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
76 Units
Supportive / Family Housing

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

8. Belden Street- New London
6 Units
Family Housing

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

10. Highwood Square - Hamden
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 requirements
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 July, 2015 September 2, 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 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 “Program Cycles” Multiple Applications
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 15th 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 entities
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