LIHTC

The Arizona Department of Housing published its first draft of the 2019 Qualified Allocation Plan (QAP). Download the Information Bulletin for additional information. Comments can be emailed to rental-qap@azhousing.gov, but they must be received by September 14, 2018 at 5:00 p.m.

Any project which has already executed a Low-Income Housing Tax Credit Covenant for LIHTC and wishes to amend the Covenant to incorporate the Income Averaging Set Aside prior to execution of IRS Form 8609 would need to receive approval from CD.

The bill would increase the per-capita LIHTC allocation from $2.70 to $2.90, increase the small-state minimum by $265,000 for a total minimum allocation of $3.365 million to small states, and other changes as well.

CHFA is hosting two forums to provide an overview of income averaging and solicit feedback as part of implementing this provision in Colorado.

The amount requested is not limited. However, proposals will be reviewed for cost reasonableness, the need for gap funding, and other underwriting and subsidy layering criteria. The application deadline is October 17.

CHFA will accept proposals for utilizing income averaging in applications that are under consideration, have already been approved or awarded by CHFA’s Board of Directors, or have already initial closed, subject to a list of requirements.

OHFA is also evaluating whether pre-2018 developments will be eligible for this option.

A memorandum dated June 13, 2018 and titled “Income Averaging Guidance” has been posted to the LIHTC Recent Updates page of the MSHDA website. 

The Gap Financing Program NOFA is designed to improve MSHDA’s direct-lending production and to assist with being able to finance tax-exempt bond transactions utilizing the 4% Low Income Housing Tax Credit.

The Department will not be implementing income averaging for any projects awarded through the 2018 QAP.

2018 applicants must select either the 20% at 50% or 40% at 60% minimum set aside and adhere to current underwriting parameters (units underwritten above 60% of Area Median Income will be treated as market rate or unrestricted).

FHFC aims to allow developments that have not yet received their 8609s to elect the new option. Read on for some of the proposed requirements around income averaging.