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Virginia Housing Development Authority
Virginia Housing Development Authority
Our Mission is to help low and moderate-income Virginians attain quality,
affordable housing.
877-VHDA-123 | vhda.com
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Q.A.P. Workshop
Q – (Answering your) Questions
A – (about LIHTC) Administration
P – Policy (&) Procedures
Virginia Housing Development Authority
This PowerPoint presentation will be posted at vhda.com/LIHTC Programs after workshops are
completed.
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J.D. BONDURANT Director Phone: (804) 343-5725 [email protected]
JAYNELL PITTMAN-SHAW Sr. LIHTC Allocation Officer Phone: (804) 343-5733 jaynell.pittman-
HOPE COLEMAN RUTTER Sr. LIHTC Allocation Officer Phone: (804) 343-5574 [email protected]
STEPHANIE FLANDERS LIHTC Allocation Analyst Phone: (804) 343-5939 [email protected]
PAMELA FREETH LIHTC Allocation Coordinator Phone: (804) 343-5518 [email protected]
SHEILA STONE Sr. LIHTC Allocation Officer Phone: (804) 343-5822 [email protected]
LIHTC Staff
Virginia Housing Development Authority
Up next… 1. Pool Percentages 2. Available Credits 3. Rules of Ranking
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2017 Pool Percentages Non-Profit 15.00%
LHA 15.00%
New Construction •15% of the following year’s credits
15.00%
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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2017 Estimated Available Credits Per Capita Credits
$2.35 per person* 10% of 2018 Credits: Returned Credits National Pool: Previous Allocations: Accessible Supportive
Housing Pool: Estimated 2017 Credits:
$19,767,749
$1,976,775 $2,583,599
$75,000 ($6,160,320) ($1,321,856)
+ $16,920,947
*Population Estimate = 8,411,808 (U.S. Census Bureau 7/1/16)
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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 (restriction removed in 2018)
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
• Accessible Supportive Housing (ASH) pool
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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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Section 8 waiting list preference • Reduce points to 5 from 10 • De-couple section 8 waiting list points from the
minimum income requirement
Minimum Income Requirement – now a stand-alone requirement for all LIHTC allocations:
– Applicants may not require an annual minimum income requirement that exceeds the greater of $3,600 or 2.5x the portion of rent to be paid by tenants receiving rental assistance
2017 QAP Updates/Changes
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Non Profit Pool - credit limit increased to $950,000 from $750,000
Opportunity Areas • Census tracts with less than 10% poverty –
changed to allow more than 1 property per tract
• (2018) Incorporate a new sliding point scale: – if less than 12% poverty, 20 points, – if less than 10% poverty, 25 points – if less than 3% poverty, 30 points
2017 QAP Updates/Changes cont’d
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Project-based Vouchers – clarification and increased points
• Any development in which the > of 5 units or 10% of the units will be assisted by HUD project-based vouchers in order to ensure occupancy by extremely low-income persons” (60 points)
Documentation is a binding RFP that has been awarded
2017 QAP Updates/Changes cont’d
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Developmental Disability (formerly ID/DD) - Extend Developmental Disability 25-point category to applicants who meet the 30-point accessible point category (described below):
Any development in which the > of 5 units or 10% of the units:
1. Have rents within HUD’s Housing Choice Voucher (“HCV”) payment standard
2. Conform to HUD regulations interpreting the accessibility requirements of section 504 of the Rehabilitation Act; and
3. Are actively marketed to persons with disabilities
2017 QAP Updates/Changes cont’d
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EarthCraft • 35 points for EarthCraft Gold • Additional 10 points to EarthCraft Certified
development or EarthCraft Gold development that performs tenant utility benchmarking
2017 QAP Updates/Changes cont’d
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2017 QAP Updates/Changes, cont’d
9/4 Combo Deals – increased points for any applicant for a development which, pursuant to a common plan of development, is part of a larger development located on the same or contiguous sites, financed in part by TEBs.
• 25 points for TEB financing of at least 30% of aggregate units
• 35 points for TEB financing of at least 40% of aggregate units
• 45 points for TEB financing of at least 50% of aggregate units
points are non-cumulative
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2017 QAP Updates/Changes, cont’d
LHA Pool - points added to RAD deals
• Any development participating in the Rental Assistance Demonstration (RAD) program competing in the LHA Pool will receive an additional 10 points
Applicants must show proof of a Commitment to Enter into HAP (CHAP) or a RAD Conversion Commitment (RCC)
(Effective 2018) Elderly Restriction - remove 20% restriction for elderly developments
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2017 QAP Updates/Changes, cont’d
Developer Experience Penalty Points (50 point category) - for all principals (of the GP) where the following occurred: • submission of an 8609 application that does not
match the accountant’s Final Cost Certification (minus 10 points, 2 years)
• failure to place a rehab development in service by substantial completion, e.g. PIS by expenditures after 2 years (minus 5 points, 2 years)
• more than two requests for final inspection (minus 5 points, each GP principal, for 2 years)
• requests for any deadline extension (minus 1 point, 2 years)
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2017 QAP Updates/Changes, cont’d
High Speed Internet • Revised language - if each unit is provided
with the necessary infrastructure for “high-speed internet service” (1 point)
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2017 QAP Updates/Changes, cont’d
Energy Star Windows • Windows and glass doors are Energy Star labeled
for the North-Central zone or are NFRC labeled with a maximum U-Factor of 0.27 and maximum SHGC of 0.40
(2018) Energy Star Bath Fans – Each full bathroom is provided either:
• An EPA Energy Star qualified bath vent fan with duct size per manufacturer requirements or
• Continuous exhaust as part of a dedicated outdoor air system with humidity control (2 points)
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Up Next…
1. 2017 Minimum Design & Construction Requirement Highlights
2. 2017 UD and Accessibility Element Highlights 3. 2017 QAP Updates/Changes 4. Placed in Service certifications 5. New Final Inspection Process 6. PPC 7. Schedule A 8. DD Guidelines 9. Waiver Process
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Minimum Design & Construction Requirement
General • 2017 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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2017 Minimum Design & Construction Requirement Highlights
• Exterior wall sheathing with integral drainage plane • Requirement to tape all fasteners removed
• Manufacturer, GC, and subcontractor pre-installation meeting
• Use of foil faced sheathing is prohibited (New work only) • Composite materials required at some portions of exterior doors • Ceramic and stone baseboard is acceptable in lieu of wood base
when matching ceramic or stone flooring is provided • Auxiliary (Emergency) heat required for HVAC systems • Requirement limiting the use of ductless heat pumps to apartment
units under 600SF removed. Still only allowed in certain unit types. • Ceramic tile flooring required for bathrooms with roll-in showers (New
roll-in showers only) • Minimum sizes established for electric water heaters in New
Construction • Video and jet all sewer lines connecting building with public sewers
(Rehab. and Adaptive Reuse only)
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2017 U.D. Highlights Essential Elements • Pass/Fail assessment during the application review
period will continue. See website for sample drawing submission.
• Exception provided for vehicular connectivity in lieu of pedestrian accessible routes at impractical sites. VHDA approval required prior to application submission.
• Exception provided for relocation of existing electric panels if branch wiring or feeders are not scheduled to be replaced.
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2017 U.D. Highlights cont’d
• Push-button locks required on all doors with privacy locksets. Thumb turn dead bolts will still be accepted at apartment entry doors.
• Exception provided for side by side refrigerator control height. Controls within 54” AFF are acceptable if a parallel approach is provided.
• A minimum one base cabinet, 15” or wider, must be provided with top drawer available for utensils.
• Where laundry equipment or hookups for laundry equipment are provided, laundry closet must be sized to accommodate side by side equipment.
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2017 U.D. Highlights cont’d Optional Elements • Operable double doors at patios • Innovation – An Opportunity to provide an
alternative feature which will increase the usability of spaces for all people. Proposed alternatives must be presented to and approved by VHDA prior to the mandatory pre-construction meeting.
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2017 Program Changes Community Rooms • Community rooms may not be used for
commercial purposes. • Provided that the cost of the community room is
not included in eligible basis, the owner may conduct (or contract with a non-profit provider to conduct) programs or classes for tenants and members of the community in the community room, so long as: – tenants compose at least one-third of participants, with
first preference given to tenants above the one-third minimum;
– no program or class may be offered more than five days per week;
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2017 Program Changes, cont’d
Community Rooms, cont’d – no individual program or class may last more than eight
hours per day and all programs and class sessions may not last more than ten hours per day in the aggregate;
– cost of attendance of the program or class must be below market rate with no profit from the operation of the class or program being generated for the owner (owner may also collect an amount for reimbursement of supplies and clean-up costs);
– the community room must be available for use for tenants when programs and classes are not offered, subject to reasonable “quiet hours” established by owner; and
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2017 Program Changes, cont’d
Community Rooms, cont’d – any owner offering programs or classes must
provide an annual certification to VHDA that it is in compliance with such requirements
Failure to comply with these requirements will result in a 10-point penalty (against owner principals) for three years from the date of such noncompliance
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2017 Program Changes, cont’d
Substantial Completion Notification
• Now required for both new construction & rehabs before final inspection will be scheduled.
• Completed by Architect on AIA form
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2017 Program Changes, cont’d
New Final Inspection Process • Owner/Developer emails their assigned VHDA
allocation officer when the property is ready for its final inspection – VHDA notifies CCO of final inspection request
• CCO schedules final inspection with Owner and/or General Contractor
• If at the end of the inspection it is determined that all items are completed satisfactorily, then the final inspection is complete.
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2017 Program Changes, cont’d
New Final Inspection Process, cont’d
• If there are items remaining to be completed, CCO will email interested parties, incl TC department, stating which items are outstanding
• When addressed, the owner/developer emails Allocation Officer with 2nd final insp request – Allocation Officer notifies CCO – CCO schedules 2nd final insp
• If all items are completed satisfactorily then final inspection is complete.
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2017 Program Changes, cont’d
New Final Inspection Process, cont’d
• If additional items are found needed to be completed but were not included in the initial report from the CCO the next inspection will be treated as a first inspection.
NOTE: Final inspection will only be scheduled after all Certificates of Substantial completion have been received (this includes New Construction)
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Certified & Gold paths available in QAP 85% Design Review milestone in alignment with VHDA’s pre-construction meeting No major programmatic update in 2016-2017 Anticipate program update late 2017 for projects permitting after January 1, 2018 January 12, 2017 EarthCraft Building Professional Training, Glen Allen, VA
EarthCraft Multifamily (ECMF)
Managing Operating Costs ($) Accurate Utility Allowances ($) Marketing ($) Future Utility Incentive Alignment ($) Recent HUD Request for public comment
Benchmarking: Developer Benefits
• ID units to meet sample set • Collect data for 24 months, 36 months to comply • Set up benchmarking to meet sample set; via:
– Viridiant, Independent Third Party, Monitoring hardware
• Demonstrate compliance at 100% full lease up • Remain compliant based on periodic Viridiant review
Benchmarking: Developer Participation
• Renovation Baseline On-Site Test Scheduling: February 10th • Pre-Review Form/Documentation Submittal: February 24th • VHDA Application: March 3rd • Pre-Review Conducted by Viridiant In Order Received Viridiant Multifamily Team Contacts
Matt Waring Austin Walther Manon Shankle [email protected] [email protected] [email protected] (804) 212-1936 (804) 212-1941 (804) 212-1898
EarthCraft Multifamily Pre-Review Deadlines
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2017 Program Changes, cont’d
Previous Participation Certification (PPC) • Stand-alone document • Attach explanations for strikethroughs (if
applicable)
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2017 Program Changes, cont’d
Schedule A • Stand-alone document • Can now be found at Tab O • Provide a Schedule A for each GP
principal • Provide resumes for each GP principal • Include explanations for uncorrected
8823s
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2017 Program Changes, cont’d
DD Guidelines • Guidelines for 504 Disability and Developmental
Disability (DD) Units [LINK] • Explains:
– LIHTC points – Marketing plan requirements – Marketing preference – Hold Vacant for 60 days – Referrals – Vacancy Loss Reimbursement – Compliance
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2017 Program Changes, cont’d
Change Request Process
Waiver Request Information (Required)
Define Requirement *Please define the requirement requesting to be waived/changed as well as the regulation year and type of construction. Request Explanation *Please give a brief explanation of why this waiver should be considered.
*Please attach any supporting documentation and submit to VHDA. Submittal of this form to VHDA does not guarantee exemption from requirements. Requests will be approved, approved with conditions, or rejected in writing by the VHDA TC Allocation Department.
VHDA LIHTC Change Request Form Please submit document, via email, to [email protected] *Please submit this document in Word format.
Property Information (Required)
Development Name: Street: City:
Requester Information (Required)
Name: Email: Date:
VHDA Information (Required)
Request Date: Request Number: Regulation Year:
Virginia Housing Development Authority
Up next… Pre-application
• Registering to be a VHDA Business Partner
• Locality Notification Information (LNI) • Experienced LIHTC Developer list
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Why become a VHDA Business Partner?
Grants you access to LNI information system (first step to completing an application)
You can view all LIHTC applications
Reserve your Market Analyst
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Access registration page via VHDA.com
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Forget password?
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LNI Link @ VHDA.org
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Locality Notification Information Required by IRS
Web-based
Owner/Developer provides info about the locality CEO & the development
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, 2017 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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Market Study Reservation Process
VHDA has an Approved Analysts’ list Market Study Reservations will now contained in
LNI system (demonstration later by Alena)
Market Analyst Reservation Process: 1. Selection of the Market Study Analyst must be
made by January 27, 2017 by 2:00 p.m. (also LNI due date).
2. The owner/developer accesses the LNI system via vhda.org.
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Market Study Reservation Process
3. Select ‘New Notification’ or ‘Existing Notification’
4. Select Notice Type (top of form) 5. Type in name of project 6. In the section titled ‘Market Analyst’, click
Request Market Analyst button 7. Select analyst 8. Click ‘Request Approval’ NOTE: While this concludes the market reservation process, you are still required to submit a completed LNI form for every application submitted for LIHTC consideration).
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Experienced LIHTC Developer Qualification Process
Qualifies the application for 50 points, if the named experienced developer is also a named principal in the current application
By February 15 or with the Reservation Application provide:
• A list of at least 6 tax credit entities (include property names)
• Proof that 8609s have been issued for 6 LIHTC projects • Supporting partnership documents that name the
Controlling General Partner/Managing Member (i.e. Limited Partnership & Operating Agreements)
• Org charts that show partner/member interest
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Experienced LIHTC Developer List • All documentation must support that the ‘experienced
developer’ is the CGP or Managing Member
• If listed, no need to submit copies of 8609s at Tab N NOTE: Listing not required for points 50 points also available for a principal who:
has developed at least three LIHTC projects (3x the number of units of the development proposed in the current application) or
has developed at least three LIHTC projects and has at least $500,000 in liquid assets (per audited financial statement)
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VHDA’s GIS Landing Page
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Site-Specific Results
Pop up provides relevant site information
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15-minute Break Treesdale Park (Albemarle County) 88 units/new construction - 9% (2009)
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Reservation App: General 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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Reservation App: General
Tax Credit Equity Factor:
use reasonable estimate for the proposed development
Applicable %:
• 9% - permanently fixed @ 9.0% • 4% - use March 2017 percentage
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Reservation App: General 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 email addresses
• Use VHDA-provided tab divider pages
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Reservation App: 9%
Deadline: • Application is due in VHDA’s office on or before
March 3, 2017 by 2:00pm Strict deadline! No exceptions!
Points Threshold: Application threshold is 425 points
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Reservation App: 9% Accessing Posted apps: • Applications will be posted by 3/17/17 • 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% Mailing 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: 9%
Reservation Fee: • Reservation Fee is due w/Reservation
Agreement, except LHA and Non-Profit Pool recipients, which are due by November 1, 2017
• Reservation Fee = 7% of total annual credit amount
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Reservation App: 4% (TEB) LNI & Application deadlines:
• Submit LNI on-line (at least 30 days prior to submitting the App b/c Locality CEO has 45 days to respond)
• VHDA mails notification letter to the locality • TEB Application and forms are available at
vhda.com – use application available online at the time of submission
• 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) Application Fee:
• $1,000 application fee
Federal EIN:
• Federal EIN verification required w/Reservation App
Points Threshold:
• Application threshold is 325 points
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Reservation App: 4% (TEB) Reservation Fee letter: sent by VHDA after the feasibility review is completed. Fee is 7% of the annual credit amount.
Extended Use Agreement, Election to Fix and Section 42(m) letter: sent by VHDA after the Reservation fee is received
Locking the Applicable %: The 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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Reservation App Late Mandatory Documents: • Other than the Market Study, mandatory items
can be submitted after the application deadline; however, a 10-point penalty per item will be assessed
Virginia Housing Development Authority
Demos
• Market Analyst Reservation Process • Excel Application highlights
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15-minute Break Maplewood (Chesapeake City) 60 units acqu/rehab 4% (2010)
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Reservation App Docs to return w/Application: • Application Fee: $1,000 • Application - Active Microsoft Excel workbook • Application - signed pdf copy, incl self-score
sheet
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Reservation App Docs to return w/Application, cont’d: Market Study (Mandatory) All requests for a reservation of LIHTCs (Reservation Application), no exceptions:
• Must be submitted with the Reservation application
• May not be late. The application will be disqualified
• Choose analyst from VHDA’s VHDA Approved Market Analysts Listing
• Must meet VHDA Market Study Guidelines
• VHDA at its discretion, may require an additional market study - VHDA will select analyst (at owner’s cost)
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Reservation App Docs to return w/Application, cont’d: Appraisals (Mandatory) • Required with all acquisition/rehab and
adaptive reuse applications, if acquisition credits are requested
• Appraiser at applicant’s discretion; however: MAI designation required Must meet VHDA Appraisal Guidelines Must be submitted with the application VHDA will accept RD appraisals VHDA at its discretion, may require an additional
appraisal . VHDA will select appraiser (at owner’s expense)
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Reservation App Docs to return w/Application, cont’d: Tab A: 1 Revitalization Area Certification (0 or 10)
Certification that the development is located in: • A QCT, as defined by HUD • A census tract wherein 70% or more of the families have
incomes which are ≤ 80% statewide median income • An already established redevelopment area,
conservation area or rehabilitation district created by a city or county
• A Housing Rehabilitation Zone established through an ordinance created by a city, county or town
• A defined revitalization area
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Reservation App Docs to return w/Application, cont’d: Tab A.2: Location Map (no points)
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Reservation App Docs to return w/Application, cont’d: Tab A.3: Surveyor’s Certification of Proximity to Public Transportation (0, 10 or 20)
• Certification that the main street boundary entrance to the property is within:
1. 2,640 feet or ½ mile of the nearest access point to an existing commuter rail, light rail or subway station; or
2. 1,320 feet or ¼ mile of the nearest access point to an existing public bus stop.
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Reservation App Docs to return w/Application, cont’d: Tab B: LPA or Operating Agreement (Mandatory) • Org chart w/percentage of interests • Org chart showing principals – individual’s names
MUST be listed here
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Reservation App Docs to return w/Application, cont’d: Tab C: Virginia State Corporation Commission Certification (no points)
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Reservation App Docs to return w/Application, cont’d: Tab D: Principal’s Previous Participation Certification (Mandatory) • Must be signed by an individual who is, or is
authorized to act on behalf of, the Controlling General Partner (if LP) or Managing Member (if LLC)
• The date of the certification must be no more than 30 days prior to submission of the LIHTC application
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Reservation App Docs to return w/Application, cont’d: Tab E: Non-profit Questionnaire (Mandatory) 1. Material participation in and operation of the
development throughout the compliance period 2. Own 100% of the GP or managing member interest 3. Not be affiliated with or controlled by a for-profit 4. Not have been formed for the principal purpose of
competition in the Non-Profit Pool 5. Not have any staff member, officer or member of
the Board of Directors materially participate in the proposed development as a for-profit entity
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Reservation App Docs to return w/Application, cont’d: Tab F: Architect’s Certification (Mandatory) • All developments must have an architect • Stand-alone document
- Average Gross Unit s.f. - Net Rentable s.f. - Amenities - Building Structure - Accessibility - UD Certification - EarthCraft/LEED Cert. - EarthCraft Acknowledgment
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Reservation App Docs to return w/Application, cont’d: Tab G: Relocation Plan (Mandatory, if applicable)
A plan for residents/tenants who are permanently or temporarily relocated as a direct result of the rehabilitation, demolition and/or construction of Low Income Housing Tax Credit (LIHTC) projects
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Reservation App Docs to return w/Application, cont’d: Tab G: Relocation Plan, cont’d • Follow Relocation Assistance Guidelines [LINK] • ‘Temporary Relocation’ = no longer than 30 Days • Plan must be kept in plain sight and available for
tenants to review
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Reservation App Docs to return w/Application, cont’d: Tab G: Relocation Plan, cont’d
• Submit with the Reservation Application • The plan must Include, at a minimum, the following:
1. The name, address and contact person for the owner and management company
2. Scope of the work to be completed, including estimated start and completion dates
3. Planned measures to minimize construction impact on occupied units
4. Projected rents and rental policies after rehab 5. Advisory services to be offered 6. Estimated determination as to Moving Cost
Reimbursement
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Reservation App • No later than 30 days after the last tenant is
relocated (based on timeline provided to VHDA), submit the following:
1. The final summary schedule of moving costs made to tenants (rent roll format; by tenant, by unit)
2. A written certification by the owner that it has met VHDA Relocation Assistance Guidelines
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Reservation App Docs to return w/Application, cont’d: Tab H: PHA/Section 8 Notification Letter (up to 10) Notification that the applicant will give leasing
preference to households on the local PHA or Section 8 waiting list
• not applicable to those developments that have project based Section 8 or project based vouchers
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Reservation App Docs to return w/Application, cont’d: Tab I: Locality CEO Letter (0 or -25) • A letter of support or no comment from the
locality will qualify the application for 0 points • A letter in opposition to the development
because it is inconsistent with current zoning or other applicable land use regulations can receive -25 points if it is accompanied by a legal opinion from the locality’s attorney
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Reservation App Docs to return w/Application, cont’d: Tab J: Homeownership Plan (0 or 5) • The LHA or qualified non-profit organization commits to sell
the units in the development to tenants • Limited to properties with detached SF homes on
individual lots that are not part of an homeowners association w/mandatory dues
• Not available to applicants receiving points for extended compliance
• Plan must be based on the premises of the Cleveland Housing Network Lease Purchase Program and provide for the accumulation of a fund residents may access to subsidize the deficit between the purchase price and the maximum available mortgage financing available based on that household’s income
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Reservation App Docs to return w/Application, cont’d: Tab K: Site Control Documentation (Mandatory) • Must be in the name of owner applying for
credits • Include most recent real estate tax assessment • Site control MUST extend at least 4 months past
app deadline (except TEB)
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Reservation App Docs to return w/Application, cont’d: Tab L: Plan of Development Certification Letter (0 or 40) Confirms the status of plan of development or
site plan approval of the development
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Reservation App Docs to return w/Application, cont’d: Tab M: Zoning Certification Letter (Mandatory) Confirms proper zoning for the site of the
development
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Reservation App Docs to return w/Application, cont’d: Tab N: Copies of 8609s, partnership/operating agreements and org charts (to certify developer’s experience)
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Reservation App Docs to return w/Application, cont’d: Tab O: Schedule of Developments (Schedule A) • Required for every individual that makes up the
GP or Managing Member (except publicly traded corporations)
• Attach a detailed explanation of the nature of non-compliance (uncorrected 8823s)
• Need only list tax credit development experience for the past 15 years
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Reservation App Docs to return w/Application, cont’d: Tab P: Plans & Specs/UxU Work Write-up – Gen’l (Mandatory) • Submitted as a separate document – do not incl
as part of pdf application • All minimum design & construction requirements
MUST be shown • All UD/accessibility elements MUST be shown (if
applicable)
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Reservation App Docs to return w/Application, cont’d: Tab P: U.D. Plans • Complete submittals will be reviewed in the order
submitted • Submittals require the completion of the
“Architect Checklist” tab within the worksheet by the Architect of Record, identifying where in the drawings program minimums are found
NOTE: The Architect of Record should initial in the spaces provided to ensure that all requirements have been reviewed
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Reservation App Docs to return w/Application, cont’d: Tab Q: Documentation of Rental Assistance (0 or 20) - Existing RD, HUD Section 8 or 236 Program (0 or 10) - RE Tax Abatement or New Federal Project-Based Rent
Subsidies or Equivalent What should be included: Example: RD/HUD HAP Contract NOTE: Subsidized funding is not rental assistance.
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Reservation App Docs to return w/Application, cont’d: Tab R: Operating Budget (no points) • Documentation to support assumptions on p. 16
of the application
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Reservation App Docs to return w/Application, cont’d: Tab S: Permanent Supportive Housing Documentation (30% basis boost) Documentation supporting the type of
permanent supportive housing for individuals or families that are homeless, at-risk of homelessness or who have multiple barriers to independent living
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Reservation App Docs to return w/Application, cont’d: Tab T: Subsidized Funding Documentation (up to 40)
Donated land or below market land leases Virginia Housing Trust Fund National Housing Trust Fund VOICE $ Bank loan commitment Locality resolution Subsidized Funding = firm commitment
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Reservation App Docs to return w/Application, cont’d: Tab U: Documentation to Request Exception • Pools with little or no increase in rent-burdened
population (up to -20)
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Reservation App Docs to return w/Application, cont’d: Tab V: Non-profit or LHA Purchase Option or Right of First Refusal (0 or 60) • Fully-executed recordable purchase option or ROFR to a
qualified non-profit or LHA • For the transfer of the property at the end of the minimum
15-year compliance period. • Qualified non-profit must have a minimum of 10%
ownership in the GP or managing member for the full 15-year compliance period
• LHAs are not subject to the 10% ownership requirement • If points are requested for extended compliance, no
points will be awarded for a purchase option or right of first refusal.
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Reservation App Docs to return w/Application, cont’d: Tab W: Attorney’s Opinion (Mandatory) A series of certifications from the applicant’s attorney that information and representations contained in the Application qualify the application for the allocation of credits requested • Changes only if absolutely necessary • Changes must be approved before application
deadline – Submit blackline for approval
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Reservation App Docs to return w/Application, cont’d: Tab X: (Reserved)
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Reservation App Docs to return w/Application, cont’d: Tab Y: Marketing Plan
• Required for 504 & Developmental Disability categories
• No plan, no points
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Reservation App Docs to return w/Application, cont’d: Tab Z: (Reserved)
Virginia Housing Development Authority
Up next… • Allocation Application • 8609 Application
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Allocation Application 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 2018 (to VHDA)
Meet 10% test no later than 12 months from the Allocation Date, including submitting documentation!
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Allocation Application Application Process: • VHDA sends customized application • Allocation Application is due in VHDA’s office on
or before November 1, 2017 by 5:00pm
Penalties and Fees:
• $500.00 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: • Active Excel workbook • Electronic/PDF copy of the signed App • Owner’s Cost Certification
– Certification of owner’s expectation of achieving ‘qualified building’ status (& PIS)
– Must include an itemized list of expenditures
• Attorney’s Opinion – 10% Test – less than, equal to or greater than 10% of the
reasonably expected basis by the date of the application
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Allocation App Docs to return w/Application, cont’d: • IRS EIN# assignment letter
– Proof of EIN assignment from IRS • Letter of Intent (LOI) from investor
– Must state the equity price
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Allocation App Site control documentation: • A copy of the recorded deed or land lease (or
memorandum of land lease) or • A copy of the document and recording receipt Extended Use Agreement • The original, recorded Extended Use Agreement
when it is received from the locality • Include a copy of the recording receipt Purchase Option/Right of First Refusal (Non-profit or LHA) • Recorded
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10-minute Break Woods at Brambleton (Loudoun County) 202 units/new construction 4% (2013)
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8609 Application
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Pre-8609 App Submission • 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 - 8609 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.
Application Process: • VHDA sends customized application
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8609 Application
Penalties/Fees: • $100 per calendar day (up to $7,500) if the 8609
Application is submitted to VHDA late, this includes mandatory items;
• thereafter, the owner will be fined an additional 4% of the outstanding cumulative balance on each one-month anniversary.
• Form(s) 8609 will not be issued until the fee is paid.
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8609 Application Docs to Return w/Application: • Excel (.xls) copy of the completed 8609 App (active
workbook) • Adobe (.pdf) copy of the signed App
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8609 Application Docs to return w/Application (cont’d): Tab A: Permanent Financing Notes • Submit other documentation if closing has not
yet occurred Tab B: Construction Contract Tab C: Grant Agreement(s) (if applicable) Tab D:
D.1 Final Partnership Agreement (MANDATORY) D.2 Development Fee Agreement (if applicable)
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8609 Application Docs to return w/Application (cont’d): Tab E: Proof of Development's
E.1 EarthCraft Certification* E.2 LEED Certification* E.3 Universal Design Certification* *if applicable
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8609 Application Docs to return w/Application (cont’d): Tab G: Independent Auditor's Report
• Must be completed in accordance with generally accepted auditing standards, which require that the auditor obtain reasonable assurance about whether the Final Cost Certification is free of material misstatement
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8609 Application Docs to return w/Application (cont’d): Tab H: Final Cost Certification
• An itemization of final development costs • Concludes which portion of the costs is included
in eligible basis
NOTE: the itemization presented in the Final Cost Certification should match the itemization in the 8609 Application (pp. 18, 19 and 20)
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8609 Application Docs to return w/Application (cont’d): Tab I: Certification of Sources & Uses Used to certify the actual cost of a property’s
construction and development • Certifications of the owner and the investor
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8609 Application
Also before 8609s can be issued: • Final VHDA inspection • Named Certified Property Management Co. • Outstanding fees must be paid
Fees after 8609s are issued: • $100 for each Form 8609 to be corrected and
reissued
Virginia Housing Development Authority
Up next… • Payment Options • Procorem (submitting documents)
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Payment Options •Application Fee •Reservation Fee •All other fees
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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: ACH/Wire Payments
To make an ACH or wire payment: 1. Email Pamela Freeth,
[email protected], 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) • You can make one payment for multiple
applications
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Payment Options: ACH/Wire Payments, cont’d
2. Subsequently, you will be given instructions for making your payment.
3. IMMEDIATELY AFTER completing the transaction, you MUST forward a remittance advice slip (i.e. confirmation that your transaction has been completed).
Payment is ‘received’ when it arrives in VHDA’s account!
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Procorem (document submittal)
Virginia Housing Development Authority
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2017 SCHEDULE 1/27/17 Locality Notification Information and Market Study
Analyst selection due – enter online 3/3/17 App for Reservation & Market Study due
(w/$1,000 application fee) by 3/17/17 Apps posted to web (can view with Business Partner
password) 4/3/17 CEO Letter & Revitalization Area documentation due
5/03/17 Announce prelim. rankings; begin comment period
5/10/17 Close general comment period; begin rebuttal period
5/17/17 Close rebuttal comment period
5/24/17 Announce final rankings
6/7/17 Review final rankings with VHDA Board
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2011 SCHEDULE SUMMARY, cont’d
Early to mid-July
VHDA sends Reservation documents to developers
September VHDA sends Allocation Apps to developers
11/1/17 App for Allocation due to VHDA
12/15/17 Finalize allocations – mail Carryover Allocation documents or issue Form(s) 8609 for regular allocation
1/2018 Carryover Agreements due to VHDA
10% Test – due within 12 Months from Allocation Date
2017 SCHEDULE cont’d
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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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• JD Bondurant 804-343-5725 • Jaynell Pittman-Shaw 804-343-5733 • Hope Coleman Rutter 804-343-5574 • Stephanie Flanders 804-343-5939 • Pamela Freeth 804-343-5518 • Sheila Stone 804-343-5822
