Oregon Housing and Community Services

4% LIHTC Program Overview

May 23, 2017

AGENDA

1. Welcome

2. Process Overview

3. Two Step Application Process Detail

4. Required Submissions

5. Approvals

6. Questions

Process Overview

Process Overview

Process Overview

Why a Two Step Process?

Pre-application allows for an intent resolution to be set prior to major expenditures that are normally required in order to submit a complete application

Pre-application allows enough information for the Loan Officer to ask relevant

questions on a scoping call and provide a customized due diligence list based on project specifics

A complete application acceptance letter provides the sponsor the ability to

lock in the existing QCT/SDDA NOTE: State Basis Boost Cannot Be Used With 4% LIHTC (per Federal Regulations)

Efficiency! This process has allowed OHCS to reduce their closing times from an

average of 9 months from receipt of application to an average of 4 months from receipt of pre-application.

Cost savings. By having a scoping call early in the process the Loan Officer can

identify potential issues and give guidance on reports that may be required preventing the need to get additional appraisals or market studies.

Two Step Application Process - Detail

Step 1 - Pre-application:

1. Submission of pre-application which can be found here: https://www.oregon.gov/ohcs/Pages/multifamily-housing-four-percent- application.aspx OHCS will review the submission within 10 business days.

2. If found to be acceptable, an Intent Resolution will be set at the next available Finance Committee (if using OHCS bonds) and a scoping call will be scheduled.

3. A letter with a due diligence list will be sent to the Applicant within 5 business days after the scoping call.

4. An application with the required level 1 due diligence items must be received prior to the expiration date stated in the letter, generally within 90 days.

Two Step Application Process - Detail

Step 2 - Application:

1. Submission of the application and tier 1 due diligence items which can be found here: https://www.oregon.gov/ohcs/Pages/multifamily-housing- four-percent-application.aspx OHCS will review the submission within 10 business days.

2. The applicant will receive a letter either accepting the application as complete or a deficiency letter listing the incomplete items that must be received prior to the expiration date established as part of the pre- application process.

3. The Applicant is required to complete Construction Closing within 180 days from the time an application is accepted as complete.

What Do I Need to Submit?

Pre-application Documentation Checklist Application Charge and Transmittal Form Authorization and Acceptance Form Ownership Integrity Certification Term Sheet Applicant and Project Information Forms Proposed Project Schedule Project Narrative Questions Sponsor and Team Information Financial Description Financial Assumptions Pro forma Workbook Environmental Review Checklist (completed by applicant)

What Do I Need to Submit?

Level 1 (required for complete application acceptance) Executed LOI with OHCS(Prepared by Bond Counsel) Complete Bond/4% LIHTC Application Application Fee LOI’s from all sources Current Bond/4% LIHTC Pro forma Bond Counsel Engagement Letter (if applicable) Distribution List Management Approval and Resident Services Packet Utility Allowances and supporting documents Current Preliminary Title Report Tenant Relocation Plan (if applicable) Existing tenant survey (if applicable) Scope of Work (rehab)

What Do I Need to Submit? Level 2 (required prior to approval) CNA * Market Study * Appraisal with land value * Phase 1 ESA (and Phase 2 if applicable) * O&M Plan, if applicable Purchase and Sale Agreement Draft Partnership Agreement Draft General Contractor Agreement Borrowing Resolution Verification of State filing of the Partnership Verification of Partnership TIN Verification of sam.gov registration All other prior to approval/prior to close items required by the LO

*Third Party reports must meet OHCS Guidelines, in General Program Manual

What Approvals are Required?

OHCS as Bond Issuer: In the event OHCS is allocating the 4% Tax Credits and

issuing the tax-exempt bonds, then the approval of the application is subject to

the Project and applicant meeting all applicable tax credit and underwriting

policies and guidelines and receiving final approval from OHCS’s Finance

Committee and OHCS Housing Stability Council.

Non-Department Bond Issuers: In the event the bonds are issued by an issuer

other than OHCS and OHCS is allocating the 4% Credits, then the approval of

the application is subject to the Project and applicant meeting all applicable tax

credit and underwriting policies and guidelines and receiving final approval

only from OHCS’s Finance Committee.

Additional OHCS Funding Sources: All other OHCS programs are subject to

OHCS Housing Stability Council approval. Additional OHCS Funding Sources are

not applicable if OHCS is not the bond issuer.

Approval Deadlines Finance Committee OHCS internal committee that meets weekly on Tuesdays Agenda item submissions (write-ups) must be submitted no later than

noon on Thursday the week prior

Housing Stability Council OHCS public meeting that meets monthly – generally on the first Friday of

every month. Meeting schedule and materials can be found here https://www.oregon.gov/ohcs/OSHC/Pages/index.aspx

Agenda item submissions must be submitted no later than 4 pm 10 calendar days prior to the meeting.

Firm commitments with respect to other relevant project funding needs to be finalized before presentation to the Housing Stability Council

OHCS staff is legally required to present a complete funding request without material conditions to Housing Stability Council for all required funding approvals. Therefore the Council is unable to issue a conditional approval for anything other than standard closing requirements.

Timing

- Timing of Submissions and Approvals are Key

- Be sure to build very realistic timeline and schedules; at this point closings

are scheduled out for the next 8 months. Any deviation from planned

schedule will mean you may need to wait for another opening in the closing

calendar; you most likely won’t be able to roll into the next week.

Questions?