On August 26, 2019, the Virginia Housing Development Agency (VHDA) announced new policies regarding use of REACH Virginia funds, which was to become effective immediately for tax-exempt bond loans, as well as any taxable loan associated with nine percent LIHTC deals applied for in the 2020 allocation round.
In response to public comments VHDA will delay implementation of any change in such policy to a date to be determined, but not earlier than June 30, 2020.
During this time, VHDA will be soliciting stakeholder comments on use of REACH Virginia funds in financing LIHTC developments, to establish workable policy parameters that best fit the needs of LIHTC program participants.
The Tax Credit Department will soon be conducting meetings in which LIHTC program stakeholders will have an opportunity to offer suggestions as to changes in the QAP. Immediately following those sessions, VHDA will transition the discussion to REACH Virginia policy.
Anyone planning to submit an application for nine percent tax credits in the 2020 allocation round may, as in previous years, assume maximum “Increased REACH Allocation Limits For LIHTC Developments” as stated in the policy announced February 17, 2017. Anyone submitting an application for a tax-exempt bond funded loan during this time may assume the same maximum REACH allocations under that same policy. As per usual, final REACH allocations will be determined during loan underwriting. If you have any questions, please contact Dale Wittie at (804) 343-5876 or dale.wittie@vhda.com.
