The North Carolina Housing Finance Agency has released the first draft of its 2013 Qualified Allocation Plan along with a memo of major revisions. These documents are available on NCHFA’s 2013 QAP website.
During the 2013 cycle, ten counties will be ineligible for tax credit awards due to the results of the 2012 cycle. The designated counties each received more than three times its per-capita share of tax credits in 2012 and have a population of less than 100,000. NCHFA has taken this measure in order to create a more equitable distribution of tax credits throughout the state. According to the QAP draft, future funding cycles will include an award limit of no more than one rehabilitation project and one new construction project per county. The only exception to this rule will be for counties within the designated “Metro” region (Mecklenburg and Wake counties), which will be allowed up to two new construction projects per cycle.
Other major changes found in the 2013 QAP draft include:
- The creation of a new set-aside for eligible rehabilitation and/or new construction projects identified as priorities by USDA Rural Development;
- New county region designations;
- The termination of the agency-designated basis boost;
- A new requirement for applicants seeking a Rental Production Program (RPP) loan. In order to be eligible for an RPP loan, developers now must have sellers sign a “Notice of Real Property Acquisition” form at the time of executing the contract and be submitted as part of the tax credit preliminary application. Click here to view the form. The maximum loan amount has been reduced to $800,000;
- The removal of a points category which previously awarded projects with mortgage subsidies;
- The draft no longer awards points to applicants who match household incomes to the state tax credit’s statutory limits on rent under the tenant rent limits point category. It now offers the same amount of points for applicants not requesting STC funds as those who are requesting these funds.
NCHFA will be holding a public hearing on the QAP draft on October 9, 2012 at 1:00pm in Raleigh, NC. No registration is necessary. See NCHFA’s website for more information.
NCHFA will continue to accept written comments on the draft through October 19, 2012. Comments may be submitted to:
Email: rentalhelp@nchfa.com
Mail: NC Housing Finance Agency, Attn: Rental Investment, 3508 Bush Street, Raleigh, NC 27609