To combat recent price fluctuations in the equity market, The Michigan State Housing Development Authority Board of Directors and the governor recently approved a QAP amendment that will open an additional round of funding for 9% projects awarded in the April and October 2016 rounds. The deadline for applications is July 17, 2017.
Only 2016 projects that have not closed on LIHTC equity and debt financing will be eligible. Maximum allowable credit will be determined by MSHDA staff using a formula which strictly takes into account the decrease in equity pricing, and not additional project costs. Project modifications will be considered on a case-by-case basis by staff. The exact calculation methodology is as follows:
The lesser of either:
Original Project Costs
Less: Original Project Sources
Less: 50% of Original Developer Fee_________
Equals: Amount of Equity Needed
OR:
Amount of Equity Needed
Divided by: Updated Equity Pricing
Divided by: 10______________ __________
Equals: Maximum Amount of Credit Allowable
