2. Developers Workshop Agenda Welcome & Introductions 2019 Funds
Draft 2019 QAP
Appendix B
Questions

3. Disclaimers Not covering every QAP topic
Focusing on significant changes and what you need to know before submitting an application
Applicants are responsible for knowing rules
If questions are not covered, ask today or follow up with staff
Opportunity to ask questions on topics not covered at the end of the presentation
Questions are also welcome during the presentation
– If you have a question, please raise your hand and Tara or Suma will bring a microphone

4. 2019 Funds
LIHTC - approximately $27.8 million using 2018 population and multiplier
WHLP - $20 million (same as 2018)
RPP - was $12 million in 2018; amount not finalized for 2019 but is expected to be similar to 2018

5. National Housing Trust Fund
Is another source of RPP
Only available in High Income counties
Project must commit to at least 25% of units at or below 30% of AMI
$3,990,025 was available for 2018 (funded 5 projects); 2019 amount will be $5,286,772 (approximately 7 projects)
Agency can adjust awards to ensure funds are allocated

6. Workforce Housing Loan Program
$20 million appropriation for 2019
All counties are eligible; available for 9% projects only
Funds split between regions using same percentages as credits after Metro usage
Maximum loan is the lesser of calculated amount or statutory maximum; any amount can be requested up to the maximum loan amount

7. Workforce Housing Loan Program
Statutory maximums set by Legislature:
- High Income county: $250,000
- Moderate Income county: $1,500,000
- Low Income county: $2,000,000
Requesting WHLP may result in an application being ineligible due to inadequate funds; same as RPP or credits

8. Draft 2019 QAP

9. QAP Status First draft released July 26
Public Hearing was held October 18
3 comments were made during the Hearing
Second draft was released October 22
Anticipate final approval next month
Application will be available in early December
All written comments received are posted on our web site

10. QAP Topics Site Scoring Disaster Recovery Income Averaging
Credits per Unit Average
Applicant Bonus Point
Charts A and B
Bond Cycle

11. Site Scoring - Amenities
Double or triple-counting an establishment is permitted. For example:
Walmart Supercenter or Super Target can count as Grocery, Shopping, and Pharmacy
Harris Teeter with a pharmacy can count as Grocery and Pharmacy

12. Site Scoring - Maps
The drivable route must be shown in map format using Google Maps
Must have a separate map showing route for each amenity
Pins must be dropped at entrance to the amenity and the proposed entrance to the site
Map should be the satellite view and clearly show both entrances
A photo of each amenity must be provided

13. Satellite View Map

14. Undesired Map

15. Disaster Recovery
12.5% of total credit allocation will be added to the East
Approximately $2.8 million in additional credits (4-5 projects)
Counties in Central and East declared federal disaster area (Individual Assistance designation) under Hurricane Florence are eligible for a 2nd award after all other counties with an eligible application have received one award, credits permitting
Example: 12 awards can be made in East; receive applications from 9 counties; the last 3 awards go to the 2nd highest scoring applications in 3 highest scoring disaster counties
Cumberland County is guaranteed 1 award in the Metro
The initial maximum award of credits will not apply to Cumberland if the county is eligible for a 2nd award

16. Disaster Recovery
New construction projects in federally declared disaster counties (Individual Assistance designation) under Hurricane Florence are eligible for Disaster Recovery funds
Funds will be awarded by the Agency to projects in those counties receiving an allocation of 9% tax credits and will be used to reduce requests of tax credits and/or WHLP
Intent is to use freed-up resources to fund additional projects
31 declared disaster counties (Individual Assistance designation) as of today: Anson, Beaufort, Bladen, Brunswick, Carteret, Columbus, Craven, Cumberland, Duplin, Greene, Harnett, Hoke, Hyde, Johnston, Jones, Lee, Lenoir, Moore, New Hanover, Onslow, Orange, Pamlico, Pender, Pitt, Richmond, Robeson, Sampson, Scotland, Union, Wayne, and Wilson

17. Income Averaging Income average for the property cannot exceed 60% AMI
Income average for any bedroom type cannot exceed 60% AMI
Market rate units are prohibited
Owners must select that each building is part of a multiple building set-aside on line 8b in Part II of IRS Form 8609
Cannot have more than 4 income bands (applies to any application)
Available to 4% and 9% applications
Not available to projects with an existing LURA

18. Credits per Unit Average
Points will be awarded based on a project’s per unit credit request as it relates to the average per unit credit request for a given region
All full application projects in a region will be used to calculate the average, including those that may be determined to be ineligible for award
Average is derived by taking per unit credit request for each project in a region, then determining the average of those amounts within a given region
2018 Averages: Central - $11, East - $11, Metro - $11, West - $12,078

19. Credits per Unit Average - Points
Change for 2019 will be to award points as follows:
- Within 4% of the average: 2 points
- Within 8% of the average: 1 point
- More than 8% above or below the average: points

20. Credits per Unit Average Rationale
In 2018, a project requesting $12,310 per unit in credits scored more points than a project requesting $10,552 per unit in credits
Change lessens rewarding an Applicant for an inefficient use of the credit
Projects scoring 0 and 1 point in this category received an allocation of credits in 2018

21. Applicant Bonus Point 1 point per Applicant or Principal
No application can receive more than 1 bonus point
Election is made at full application
Should an Applicant or Principal place a bonus point on more than 1 application, the bonus point will be placed on the lowest scoring application

22. Bond Cycle
First cycle: follows same time line as 9% beginning in January
Second cycle: preliminary application can be submitted any time between May 1 and October 1
Schedule for project milestones will be developed once preliminary application is submitted
Expect time between milestones to be similar to 9% schedule
Full application submission date will determine whether Applicant receives 2019 or 2020 volume cap

23. Appendix B
The required exterior storage closet for each unit may not be inside the dwelling unit
All interior common areas, hallways, and enclosed corridors must be served by heating and cooling systems
Dishwasher must be installed beside kitchen sink
Grab bars installed behind toilets must be a minimum of 36” in length
All call for aid devices must be installed below bedroom and bathroom light switches
In all Type A units, a 60” minimum turning radius is required in all usable areas of the kitchen, accessible bathroom, laundry room, and closets deeper than 48”

24. Appendix B
In vinyl siding applications, all siding penetrations must be in plastic j-boxes
Dryer exhaust ducts, bath exhaust fans, and range hood fans may not be vented through the roof
Clothes dryer vent connection box must be metal
Compact parking spaces may be included but will not count toward the required minimum number of full sized parking spaces

25. Appendix B
Awarded projects must submit full set of drawings for plan review including civil, architectural, structural, mechanical, fire sprinkler, landscaping, and site lighting plans. All plumbing fixture schedules must be complete. The plans must be 24” x 36” and be professionally bound.

26. Questions?