The Mississippi Home Corporation (MHC) released an executive summary of proposed changes for its 2013 Qualified Allocation Plan following an October 25 public hearing. In addition to policy changes, MHC also announced that it will be developing a Standard Operating Procedures Manual to be comprised of relevant information for all developments funded by the Housing Tax Credit program. This information was previously included in the QAP. MHC is also developing a Tax Exempt Bond Manual to outline program eligibility requirements and the application process for developments utilizing tax-exempt bond financing. All current reference to tax exempt bonds will be removed from the QAP.
The executive summary outlines the proposed revisions made by both MHC and through public comments. Some of the major proposals include:
- A new set-aside for Real Estate Owned (REO) properties. MHC will forward commit up to 30% of its 2014 annual credit authority for applicants under the new (REO) Set-Aside. MHC plans to post a listing of available properties on its website prior to January 1, 2013.
- New guidelines for applicant eligibility and compliance.
- A new category for “Replacement Housing” as an approved development type. MHC provides clarifying language to define replacement housing. The new buildings erected as replacement housing must satisfy all new construction requirements.
- A new category for “Scattered Sites” as an approved development type.
- A new scoring component for “Endangered Housing” to replace the previous “Rehabilitation” component. Applicants seeking to receive points in this category must provide a letter of confirmation from HUD or USDA-RD in order to be considered.
- Remove “Lost Housing,” “Large Families” and “Mixed-Income Developments” scoring components.
- Revise the scoring component for developments that set aside at least 20% of the units for persons at or below 50% Area Median Gross Income to now provide points for developments that set aside 15% of the units for persons whose income does not exceed 30% AMI.
- A new scoring component for “Management Performance.” This will reward applicants with up to 20 points for securing a contract with an experienced management company, as documented by a supplemental Management Performance Form.
To review the executive summary of 2013 QAP proposed revisions, please click here.
For more information, please contact Katina Pace at kpace@mshc.com or 601-718-4635.