2012 Qualified Allocation Plan Forum September 1, 2011.

2012 Qualified Allocation Plan

Forum

September 1, 2011

2012 Qualified Allocation Plan Forum

WELCOME

&

INTRODUCTIONS

2012 Qualified Allocation Plan Forum

Agenda

9:05 – 9:35 am The New Real Estate Department

9:35 – 10:15 am

2012 – 2013 QAP Changes

10:15 – 10:30 am

Networking Break Presented by NEF

10:30 – 11:30am

What Makes a Good Market Study, Indiana Style

11:30 – 1:00 pm

Lunch (On Your Own)

1:00 – 1:50 pm Legislative Update

2:00 – 2:45 pm Debt Financing For Housing Credit Developers

2:45 – 3:00 pm Networking Break Presented by AHAIN

3:00 – 4:00 pm Dialogue With The Equity Experts

IHCDA Real Estate Department

Community Development

Multifamily

Real Estate Department

Production

Underwriting

Design & Construction

Review

Compliance & Asset

Management

Business Development

& Special Projects


J. Jacob SipeCREDO

Brian PhilpsBusiness Dev. & Special Projects

Adrienne SchmetzerDesign & Const.

ReviewJeff IsaacsDeputy Director of

Production

Larry GrubbsUnderwriting

Matt RayburnCompliance &

Asset Mgt.

LaTrina AkinsCoordinator

Ryan SplichalSystem

Specialist


Programs Administered by RED:• Qualified Allocation Plan

• Section 42 – Rental Housing Tax Credits• HOME & Development Fund

• Tax Exempt Bond Financing

• Strategic Investment Process• HOME Investment Partnership Fund• Community Development Block Grant & Disaster• Indiana Development Fund

• Neighborhood Assistance Program (NAP)

• Home Again• Money Follows The Person

Production DivisionJeff Isaacs, Deputy Director of Real Estate Production

Qualified Allocation Plan

Strategic Investment Process

Matt Hutchinson, Real Estate

Production Analyst, Northwest

Talisha Bradley, Real Estate

Production Analyst, North Central

Megan Coler, Real Estate

Production Analyst, Northeast

Alan Rakowski, Real Estate

Production Analyst, Southwest

Carmen Lethig, Real Estate

Production Analyst, Southeast

Greg Majewski, Homeless Prevention

and Housing Specialist

Underwriting Division

Underwriting

Jennifer MillikenRegion IReal Estate Investment Underwriter

Susan ShepherdRegion II Real Estate Investment Underwriter

Closing

Jack PowellClosing Agent

Larry GrubbsManager

Adrienne SchmetzerManager

Design and Environmental

ReviewPhysical Inspection

Doug NewportDavid Pugh

Architectural Design & Construction Review Division

Compliance & Asset Management Division

Closeout Audits

Mike Recker Sr. Compliance

Auditor

Devyn Smith Compliance

Auditor

Ongoing Complianc

e

Jeff Ivory Sr. Compliance

Auditor

Anika Davis Compliance

Auditor

George McMannis

Compliance Auditor

Matt Rayburn, Compliance & Asset Manager

2012-2013 QAP Process

1. Application Deadline: November 1st – 5 p.m.

2. Within 14 days you will receive a memo outlining the anticipated important dates:1. CNA Site Visits 2. IHCDA LUG Notification3. Clarification/Technical Correction Letters4. Underwriting Letters

1. Financial Analysis2. Letters of Interest

5. Market Study Clarification Letters6. Preliminary Score Sheet7. Reservations: February 23, 2012

2012-2013 QAP Sections

1. Housing Priorities

2. Set Aside Categories

3. Threshold Requirements

4. Evaluation Factors

5. Miscellaneous

2012-2013 QAP Housing Priorities

Comprehensive Community Development

Aging In Place

Ending Homelessness

High Performance Building

2012-2013 QAP Set Aside Categories

% of Available RHTC’s

Set Aside Category

10% Not-for-Profit

10% Community Impact

10% Elderly

10% Large City

10% Small City

10% Rural

20% Preservation

10% Housing First

10% General

2012-2013 QAP Set Aside Categories

CHANGES:

• Page 7 – USDA Rural Development Properties are required to follow the definition of elderly per Appendix 1 to HB-1-3560.

• Page 8 – Eligible Housing First applicants who complete the Indiana Supportive Housing Institute may apply during the open round as defined in Section H.1:Miscellaneous – Application Dates.

2012-2013 QAP Threshold

CHANGES:

• Page 12 – Applicants must notify IHCDA at least 30 days prior to the application submittal (Monday, Oct. 3), submitting Form C to IHCDA electronically via: [email protected].

• Page 13 – The market study must be no more than six months old at the time of submission to IHCDA.


CHANGES:

• Page 13 – All additional documentation (e.g. certifications, letters, etc.) requested by the Authority must be issued/dated within six months prior to the application deadline.

• Page 16 – Development site information must include current photographs, including images looking out toward each of the cardinal directions. Rehabilitation projects must include images of each façade of theexisting structure(s) as well.


CHANGES:

• Page 20 – Fair market appraisals must be completed no earlier than 6 months from the application deadline.

• Page 22 – Underwriting Guidelines: Replacement Reserve is required for all developments and must be included in the operating budget, but is not included as part of the operating reserve.


CHANGES:

• Page 24 – The amount of RHTCs reserved for allocation to any person, entity, owner, developer or applicant may not exceed $1,500,000.

• Page 26 – Contractor Fee Limitations: The Authority will permit saving in a particular Contractor Fee line item to offset overruns in other Contractor Fee line items; provided, however, that total ContractorFees do not exceed 14%.


CHANGES:

• Page 26 – Architect Fee Limitations: Site work included with total hard costs, general requirements, overhead, profit, and construction contingency.

• Page 26 – Related Party Fees: The applicant, owner, and consultant must disclose all related party fees within the initial application budget.


CHANGES:

Minimum Development Standards

• Page 27 – Vinyl siding must be at least Residential Grade (.042 mm) in thickness.

• Page 28 – All new construction developments must be built in accordance with the accessibility requirements of the Fair Housing Amendments Act of 1988.


CHANGES:

Minimum Development Standards

• Page 28 – Developments receiving federal funds or HUD Program funding must be built and designed in accordance with Section 504.

• Page 28 – For rehabilitation of buildings constructed of masonry shell, option of coating with materials that prevent air movement.


CHANGES:

Performance Violation

• Pages 30-31 – Fines, Negative Points, Reduction of Credits, Suspension and/or Debarment.


Threshold Pitfalls to Avoid

1. Notice to IHCDA (Form C) is not submitted at least 30 days prior to application submittal.

2. Documents are not properly labeled and placed in the correct tabs.

3. Documents are more than 6 months old.4. Not including affidavits from all development

team members.5. Failing to identify the specific location of the

accessible units.

2012-2013 QAP Evaluation Factors

1. Rents Charged 28 Points

2. Development Characteristics 93 Points

3. High Performance Housing 21 Points

4. Financing & Market 29 Points

5. Other 33 Points

Total 204 Points


Changes:

• Page 31 – Applicants must score a total of 110 or more.

• Page 37 – Universal Design Features: Blue Ribbon (4 universal design features) shall be awarded 5 points.

• Page 41 – Development Historic in Nature: Additional detail on required documentation.


Changes:Infill

• Page 43 – IHCDA defines infill housing as the process of developing vacant or underused parcels of land within existing urban areas that are already largely developed or previously developed.

• Page 43 – Four Infill Attributes with points attached to each; description of how the site will return vitality to the neighborhood.


Changes:

Local Redevelopment Plan

• Page 46 – Plan must include a narrative listing the location and page number of all required items within the plan.

• Page 46 – Required documentation must include a brief description of the community engagement process.


Changes:

Off Site Improvement, Amenity and Facility Investment

• Page 48 – Minimum cost for improvement based on development location.

• Large City - $100,000• Small City - $50,000• Rural - $25,000


Changes:

• Page 49 – Phased Developments: At least one or more phases must have received an allocation of RHTCs or at least one phase has begun construction.


Changes:

• Page 54 – Previous Funding within a Local unit of Government: Inclusion of 1602.

• Page 55 – Certified Tax Credit Compliance Specialist: Property management consultants or subcontractors do not qualify as an eligible Management Entity.


Changes:

Minority Business Enterprise and Women Business Enterprise

• Page 56 – Inclusion of Federal Disadvantaged Business Enterprise (DBE) Participation, Veteran-Owned Small Business (VOSB), and Service Disabled Veteran Owned Small Business (SDVOSB).


Changes:


• Page 57 – Non-profit entity can receive points as an Owner/Developer or Management Entity if at least 51% of the Board are minorities, females, or persons with disabilities (evidence required).

• Page 57 – Eligible firms/entities include professional services, contractor, sub-contractors, owner/developer, and management entity (minimum 2 year contract).


Changes:


• Page 58 – Points based on percentage of total development cost.

• Page 58 – Must provide all applicable contracts and certifications at the time of final application which demonstrate the commitment of percentage has been met.


Changes:

• Page 59 – Unique Features: Points range from 7 to 0.5.

2011 QAP Threshold

Scoring Pitfalls to Avoid

1. Unit Size – floor plans do not contain the exact total square footage or is not legible.

2. Unique Features – not described in the narrative summary.3. Supporting documentation in the wrong tab.4. Form C is not signed by the highest elected official or

authorized designee.5. Loss of 4 points and $150 fine for not submitting a Semi

Annual Progress Report by June 31 and December 31(applicable to all developers with a pending 8609 development including 2011 reservations).

Application Best Practices

1. Submit a copy of all documents on CD-Ra) Organize in application orderb) PDF, legible format

2. Self-score sheetsa) Show your work for calculationsb) Include notes if score sheet suggests

(desirable site)

3. One file per application

4. Label all documents with development name

2012-2013 QAP Miscellaneous

Program Application Deadline Anticipated Reservation Date

Rental Housing Tax Credit November 1, 2011

November 1, 2012

February 23, 2012

February 28, 2013

Housing First Rental Housing Tax Credit

March 12, 2012 until September 3, 2012

March 11, 2013 until September 2, 2013

60 days from the application submission

Private Activity Bond Round

March 12, 2012 until June 8, 2012

March 11, 2013 until June 10, 2013

60 days from the application submission


1. IHCDA Supplemental Application Fee is $500 (regular application fees remain the same).

2. 150 Day Documentation must include certification that the owner has obtained a username and password at www.ihcdaonline.com.

3. Carryover Allocations – On or before the first Monday in July; on or before the first Monday in November for reservations after June 1st.


4. IHCDA Rental Housing Tax Credit Compliance Seminar Certificate – Owners not issued an 8609 from IHCDA within the last three years must successfully complete the IHCDA On-Demand Owner Training.

5. Exchange of credits will require payment of a nonrefundable reservation fee of 4% of the annual amount of RHTCs for the development

Underwriting Guidelines

• Review for compliance to underwriting guidelines published in 2012-2013 QAP, pages 21-23.

• % of Developer Fee elected to be deferred; is this reflected in proforma and can it be repaid during 15 year

compliance period?

• Permanent debt amount and terms; verify that debt service reflected in proforma is correct.

• Determine if additional IHCDA funds request is necessary; is DCR on high side; is cash flow such that request

could be reduced and/or deferred developer fee be increased; should requested terms be revised?


• Evaluate project’s “cost reasonableness” based on third party estimating software.

• Evaluate market studies submitted by the applicant.• Work with RPRG to follow up with applicant on

any concerns identified from the market demand analysis.

• Provide an opinion on project demand and potential impacts on vacancy rates and reserves, as well as relationship to existing IHCDA properties.

.


• Issue Financial Analysis Letter to applicant to:• Confirm requested tax credit amount and any

requested additional IHCDA funding. • Request clarification of items outside guidelines

and industry norms.• Request any additional information to complete

review.

Underwriting: Final Applications & 8609s

• Underwriting also reviews all Final Applications and re-underwrites the project to ensure that the final budget still meets IHCDA underwriting guidelines.

• Issue 8609s• Watch for an upcoming RED notice on “Tips for

Completing Final Applications” and a revised Final Application.

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Application Submission Guidelines:Schedule G

Changes:• Tabs A-U will now be submitted electronically (Tab A

requires paper and electronic submission)• All documents need to be save as a PDF• All documents should be placed in an electronic

folder, labeled accordingly• All folders (A-U) should be saved on either a CD-ROM

or a flash drive and turned in with your application

2012 Qualified Allocation Plan Forum September 1, 2011.

Documents

Transcript of 2012 Qualified Allocation Plan Forum September 1, 2011.