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Transcript of Low-Income Housing Tax Credit · PDF fileLow-Income Housing Tax Credit Manual. ... A. Federal...

  • Virginia Housing Development Authority

    601 South Belvidere Street

    Richmond, Virginia 23220-6500

    2015

    Low-Income Housing Tax Credit

    Manual

  • 2015 v.01.01.15 i

    TABLE OF CONTENTS

    I. GENERAL PROGRAM INFO .......................................................................................................... 2 A. Federal Low-Income Housing Tax Credit (LIHTC) Program ................................................. 2

    1. Overview .................................................................................................................................. 2 2. Types of Low-income Housing Tax Credits .......................................................................... 3 3. Subsidy Layering ..................................................................................................................... 3 1. Occupancy Requirement ..................................................................................................... 4 2. Rent Requirements ................................................................................................................. 4 3. Compliance ............................................................................................................................ 5 4. Professional Assistance .......................................................................................................... 5 5. Suggested Reading ................................................................................................................ 5

    B. VHDA Program Administration ................................................................................................ 5 1. Authorization of the Executive Director ............................................................................... 5 2. Applications Are Open to the Public ................................................................................... 6 3. Related Entities ........................................................................................................................ 6 4. Scoring ..................................................................................................................................... 6 5. Rules of Ranking ...................................................................................................................... 7 6. Pools and Percentage of Available Credits ....................................................................... 7 Competitive Credit Pools ............................................................................................................... 7 Non-Competitive Disability Pool .................................................................................................. 11

    7. Change of General Partner or Managing Member ........................................................ 12 8. Minimum Design and Construction Requirements .......................................................... 12 9. New In 2015! .......................................................................................................................... 12 10. Summary of Program Fees .................................................................................................. 14 11. Updating Program Information .......................................................................................... 16 12. VHDA Program Contacts .................................................................................................... 16

    C. Allocations................................................................................................................................ 16 D. Types of Applications and Application Schedules ............................................................ 16

    1. 9% Credit Reservation Application .................................................................................... 16 How to Obtain an 9% Application .............................................................................................. 16 9% Application Deadline .............................................................................................................. 17 How to Submit the 9% Application .............................................................................................. 17 Mandatory Documents to be Submitted with the 9% Credit Reservation Application ...... 18 9% Competitive Credit Reservation Application Schedule ..................................................... 22

    2. Carryover Allocation Application ...................................................................................... 22 How to Obtain a Carryover Allocation Application ................................................................. 22 Carryover Allocation Application Deadline .............................................................................. 23 How to Submit the Carryover Allocation Application .............................................................. 23 Mandatory documents to be Submitted with the Carryover Allocation Application ........ 23 Carryover Allocation Application Schedule .............................................................................. 24 Meeting the 10% Test .................................................................................................................... 24

    3. 4% Tax-Exempt Bonds ........................................................................................................... 24 How to Obtain a 4% Tax-Exempt Bond Application ................................................................. 25 4% Tax-Exempt Bond Application Deadline .............................................................................. 25 How to Submit the 4% Tax-Exempt Bond Application .............................................................. 25 Mandatory documents to be submitted with the 4% Tax-Exempt Bond Application ......... 25 4% Tax-Exempt Bond Credit Reservation Application Schedule ............................................ 25

    4. 8609 Application ................................................................................................................... 26 How to Obtain an 8609 Application ........................................................................................... 26

  • 2015 v.01.01.15 ii

    8609 Application Deadline ........................................................................................................... 27 How to Submit the 8609 Application .......................................................................................... 27 Mandatory Documents to be submitted with the 8609 Application ..................................... 27 8609 Application Schedule .......................................................................................................... 27

    5. Recapitalization .................................................................................................................... 28 6. Qualified Contracts .............................................................................................................. 28

    E. Application Criteria................................................................................................................. 30 F. Parameters ............................................................................................................................... 31

    II. POINTS CATEGORIES ................................................................................................................... 34 A. Readiness ................................................................................................................................. 34 B. Housing Needs Characteristics ............................................................................................. 35 C. Development Characteristics - All Units ............................................................................... 40 D. Development Characteristics Amenities .......................................................................... 42 E. Development Characteristics - Accessibility ....................................................................... 44 F. Tenant Population Characteristics ....................................................................................... 45 G. Sponsor Characteristics .......................................................................................................... 45 H. Efficient Use of Resources ...................................................................................................... 48 I. Bonus Points ............................................................................................................................. 50

  • 2015 v.01.01.15 iii

    Reference Documents and Forms Needed to Complete VHDA Tax Credit Applications

    You will need the following reference documents and forms to complete your Application for Low

    Income Housing Tax Credits.

    Parameters

    Efficient Use of Resources (EUR) Parameters

    Elderly 1 Story - Cost & Credit

    Elderly - >1 Story - Cost & Credit

    General Garden - Cost & Credit

    General Townhouse Cost & Credit

    Market Study and Appraisal Guidelines

    1. Market Study Guidelines

    2. Market Study Analyst Listing

    3. Appraisal Guidelines

    Sample Documents

    1. Sample State Corporation Commission (SCC) Certification

    2. Sample EUR Cost Per Unit Calculation

    3. Sample EUR Credit Per Unit Calculation

    4. Sample EUR Rehab Parameter Calculation

    Guidelines

    Relocation Assistance Guidelines

    Lists

    1. Qualified Census Tracts

    2. Census Tracts With Poverty Levels Below 10%

    3. RD Priority Rehabs

    4. Existing Tax Credit Developments

    5. Universal Design Certif