2009

Qualified Allocation Plan (QAP)

(Changes from 2008)

Application Package for Low Income Housing Tax Credits (cover sheet)

Net Available tax credit amount changed to $ 1,736,900.

Timetable changes.

The following dates were changed/added:

  • 01/26/09 – Deadline for pre-inspection notification if applying for 2009 rehabilitation credits.
  • 02/25/09 - Community Outreach Notification due date (if using this notice for minimum threshold notice).
  • 03/27/09 - Application due date.
  • 04/06/09 - Local and Community Notice for Acquisition/Rehabilitation Developments due date.
  • 06/19/09 - DSHA will notify sponsors of their ranking in accordance with the QAP and designated set asides outlined in the application package.
  • 07/31/09 - Commitments for all financing must be submitted to DSHA.
  • 09/11/09 - DSHA will make Tax Credit reservations for selected projects.
  • 09/11/09- Deadline for pre-closing documents for HDF-financed projects.
  • On or before 11/06/09 - DSHA will allocate Credits to selected projects.

Qualified Allocation Plan

Page 1

Table of contents pages revised.

Page 5

Added Historic Character and Energy Efficiency as required by the HERA Act.

Revised the Applicable Credit Percentage to 9% until December 1, 2013.

Acqusition credits will remain at the applicable federal rate.

Page 6

Revised 70% present value to read as a minimum rate of 9%, clarified type of project can use 30% present value.

Page 7

Updated minimum acquisition/rehabilitation costs to $6,000/unit or 20% of unadjusted basis. Inserted new language allowing owners of federally subsidized properties to apply for new acquisition credits in less than 10 yrs. Inserted new language covering bond issuance to avoid recapture of early repayment of bonds.

Page 8

Inserted 2008 to section detailing when Congress changed the tax code.

Page 17

Non-Profit Pool - Changed amount to $260,849.

Preservation Rehabilitation Pool- Modified definition and adjusted pool to $1,220,400.

Page 19

Added Non-Profit & Preservation/Rehabilitation under Chronically Homeless set-aside.

Page 22

Added conditions/clarifications for increasing developer fee.

Page 23

Eligible Basis Limitations changed to reflect most current HUD 221(d) (3) limits. Energy Audit requirement language added.

Page 24

Families in Poverty - amounts changed. Added, “DSHA has further defined identity of interest as it relates to the Developer fee under Identity of Interest”.

Page 26

Added Related party definition.

Page 29

Added HUD Utility Model or Energy Consumption Model as Utility Allowance Sources.

Page 32

Changed Local and Community Notice due date to April 6, 2009. Added hold harmless clause for DSHA concerning community notification guides.

Page 33

Added “related party” to sections b & d.

Page 37

Updated per unit cost limitation table based on 2008 HUD 221(d)(3) limits. Updated per unit cost/ points earned example.

Page 40

Updated expiration dates from 2008 to 2009.

Page 44

Energy Efficiency- Added new language regarding points/values that exceed DSHA’s minimum rehab/construction standards under energy efficiency.

Community Outreach- changed due date to February 25,2009.

Page 47

LIHTC application due date changed to March 27, 2009

Page 50

Added appeal language. Extended 10% test due date to 12 months post allocation.

Page 52

Placed- in-service date- changed dates, concerning meeting the 10% test prior to applying for 2009 LIHTC’s. Changed 2008 dates to read as “2009”.

Page 54

Revised language concerning rate lock-in for all credits to read as acquisition credits only.

Page 57

Revised language concerning annual recertification of tenant’s income if development is 100% low income.

Page 62

QAP Approval, Hearing Dates and Newspaper Ad dates changed.

Attachments to Qualified Allocation Plan

Page 1

Table of contents pages revised

Page 2

Allows cost of recycling materials under General Requirements underwriting guidelines. Allows contingency to be shared under certain conditions.

Page 3

Describes conditions under which developer’s fee may be increased.

Page 4

Revises equity underwriting criteria by removing minimum equity factor.

Page 5

Revises operating expense ranges.

Page 7

Deletes Sussex County as a DDA.

Page 9

Eligible Basis Limits changed to reflect most current HUD 221(d)(3) Limits.

Page 13

Exhibit 12 - Local & Community Notice- changed dates. Added DSHA hold harmless clause language for notifications.

Page 15

Community Outreach - changed due date to February 25, 2009.

Page 16

Exhibit 33- updated QAP page reference Physical Needs Assessment- added energy audit requirement.

Page 18

Exhibit 54- Details of Debt Financing- changed due date to July 31, 2009.

Page 22

Added DSHA hold harmless clause to note section at bottom of page.

Page 23

Revised due dates in chart detailing due dates for Local Community notice for threshold and points. Added resource guide information for contacting civic groups.

Minimum Construction/Rehabilitation Standards

Pages 28-29

Addresses replacing wood and plastic base molding with composite.

Clarifies paint finish standards and wall preparation.

Page 47-48- Energy Efficiency table was expanded. Also language and sample calculation regarding substitutions of energy efficiency amenities was added.

2008 LIHTC Application Part 1

Page 1

10% test due date extended from 6 months to 12 months.

Page 2

Adds 9% minimum LIHTC rate for new construction projects. Updates per unit expenditure from $3,000 to $6,000 and changes unadjusted basis expenditures from 10% to 20%. Removes federally subsidized properties from 10 yr. rule. Updates per unit expenditure from $3,000 to $6,000 and changed unadjusted basis expenditures from 10% to 20%.

Page 3

Removes federal subsidy rule from tax exempt financing.

Page 4

Expands Federal grants to include all grants. Added 9% minimum rate for new and rehabilitation projects.

Page 5

Development basis - Added $6,000 per unit or 20% of the unadjusted basis. Expanded federal grants to include all grants.

Page 6

Revised language to include applicable acquisition rate published by the Internal Revenue Service to determine acquisition credits. Expanded federal grants to include all grants.

2008 LIHTC Application Part II

Page 10

Added energy audit as a line item under Total Development Costs.

Page 30

Revised Environmental checklist to include a more specific definition of wetlands, sole source aquifers and farmlands. Specified proximity distances under airports and noise.

Page 31.

Increased allowable office labor expense from $15,000 to $25,000. Added concrete and fire protection as eligible items under General Requirements. Added recycling costs under General requirements.

2008 LIHTC Application Part III

Pages 2-6

Sections 4.,5.,7.-10.,13,.14.,16.,17.,20.,21-23. Added “identity of interest and otherwise related entities” after the word developer to all above referenced sections.

2008 Housing Development Fund Supplement

Page 4

Revised equity factor by removing minimum amount and replacing with market conditions criteria.

Page 6

Note 3- clarified document due dates are stated in the Council on Housing Resolution. Clarified 10% to read asexpenditure requirement.

Page 7

Note 6- Clarifies criteria for increasing developer’s fee.

IMPORTANT HDF ADMINISTRATION POLICIES/CHANGES- added “change orders” after the word draw and clarified charge for returned change orders is not an eligible project cost.

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10/24/2018