NH&RA Summer Institute and NMTC Symposiumservices.housingonline.com/nhra_images/NMTC Applications...

NH&RA Summer Institute & NMTC Symposium

NH&RA Summer Institute and NMTC Symposium

Competitive Advantage: Positioning Your Application & Quantifying Community Impact

Speakers: Diane Binnick, The Binnick Group, Washington, DC Moderator: Terri Preston, Baker Tilly Virchow Krause, Madison, WI, Ira Weinstein , Reznick Group, Baltimore, MD

July 25 – 28, 2012 | Harbor View Hotel | Martha’s Vineyard, MA

NH&RA Summer Institute & NMTC Symposium NH&RA Summer Institute & NMTC Symposium

NH&RA Summer Institute and

NMTC Symposium

2012 NMTC ALLOCATION APPLICATION SUMMARY OF CHANGES: HIGHLIGHTS



APPLICANT INSTRUCTIONS

Added – A Subsidiary CDE cannot submit an Allocation Application

ASSURANCES AND CERTIFICATIONS

Added – New Question 15 - Neither the Applicant, Controlling Entity (if applicable), nor any Affiliate is a federally regulated financial institution currently under any Enforcement Action from any federal regulator.



PART I: BUSINESS STRATEGY Question 11 – Executive Summary - now

includes a Part (b) which requires a 500 word response describing the types of investments an Applicant intends to make – Applicants not scored on this response

Question 14 – Products/Rates/Terms - Part (b)

now includes a new flexible feature - Subordination



Question 16 (2011) required discussion of tax credit equity remaining at the end of the compliance period. This has been moved to Question 39(b) Distribution of Benefits under Capitalization Strategy.

Question 16 (formerly Q17 in 2011) – Loan Purchase - has modified Part (b)



Question 17 (formerly Q18 in 2011) – Track Record - has added this new TIP: An Applicant that has a longer track record of providing similar direct financing will generally score higher in this section than an Applicant that primarily or exclusively provided indirect financing.



Question 18 (formerly Q19 in 2011) – Non-QLICI activities – has a new heading that includes a reference to Direct Financing, now includes Table A-5 and a revised Part (b)



Question 19 (formerly Q20 in 2011) – Proposed Investments – has added a new Part (d) - Explain how income and expense considerations of the CDE factor into the Applicant’s business strategy and project selection



Question 20 (formerly Q19 in 2011) – has added a new title – Value Added and Innovative Investments and has added a new part (c) - Demonstrate how the requested NMTC Allocation will enable the Applicant to engage in innovative uses of a NMTC Allocation



Question 21 (formerly Q22 in 2011) – Non-Metropolitan Counties – has been substantially re-phrased at (d), i.e. QLICI and non-QLICI direct investment and now requires the Applicant to reference Exhibit A



PART I: COMMUNITY OUTCOMES*

Question 24 (formerly Q25 in 2011) – removed FEDERAL ECONOMIC DEVELOPMENT ZONES (EZ,EC, RC), under 4-15 (must select two distress criteria); new bullet under (b) Describe The criteria used to prioritize QLICIs, assuming the Applicant has greater investment opportunities than available allocation authority. *Impacts replaced by Outcomes.



Question 25 (formerly Q26 in 2011) – Goods and Services Outcomes have been split into ‘Commercial’ Goods and Services at 4. and ‘Community Goods and Services at 5. Also see new TIP under (c).

Question 26 (formerly Q27 in 2011) – Part (b) has been deleted.



Question 27 (formerly Q28 in 2011) – Additional Investment – new Part (b) discuss extent to which the Applicant’s proposed QLICIs are part of a Broader Neighborhood Revitalization Strategy.



PART III: MANAGEMENT CAPACITY

Question 30 (formerly Q31 in 2011) – Asset &

Risk Management Experience - has revised 1st TIP to have Applicant demonstrate that it has the capacity and relevant experience to manage, monitor and control assets it intends to invest in.



Question 34 (formerly Q35 in 2011) – Financial Health (new header) – includes new (e) which and new Table D2 to include projected income and expense(s) associated with new line of business – NMTC (see 2012 App Q&A Q49 for how to complete D2).



Changes to Table C1 -2012 Q&A at Q46 include:

- limiting the number of individuals listed in Table C1 to ten (1);

- limiting the character count to 2,000 per individual;

- limiting references to consultants from the same firm to the main contact or principal from that firm(Q48).



PART IV: CAPITALIZATION STRATEGY

Question 39 (formerly Q40 in 2011) – Distribution of Benefits – added new (a)(iv) how economic benefits will be apportioned among unaffiliated end-users through lower costs; add new (b) (formerly Q16) – residual equity; add new (c) how profits will be used.



Former Question 42 – delete in its entirety along with Tables F1 and F2.



PART V – PREVIOUS AWARDS

Question 44(formerly Q46 in 2011) – two

new bullets under (b); new (c); (d) is former (c).



ADDITIONAL ITEMS OF NOTE

Use of 2006-2010 ACS eligibility data to qualify potential QLICIs – YES – please see Q27 of 2012 Application Q&A;

Target States receiving fewer dollars of QLICIs: AL; AK; FL; GA; ID; KS; NV; TN; TX and WV + certain island areas of the US - please see Q#37 of 2012 Application Q&A



ADDITIONAL ITEMS OF NOTE (continued)

Updated definition of Non-metropolitan Counties - please see Q#55 of 2012 Application Q&A

Disclaimer: Please note that we are providing this summary of the changes in the

2012 NMTC Allocation Application complimentary to participants in the NH&RA Summer Institute and NMTC Symposium. You should review the entire summary for accuracy and compare it to the actual 2012 NMTC Allocation Application to ensure that there are no inconsistencies. NH & RA assumes no responsibility for any inconsistencies.

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