Discussion Topics 1 Regulation Changes 9% Application, 2 - - PowerPoint PPT Presentation
2017 L OW -I NCOME H OUSING T AX C REDIT (LIHTC) A PPLICATION W ORKSHOPS TCAC M ARK S TIVERS A NTHONY Z ETO DC N AVARRETTE CDLAC J EREE G LASSER -H EDRICK Discussion Topics 1 Regulation Changes 9% Application, 2 Attachments,
TCAC MARK STIVERS ANTHONY ZETO DC NAVARRETTE CDLAC JEREE GLASSER-HEDRICK
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before seeking state credits, unless necessary to reduce the credit request to the amount available in the project’s geographic region or the $2.5 million limit.
credits and, after the award round, designate projects for which we have insufficient state credits as DDA projects and execute an exchange of state credits for federal credits.
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vacant homeless assistance units for 60 days for
where such systems or lists exist, by either: 1) the relevant coordinated entry or access system; 2) the relevant county health department from a list of frequent health care users; or 3) the relevant behavioral health department from a list of persons with chronic behavioral health conditions who require supportive housing.
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feet, must include an accessible entrance point, must be equipped with reasonable play equipment for the size of the project, and must include a surface of natural or synthetic protective material.
footage shall be increased by 5 square feet for each additional unit.
recreational facilities suitable for children ages 13-17.
play/recreational facilities may request a waiver of the minimum square footage requirement.
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decreased percentages in excess of code: 5 points for 12% improvement; 3 points for 7% improvement.
excess of code.
points.
loads or 50% of common area loads for points, 50% of tenant loads and 75% of common area load for threshold basis limit increase.
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reclaimed water, greywater, or rainwater (excepting water used for Community Gardens), or irrigating with reclaimed water, greywater, or rainwater in an amount that annually equals or exceeds 10,000 gallons or 150 gallons per unit, whichever is less.
irrigating only with reclaimed water, greywater, or rainwater (excepting water used for Community Gardens)
in an amount that annually equals or exceeds 20,000 gallons or 300 gallons per unit, whichever is less.
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credit for the calculated value of Tranche B loan proceeds even if the project cannot support a Tranche B loan.
tax credit rental income at 40 percent (40%) AMI levels (30% AMI for Special Needs/SRO projects or for Special Needs units within a mixed- population project) from the anticipated contract rent.
subsidies shall equal the annual subsidy amount in year 1, provided the subsidy will be of a similar amount in succeeding years, or the aggregate subsidy amount of the contract divided by the number of years in the contract if the contract does not specify an annual subsidy amount.
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certificated credits at application.
is 80 cents.
regulations require that the non-profit partner be the
partner who will sell the credits. In this way, we hope to exempt the partnership from taxation on the sale proceeds of the credits.
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eliminated as acceptable.
more than half of the pages in a document are missing.”
– A shortage of sources of $50,000 or less shall be deemed covered by the contingency line item. – TCAC will allow applicants to correct cash flow shortages or overages of $5000 or less at placed in service.
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Must meet the requirements of Sections 10322(h)(10), 10325(f)(1)(B) of TCAC Regulations
Tenant Rents 10%+ Below Market Value Ratio ($/Sq. Ft.) ≤ Market Absorption Rate & Stabilized Occupancy
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Permanent = 15 Year Term Grants/Subsidies Committed 50% Construction or Permanent Committed Provide Executed Documentation
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Sources, including equity, must match uses. Net proceeds must match tax credit equity listed in your TCAC application Attachment 16
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REMEMBER
Accurately complete the table on Page 19 of TCAC Application and the Subsidy Contract Calculation worksheet
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TOTAL PROJECT COST
TAX CREDIT EQUITY 1) 2) SUBTOTAL 70% PVC for New Const/Rehab 30% PVC for Acquisition LAND COST/ACQUISITION Land Cost or Value $1,000,000 $1,000,000 $1,000,000 $1,000,000
1DemolitionLegal Land Lease Rent Prepayment
2Total Land Cost or Value$1,000,000 $1,000,000 $1,000,000 $1,000,000 Existing Improvements Value
1Off-Site ImprovementsTotal Acquisition Cost Total Land Cost / Acquisition Cost $1,000,000 $1,000,000 $1,000,000 $1,000,000 NEW CONSTRUCTION Site Work $9,000,000 $9,000,000 $2,000,000 $4,000,000 $3,000,000 $9,000,000 $9,000,000 Structures General Requirements $200,000 $200,000 $200,000 $200,000 $200,000 Contractor Overhead $300,000 $300,000 $300,000 $300,000 $300,000 Contractor Profit $300,000 $300,000 $300,000 $300,000 $300,000 Prevailing Wages General Liability Insurance $400,000 $400,000 $400,000 $400,000 $400,000 Other: (Specify) Total New Construction Costs $10,200,000 $10,200,000 $3,200,000 $4,000,000 $3,000,000 $10,200,000 $10,200,000 ARCHITECTURAL FEES Design $200,000 $200,000 $200,000 $200,000 $200,000 Supervision $50,000 $50,000 $50,000 $50,000 $50,000 Total Architectural Costs $250,000 $250,000 $250,000 $250,000 $250,000 Total Survey & Engineering
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CONSTRUCTION INTEREST & FEES Construction Loan Interest $500,000 $500,000 $500,000 $500,000 $300,000 Origination Fee $10,000 $10,000 $10,000 $10,000 $10,000 Taxes Insurance Title & Recording $10,000 $10,000 $10,000 $10,000 $10,000 Other: (Specify) Other: (Specify) Total Construction Interest & Fees $520,000 $520,000 $510,000 $10,000 $520,000 $320,000 PERMANENT FINANCING Total Permanent Financing Costs Subtotals Forward $11,970,000 $11,970,000 $3,960,000 $5,010,000 $3,000,000 $11,970,000 $10,770,000 LEGAL FEES RESERVES Rent Reserves Capitalized Rent Reserves 3-Month Operating Reserve $200,000 $200,000 $200,000 $200,000 Other: (Specify) Total Reserve Costs $200,000 $200,000 $200,000 $200,000 APPRAISAL Total Appraisal Costs $10,000 $10,000 $10,000 $10,000 $10,000 Total Contingency Cost $700,000 $700,000 $700,000 $700,000 $500,000 OTHER PROJECT COSTS TCAC App/Allocation/Monitoring Fees $200,000 $200,000 $200,000 $200,000 Local Development Impact Fees $500,000 $500,000 $500,000 $500,000 $500,000 Permit Processing Fees Furnishings $20,000 $20,000 $20,000 $20,000 $20,000 Market Study $5,000 $5,000 $5,000 $5,000 $5,000 Accounting/Reimbursables $3,000 $3,000 $3,000 $3,000 $3,000 Soft Cost Contingency $100,000 $100,000 $100,000 $100,000 $50,000 Total Other Costs $838,000 $838,000 $338,000 $500,000 $838,000 $578,000 SUBTOTAL PROJECT COST $13,718,000 $13,718,000 $5,208,000 $5,010,000 $3,500,000 $13,718,000 $11,858,000 DEVELOPER COSTS Developer Overhead/Profit $1,400,000 $1,400,000 $1,400,000 Total Developer Costs $1,400,000 $1,400,000 $1,400,000 TOTAL PROJECT COSTS $15,118,000 $15,118,000 $5,208,000 $5,010,000 $3,500,000 $13,718,000 $13,258,000 Note: Syndication Costs may not be included as a project cost. Bridge Loan Expense During Construction: Calculate Maximum Developer Fee using the eligible basis subtotals. Total Eligible Basis: $13,258,000
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Jeree Glasser-Hedrick, Executive Director
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$1,32B $1,48B $1,82B $1,57B $1,71B $992M $935M $1,82B $1,56B $1,15B $1,53B $2,86B $4,857B $507M $246M $396M $663M $1,55B $785M $432M$453M $517M $483M $225M $1,71B $1.250B $1,99B $2,33B $2,86B $3,12B $4,03B $1,96B $1,70B $2,42B $2,80B $1,91B $1,93B $4,65B $6,166B $2,84B $2,87B $2,89B $3,10B $3,11B $3,31B $3,33B $3,54B $3,58B $3,61B $3,83B $3,88B $3,914B
$- $1,000,000,000 $2,000,000,000 $3,000,000,000 $4,000,000,000 $5,000,000,000 $6,000,000,000 $7,000,000,000 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
All Allocation Dollars by Program w/cap
QRRP SFH Total Allocation Bond Cap 125
Point Threshold
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policies and procedures in place as of January 2018
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with initial lease-up and 20% of the files every three years thereafter.
submitting to the Issuer on an ongoing basis by creating updated Certification of Compliance forms for all program pools.
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basis (land plus depreciable assets), the effective limit on costs would be twice the figures listed above.
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availability
the Bond Regulatory Agreement
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FHA Forward Commitments: If the project is seeking a “Forward Commitment,” the application must be accurately identified as such by checking the Forward Commitments selection on the first page of the Application.
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Attachment B (TEFRA Resolution):
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Attachment D – Lender Commitment Letters
collateral, guarantee, recourse of commitment
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Application Summary information and Attachments:
Sources (E-1), Operating Expense (Attachment I), Sources & Uses (E-2), and the Debt Service Ratio calculation in the Project Financing section Item #10.
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Attachment W-1 (Proposed Ownership):
final post-closing ownership.
partner entity.
Partner by name or as TBD.
100%.
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Attachment R and Table 1: The “Proposed Tenant Paid Rents” and “Unit Sizes” listed on Table 1 of the Application should be consistent with the Subject Property “Base Rent” and “Unit Size in SF” represented on the rent comparability matrices for each unit type.
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Attachment M-1 (Title Report):
identified each under Attachment E-3.
ensure they are reflected in Attachment E-2 as a source.
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Attachment O (Utility Allowances): Utility components applicable to the project must be clearly identified and whenever possible corresponding dollar figures should be totaled by unit type.
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Attachment U: When seeking points for a Bona Fide Service Coordinator/Social Worker, please confirm that the following evidence is provided:
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Table 1 General Distribution Rule:
generally distributed on a prorata amount by bedroom type in the Table 1.
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In Attachment T, required maps must include a scale, and radii must be clearly labeled (1/4 mi, ½ mi, etc.).
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“N/A” is generally not an acceptable response in the application, except where specified.
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http://www.treasurer.ca.gov/cdlac/index.asp
http://www.treasurer.ca.gov/cdlac/procedures.asp
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