The Michigan State Housing Development Authority has posted its Draft 2012 Qualified Allocation Plan and related documents to its web site. MSHDA will hold three Public Hearings on May 31, 2011 to take comments on the Draft 2012 Qualified Allocation Plan. The revised QAP seeks to streamline processes and has made a number of notable changes including:
- Eliminating the hard equity letter requirements and replacing them with an easier-to-satisfy equity investor letter.
- Eliminating the rolling round. The proposed QAP will have two rounds in August 15, 2011 and February 15, 2012.
- Not imposing MSHDA underwriting standards if they are redundant and MSHDA is not at risk.
- Allowing ‘anticipatory funding’ to be considered available if it has a later funding cycle than MSHDA’s.
- Using external green standards chosen by the applicant.
- Encouraging new sponsors by reducing experience bonus points from 30 to 20, reducing the performance period to qualify experience points from 5 years to 3, changing experience emphasis to give points for positive experience (as opposed to any experience), increasing applicant disclosure of negative experiences, and requiring financial statements of all sponsors including non-profits.
The QAP also changes to how its approaches preservation and permanent supportive housing and adds new cost-containment measures.
