, Applications involving Nonprofit applicants (whether applying in the Nonprofit Set-Aside or not must submit: (HTC 9% Only) Most recent audited financial statement Legal opinion (sample template letter included with the Application Materials in Templates. Certification regarding Board Member residence.

88 Volume 3, Tab 8 (continued) ALL applications involving a nonprofit General Partner, regardless of set-aside applied under, in which the Development will receive some financial or tax benefit for the involvement of the non-profit General Partner, must submit the documents described in §49.8(12)(A)-(E) and must indicate the nonprofit status on the Carryover documentation and IRS forms 8609.

89 Volume 3, Tab 9 (continued) All Market Analysts are required to already be on the approved list of Market Analysts by the time an Application is submitted. The Market Study must be submitted by April 1, If not, the Application will be terminated and removed from consideration. A searchable single PDF file, containing all information and exhibits on a non-rewritable CD-R disc clearly labeled with the report type, development name, application # and contact information. The file must be submitted by 5:00 p.m. on or before April 1, 2011.

90 Selection Criteria Selection of points is optional, but they are strictly enforced if made. Changes requested through the amendment process are strictly scrutinized. The Land Use Restriction Agreement (LURA) will reflect all selections made. Points will not be awarded if they are (1) not requested on the Self Score, or (2) if evidence is not provided behind the tab. Only QCP, Senator and Representative Letter and Community Support Other than QCP points are exempt from the Self Score.

91 Selection Criteria All Applications (except TRDO-USDA Applications) must meet a minimum final score of 130 to be eligible for an allocation for Competitive Housing Tax Credits. The following points requested are not included by the Applicant on the Self-Score form, but will be added to the final score issued by the Department: §49.9(a)(2), Quantifiable Community Participation (QCP); §49.9(a)(6), State Senator and State Representative Letters; or §49.9(a)(11), Demonstration of Support other than QCP.

92 Self Score Form (Volume 4,Tab 1) Applicant Self Score Form A completed Applicant Self Score form under Volume 4, Tab 1 An Applicant may not adjust the Self Score Form after the Application has been submitted to the Department. Therefore, it is important that care is taken when requesting points.

93 §49.9(a)(1) Financial Feasibility (Tab 2) Development Financial Feasibility. Applications may receive 20 points based on the supporting financial data provided behind this exhibit in addition to the commitment letter required. The supporting financial data shall include a 15 year pro forma prepared by the permanent or construction lender specifically identifying each of the first five years and every fifth year thereafter and identifying the underlying assumptions including the general growth factor applied to income and expenses. A commitment letter, which includes a statement that the lenders assessment finds that the Development will be feasible for 15 years.

94 §49.9(a)(1) Financial Feasibility (Tab 2) For TRDO-USDA, evidence of the current note balance or existing loan. Identify the current balance, especially if there are a great number of pages. An Application can qualify for an additional 8 points if a commitment letter from the permanent or construction lender is submitted stating that they have reviewed the Applicants financial position and credit worthiness and have determined that the Applicant meets the financial liquidity or net worth standards that the lender would require in connection with the proposed Development. They must also describe their financial liquidity and net worth standards. If the lender changes, the new lender must provide the same information or the points will not be awarded.

95 §49.9(a)(2) Quantifiable Community Participation (QCP) A maximum of 24 points may be awarded based on written letters of support or opposition from Neighborhood Organizations on record with the state or county in which the Development is to be located and whose boundaries as of March 1, 2011 contain the proposed Development site. Definition: An organization of persons living near one another within the organizations defined boundaries in effect March 1, 2011 that contain the proposed Development site and that has a primary purpose of working to maintain or improve the general welfare of the neighborhood. For purposes of this section, persons living near one another means 2 or more separate residential households.

96 §49.9(a)(2) QCP (contd) Neighborhood Organizations include homeowners associations, property owners associations, and resident councils in which the council is commenting on the Rehabilitation or Reconstruction of the property that they occupy. Neighborhood Organizations do not include broader based community organizations. Organizations must be on record with the state or county by March 1, Each organizations form (from the QCP Neighborhood Information Packet) must be received (or postmarked if mailed through the U.S. Postal Service) no later than March 1, 2011 to be eligible for points.

97 QCP (contd) QCP Packet is located under Neighborhood Resources in the Multifamily Housing section of the TDHCA Website: and will also be located within the Housing Tax Credit Procedures Manual

98 Neutral = 12 points Support = 24 points Opposition = 0 points *If an Application receives multiple letters, the average score of all eligible letters will be applied. Points Assigned to QCP Letters

99 The Applicant Can: Host a public meeting (encouraged) Provide TDHCA Information Packet for Neighborhood Organizations Refer Neighborhood Organization to TDHCA staff for guidance Provide Information about the Process and Deadlines Applicants Role – QCP

100 The Applicant CAN NOT provide Production or Delivery assistance: Use of Fax Machines Use of Legal counsel related to the Applicant Assistance drafting QCP letter to the Department Delivery assistance between Neighborhood Organization and the Department Applicants Role (QCP)

101 Submission Requirements - QCP A Neighborhood Organization must submit the following: Completed Form for Qualified Neighborhood Organizations to submit to TDHCA for Quantifiable Community Participation Documentation to support the selection of being on record with the County, Secretary of State, or TDHCA. Boundary Map Evidence of the Organizations existence Process to provide notice to persons living within the boundaries to join or participate in the affairs of the organization

102 On Record - QCP Neighborhood Organization must be on Record on or before March 1, 2011 with either the County, Secretary of State or TDHCA. County: Record from the County Clerk Secretary of State: Record showing the organization is incorporated and in good status. TDHCA: Request to be on Record Registration with TDHCA is for one year. Organizations previously on record with TDHCA must request to be on record for each HTC Cycle year.

103 Required Documentation - QCP Boundary Map: Street-level map Legible Outline of boundaries (must match written description) Location of proposed Development Example of map located in QCP Packet

104 Required Documentation - QCP Evidence of Organizations Existence Examples: Bylaws Articles Newsletter Minutes

105 Required Documentation - QCP Process to provide notice to persons living within the boundaries to join or participate in the affairs of the organization. Examples: Letter Posting Notice

106 Located in the QCP Packet The Neighborhood Organization completes and submits the letter and required documentation. Each submission may provide input on only one proposed Development; if an organization is eligible to provide input on additional Developments, each Development must be addressed in a separate submission. Cannot be submitted by the Applicant, Developer, or any employee or agent of the Applicant or Developer. Any questions relating to the QCP process can be addressed to Nicole Fisher at (512) Form for Qualified Neighborhood Organizations to submit to TDHCA for QCP

107 §49.9(a)(3) Income Level of Tenants of the Development (Tab 3) Income Level of Tenants of the Development Applicants may qualify to receive up to 22 points for Income Levels of Tenants to be served. This form is included in the Uniform Application (Volume 4, Tab 3). Household incomes must not be higher than those permitted by the AMGI level (must round to the next highest whole unit) These AMGI levels must be maintained continuously over the compliance and extended use periods Corresponding rent levels must also be maintained continuously over the compliance and extended use periods These AMGI levels will be specified in the Land Use Restriction Agreement

108 §49.9(a)(3) Income Level of Tenants of the Development (Tab 3 continued) 22 points if at least 40% of the Low Income Units or below a combination of 50% and 30% of AMGI in which at least 5% of the Low Income Units or below 30% of AMGI; or 20 points if at least 60% of the Low Income Units or below 50% of AMGI; or 18 points if at least 10% of the Low Income Units or below 30% of AMGI.

109 §49.9(a)(4) Size and Quality of Units (Tab 4) Size and Quality of Units May qualify to receive up to 20 points under parts (A) and (B) as certified in the form Size and Quality of Units. This form is included in the Uniform Application. (A) Size of Units – up to 6 points based on minimum square footage as follows: 600 square feet for an efficiency unit; 700 square feet for a one bedroom unit - Non-elderly 600 square feet for a one bedroom - Elderly; 950 square feet for a two bedroom unit - Non-elderly 750 square feet for a two bedroom unit - Elderly; 1,050 square feet for any three bedroom unit; and 1,250 square feet for any four bedroom unit. TRDO-USDA, Rehabilitation w/o Reconstruction and SROs that do not meet the square footage requirement will receive the 6 points if requested in the Self Score.

110 §49.9(a)(4) Size and Quality of Units (Tab 4 continued) (B) Quality of Units – may receive up to 14 points based on specific amenities and quality features in every Unit as listed on the certification of Unit Amenities form in Volume 3, Tab 1, Part D of the Uniform Application. Applications involving Rehabilitation (excluding Reconstruction) or Single Room Occupancy will multiply 1.5 points for each point item, not to exceed 14 points in total (do no round). A copy of the Unit Amenities form in Volume 3, Tab 1, Part D, should be placed behind this tab. The Applicant will be required to comply with all elections made even if more items are selected than necessary to score the maximum number of points. Scattered site Developments must provide an amenity for all Units, or certify that all units will have the exact same amenities, in order for the amenity to count for points.

111 §49.9(a)(5) Commitment of Funding by Governmental Instrumentality (Tab 5) Commitment of Funding by Governmental Instrumentality Applications may receive up to 18 points for a Commitment of Development Funding from a Governmental Instrumentality. This form is included in the Uniform Application (Volume 4,Tab 5) The Applicant may only submit as many sources as needed to combine the amounts to substantiate the point request. There is no rounding.

112 §49.9(a)(5) Commitment of Funding by Governmental Instrumentality (Tab 5 contd) The allocation of funds must be for Total Housing Development Costs, unless project based rental assistance. A loan must have minimum term of 1-year or the placement in service date, whichever is longer and the interest rate must be at the Applicable Federal Rate (AFR) or below (at the time of loan closing). The amount of the funding should be indicated on Volume 1, Tab 4 Part A. Summary of Sources and Uses of Funds and the terms of the funding should be indicated in the Financing Narrative and on Volume 1, Tab 4 Part B. Financing Participants.

113 §49.9(a)(5) Commitment of Funding by Governmental Instrumentality (Tab 5 contd) Points will be determined based upon dollars per Unit. A total contribution of at least $900 (or $450 for Rural Developments or Developments located in non-participating jurisdictions) per unit receives 6 points; or A total contribution of at least $2,250 (or $1,125 for Rural Developments or Developments located in non-participating jurisdictions) per unit receives 12 points; A total contribution equal to or greater than $4,500 (or $2,250 for Rural Developments or Developments located in non-participating jurisdictions) per unit receives 18 points.

114 §49.9(a)(5) Commitment of Funding by Governmental Instrumentality (Tab 5 contd) In-kind contributions such as donation of land, tax exemptions, or waivers of fees such as building permits, water and sewer tap fees, or similar contributions will be acceptable to qualify for these points. In-kind contributions must provide a tangible economic benefit that results in a quantifiable reduction in the Total Housing Development Cost, and evidence from the Unit of General Local Government must clearly verify/confirm the value. TDHCA HOME funds may qualify to the extent a Notice of Funding Availability (NOFA) is released and funds are available and a resolution from the Governing Body of the Unit of General Local Government is submitted with the Application (March 1, 2011). Federal funds are acceptable as long as the funds are being received through a Governmental Instrumentality.

115 §49.9(a)(5) Commitment of Funding by Governmental Instrumentality (Tab 5 contd) Development based rental subsidies may qualify under this section if evidence of the remaining value of the contract remaining as of December 31 st of the application year is submitted from the Governmental Instrumentality. The value of the contract must not include past subsidies. Evidence to be submitted must include: A copy of the commitment of funds, or A copy of the application to the funding entity, or A letter from the funding entity indicating that the award of funds with respect to the funding cycle for which the Applicant intends to apply for will be made by August 1, The letter does not have to confirm that the funds will be awarded to the subject Application, but that the awards with respect to the Applications under consideration for the funding cycle will be announced by August 1, The final commitment of funding from the Governmental Instrumentality is due by the date the Departments Commitment notice is to be submitted.

116 §49.9(a)(6) Community Support from State Representative and State Senator An application may qualify for up to 14 points. Only one letter of support is required to receive the (+) or (-) 14 points. If two letters are received with one letter supporting and one letter opposing, the score will be 0 points. Letters of support from State Representatives or Senators that do not represent the district containing the proposed Development site will not qualify for points under this exhibit. All letters must identify the specific Development and must clearly state support for or opposition to the specific Development, otherwise the letter will be considered neutral and will receive a score of 0. This documentation will be accepted with the Application or through delivery to the Department from the Applicant or the State Representative or Senator no later than 5:00 p.m. (CST) on April 1, A State Representative or Senator has until the June 1, 2011 public comment deadline to withdraw a letter. The previous position will be scored as neutral.

117 §49.9(a)(7) Rent Levels of the Units (Tab 6) An application may qualify to receive up to 12 points based on the rent levels proposed in the Rent Schedule. The Rent Levels of the Units form is included in the Uniform Application (Volume 4, Tab 6). If Applicant qualified for points under §49.9(a)(3), Income Levels of the Tenants of the Development, additional points may be awarded if additional Low-Income Units at 30% and 50% AMGI are provided. Receive 2 points for every 5% of LI units with rents and incomes restricted at 50% of AMGI. Receive 6 points for every 2.5% of LI units with rents and incomes restricted at 30% of AMGI.

118 §49.9(a)(8) Cost of the Development by Square Foot (Tab 7) An Applicant may qualify to receive 10 points for The Cost of the Development by Square Foot form is included in the Uniform Application Volume 4, Tab 7. The calculation will be costs per square foot of net rentable area (NRA). For the purposes of this subparagraph only, if the proposed Development is an elevator building serving elderly or a high rise building serving any population, the NRA may include elevator served interior corridors. Single Room Occupancy Developments may include elevator served interior corridors and may include up to 50 sq. feet of common area per Efficiency Unit.

119 §49.9(a)(9) Tenant Supportive Services (Tab 8) An Application may qualify to receive up to 8 points for Tenant Supportive Services. This form is included in the Uniform Application (Volume 4, Tab 8). The Applicant must certify that the Development will provide a combination of special supportive services appropriate for the proposed tenants. The provision of supportive services will be included in the LURA as selected from the list of services. A list of possible services is listed in the QAP. Applicants may qualify for a maximum of 8 points. There are new services available as well as some that are no longer listed.

120 §49.9(a)(10) Declared Disaster Areas (Tab 9) An Application may qualify to receive up to 7 points for being located in a Disaster Declared Area. A list of Eligible Disaster Areas will be provided in the Reference Manual. If the Development Site is located in an area that is not on the list, the Applicant must submit: Evidence must show the Development is located in a declared disaster area as defined in § of the Texas Government Code; and Evidence must show the disaster was declared in the 2 years preceding the Application submission.

121 §49.9(a)(11) Demonstration of Community Support other than QCP (Tab 10) Applicants may qualify for up to 6 points under this exhibit for letters that qualify for points under subparagraphs (A), (B), or (C). Letters must be received by March 1, An Application may receive 2 points (maximum of 6 points) for each letter of support submitted from a community or civic organization that serves the community in which the site is located. Possible 6 points for letter of support from a property owners association created for a master planned community whose boundaries include the site, and that does not meet requirements of a Neighborhood Organization. Possible 6 points for a letter of support from a Special Management District whose boundaries, as of March 1, 2011, include the Development Site and for which there is not a Neighborhood Organization on record with the county or state.

122 §49.9(a)(12) Housing Needs Characteristics (Tab 11) An Application may qualify to receive up to 6 points based on the place or county where the proposed Development is to be located. The Affordable Housing Needs Score for each place and county are published in the 2011 Site Demographics Characteristics Report included in the Reference Manual. If a Development is within an incorporated or Census Designated place, the place score will be used. If a Development is not within a place, then the place closest will be used (Applicant must provide evidence in the form of a map.

123 2011 Housing Tax Credit Site Demographic Characteristics Under the category of Place: 124

124 §49.9(a)(13) Community Revitalization, Historic Preservation, or Rehabilitation (Tab 12) Community Revitalization Plan: An Application may qualify to receive 6 points if the Development proposes any Rehabilitation or Reconstruction that is part of a Community Revitalization Plan. (Volume 4, Tab 12) Required documents for evidence: A letter from the Governing Body stating that the Development Site is located within the targeted geographic areas outlined in the Community Revitalization Plan. OR A copy of the Community Revitalization Plan and any referenced documents IF the plan has specific boundaries; AND If providing a copy because the plan has specific boundaries, then also provide proof of adoption by the jurisdiction (typically the Unit of General Local Government) or its designee. Evidence will be in the form of an ordinance, resolution or other written evidence of vote.

125 §49.9(a)(13) Community Revitalization, Historic Preservation or Rehabilitation (Tab 12 contd) Historic Preservation An Application may qualify to receive 6 points if the Development includes the use of an existing building that is designated as historic by a federal or state entity and proposes Rehabilitation or Adaptive Reuse. Proof of the historic designation from the appropriate Governmental Entity. Developments merely located in a historic district are not eligible for points. The Development must include the historic building.

126 §49.9(a)(13) Community Revitalization, Historic Preservation or Rehabilitation (Tab 12 contd) Rehabilitation Includes Reconstruction, Rehabilitation or Adaptive Reuse. New Construction Development is New Construction and is proposed to be located in an area that is part of a Community Revitalization Plan. This item only worth 3 points.

127 §49.9(a)(14) Pre-Application Incentive Points (Tab 13) An Application may qualify to receive 6 points for submission of a pre-application. The Pre-Application Certification form is included in the Uniform Application (Volume 4, Tab 13). At full Application the following must be in place: Application must be for identical site as the pre- application or a smaller portion thereof; Pre-application must have met Pre-App Threshold; Application must be serving the same target population (general or elderly); Application has not added any set-aside(s); and Achieve an Application score (based on self score) not more than 5% greater or less than the number of points awarded at pre-application; AND A certification must be provided, signed by the Principals, confirming that they are the same Principals who were in place at pre-application.

128 §49.9(a)(15) Green Building Initiatives (Tab 14) Up to 6 points may be awarded for providing Green Building amenities: Development Energy Savings (1 pt each) Tenant Energy Savings (2 pts each) Other Green Features/Indoor Health (1 pt each) LEED Certification (Certified, Silver, Gold or Platinum) Worth 6 points if obtained by Cost Certification If awarded, none of the other Green Building items selected will need to be to be substantiated. If not awarded, Green Building amenities worth 6 points will need to be substantiated. Points under this paragraph may not be requested for the same items utilized under Threshold amenities.

129 §49.9(a)(16) Development Location (Tab 15) An Application may qualify to receive 4 points for The Development Location. This form is included in the Uniform Application (Volume 4, Tab 15). Evidence may not be more than 6 months old from the date of the March 1, The subject Property is located within one of the geographical areas following: (A) Located in a census tract where the median family income is higher than the median family income for the county in which the tract is located.

130 §49.9(a)(16) Development Location (Tab 15 contd) (B) The Development will serve families and will be located in an elementary school attendance zone where the school is rated Exemplary or Recognized by the Texas Education Agency. Does NOT include magnet school or elementary schools with district-wide possibility of enrollment or no defined attendance zones. (C) The Development will expand affordable housing opportunities for low-income families with children outside of poverty areas. 70% of the units are 2 & 3 bedroom units and the census tract of the Development has no more than 10% poverty.

131 §49.9(a)(16) Development Location (Tab 15 contd) (D) Urban Core Use not prohibited by the Unit of General Local Government by ordinance or regulation; AND Area is compact and contiguous geographical area; AND Is located within an MSA with a population of no less than 150,000; AND Is composed of adjacent block groups zoned to accommodate a mix of medium or high density residential and commercial uses; AND 50% of the land is actually being used for these purposes as verified by the residential and commercial structures already present; AND Zoning maps must be provided to verify zoning in the area. (E) High Opportunity Areas Development is four stories or greater with structural parking AND within one-quarter mile of an existing major bus transfer centers, regional or local commuter rail station and/or Transit Oriented Districts; OR Development located in a census tract having an AMGI higher than the AMGI of the county or place in which the census tract is located; OR Development is located in a census tract that has no greater than 10% poverty population according the most recent census data.

132 §49.9(a)(17) Economic Development Initiatives (Tab 16) An Application may qualify to receive 4 points for being located in an area that has received economic development funding. (A) Designated State or Federal Empowerment/Enterprise Zone, Urban Enterprise Community or Urban Enhanced Enterprise Community. Provide a letter, no more than 6 months old, from a city or county official stating that the Development is located within the designated zone or community; AND A map of the zoned area from the city or county official showing the Development Site within the designated zone or community.

133 §49.9(a)(17) Economic Development Initiatives (Tab 16 contd) (B) An area that has received funding within the three year period prior to December 20, 2010 from the Texas Capital Fund, Texas or Federal Enterprise Zone Fund, Texas Leverage Fund, Industrial Revenue Bond Program, Emerging Technologies, Skills Development, Rural Business Enterprise Grant, Certified Development Company Loans or Micro Loan Program or any state or federally funded economic development initiatives approved by the Department (excluding limited highway improvement and roadwork projects but does include broader regional transportation initiatives targeted to expanding economic development.

134 §49.9(a)(17) Economic Development Initiatives (Tab 16 contd) (C) A geographic area classified as Economically Distressed Area, a Colonia, or a Difficult Development Area. See designations on the 2011 Site Demographics Report. Points will NOT be awarded for A, B or C if more than 3 Developments in the same area received an award of tax credits over the last 7 years.

135 §49.9(a)(18). Developments in Census Tracts with No Other Existing Same Type Developments Supported by Tax Credits (Tab 17) An Application may receive 4 points if the proposed Development is located in a census tract in which there are no other existing developments serving the same population supported by housing tax credits. These Census Tracts are outlined in the 2011 Housing Tax Credit Site Demographic Characteristics Report.

136 §49.9(a)(19) Tenant Populations with Special Housing Needs (Tab 18) Tenant Populations with Special Needs An Application may qualify to receive 4 points for setting aside 5% of the total Units for Persons with Special Needs. The owner will affirmatively marked to Persons with Special Needs throughout the Compliance Period For a period of 12 months, these units must be occupied by Persons with Special Needs, or held vacant. After the 12 months for each unit is met, the requirement expires.

137 §49.9(a)(19) Tenant Populations with Special Housing Needs (Tab 18) Tenant Populations with Special Needs Persons with Special Needs includes: Persons with alcohol and/or drug addictions Colonia residents Persons with Disabilities Victims of domestic violence Persons with HIV/AIDS Homeless populations Migrant farm workers

138 §49.9(a)(20) Length of Affordability (Tab 19) Length of Affordability An Application may qualify to receive up to 4 points for The Length of Affordability form is included in the Uniform Application (Volume 4, Tab 19). Initial Period is 15 years. Per Code extended use period is another 15 years. 2 Points for extending to year Points for extending to year 40.

139 §49.9(a)(21)(A) Site Characteristics (Tab 20) Site Characteristics (Part A) An Application may qualify to receive up to 4 points based on proximity of community amenities. The Site Characteristics form included in the Uniform Application (Volume 4, Tab 20). A map must be submitted that includes the following: The location of the Development Site (if scattered sites, must have three services located within the appropriate distance of each site); A scale or a radius (one mile radius for Urban and two miles for Rural); Services must be identified by name; If electing points for public transportation, the location of the public transportation stop and a one-quarter mile radius around the Development Site

140 §49.9(a)(22) Development Size (Tab 21) An Application may qualify to receive 3 points if the Development consists of not more than 36 Units. Points must be requested on the Self Score. Nothing Required! No Tab!

141 §49.9(a)(23) Sponsor Characteristics (Tab 22) Sponsor Characteristics An Application may qualify to receive points based on the following: An Application will receive 1 point for submitting a plan to use Historically Underutilized Businesses (HUB) in the development process consistent with the Historically Underutilized Business Guidelines for contracting with the State of Texas. An Application can qualify for 2 points if there is a certified HUB that has at least 51% ownership of the General Partner, and materially participates in the Development and operation of the Development throughout the Compliance Period. This form is included in the Uniform Application (Volume 4, Tab 22).

142 §49.9(a)(24) Qualified Census Tracts with Revitalization (Tab 23) Qualified Census Tracts with Revitalization An Application may qualify to receive 1 point if the Development contributes to a Community Revitalization Plan and is within a QCT. Evidence must include: A copy of the Community Revitalization Plan The ordinance, resolution or other written evidence of vote that shows that the plan has been adopted by the local Governing Body. A letter from the chief executive or other appropriate official of the Governing Body stating that the Development Site is located within the targeted development areas outlined in the Community Revitalization Plan. A census tract map with the location of the Development Site identified.

143 §49.9(a)(25) Right of First Refusal (Tab 24) Right of First Refusal An Application may qualify to receive 1 point for Developments intended for eventual Tenant ownership offering the Right of First Refusal. Right of First Refusal provision is included in the Uniform Application (Volume 4, Tab 24). This Representation will be included in the Land Use Restriction Agreement.

144 §49.9(a)(26) Leveraging of Private, State and Federal Resources (Tab 25) Leveraging of Private, State and Federal Resources An Application may qualify to receive 1 point based on The Leveraging of Private, State, and Federal Resources. This form is included in the Uniform Application (Volume 4, Tab 25). The same source used for ULG (Tab 5) points MAY be used, as long as the amount committed is enough to cover BOTH requests without using any of the funds twice; AND Funding must equal or exceed 2% of Total Housing Development Costs; AND The Rent Schedule must show that at least 3% of all low income Units are designated to serve individuals or families with incomes at or below 30% of AMGI.

145 §49.9(a)(26) Leveraging of Private, State and Federal Resources (Tab 25 continued) Regardless of the issuer of funds, the original source must be private, state or Federal. Evidence to be submitted with the Application must include a copy of the commitment of funds or a copy of the application to the funding entity and a letter from the funding entity confirming receipt. Funds must appear in the financing documentation of the Application (Sources and Uses, Financing Participants, Financing Narrative) If using HOME or HTF, a NOFA must have been released and funds available in order for the source to count for points. Evidence requirements for all eligible types of funding appear in the 2011 ASPM.

146 §49.9(a)(27) Third Party Funding Outside of Qualified Census Tract (Tab 27 continued) An Application may qualify to receive 1 point if evidence is provided that the proposed Development has documented and committed Third-Party funding sources and the Development is located outside of a Qualified Census Tract serving 10% of households at 30% AMGI or less.

147 §49.9(a)(28) Scoring Criteria Imposing Penalties Scoring Criteria Imposing Penalties (A) Penalties will be imposed on an Application if the Applicant has requested an extension of a the Carryover or 10% Test deadline, and did not meet the original submission deadline, relating to developments receiving a housing tax credit commitment made in the Application round preceding the current round. (B) Penalties will be imposed on an Application if the Developer or Principal of the Applicant violates the Adherence to Obligations pursuant §49.9(c) of the QAP.

148 Texas Bond Volume Cap Approximately $490 million in 2011 regular volume cap for multifamily housing TDHCA Set Aside is approximately $98 million Local Issuers Regional Allocation $343 million

149 2011 TDHCA Waiting List Application Submission Pre-Applications are accepted monthly and the submission dates are listed on the Multifamily Bond page of the Departments website. Pre-application requirements can be found in the 2011 Multifamily Revenue Bond Rules. After the TDHCA Board has approved the Inducement Resolution the Application will be submitted to the Bond Review Board to receive a notice of reservation. Once a reservation of allocation is issued, the bond transaction must close within 150 days after the reservation date or the reservation will be cancelled.

150 Application Submission - Fees Pre-Application initial fees (TDHCA as Issuer): $5,000 check payable to Texas Bond Review Board $2,000 check payable to Vinson & Elkins $1,000 check payable to TDHCA Full Application fees: $30 per Unit; and $10,000 Bond Fee (only if TDHCA is the Issuer) Full Application Fees (if multiple site): $30 per Unit; and $30 per Unit OR $10,000, whichever is greater Refunding Application Fees: $10,000 (if TEFRA hearing will be required); or $5,000 (if no TEFRA hearing will be required) (NOTE: CHDOs and Qualified non-profits receive a 10% discount at full application. Evidence of non-profit status must be submitted with payment of fees)

151 Regulations, Statues and Rules o §§ 42 and 142 of the Internal Revenue Code o § 2306 of the Texas Government Code o § 1372 of the Texas Government Code o CFR 24 (Code of Federal Regulations) HOME o 10 TAC § 49 Qualified Allocation Plan and Rules o 10 TAC § 35 Multifamily Revenue Bond Rules o 10 TAC §§ Real Estate Analysis Rules o 10 TAC § 53 HOME Rules o 10 TAC § 51 Housing Trust Fund Rules

152 Common Mistakes Application or Applicant is ineligible; Documents are not correctly executed or initialed; All deficiencies are not fully satisfied by the deadline; 3 rd Party Reports are not submitted by the applicable deadline; Documents are not in the correct Applicant name; Inconsistent information in the Application; or Age of documentation limit is exceeded.

153 Texas Department of Housing and Community Affairs Multifamily Contacts: Robbye Director of Multifamily Finance – (512) Teresa Bond / 4% HTC Program Administrator – (512) Raquel Competitive HTC Program Administrator – (512) Teresa HTC Program Exchange Administrator – (512) Lisa HTC Program Exchange Specialist – (512) Ben Multifamily Housing Specialist, Pre-Application – (512) Shannon Multifamily Housing Specialist, Bond/ 4% – (512) Nicole Multifamily Housing Specialist, QCP – (512)

154 Multifamily Contacts: Kent Multifamily Housing Specialist, HTC Extensions – (512) Elizabeth Multifamily Housing Specialist, HTC Ownership Transfer – (512) Valentin Multifamily Housing Specialist, Amendments of Application and Experience Certificates – (512) Liz Multifamily Housing Specialist, IRS Reporting – (512) Jason Database Administrator- Application Technical Assistance – (512) Misael Multifamily Executive Assistant – (512) Main Multifamily Telephone – (512) Multifamily Facsimile – (512) or (512) Texas Department of Housing and Community Affairs

155 Real Estate Analysis Contacts: Brent Director of Real Estate Analysis, (512) Compliance and Asset Management Contacts: Patricia Murphy Chief of Compliance and Asset Management, (512) Wendy Manager of Compliance, (512) Texas Department of Housing and Community Affairs

156 HOME and Tax Credit Assistance Program Contacts: Cameron HOME Program Manager – (512) Chris HOME Program Administrator – (512) Lisa Tax Credit Assistance Program Administrator – (512) Laura Tax Credit Assistance Program Specialist – (512) Texas Department of Housing and Community Affairs

157 Successful Completion


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