The Project Finance Committee (PF) has received and reviewed a number of requests to waive the use of HTF monies to cover the cost of the PSH units in projects in order to earn point under category 6.4.16. In reviewing these waiver requests, it’s apparent the difficulties that this requirement has placed on a number of projects that are considering tax credit in the upcoming August round. Further discussion by the PF Committee has led to a consensus that this requirement will be removed from next year’s QAP.
From a policy standpoint, the inclusion of 6.4.16 was meant to increase the number of available PSH units in affordable housing projects. The rationale for incenting the use of HTF to cover the cost of these units was simply to provide a funding source.
Given that it was the Association’s intent to incent PSH units and NOT place a burden by using HTF dollars, and it’s the Association’s intent to change this requirement in the 2018 QAP, the Association has determined that HTF dollars are NOT required to be used in constructing PSH units in the applications under consideration for submission in the August 2017 round. In order to be eligible for the points under 6.4.16, the applicable number of PSH units outlined in this category MUST be included in the project. However, the requirement to utilize HTF monies for the construction of the PSH units is waived for all applications in the August 2017 round.
Please direct any comments or concerns you have to Cory Phelps at 208-331-4725 or by email at CoryP@IHFA.ORG.
