2017 LIHTC qualified allocation plan (QAP) and LIHTC application - - PowerPoint PPT Presentation

2017 LIHTC qualified allocation plan (QAP) and LIHTC application

We want you to know!

tax credit team

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Mike Pacheco Tasha Weaver Denise Tamulis Paula Harrison Meghen Brown Kim Martin Shannon Friel Rhonda Housden

QAP and LIHTC application changes

 For 2017, a few changes to the QAP and some

important changes to the LIHTC Application will be discussed during this webinar.

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9 percent competitive federal credit - amount available (see section 3.A.4)

 For 2017, a total of $12.5 million in federal housing

credit will be available.

 Letters of Intent Deadline is May 1, 2017  Applications Deadline is June 1, 2017

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state credit - amount available and maximum credit award (see sections 3.E 3.G)

 CHFA will allocate the total $5 million in annual state

credit that is available for 2017 and will reserve the right to forward-reserve up to the $5 million of 2018 state credit in 2017.

 New: A maximum of $1 million in annual state credit

will be available per project and/or per developer.

 New: The Disaster Relief program has expired.

 Letters of Intent are due January 3, 2017  Applications are due February 1, 2017

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underwriting criteria (see section 4)

 New: After considering input from the public, no

changes will be made to the minimum PUPA amount

• f $3,900.

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2017 priorities

 Priorities

 The following three priorities will apply to both federal

and state credit:

 Projects serving homeless persons as defined in Section

5.B.5

 Projects serving persons with special needs as defined in

Section 5.B.5

 Projects in counties with populations of less than

175,000

 New: CHFA no longer has a priority for

projects in counties impacted by a natural disaster. 7

critical elements of the selection process – projects requesting state and federal credit (see section 2)

 Guiding Principles  Criteria for Approval

 Strong competitive projects will align with the Guiding

Principals and meet all Criteria for Approval.

 New: Language has been added to emphasize CHFA’s

requirement that “experience and track record” of the Development and Management Team applies to Competitive 9 percent federal credit, state credit with 4 percent federal credit, and non-competitive 4 percent LIHTC applications.

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critical elements of the selection process – projects requesting state and federal credit (see section 3)

 Project Checklists

 New: All applicable documents required in the

Preliminary Application Document Checklist must be submitted prior to the application deadline as a threshold requirement for preliminary applications.

 New: Applicant’s demonstrated track record of

submitting complete application packages on time and responding timely to clarification requests from CHFA staff will favorably impact the applicant’s ability to compete successfully in 9 percent and state credit rounds. 9

 Criteria for Approval

 New: Additional guidance has been added for the

zoning requirement. While having zoning in place will not be a threshold requirement, applicants will be at a competitive disadvantage if the appropriate zoning is not in place at the time of the application. 10

critical elements of the selection process – projects requesting state and federal credit (see section 3)

 Thresholds

 New: Language added to emphasize that all threshold

criteria must be met prior to the application submission deadline in order to be considered for an

• application. None of the threshold requirements will

be subject to the five-day clarification letter period. 11

critical elements of the selection threshold criteria - preliminary tax credit applications (see section 3.a.5)

 Thresholds

 New: If portions of documentation for threshold #1 (Minimum

Score), and #2 (Site Control) were inadvertently omitted or reconciliation with the application is needed for threshold #3 (Market Study) or #7 (Readiness to Proceed), applicants will have until 5:00pm of the next business day following CHFA’s notification to send the documents or the application will be rejected.

 New: Additional guidance has been added for the zoning

• requirement. While having zoning in place will not be a threshold

requirement, applicants will be at a competitive disadvantage if the appropriate zoning is not in place at the time of the application.

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critical elements of the selection threshold criteria - preliminary tax credit applications (see section 3.a.5)

critical elements of the selection threshold criteria - preliminary tax credit applications (see section 3.a.5)

 Thresholds

 New: Language has been added to the Documents

Checklist to emphasize the need for an appraisal by a third party accredited appraiser for acquisition/rehabilitation projects. The appraisal must calculate the value of the property in “as-is” condition based on the assumption it is operated with market rents.

 In addition, the land value must be reported

separately. 13

state credit priorities

 Additional state credit priorities

 Projects using 4 percent credit and state credit  New construction and acq/rehab  “Readiness to Proceed” priority for applications for state credit

with 4 percent credit submitted by February 1, 2017

 New: CHFA will accept state credit applications for

acquisition/rehabilitation projects as well as new construction projects.

 New: Eligibility requirements for projects

impacted by a natural disaster will no longer apply since there are no disaster recovery state credits available in 2017. 14

state credit threshold requirements



Legal notice w/publisher’s affidavit



At the Applicant’s option, it may use DOH’s template (attachment C of the DOH application). The Notice must run at least one day and at least five days before the LIHTC application deadline or submission of the application (deadline to publish: 01.27.17). The developer must hold a public hearing in the community of the proposed project. CHFA must consider the comments from the hearing in the review and approval process for state credits.



Can meet CHFA’s requirements if both sources and amounts are specified. List amount of STC requested and anticipated amount of equity.



Sign-in sheet



Written minutes



Audio recording (digital format, i.e. smart phone)



Applicants must demonstrate that there will be some monetary, in-kind, or other contribution benefiting the proposed project from the local government that is evidenced by a vote of the public body.

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9 percent federal credits application fees (see section 6.a.1)

 The application fee for preliminary application will

increase from $5,000 to $10,000 for all 9 percent competitive preliminary applications.

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non-competitive 4 percent federal credit application fees (see section 6.e.1)

 The application fee for federal 4 percent credit will be

changed from 1 percent of the annual federal (4 percent) credit amount or $5,000, whichever is greater, to a flat fee of $10,000.

 The $1,000 fee for state credit remains the same and

is in addition to the flat fee of $10,000 for the accompanying 4 percent annual federal credit.

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additional 4 percent federal credits (see section 6.d.4)

 For requests of additional 4 percent credits prior to

the final application that require a new Initial Determination Letter, the fee for the request will be increased from $1,500 to $3,000.

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non-competitive 4 percent federal credit initial determination fee

 The Initial Determination Fee has been increased

from 2.5 percent to 3.5 percent of the annual credit amount requested.

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registering as a new user



Check your email account for a message from notifications@procorem.com. This may end up going into junk mail.



Once the email is received double-click the “Visit Procorem” button.

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registering as a new user



You’ll be taken to a new page to create your account.



Enter a password, check the box indicating you’ve agreed to the terms and conditions, and select “Sign Up Now”

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registering as a new user



Upon successfully creating your account, you’ll be redirected to your home page.

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getting around



A recorded tutorial explaining the navigation and features of Procorem is available in the right panel of the home page. Click the arrow button circled below to get started.

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uploading documents



From the home page, click on “View All ‘x’ WorkCenters”.

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Select the WorkCenter you’d like to upload to.

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uploading documents



Once you have arrived at the WorkCenter page, the “Upload Files” page is in the upper right hand side of the screen.

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upload documents



This will prompt you to a screen which allows you to upload files. From here you can either choose the file from your directory or drag and drop multiple files directly from your computer into Procorem.

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creating and editing posts



To make a post on a specific WorkCenter, first head into the

• WorkCenter. From there, you look to the left navigation side bar and

select Posts.

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creating and editing posts



Once in the Posts screen, you will see all the posts made by Collaborators on the WorkCenter. Posts are time stamped and can

• nly be edited by users with sufficient rights.



To make a new post, simply click in the white area and start typing.

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If you would like to do more than just type, such as changing font style, adding pictures, using bullet points, creating tables, etc. simply click the drop down arrow in the upper right corner.

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additional help



The help guide is available by clicking on the arrow next to your profile in the upper right hand corner of the screen and selecting “Help” from the dropdown list.

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additional help



The guide is meant to walk new users through the basics of

• Procorem. Walk through the tutorial step by step, jump between

sections or feel free to use the search bar to find a specific article or topic.

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LIHTC reservation timeline

 You send the Letter of Intent, Market Study

Engagement Letter, designate your PMA census tracts, and the quiet period begins

 Upload the electronic application, and all supporting

documentation to the Procorem website

 Deliver the required hard copies and application fee

to CHFA

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LIHTC reservation timeline

 CHFA checks to see that Threshold Review is passed

(if applicable)

 Yes or No Application returned  CHFA conducts its full application review and site visit  Five-day Clarification Letter sent to you

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LIHTC reservation timeline

 By five days, you clear up the Clarification items  CHFA staff presents to the Tax Credit Allocation

Committee

 Yes or No Notifications sent; CHFA staff meets

with all non-selected applications

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LIHTC reservation timeline

 Fee Letter sent to selected projects  You submit fee within 10 days to CHFA  CHFA sends award letter

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CHFA PAB conduit bonds and federal 4 percent LIHTC timeline

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changes to energy efficiency requirements (see section 8)

 Projects will be permitted to use 2011 or 2015 Enterprise

Green Communities (EGC) Criteria, which is not a change from last year.

 New: LEED or NGBS certification can be substituted. If the

applicant is required by local building codes or elects to certify a project under LEED or NGBS, CHFA will waive the EGC

• requirements. For LEED or NGBS, the applicant must submit the

following:

 A self-certification form at preliminary application signed by

the developer and architect indicating which program certification is being pursued (LEEDS or NGBS). The project sponsor must also indicate whether the certification is mandated by the local municipality

• r is voluntarily pursuing the certification.

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changes to energy efficiency requirements (see section 8)

 For LEED or NGBS, the applicant must submit the

following (continued):

 Submit evidence of project registration under LEED or

NGBS at Carryover application.

 Provide at Final Application proof of LEED or NGBS

certification, or proof of filing for final certification upon project completion.

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2017 LIHTC application: development information, cell B7

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2017 LIHTC application: development information, tab cell D30

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2017 small DDAs (SADDA) www.huduser/portal/sadda

 Place an “X” in cell D30  Provide to CHFA a screenshot from the HUD website

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2017 LIHTC application: development information tab, cells C20 & G67 or G68 or G69

 Federally Assisted

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2017 LIHTC application: development information tab, cells C20 & G67 or G68 or G69

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LIHTC 2017 application timeline tab cells A12 thru A15

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2017 LIHTC application

 New: Cost Summary tab

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2017 LIHTC application: development budget tab, change building permit line item, from row 96 to row 25

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2017 LIHTC application: development budget tab, change tap fees line item, from row 26 to row 52

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2017 LIHTC application: development budget tab, change mortgagee fee line item, row 52 removed in 2017 application

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2017 LIHTC application: federal credit amount tab

 The basis limit calculation factor for 2017 was

increased by 3.25 percent.

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2017 LIHTC application: state housing credit tab

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2017 LIHTC application: state housing credit calculation



As in 2016, the 2017 LIHTC Application calculates the state housing credit amount that will be used to reserve state housing credit.



This calculation is based on the state statute, “In no event shall a credit exceed thirty percent of the qualified basis of the qualified development.” [see Section 39-22-2102 (2)(b) of Title 39 Article 22 Part 21 Colorado Low-Income Housing Tax Credit]



The calculation for the state credit is as follows: Adjusted Eligible Basis x Applicable Fraction = Qualified Basis Qualified Basis x 30% = Maximum State Housing Credit that a project may be eligible for.



New: The state credit will be capped at $1,000,000 per project and per developer for 2017.

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2017 LIHTC application: unit mix and rents tab, cells J20 and B30 through B84 dropdown

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2017 LIHTC application: unit mix and rents tab, cells J19 and C30 through C84 dropdown

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2017 LIHTC application

 Contractor-Developer Fee

Limits Tab: This worksheet now calculates the percentage

• f the contractor fee to the

total costs for calculating the contractor fees and calculates the percentage of the developer fee to the total costs for calculating the developer fee. 53

2017 LIHTC application: scoring tab, row 141, warning

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2017 LIHTC application: application instructions tab, supportive housing or special needs change

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permanent supportive housing

 Scoring section: Permanent Supportive Housing (PSH)  Applicants selecting points for homeless or special

needs housing will need to provide the following documents to both CHFA and the Colorado Division

• f Housing at the time of application.

 Supportive Services Plan and Budget  Memorandum(s) of Understanding with In-Kind

Service Provider(s)

 colorado.gov/pacific/dola/2016-PSH-RFA

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2017 LIHTC application: application instructions tab, phone number rule

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2017 LIHTC application: 10 percent test for carryover tab, changes tap fees to row 52 and building permit line item to Row 25

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questions and answers from tasha



Will CHFA make preservation a priority in 2017?



Answer: We will make no changes to our priorities (except that the need to have one for projects in the disaster areas is no longer needed). Preservation, however, is included in the 2017 Guiding Principles.



Will CHFA add Areas of Opportunity to the priorities in 2017?



Answer: Not for 2017. CHFA will be conducting a disparate impact study in 2017.



Does CHFA review the status of the property management company upon submittal of a Letter of Intent (LOI)?



Answer: Upon receipt of an LOI, CHFA reviews the development team’s information for compliance. If an issue of noncompliance is found at any time during the application process, CHFA communicates with the applicant and may reject the application.

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questions and answers from tasha

 Will CHFA make a change in the zoning requirements in 2017?

 Answer: We will make no changes but in Section 2, Criteria for

Approval, CHFA has added more clarity to our zoning requirements and asks that the project sponsor explain the zoning status and/or process clearly.

 Would CHFA consider multiple rounds and blending credit

types in 2017?

 Answer: Not for 2017. CHFA has found that one competitive round

for each credit type allows CHFA to best select the projects that meet the Guiding Principles and Priorities of the QAP.

 Will CHFA increase the minimum PUPA in 2017?

 Answer: After receiving comment from the public, no

change will be made to CHFA’s Minimum PUPA in 2017.

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Questions from the webinar participants

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chfa tax credit contacts information

 Tasha Weaver, Manager,

303.297.7429 tweaver@chfainfo.com

 Denise Tamulis

303.297.7386 dtamulis@chfainfo.com

 Kim Martin

303.297.7333 kmartin@chfainfo.com

 Meghen Brown

303.297.7433 mbrown@chfainfo.com

 Mike Pacheco

303.297.7368 mpacheco@chfainfo.com

 Paula Harrison

303.297.7316 pharrison@chfainfo.com

 Shannon Friel

303.297.7387 sfriel@chfainfo.com

 Rhonda Housden

303.297.7402 rhousden@chfainfo.com

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