The Pennsylvania Housing Finance Agency (PHFA) is taking steps to assist in providing maximum flexibility and responsiveness to developers seeking 2009 low-income housing tax credits. PHFA says adjustments and waivers of certain of the 2009 qualified allocation plan (QAP) parameters and limitations will be considered and provided as necessary to facilitate project viability. The following specific areas may be affected:
- Developments not in a QCT or DDA may be considered for a basis boost of up to 130%.
- Developments may be eligible for tax credits in excess of the per-project award cap of $1,200,000 ($1,600,000 in distressed municipalities).
- Due to the substitution of funding sources to determine financial feasibility during application processing, PHFA may remove from consideration the Leveraging of Resources Selection Criteria.
- PHFA may, however, look at the commitment of federal, state, or local funds when making tax credit determination.
PHFA may consider a request for additional tax credits for developments with a reservation of prior year tax credits, if determined that the extra credits are necessary to achieve a timely equity closing. - Readiness to proceed of a development may be a factor in the consideration for tax credits. Developments that receive a reservation of tax credits in 2009 may be required to demonstrate that an equity investment is in place within 90 days from the date of reservation.
- Any timeframe established in the QAP may be waived or adjusted to assist developments in achieving equity closings. In the event of such adjustments, PHFA may impose such additional requirements and deadlines on such developments as it deems appropriate.
