In response to the American Taxpayer Relief Act of 2012, the Kentucky Housing Corporation (KHC) is modifying the closing extension policy of the 2013 Qualified Allocation Plan (QAP). The legislation removed the requirement that a development must be placed in service by December 30, 2013 in order to preserve the fixed 9 percent credit rate for low-income housing tax credits (LIHTCs). Applicants for 2013 LIHTCs now have until December 31, 2015 to place the development in service and receive the fixed 9 percent credit rate.
The 2013 QAP’s original closing extension policy only allowed one 45-day closing extension for developments receiving housing credits in order to ensure timely closings and that projects could be constructed to meet the December 30, 2013 placed-in-service deadline. Based on the changes produced by the new legislation, KHC is adopting its previous closing extension policy contained in the 2011-2012 QAP, in which developers could request up to three 45-day extensions with associated extension fees of 0.5 percent, 1 percent, and 2 percent of the annual housing credit award amount for each respective request.
The modified extension policy does not change the expected placed in service date of December 30, 2013 for developments to receive a partial refund of the reservation fee. Applicants must submit their extension requests through their assigned KHC program representative prior to the expiration of their conditional commitment.
For questions on the QAP modifications and the closing extension policy, please contact Andrew Hawes, senior director of Multifamily Housing at 502-564-7630, ext. 326 or ahawes@kyhousing.org.
