The New State Housing Credit,

and LIHTC Application

We want you to know!

Tax Credit Team

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Mike Pacheco

Tasha Weaver

Denise Tamulis Paula Harrison

Meghen Brown

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For 2015 the changes needed to roll out the new State Housing Credit will be discussed this morning

State Credit-Amount Available

For 2015 a total of $5 million in State Housing Credit is available for non Disaster Relief areas. Applications due February 2, 2015

$8.3 million in State Housing Credit is available for the Disaster Relief areas. Applications due March 2, 2015

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Critical Elements of the Selection Process for Projects Requesting

State Housing Credit

Strong competitive projects will align with the Guiding Principals and meet all Criteria for Approval.

Guiding Principles Criteria for Approval

2015 LIHTC Application

Priorities The following four priorities will apply to both Federal and State

Credit: Projects serving homeless persons Projects serving persons with special needs Projects in Counties with populations of less than 175,000 Projects in Counties impacted by a natural disaster – this

priority has been modified to state that projects that use 4 Percent Credit with State Credit and Community Development Block Grant – Disaster Recovery (CDBG-DR) funds in the counties of Boulder, Larimer, and Weld counties will be given the highest priority

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2015 LIHTC Application Instructions

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Scoring section: Permanent Supportive Housing (PSH)

Applicants selecting points for Homeless or Special

Needs housing will need to provide the following documents to both CHFA and the Colorado Division of Housing at the time of application.

Supportive Services Plan and Budget

Memorandum(s) of Understanding with In-Kind

Service Provider(s)

http://1.usa.gov/1t2jYf8

2015 LIHTC Application Additional State Credit Priorities

Projects using 4 Percent Credit and State Credit New Construction “Readiness to Proceed” priority for applications for Non-Disaster

State Credit with 4 Percent Credit submitted between January 2, 2015 and February 2, 2015

Additional State Credit Priorities for Disaster Recovery Projects must receive CDBG-DR funds. Projects must be identified as priorities by local communities. Special consideration will be given to projects that demonstrate how

the proposed project will meet the needs of those displaced by the natural disaster and provide an outreach plan.

CHFA will use Colorado Division of Housing (CDOH) definitions of counties impacted by a natural disaster.

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2015 LIHTC Application State Credit Threshold Requirements

Applicants must hold a public hearing in the community of the proposed project. CHFA must consider the comments from the hearing in the review and approval process for State Credits.

Applicants must demonstrate that there will be some monetary, in-kind, or other contribution benefiting the proposed project from the local government.

Joint Underwriting with CDOH CHFA will closely coordinate the review and underwriting of all

applications that are concurrently submitted for a request of State Credit and CDBG-DR funds.

All other 4 Percent Credit applications without State Credit will be received throughout the year except during the 9 Percent Round and the month of December.

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Secure File Delivery Portal

Once again the list of required documents is found starting on page 18 of the QAP.

For 2015, all required documents must be submitted via the Secure File Delivery Portal.

Instructions on how to access the Secure File Delivery Portal will be provided to all projects submitting a Letter of Intent Jan 30th for the Non-Disaster Relief Areas Feb 27th for Disaster Relief Areas April 27th for the 9% Competitive Round

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LIHTC Reservation Timeline

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You Send the Letter of Intent, Market Study Engagement Letter , Designate your PMA census tracts & the Quiet Period Begins

Upload the Electronic Application, and all supporting documentation to the CHFA Secure File Delivery Site

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3 Deliver the required hard copies and Application Fee to CHFA

LIHTC Reservation Timeline

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YES NO

CHFA & DOH check to see that Threshold Review is passed (if applicable)

5-Day Clarification Letter sent to you

CHFA conducts its Full Application Review & Site Visit

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Application Returned

LIHTC Reservation Timeline

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By 5-days you clear up the Clarification Items

CHFA Staff presents to Tax Credit Allocation Committee

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10 NO YES

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Notifications sent CHFA Staff meets with all non-selected applicants

LIHTC Reservation Timeline

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Fee Letter sent to selected projects

You submit Fee within 10-days to CHFA

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13 CHFA sends an Initial Determination letter

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2015 LIHTC Application

2015 LIHTC Application Instructions

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2015 LIHTC Application

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In 2015, If applying for State Housing Credit please complete the cells highlighted in “YELLOW”. In the Development Information Worksheet

2015 LIHTC Application Conduit Certification

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2015 LIHTC Application

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STATE HOUSING CREDIT TAB

2015 LIHTC Application State Housing Credit Calculation

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The 2015 LIHTC Application has the calculation of the State Housing Credit Amount that will be used to reserve state housing credit. This calculation is based on the state statute: “In no event shall a credit exceed thirty percent of the qualified basis of the qualified development” (see Section 39-22-2102 (2) (b) of Title 39 Article 22 Part 21 Colorado Low-Income Housing Tax Credit). The calculation for the State Credit is as follows: Adjusted Eligible Basis X Applicable Fraction = Qualified Basis X 30% = Total State Housing Credit that a project is eligible for.

2015 LIHTC Application Fees

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The application fee has been increased from

$3,000 to $5,000. Applications that have a request for both 4%

Federal and State Credit pay 1% of the Federal Credit amount requested or $5,000 whichever is greater plus $1,000 for the State Credit amount.

Fees for State Credit in addition to Federal Credit is explained in Section 6 of the QAP.

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Questions & Answers

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Questions & Answers

Will the State Housing Credit be eligible for the 30% Basis Boost if the project is in a qualified HUD QCT or DDA?

Answer: Yes. The boost for the state credit will follow the boost eligibility for

the federal credit: State Credit with 4% Federal Credit:

Boost for both types of credit if in federal QCT or DDA State Credit with 9% Federal Credit:

Boost for both types of credit if in Federal QCT or DDA If not in Federal QCT or DDA, potentially eligible for CHFA basis-boost

for both State and Federal Credit

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Questions & Answers

Will a 4% Non-competitive transaction with State Credit be eligible for a waiver of the Cost Basis if the project is limited by this Cap?

Answer: Potentially, on a case by case basis If the reason for the waiver of the

QAP is documented in the project narrative subject to approval by CHFA.

Can a project apply for additional State Credit after an initial award has been made to the project? Answer: While projects may be eligible for additional Federal Credit as

outlined in the QAP, projects will not be eligible for additional State Credit once an initial award has been made.

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Questions & Answers

Is there a minimum number of points a project should score when applying for State Credits?

Answer: Applicants should defer to the Federal Credit minimum number of

points:

State Credits with 4% Federal Credits – 60 point minimum State Credits with 9% Federal Credits – 130 point minimum

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Questions & Answers

What about the minimum extended use period for State Credits?

Answer: As with the minimum point scores, the State Credit extended use will follow the Federal minimum for extended use periods (QAP Sec. 5.A2): All projects must have the minimum use restrictions under Section

42 which is 30 years: 15 compliance period and 15 additional years. State Credits with 4% Federal Credits must score a minimum of 10

points under the Extended Use Scoring category . State Credits with 9% Federal Credits must score a minimum of 38

points in the Extended Use Scoring category.

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CHFA Tax Credit Team Contact Information: Tasha Weaver, Manager (303) 297-7429 or tweaver@chfainfo.com Denise Tamulis (303) 297-7386 or dtamulis@chfainfo.com Meghen Brown (303) 297-7433 or mbrown@chfainfo.com Mike Pacheco (303) 297-7368 or mpacheco@chfainfo.com Paula Harrison (303) 297-7316 or pharrison@chfainfo.com