1. Virginia Housing Development Authority
601 S. Belvidere St. Richmond, VA
877-VHDA-123 | vhda.com

2. Jobs Opportunities to Low-Income Residents
VHDA encourages developers to provide job training, employment and/or contracting opportunities to low/very low-income residents in communities where LIHTC developments are rehabbed/constructed.

3. Our Mission is to help low and moderate-income Virginians attain quality, affordable housing.

4. This PowerPoint presentation will be posted to our website (VHDA
This PowerPoint presentation will be posted to our website (VHDA.com) after workshops are completed.

5. LIHTC Staff
JAMES M. CHANDLER Director, LIHTC Programs Phone: (804)
J.D. BONDURANT
Assistant Director
Phone: (804)
HOPE COLEMAN RUTTER
JAYNELL PITTMAN-SHAW
LIHTC Allocation Officer
Sr. LIHTC Allocation Officer
Phone: (804)
Phone: (804)
PAMELA FREETH
STEPHANIE FLANDERS
LIHTC Allocation Coordinator
LIHTC Allocation Analyst
Phone: (804)
Phone: (804)

6. Up next… 2016 QAP 2016 Program Changes 2016 Cost Limits & Enforcement
Minimum Threshold Scores
Pool Percentages
2016 Available Credits
2016 Estimated Credits
DOJ Settlement

7. 2016 QAP
Zoning is Mandatory
no points

8. 2016 Program Changes Zoning points removed
New HUD-designated, zip code-based, Difficult to Develop Areas (DDAs), effective 7/1/2016
The application fee has increased to $1,000
Universal Design & accessibility features
Op Expenses are increased to $4,000/unit, excluding replacement reserves
Accessible Supportive Housing Pool
Loudoun County Cost Per Unit and Credit Per Unit parameters are now divided by zip code

9. Loudoun County Zip Codes
Inner Northern Virginia 20105, 20120,20147,20148,20152, 20164, 20165, 20166, 20175, Outer Northern Virginia 20117, 20129, 20132, 20135, 20141, 20158, 20180, 20184, 20197

10. 2016 Cost Limits
Inner Northern Virginia: Arlington County, Fairfax County, City of Alexandria, City of Fairfax and City of Falls Church
New construction or adaptive reuse – $387,809/unit, or
New construction or adaptive reuse w/dehumidifier hookups - $389,309
plus
up to an additional $43,090/unit if there is underground or structured parking
Acquisition/rehab: $338,564/unit or
Acquisition/rehab w/dehumidifier hookups - $340,064

11. 2016 Cost Limits cont’d
Prince William County, Loudoun County and Fauquier County
New construction or adaptive reuse - $288,087/unit, or
New construction or adaptive reuse w/dehumidifier hookups - $289,587
plus
up to an additional $43,090/unit if there is underground or structured parking
Acquisition/rehab - $203,138/unit
Acquisition/rehab w/dehumidifier hookups - $204,638

12. 2016 Cost Limits cont’d Balance of State
New construction or adaptive reuse - $215,450/ unit, or
NC/AR w/dehumidifier hookups - $216,950
plus
up to an additional $43,090/unit if there is underground or structured parking
Acquisition/rehab - $166,204/unit or
Acquisition/rehab w/dehumidifier hookups - $167,704

13. Cost Limits Enforcement
Developments seeking LIHTCs that exceed the published cost limits will not be funded.
Cost Limits are adjusted annually in Dec (4th Quarter) in accordance with Marshall & Swift cost factors
A 50-point penalty may apply if the development exceeds the cost limit when costs certified. This penalty will apply for 3 calendar years (beginning on January 1 after costs are certified). This Penalty may be waived for extenuating circumstances by the Board of Commissioners.

14. Minimum Threshold Scores
425 = 9% applications
325 = 4% applications

15. 2016 Pool Percentages Non-Profit 15.00% LHA New Construction
15% of the following year’s credits
Northern VA/Planning District 8 (Inner Wash.)
18.02%
Northwest/North Central VA
9.20%
Richmond
11.63%
Tidewater
17.00%
Balance of State
14.15%

16. *Population Estimate = 8,382,993
2016 Available Credits
Per Capita Credits $2.35 per person*
Previous Allocations:
National Pool:
10% of 2017 Credits:
Accessible Supportive Housing Pool:
Returned Credits
Estimated 2016 Credits:
$19,700,033
($5,683,657)
$75,000
$1,970,003
($2,627,626)
$185,776
+ $13,619,529
*Population Estimate = 8,382,993
(U.S. Census Bureau 7/1/15)

17. 2016 Estimated Credits Non-Profit 2,042,929 LHA New Construction
15% of 2017 credits
2,955,004
NoVA/Planning District 8 (Inner Wash.)
2,454,239
Northwest/North Central VA
1,252,997
Richmond
1,583,951
Tidewater
2,315,320
Balance of State
1,927,164

18. Jim discusses DOJ Settlement

19. Up next…
Pools: Non-profit, LHA, New Construction, Accessible Supportive Housing
Rules of Ranking
Point Categories
Parameters

20. Non-Profit Credit Pool
Authorized to do business in Virginia
Material participation in the project
Substantially based or active in the community
100% share of general partnership or managing member interest if LLC
Not controlled by for-profit
Board and staff not involved as for-profits

21. Non-Profit Credit Pool cont’d
Not formed for purpose of Non-Profit Pool
Not a joint venture unless 100% non-profit
$750,000 limit unless all Non-Profit Pool developments funded
Non-Profit Questionnaire
- submit supporting documents ONLY upon request by VHDA
- LHAs not required to submit NP Questionnaire

22. Non-Profit Credit Pool cont’d
Each new construction or adaptive re-use development eligible for the New Construction Pool (PD8) that is not funded in this NP Credit Pool will move to the New Construction Pool
All other developments not funded in this NP Credit Pool will move to their applicable geographic pool

23. Local Housing Authority (LHA) Credit Pool
100% Local Housing Authority (LHA) ownership within the LHA’s jurisdiction or is a HOPE VI development
Local IDA may compete in pool if no LHA in the jurisdiction
LHA-sponsored developments may only compete in the LHA pool

24. New Construction Pool New construction or adaptive re-use developments
Located in:
Alexandria Manassas
Arlington Loudoun County
Fairfax City Manassas Park
Fairfax County Prince William County
Falls Church
Developments are funded with 15.0% of next year’s annual credit authority

25. Accessible Supportive Housing Pool 6% of Per Capita Total
Apps accepted no earlier than June 15 and due no later than 2 p.m. July 29, 2016
Coordination with DHCD for any applications requesting Housing Trust Funds
No less than 15% and no more than 25% of the units use HUD Section 811 funds for rent subsidies
At least 25% of the units provide:
Fully accessible housing for persons with disabilities
With incomes at or below 40% AMI and
Project-based rent subsidy

26. Rules of Ranking
Developments qualifying to compete in the Non-Profit Pool compete there first
Developments qualifying to compete in the New Construction Pool compete there next; thereafter the application will compete in the Northern VA Geographic Pool
If not ranked high enough to receive credits in the NP Pool, developments then drop into the appropriate geographic pool
Developments will not receive partial credits from any pool; those credits drop into the At-Large Pool (except New Construction Pool)

27. Rules of Ranking cont’d
No more than 20% of the credits in any pool will go to an elderly development
Exception: existing subsidized elderly properties
Once the limit is reached, all other elderly deals become “ineligible” and drop to bottom of the pool ranking, unless all non-elderly applications have been fully funded

28. Rules of Ranking cont’d
At-Large Pool: created for all applications not ranking high enough to be fully funded with credits in geographic pools - 2 tiers
Tier 1 – Highest-ranking “eligible” developments not fully funded from the geographic pools
Tier 2 - All other developments above threshold not funded

29. Point Categories

30. Readiness Category Points Plan of Development 0 or 40
N/A if receiving 50 Developer Exp. Points
0 or 40

31. Housing Needs Characteristics
Category
Points
Locality Notification Information form
-25 points if the locality submits an opposition letter with the required attorney’s opinion (see Manual)
-50 points if the LIHTC applicant fails to submit this information with its 9% application by deadline
0 or -25, -50
Located in Revitalization Area (due 4/1/16)
0 or 10
Developments w/out Sec 8, project-based assistance and where leasing preference is given to PHA waiting list
Points pro-rated if <100% of the units have project-based rental assistance
Up to 10

32. Housing Needs Char. cont’d
Category
Points
Subsidized Funding Commitment
VHDA REACH funds not eligible for these points
donated land/below market land leases based on 2015 RE assessments
Up to 40
Existing Rural Dev., HUD, Sec. 8 or 236
0 or 20
Tax abatement or new project-based HUD or RD rental subsidy (> of 5 units or 10%)
Local/state subsidy not eligible for these points
0 or 10
Located in Census Tract <10% poverty rate and no other similar Tax Credit properties
0 or 25
Rural Dev. – “High Priority Rehab” list
0 or 15

33. Housing Needs Char. cont’d
Category
Points
New construction located in an area with little or no increase in rent-burdened population. Some exceptions apply.
Up to -20
Located in an area with an increasing rent-burdened population
Up to 20
Above scoring categories to be removed if developments compete in At-Large Pool

34. Development Characteristics (Amenities)
Category
Points
Community/Meeting Room
0 or 5
Brick or other similar low-maintenance material covering ≥ 30% of the building exterior (10 points);
plus 1/5th point for each % of brick or other similar low-maintenance material >30% (up to 10 points); or
1/10th point for each % of exterior wall covered by fiber-cement board (up to 7 points)
0, 10 or
up to 22

35. Brick: Example 1
30.00%
Percentage of brick or other similar low-maintenance material approved by the Authority covering the exterior walls
0.00%
Percentage of exterior walls covered by fiber cement board
Exterior Low Maintenance Category
Response
Points
Exterior % greater than or equal to 30?
TRUE
10.00
Additional % greater than 30%
20.00%
4.00
Remaining amount in cement siding?
0.00
Total Points for Scoresheet:
14.00

36. Brick: Example 2
80.00%
Percentage of brick or other similar low-maintenance material approved by the Authority covering the exterior walls
20.00%
Percentage of exterior walls covered by fiber cement board
Exterior Low Maintenance Category
Response
Points
Exterior % greater than or equal to 30?
TRUE
10.00
Additional % greater than 30%
50.00%
Remaining amount in cement siding?
2.00
Total Points for Scoresheet:
22.00

37. Dev. Characteristics: Amenities
Category
Points
WaterSense-labeled toilets
0 or 2
EPA EnergyStar bath vents (New constr. only)
Continuous R-3 or greater rated wall sheathing
also awarded to existing developments that at the time of application have this feature
0 or 5
Energy Star Kitchen/Laundry Appliances
Energy Star Windows
Heat/AC-SEER-AFUE. Every unit heated and cooled with either:
heat pump equipment with both a ≥15.0 SEER rating and ≥8.5 HSPF rating; or
AC equipment w/ a ≥15.0 SEER rating + gas furnace with an ≥90% AFUE rating
0 or 10

38. Dev. Characteristics: Amenities cont’d
Category
Points
Sub-metered water expense
total capture – NOT just hot water
n/a if locality prohibits sub-metering
n/a if owner is paying for water
0 or 5
WaterSense faucets & showerheads in baths
0 or 2
High-Speed Cable, DSL, Wireless Internet
0 or 1
Water Heater Efficiency – Meets efficiency standards
incl centralized commercial system OR solar system
Cooking surfaces equipped with non-removable fire prevention or suppression features

39. Dev. Characteristics: Amenities cont’d
Category
Points
Historic Rehab
must be listed in the National Register of Historic Places or located in a registered historic district
0 or 5
Front-Control Ranges
0 or 1*
Emergency Call System
0 or 3*
Supplemental Heat in Bath
Two Eye Viewers
If points rcvd for these 4 amenities, they must be present in 100% of units
*These points are for properties serving the elderly

40. Dev. Characteristics: Accessibility
Submit a project-specific marketing plan!
Plan must state that the development will be listed on
Category
Points
Project subsidies w/HUD 504 accessibility & marketing (>5 units or 10% of units) or
must incl roll-in showers for 50 points
0 or 50
ID/DD Waiting List Preference (these points only w/50-point category above)
0 or 25
HUD 504 accessibility & marketing (>5 units or 10% of units) or
0 or 30
HUD 504 accessibility for 5% of units & marketing
0 or 15

41. Dev. Characteristics: Accessibility cont’d
Follow fully/permanently accessible Uniform Federal Accessibility Standards (UFAS) and specifics for point category
Hold vacant 60 days (retroactive for all deals receiving these points)
Document marketing efforts to find household with qualified disability; submit that evidence to VHDA Program Compliance Officer
Then may accept applicant agreeing to a lease provision to move to another vacant unit if/when a qualified household is found (move to be paid for by owner)
Click here to access UFAS Requirements

42. Development Characteristics: Proximity to Publ. Transportation
Category
Points
Located within ½ mile of an existing commuter rail, light rail or subway station or ¼ mile of an existing public bus stop
0 or 10
Meets the above qualifications and is competing in the New Construction, Northern Virginia/Planning District 8 or Tidewater MSA pools
0 or 20
(10 points in the At-Large Pool)

43. Development Characteristics
Category
Points
EarthCraft or LEED development certification
Architect of Record must have attended EarthCraft Multi-family Professional Training since 1/1/2011
next training 1/12/16
0, 15, 30 or 45
Units meet VHDA’s Universal Design Standards
Elderly-all units
Family % UD of total
Architect of Record must have attended VHDA
UD Seminar since 1/1/2011
next training 1/28/16
Up to 15

44. Development Characteristics
Category
Points
<100 Units
< 50 units (20 points)
51-99 units (0.4 points for each unit above 50)
100 units (0 points)
Up to 20
Any development in which the 9% LIHTC applicant will also make an application for 4% credits - same or contiguous site
30% - 39% of the units (20 points)
40% - 49% of the units (30 points)
≥50% of the units (40 points)
20, 30, 40 (points only apply to 9% app)

45. Tenant Population Characteristics
Category
Points
No more than 20% of units are 1BR or Efficiency units
0 or 15
0.75 points for each % of low-income units in the development with three or more bedrooms
Up to 15

46. Sponsor Characteristics
Category
Points
3 LIHTC developments w/ 3x proposed # units or 6 LIHTC developments (as Controlling GP/ Managing Member) or
3 LIHTC developments as principal and have at least $500,000 in liquid assets or
1 development w/ 1x proposed # units (as Controlling GP/ Managing Member)
0 or 50
0 or 10
Uncorrected life threatening hazard (ends 3 years after the actual date of correction)
0 or –50
Uncorrected 8823 (penalty begins Jan 1 of the year following the year 8823 issued and ends after Dec 31 of the 3rd calendar year); unless VHDA training prior to App deadline
0 or -15

47. Sponsor Characteristics, cont’d
Category
Points
Not built as represented (for 3 years after last 8609 issued)
-2x pts per category
Failure to provide minimum building requirement (for 3 years after last 8609 issued)
0 or -20
Termination of credits by VHDA (for 3 years after return)
0 or -10
Exceeds cost limits at Certification
0 or -50
Unsatisfactory Management Company
0 or -25

48. Bonus Points Category Points Units w/rents at ≤40% AMI Up to 10
Units w/rents and income ≤50% AMI or
Units w/rents = 50% AMI and incomes
≤60% AMI
Units w/rents ≤ 50% AMI and incomes
≤60% AMI only in low-income jurisdictions
Up to 50
Up to 25

49. Bonus Points cont’d Category Points
Extended compliance (25 or 35 extra years) or
‘For Sale’ to Non-profit or LHA (at the end of the minimum 15-year compliance period)
The qualified NP must have a minimum of 10% ownership in the GP or Managing Member for the full 15-year compliance period
40 or 50
0 or 60
Non-profit or LHA homeownership option
NOTE: N/A if receiving extended compliance points
0 or 5

50. Efficient Use of Resources
Category
Points
Credit per unit - Refer to Sample Calculations & Efficient Use of Resources Parameters
NOTE: possible to score negative points
Up to 200*
Cost per unit - Refer to Sample Calculations & Efficient Use of Resources Parameters
Up to 100*

51. Application Parameters

52. Developer Fee The lesser of… 1. Acquisition:
<10% of building’s eligible basis or 8% if RD; plus
Rehabilitation:
<25% of rehab’s eligible basis; or New Construction:
<20% of building’s eligible basis

53. Developer Fee cont’d 2. ≤15% of Total Development Costs
3. Related Contractor - TDC (x) 18% (-) Contractor overhead & profit
4. Related Architect – Formula = TDC (x) 16.5% (-) all Architectural & Engineering fees
5. Related Contractor & Architect:
Formula = TDC (x) 19.5% (-) contractor overhead & profit, architectural fees & engineering fees

54. Developer Fee cont’d
6. Additional Developer Fee (cumulating declining scale)…
15% if <$1million in total development costs; plus
12% if $1 – $10 million ; plus
8% if >$10 million
4% TEB deals can qualify for a 20% developer fee, in which none of the previous limits apply, if the development is EarthCraft/LEED certified
Contractor’s General Requirements, Overhead and Profit: <14%

55. Operating Pro Forma Pro forma Rent Increases: <2% per year
Pro forma Operating Expenses Increase: >3%
Vacancy: ≥7% of Gross Potential Income or market
Replacement Reserves: >$250 per unit for New Construction Elderly; >$300 for all others
Operating Expenses: >$4,000 per unit (excluding Replacement Reserves)

56. Equity, Applicable Percentage
 Tax Credit Equity Factor:
use reasonable estimate for the proposed development
 Applicable Tax Credit Percentages:
9% - permanently 9.0%
4% - use March 2016 percentage

57. 15-minute Break

58. Up next… Min. Design & Construction Requirements (General)
2016 Minimum Design & Construction Requirements Highlights
UD and Accessibility Elements (including elevator requirements)
Architect’s Certification (clarification)
EarthCraft

59. Minimum Design & Construction Requirements – General Info
2016 Minimum Design & Construction Requirements and Minimum Cabinet Requirements
Pre-construction meeting
Review amenity point items and Design & Construction Requirements
Notify LIHTC Allocation Department when construction begins
On-site, ongoing inspections through completion

60. 2016 Minimum Design & Construction Requirement Highlights
Use of ZIP System wall sheathing, or similar, is accepted with conditions
Alternate location of HVAC supply diffusers
Use of PVC foam core pipe will not be accepted
Locations of hard wired telephone lines
Removal of abandoned and non-operable equipment
Continuous R-25 insulation above flat roof decks
Language change, 15/32” roof sheathing in lieu of ½” nominal

61. 2016 U.D. Highlights
Pass/Fail assessment during the application review period. All tax credit applications seeking amenity points for providing UD units must include architectural drawings that clearly identify the following:
Location of dwelling units on overall building plans which will meet the VHDA Universal Design Guidelines (Minimum scale 1/8”=1’-0”);
Accessible pedestrian routes from all Universal Design units to accessible parking. Architect must consider running slope and cross slope of route and any vertical obstructions;

62. 2016 U.D. Highlights cont’d Modification to refrigerator type
Accessible pedestrian routes from all UD units to the leasing office, community room, laundry facility, mailboxes, garbage collection areas and public transportation pick up areas. The architect must consider running slope and cross slope of route and any vertical obstructions;
The means of vertical transportation along the accessible route. (Anything other than an accessible elevator may not be accepted depending on the desired function);
Enlarged Universal Design unit plans (min. scale 1/4”=1’- 0”)
Modification to refrigerator type

63. 2016 U.D. Highlights cont’d
The UD checklist must be signed and dated by:
the developer applying for tax credits;
the site engineer (if owner retained); and
the Architect of Record must
be a current VHDA UD certificate holder (certificates expire after 5 years);
be the architect who will sign VHDA’s Architect Certificate;
submit the completed UD checklist to VHDA prior to the VHDA pre-construction meeting

64. Architect’s Certification

65. EarthCraft Multifamily 2016
2016 worksheets are more prescriptive and less dependent upon energy model; worksheets can be found at:
Renovation improvement thresholds decreased to 20%, 30% and 40% (previously 30%, 40%, 50%) due to the improved existing housing stock

66. EarthCraft Multifamily 2016
Complete submittals will be reviewed in the order submitted
Submittals require the completion of the “Architect Checklist” tab within the worksheet by the project architect, identifying where in the drawings program minimums are found.
NOTE: If design is not at a level conducive to completing this, Architects should initial in the spaces provided to ensure that all requirements have been reviewed

67. Up next… Registering to be a VHDA Business Partner
Locality Notification Information
Reservation App: 9%
Reservation App: 4%
Allocation Application
8609 Application
Payment Options

68. Become a VHDA Business Partner
Access to LNI information system
(first step to completing an application)
Viewing access to submitted LIHTC applications

69. Access registration page via VHDA.com

71. Forget password?

72. LNI Link

73. Locality Notification Information
Required by IRS
Web-based
Collect info about the locality CEO & development from owner/developer
Used (1) to prepare the Locality CEO Notice Letter, which (2) informs localities about and (3) allows localities to comment on prospective LIHTC developments
Due January 27, 2016 at 2 p.m. (except Accessible Supportive Housing and TEB apps)
50-point penalty if received after deadline
Not compatible with Mozilla/Firefox or Google Chrome

74. Reservation App: 9% Deadline & Fees
Application is due in VHDA’s office on or before March 4, 2016 by 2:00pm
Strict deadline! No exceptions!
Application Fee is due w/Reservation Application
Reservation Fee is due w/Reservation Agreement, except LHA or Non-Profit Pool recipients, which is due by November 2, 2016
Reservation Fee = 7% of total annual credit amount

75. Reservation App: 9% cont’d
Application Process
The LIHTC application was prepared using Microsoft Office 2010
Applicants must submit application and all supporting documentation in electronic format, e.g., CD/DVD, flash drives or via Procorem
Do not submit any application materials to VHDA addresses
Use VHDA-provided tab divider pages

76. Reservation App: 9% cont’d
Mandatory Items:
Application Fee: $1,000
Application for Reservation –active Microsoft Excel workbook
Application for Reservation - signed application, including self-score sheet
Include all application attachments/tab documents

77. Reservation App: 9% cont’d
Market Study – stand alone document
Appraisal – stand alone document
Plans & Specs - be sure all minimum design & construction requirements and UD/accessibility elements (if applicable) are shown; or
Unit-By-Unit work write up (rehabs only)
Executed partnership/operating agreement w/ownership structure chart (org chart) showing principals –individual’s names must be listed here!

78. Reservation App: 9% cont’d
Certification from Virginia SCC
Signed PPC, resumé(s), Schedule A(s) & proof 8609s issued for no more than 6 projects, if not listed on Exp. Dev list
Evidence of Site Control
Extends at least 4 months past app deadline (except TEB)
In the name of owner applying for credits
Most recent RE tax assessment documentation

79. Reservation App: 9% cont’d
11. Relocation Assistance Guidelines
Required in all cases where the project receives LIHTCs and tenants are displaced
Include at Tab G
Can be found at VHDA.com
12. Attorney’s Opinion
Changes ONLY if absolutely necessary
Submit blackline for approval before application is due; otherwise, 10-point penalty
13. Properly executed Architect's Certification
All developments must have an architect

80. Reservation File Name Protocol
Naming Protocol
Description
[Dev Name] - Reservation App
Active Microsoft Excel workbook
[Dev Name] – Reservation App
PDF file which includes the following:
PDF copy of the signed application, including self-score sheet
all application attachments (i.e. tab documents, excluding the market study, plans, specs and/or work write-up)
[Dev Name] - Market Study
PDF or other readable electronic format
[Dev Name] - Plans & Specs Or
[Dev Name] - Plans
[Dev Name] - Specs
Electronic Plans and Specifications
[Dev Name] - UxU Work Write-up
Other - [Dev Name] – [Doc Name]
Other document(s) relevant to the application
* [Dev Name] = type in the name of the development

81. Reservation App: 9% cont’d
Late Mandatory Documents:
The market study may not be late; the application will be disqualified
Other than the Market Study, one or more of the mandatory items can be submitted after the application deadline, however, a 10-point penalty per item will be assessed

82. Reservation App: 9% cont’d
Applications will be posted by 3/21/16
Can view and print any application and attachments
Plans, specs & market studies are not posted
Must be registered as a VHDA Business Partner for access (refer to previous discussion)

83. Reservation App: 9% cont’d
Reservation docs mailed by VHDA in July, including:
Reservation Letter
Reservation Agreement
Extended Use Agreement
Contract to Enforce Representations
Election to Fix Applicable Percentage
Notice of Appraisal Fee (if applicable)
Return docs by deadline stated in docs

84. Reservation App: 4% (TEB)
TEB Application and forms are available at vhda.com – use application available online at the time of submission
Submit Locality Notification Information (LNI) on- line
VHDA mails locality notification letter
* Locality CEO has 45 days to respond, so you are encouraged to submit LNI 30 days prior to submitting the App
Submit TEB App to VHDA no less than one month before VHDA bond pricing or 75 days before non-VHDA bond issuance

85. Reservation App: 4% (TEB) cont’d
$1,000 application fee
Application must meet or exceed threshold score, 325 points
Market studies are mandatory (same as 9% deals)
Appraisals are required for acqu/rehab and adaptive reuse developments, if acquisition credits are requested (same as 9% deals)
Federal EIN verification required w/Reservation App

86. Reservation App: 4% (TEB) cont’d
After feasibility review is completed, VHDA sends Reservation Fee letter (fee is 7% of the annual credit amount)
After the fee is received, VHDA sends Section 42(m) letter, Extended Use Agreement and Election to Fix
Applicable % can be locked no later than the 5th day following the month the bonds were issued; otherwise the rate will be the PIS date

87. Allocation Application
VHDA sends customized application
Allocation Application is due in VHDA’s office on or before November 2, 2016 by 2:00pm
Penalties and Fees:
$ penalty per calendar day for late submission
$50.00 fee to replace original docs (i.e., EUA)

88. Allocation Application cont’d
Docs to Return w/Application:
Site control documentation
Extended Use Agreement
Purchase Option/Right of First Refusal (Non-profit or LHA)
Owner’s Cost Certification
Attorney’s Opinion
IRS EIN# assignment letter
Letter of Intent from syndicator stating equity price

89. Allocation File Name Protocol
Naming Protocol
Description
Allocation – [Dev Name] – Application
Active Microsoft Excel workbook
Allocation – [Dev Name] - Application
PDF copy of the signed application
Allocation – [Dev Name] – Attorney’s Opinion
Attorney’s Opinion
Allocation – [Dev Name] – IRS EIN #
IRS EIN #
Allocation - [Dev Name] – Site Control
Site Control Documentation
Allocation - [Dev Name] – Owner’s Cert
Owner’s Certification
Allocation - [Dev Name] – EUA (Recorded)
Recorded EUA
Allocation - [Dev Name] – ROFR (Recorded)
Non-Profit or Local Housing Authority (LHA) Right of First Refusal
Allocation – [Dev Name] – Investor LOI
Investor LOI
Allocation – [Dev Name] – [Document Name]
Other document(s) revised since the Reservation Application
*[Dev Name] = type in the name of the development

90. Allocation Application cont’d
Allocation Types & Documents:
Regular Allocation
Owner will receive Form(s) 8609 – if buildings placed in service in the same year as allocation
Carryover Allocation
Owner will receive Carryover Allocation if buildings are not placed in service (ready for occupancy) by the year of allocation
VHDA will mail mid-December
Carryover Agreements due January 2017 (to VHDA)
Meet 10% test no later than 12 months from the Allocation Date, including submitting documentation!

91. Pre-8609 App Submission
The Construction Completion Notice is due to the LIHTC Allocation Dept within 30 days of last residential building PIS
New Construction - copy of Certificate of Occupancy for each building
Rehab - Certificate of Substantial Completion from the architect
Penalty: $100 per day for each calendar day after the deadline (max. of $7,500 + interest monthly thereafter)

92. 8609 Application Deadline:
8609 Application is due within 6 months of the last building’s placed-in-service date
or April 30 deadline
Contract to Enforce Representations Apps for 9% developments due no later than April 30th of the 2nd year following the year of allocation. Extensions may be granted for up to 12 months beyond April 30th with prior approval from VHDA.

93. 8609 Application Application: VHDA sends customized application
Penalties and fees:
Late submission = a fine of $100 per calendar day, up to $7,500…
$100 for each Form 8609 to be corrected and reissued

94. 8609 Application cont’d Docs to return w/Application:
Completed 8609 App (active Excel workbook)
Electronic/PDF copy of the signed App
VHDA-requested supporting documents (refer to 8609 App Submission Checklist)
Permanent financing documentation (or other documentation if closing has not occurred)
Construction Contract

95. 8609 Application cont’d Docs to return w/Application:
Grant Agreement(s), if applicable
Final Partnership Agreement and Development Agreement (if changed since Reservation)
Independent Auditor’s Report
Final Cost Certification (itemization match)
Certification of Sources and Uses

96. Mandatory (Before VHDA Can Issue 8609s)
EarthCraft/LEED Certification, if applicable
Universal Design Certification, if applicable
Final VHDA inspection
Certified Property Management Company
Fees due

97. Payment Options
VHDA accepts checks, wire transfers and Automated Clearing House (ACH) deposits
Checks can be mailed or delivered to:
VHDA
Attn: Tax Credit Allocation
601 S. Belvidere Street
Richmond VA 23220
Checks are received when they arrive in the LIHTC department!

98. Payment Options, cont’d
Before making an ACH or wire payment you MUST send Pamela Freeth, an that describes the following:
The name of the development
The type of fee
The date that you will be making the transaction
How much you will be sending (to the cent)
One payment for multiple developments

99. Payment Options, cont’d
Wire & ACH Deposits
Payable to: Virginia Housing Development Authority
Account Name: LIHTC Fees
Account #
ABA #
Note: Transactions are considered received at the time funds are received (into VHDA’s account)
IMMEDIATELY AFTER completing the transaction, you MUST forward a remittance advice slip (i.e. confirmation that your transaction has been completed).

100. 10-minute Break

101. Up next… Often Misunderstood: Previous Participation Certification
Often Misunderstood: Tab T vs. Tab Q
Market Studies
Appraisals
Experienced LIHTC Developer list
Using the Online Reference Map

102. Often Misunderstood: Tab Q: Documentation of Rental Assistance
What should be included:
Ex. RD/HUD HAP Contract
NOTE: Subsidized funding is not rental assistance.

103. Often Misunderstood: Tab T: Financing Sources (including Subsidized Funding)
Documentation that should be included:
Donated land or below market land leases
Virginia Housing Trust Fund
VOICE $
Bank loan commitment
Locality resolution
Subsidized Funding = firm commitment

104. Market Studies VHDA has an Approved Analysts’ list
Market Study Reservations:
The developer/owner confirms with the analyst that it can secure a contract with the analyst
The developer/owner notifies Jaynell Pittman-Shaw, of its selection for an analyst
The analyst confirms with VHDA that it will accept the developer/owners request for assignment

105. Market Studies cont’d Must meet VHDA Market Study Guidelines
Must be submitted in electronic format
Must come directly from the applicant
Used in conjunction with VHDA property data
Effective Date of report = date of site inspection
6-12 months old will require an update letter from analyst;
>12 months old, NOT accepted under any circumstances

106. Appraisals
Required with all acquisition/rehab and adaptive reuse applications, if acquisition credits are requested
VHDA will accept RD appraisals
Must meet VHDA Appraisal Guidelines
MAI designation required
Obtained independently by the applicant
Submitted with the application
VHDA at its discretion, may require an additional appraisal - VHDA will select appraiser (at owner’s cost)

107. Appraisals cont’d Values requested: Land “As-Is” Market value
“As-Is” Restricted value
“Prospective” – post construction & upon achieving stabilized occupancy

108. Experienced LIHTC Developer List
If listed, no need to submit copies of 8609s at Tab D, with the Previous Participation Certification (PPC)
If qualified, but not listed, submit no more than six 8609s (1 per property) and documentation supporting that the person to be listed is CGP, Managing Member or principal
Points also allowed for a principal who has developed at least three LIHTC deals and who has at least $500,000 in liquid assets (per audited financial statement)
If not listed by 2/15/16, prepare to submit above with the application or may lose points (i.e. can’t correct w/10-point penalty)

109. Often Misunderstood: Previous Participation Certification
Complete the PPC even if you are incl on the Experienced LIHTC Developer list
One Certification per applicant (not per principal), but Schedule A’s for each principal
Schedule A’s for INDIVIDUALS, unless non-profit, (widely-held) corporation or LHA
Provide supporting documentation only for uncorrected 8823s
No more than six 8609s required (1 per property), if not listed on Experienced LIHTC Dev list
No brochures

110. Online Reference Map
Web – based address search designed to provide pertinent LIHTC information
Census Tract Identification
QCT Status
DDA Status
Eligibility for 25 points for locating in a census tract <10% Poverty and no similar LIHTC properties
Revitalization Reference
Jurisdiction Identification
Geographic Pool Identification
New Construction Pool Eligibility
Congressional Districts
Planning District
State House and Senate District
Cost Limits

111. Provides Multiple Answers

112. VHDA’s GIS Landing Page

113. Launching the Map

114. The Map

115. Address-based Search
Enter an address

116. Click for Details

117. Site-Specific Results
Pop up provides relevant site information

118. Existing LIHTC Properties (orange dots)

119. Reservation Application
DEMO

120. Procorem (submitting documents to VHDA)
DEMO

132. 2016 SCHEDULE
1/27/16
Locality Notification Information due – enter online
3/04/16
App for Reservation & Market Study due
(w/$1,000 application fee)
by 3/21/16
Apps posted to web (can view with Business Partner password)
4/1/16
CEO Letter & Revitalization Area documentation due
5/03/16
Announce prelim. rankings; begin comment period 
5/10/16
Close general comment period; begin rebuttal period
5/17/16
Close rebuttal comment period
5/25/16
Announce final rankings
6/8/16
Review final rankings with VHDA Board

133. 2011 SCHEDULE SUMMARY, cont’d
2016 SCHEDULE cont’d
Early to mid-July
VHDA sends Reservation documents to developers
September
VHDA sends Allocation Apps to developers
11/02/16
App for Allocation due to VHDA
12/16/16
Finalize allocations – mail Carryover Allocation documents or issue Form(s) 8609 for regular allocation
1/2017
Carryover Agreements due to VHDA
10% Test–12 Months from Allocation Date

134. Jim Chandler
JD Bondurant
Jaynell Pittman-Shaw
Hope Coleman Rutter
Stephanie Flanders
Pamela Freeth