Beginning Friday, April 3, 2009 through Friday, April 24, 2009, initial public comments will be accepted on the Arizona Department of Housings First Draft 2009 QAP. The proposed 2009 QAP is predominantly the same as the 2008 QAP as modified by the additional underwriting requirements described in the 2008 Resubmittal Allocation Round Notice with several notable changes. Highlights of proposed changes include:

  • Section 2.2 establishes eligible basis rather than the $1.0 million limit as the tax credit cap for a project.
  • 2.7(B)(14)(b) requires the Builder/contractor to demonstrate financial capacity and performance history requirements.
  • 2.7(B)(14)(c) strengthens staffing and compliance history requirements for property managers.
  • 2.7(B)(15) imposes heightened scrutiny for management companies with an identity of interest with the developer or co-developer.
  • 2.7(B)(16) makes compliance with local government land-use restrictions an eligibility requirement. Points are no longer available for zoning compliance.
  • 2.7(B)(17) provides new considerations for syndicators with an identity of interest with the developer or co-developer.
  • · 2.7(B)(30) makes submittal of a Phase I Environmental Report an eligibility requirement.
  • 2.7(B)(31) makes commitment to water conservation standards an eligibility requirement. Points are no longer available for water conservation.
  • 2.8 Set-asides: 1) There will no longer be a Special Needs Set-aside, although points are still available for projects serving tenants with special housing needs; 2) Rural and urban set-asides shall be combined if less than $11 million in annual tax credit ceiling is available for reservation.
  • 2.9(F)(2) raises the per-unit limit for rehabilitation projects to $15,000 excluding acquisition and site preparation costs.
  • 2.9(F)(4) reduces the points available for projects with a tenant lease-purchase option from 6 to 3 points.
  • 2.9(F)(14) reduces the points available for project readiness from 20 to 10.
  • 2.10 establishes 20% below market rent limits for areas for which 50% or more of the market demand is attributable to tenants exiting housing that is substandard, overcrowded, or that lacks complete plumbing.
  • 4.7(B)(3)(f) clarifies that changes to financing terms including payment of deferred developer fees are material changes.
  • 6.4(D) establishes late fees for submittal of carryover allocation or final allocation materials.
  • Section 7, Underwriting, has been substantially reorganized for clarity.
  • 7.3(B)(2)(g)(v) raises the replacement reserve requirement to $350 per unit per year for new construction and $450 per unit per year for acquisition/rehabilitation projects from $250 and $350, respectively.
  • 7.3(C)(2) raises per-unit operating cost assumption to $5,000 for new construction and $5,400 for acquisition/rehabilitation projects from $4,200 and $4,500, respectively.
  • 7.3(C)(2)(b) raises the funding rate for project operating reserves to $350 per unit per year for new construction and $450 per unit per year for acquisition/rehabilitation projects from $250 and $350, respectively.
  • 7.3(C)(3)(c) raises the assumed vacancy rate from 7% to 8%.

ADOH Executive Director Don Carden will be addressing NH&RA Members at its 2009 Spring Developers Forum, May 11-12, 2009 at the Hyatt Regency Century Plaza. read more…