2015 lihtc overview slide presentation
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The document summarizes changes to Connecticut's Low-Income Housing Tax Credit (LIHTC) program for 2015, including amendments to the Qualified Allocation Plan and procedures. Key points include $50 million available in tax credits, priorities for supportive housing and mixed-income developments, new scoring criteria, application deadlines in November 2015, and guidance on underwriting, construction requirements, and contacts for technical assistance.
2015 lihtc overview slide presentation
- 1. QUALIFIED ALLOCATION PLAN AND PROCEDURES (QAP) OVERVIEW SESSION SEPTEMBER 18, 2015 2015 LOW-INCOME HOUSING TAX CREDIT (LIHTC) PROGRAM
- 2. • Commitments up to $50 million • DOH review to occur simultaneously with CHFA review of ConApp DOH Gap Funding
- 3. DOH Gap Funding Soft Commitment Minimum Criteria: • Demonstrated Marketability • Appropriate Location • No Feasibility Issues • Ready to Proceed
- 4. DOH Gap Funding Priorities Guidance on DOH Website • Cascading Criteria: High Opportunity Mixed Income Mixed Use • Cascading DOH Cap: $5 or $6MM 30% -33% of TDC
- 5. DOH RAP Commitments Availability of RAP Vouchers • Available for SSHP projects only • Must submit description of request and RAP Analysis Worksheet to Helen Muniz (DOH) in advance of deadline
- 6. Qualified Allocation Plan (QAP) & Procedures
- 7. • January 2015 - CHFA’s Board of Directors convened Task Force • May 2015 - Proposed amendments to the QAP and LIHTC Procedures • May 2015 - Board approved publication of amended documents for public comment Background
- 8. • July 2015 - CHFA’s Board of Directors approved amended QAP and LIHTC Procedures • August 2015 - Governor signed • LIHTC Procedures streamlined • Operational language moved to Guideline Background
- 9. • Eliminated the Exceptional Priority classification • Re-aligned the Application Criteria and points to the state’s policies • Aligned points with priorities, making threshold any that no longer served as incentives Amended QAP
- 10. • Historic, Adaptive Re-Use and Brownfield development – returned to 2 points • Women and Minority Participation – returned to 2 points • Statutory references are clarified with a full description Amended QAP from Public Comments
- 11. • Two Classifications only: 50 / 50 split - State and Federal Public Housing and General Class • New Preference within Public Housing Classification: Tie-Breaker Preference for State Sponsored Housing Portfolio (“SSHP”) developments Classifications and Preferences
- 12. • Set Aside remains within the General Class - One new construction family development in a municipality listed on the Housing Appeal Procedure List where there is less than 10% assisted and deed-restricted housing QAP – Set-asides
- 13. • A minimum of 20% of the units in the development for Households 25% to 50% AMI • Length of Extended Low Income Housing Commitment • 40% Building Plans and Specs • Affordability Profile Amended QAP – New Threshold Items
- 14. • Housing for Veterans (outside of supportive housing) – 2 points • SSHP Developments with Critical Needs 2018 or sooner – 2 additional points New Points Items
- 15. • Length of ELIHC – Minus 4 points • Affordability Profile – Minus 3 points • Experience of Property Manager – Minus 2 points • CDBG-DR Additional Points – Minus 3 points Points Items Removed
- 16. Scoring Maximum Points reduced to 102 Priority Points Rental Affordability 37 points Financial Sustainability 23 points Municipal Commitment and Impact 29 points Qualifications and Experience 11 points SSHP Developments – Additional Points 2 points Total 102 points
- 17. • All Applicants for 9% LIHTCs must apply during the funding round • Applications for 2015 are due no later than 4:00 pm on November 9, 2015 • There will be a deficiency period – there are threshold items now that were not in place before – do not rely on the deficiency period • Announcements anticipated at March 2016 Board meeting Process
- 18. LIHTC Underwriting Guidance • Funding Commitments must be firm for points consideration • Municipal Commitments should be firm and quantifiable over 20 years • Appropriate Organizational Documents for Applicant and Co-Sponsor • Qualified Development Team Members must be licensed in CT have sufficient LIHTC experience be selected through a justified process
- 19. LIHTC Underwriting Guidance Items often missing that must be provided: • HUD Involvement Letter required if Section 8 development • Correct financing terms in Sources and Uses and Cash Flow Schedule exhibits • Attestment Letters confirming tax credit basis Caution: Items missing related to points only will not be noted in the deficiency letter
- 20. Other Related Updates Multifamily Procedures, LIHTC Procedures, Guidelines, Glossary, Policy Statements • Revised Developer Fee Schedule • Construction Contingency & Basis • Appraisals for LIHTC-only deals • Eligibility Policy • CHFA review prior to submission for high cost/waiver transactions • Annual Distributions • Syndicator Approvals
- 21. Technical Services Guidance • Scope of work described in narrative should match information on drawings/specs/construction costs • Exploded Trade Breakdown and Project Cost Summary • Include Prevailing Wages or Federal Davis Bacon if applicable and DOL wage rate sheets • General Requirements 9% max, OH&P 7% max • Construction contingency typically 10%
- 22. • No points awarded for 40% drawings/specs; only 90% and above • Any energy efficient measures should be included in drawings/specs and construction costs • Building GSF etc should be noted on drawings in tabular format provided in ConApp Technical Services Guidance
- 23. • Environmental abatement costs noted in reports should be included in the Environmental line item on PCS and ETPB • If Phase I ESA recommends additional testing, this testing should be done, additional report included in application submission and all remediation costs included • Radon testing is needed for existing buildings; for new construction, a radon mitigation system should be included in drawings/specs and construction costs Technical Services Guidance
- 24. Contact Information Chris Polek christopher.polek@chfa.org Consolidated Application and SharePoint process Ed LaChance edward.lachance@ct.gov Consolidated Application and DOH Gap Funding Helen Muniz helen.muniz@ct.gov DOH Rental Assistance (RAP) and SSHP Developments Joe Voccio joe.voccio@chfa.org LIHTC Program and Financing Terry Nash terry.nash@chfa.org QAP, Procedures and Guidelines Jennifer Landau jennifer.landau@chfa.org Technical Services Requirements / Plans, Specs, Environmental, etc. Steve DiLella steve.dilella@ct.gov Rental Assistance / Supportive Housing John Dunne john.dunne@csh.org Supportive Housing Technical Assistance