Notice to
Potential 4% Tax Credit/Tax-Exempt Bond
Applicants
The Commissioners have asked
staff to present at its April 2007 commission meeting a list
of tax-exempt bond/4% LIHTC applications that have been
submitted to MHDC. Due to the limited availability of
tax-exempt bond volume cap, the Commissioners intend to
review the list of proposals and prepare a recommendation to
DED for priority of bond allocation. The Commissioners have
approved a set of
4% Tax Credit Evaluation Criteria
(
PDF 21 KB)
based upon the QAP which staff will utilize to process the
applications and provide salient information about each
proposal. They have also asked that we elicit updates in
order to ascertain the current structure and financing needs
of each development due to the ever-changing landscape of
construction costs and equity pricing.
Staff is therefore
requesting the following to be submitted by each applicant
to MHDC
no
later than 12:00 noon, Monday, April 2, 2007:
 |
Updated
FIN-100, signed and dated by Applicant. You must
utilize the April applicable percentage to calculate the
credits (3.47%). Please refer to Tab IX Development
Budget. |
|
Updated
FIN-115, signed and dated by Contractor and Applicant. |
|
MHDC Questionnaire for Tax-Exempt Bond Allocations
(
PDF 18 KB) |
|
Any
additional items or clarifications as requested by
staff.
|
Please be advised that
current budgets, rents, and pricing are critical to
understanding the financial structure of the development.
Previously-approved proposals that have experienced an
increase of 10% in rents, total development costs, loan
funds, and/or tax credits or that have made other
significant changes to the physical or financial structure
of the deal will be considered to be new applications.
Staff will report the
current structure to the Commissioners at the April
meeting. Please note that MHDC
will
not grant automatic
increases in federal or state LIHTC
when either the 42(m) letter or the final allocation of
credits is requested. The tax credit amounts approved at
the April meeting will be the maximum LIHTC allocation
reserved for all developments receiving bond allocation in
2007.
New applicants wishing to
have proposals reviewed at the April meeting are welcome to
submit complete applications by the April 2 deadline.
Incomplete applications will be rejected.
While the time frame is
aggressive for both previous and new applicants, it is
necessary in order to provide the proper review period and
recommence communication to DED on the status of multifamily
housing applications.
Please contact Pete Ramsel
or Janell Thome with questions.
Linked
documents her are PDF documents.
