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Virginia Housing Development Authority
601 S. Belvidere St. Richmond, VA 877-VHDA-123 | vhda.com
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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.
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Our Mission is to help low and moderate-income Virginians attain quality, affordable housing.
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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.
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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)
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Up next… 2016 QAP 2016 Program Changes 2016 Cost Limits & Enforcement
Minimum Threshold Scores Pool Percentages 2016 Available Credits 2016 Estimated Credits DOJ Settlement
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2016 QAP Zoning is Mandatory no points
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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
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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
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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
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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
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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
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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.
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Minimum Threshold Scores
425 = 9% applications 325 = 4% applications
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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%
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*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)
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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
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Jim discusses DOJ Settlement
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Up next… Pools: Non-profit, LHA, New Construction, Accessible Supportive Housing Rules of Ranking Point Categories Parameters
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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
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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
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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
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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
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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
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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
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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)
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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
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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
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Point Categories
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Readiness Category Points Plan of Development 0 or 40
N/A if receiving 50 Developer Exp. Points 0 or 40
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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)
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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
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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)
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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
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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
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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
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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
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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
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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*
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Application Parameters
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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
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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
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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%
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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)
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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
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15-minute Break
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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
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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
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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
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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;
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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
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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
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Architect’s Certification
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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
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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
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Up next… Registering to be a VHDA Business Partner
Locality Notification Information Reservation App: 9% Reservation App: 4% Allocation Application 8609 Application Payment Options
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Become a VHDA Business Partner
Access to LNI information system (first step to completing an application) Viewing access to submitted LIHTC applications
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Access registration page via VHDA.com
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Forget password?
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LNI Link
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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
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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
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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
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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
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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!
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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
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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
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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
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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
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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)
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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
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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
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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
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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
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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)
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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
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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
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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!
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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)
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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.
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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
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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
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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
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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
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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!
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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
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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).
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10-minute Break
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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
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Often Misunderstood: Tab Q: Documentation of Rental Assistance
What should be included: Ex. RD/HUD HAP Contract NOTE: Subsidized funding is not rental assistance.
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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
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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
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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
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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)
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Appraisals cont’d Values requested: Land “As-Is” Market value
“As-Is” Restricted value “Prospective” – post construction & upon achieving stabilized occupancy
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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)
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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
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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
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Provides Multiple Answers
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VHDA’s GIS Landing Page
113
Launching the Map
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The Map
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Address-based Search Enter an address
116
Click for Details
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Site-Specific Results
Pop up provides relevant site information
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Existing LIHTC Properties (orange dots)
119
Reservation Application
DEMO
120
Procorem (submitting documents to VHDA)
DEMO
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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
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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
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Jim Chandler JD Bondurant Jaynell Pittman-Shaw Hope Coleman Rutter Stephanie Flanders Pamela Freeth
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