The Montana Board of Housing has released the first draft of its 2019 QAP. The public comment period is open, and comments must be submitted via Montana Housing Division’s website by 5pm on January 26, 2018.
Changes include the following (Set-Asides remain unchanged):
- Limits on the Soft-Cost-to-Hard-Costs ratio have been increased 2% for all project types to accommodate interim interest costs which are included in the calculation and can skew the number when equity comes in late.
- Professional Services: Application Narrative must now address and justify Professional Fees, including architectural, engineering, environmental, accounting, legal, market analysis, construction management, and asset management services.
- Total Expense Ratio: MBOH will now review a project’s Total Expense Ratio for reasonableness. This ratio is total income divided by total expenses, including debt service. The Board will consider projects that deviate materially from a ratio of 1.10 on a case by case basis. Projects should discuss the ratio in the narrative if it deviates materially from 1.10.
- Scoring:
- Extended low income use: Additional points are now only awarded to projects proposing 31 or more years of affordability
- General reduction in the number of possible points to be earned
