sponsor
charity-projects

Make A Donation

Click Here to Donate
TCAC 2011 Changes

 

TCAC has proposed the following changes to the tie breaker scoring system in the Tax Credit application process.  The changes are important as they relate to non-profits in the Affordable Housing development sector.

 

Proposed Change:

(2) General Partner/Management Company Characteristics.

No one general partner, party having any fiduciary responsibilities, or related parties will be awarded more than 15% of the Federal Credit Ceiling, calculated as of February first during any calendar year unless imposing this requirement would prevent allocation of all of the available Credit Ceiling.

(A)  General partner experience. To receive points under this subsection for projects in existence for over 3 years, the applicant must submit a certification from a third party certified public accountant that the projects for which it is requesting points have maintained a positive operating cash flow, from typical residential income alone (e.g. rents, rental subsidies, late fees, forfeited deposits, etc.) for the year in which each development’s last financial statement has been prepared (which must be effective no more than one year prior to the application deadline) and have funded reserves in accordance with the partnership agreement and any applicable loan documents. To obtain points for projects previously owned by the proposed general partner, a similar certification must be submitted with respect to the last full year of ownership by the proposed general partner, along with verification of the number of years that the project was owned by that general partner. To obtain points for projects previously owned, the ending date of ownership or participation must be no more than 5 years from the application deadline. This certification must list the specific projects for which the points are being requested. The certification of the third party certified public accountant may be in the form of an agreed upon procedure report that includes funded reserves as of the report date, which shall be dated within 60 days of the application deadline. Where there is more than 1 general partner, experience points may not be aggregated; rather, points will be awarded based on the highest points for which 1 general partner is eligible.

 

1-2 projects in service under 3 years              1 point/over 3 years 2 points

3-6 projects in service under 3 years              3 points/over 3 years 4 points

7 or more projects in service under 3 years    5 points/over 3 years 6 points

 

For projects applying through the Nonprofit set-aside or Special Needs set-aside only, points are available for special needs housing type projects only as follows:.

 

2 projects in service under 3 years                 1 point/over 3 years 2 points

3 projects in service under 3 years                 3 points/over 3 years 4 points

4 or more projects in service under                3 years 5 points/over 3 years 6 points

 

(B) Management Company experience

 

2-5 projects in service under 3 years               0.5 point/over 3 years 1 point

6-10 projects in service under 3 years             1.5 points/over 3 years 2 points

11 or more projects in service under 3 years   2.5 points/over 3 years 3 points

 

For projects applying through the Nonprofit set-aside or Special Needs set-aside only, points are available for special needs housing type projects only as follows:.

1 projects in service under 3 years                  0.5 point/over 3 years 1 point

2-3 projects in service under 3 years               1.5 points/over 3 years 2 points

4 or more projects in service under 3 years   2.5 points/over 3 years 3 points

 

Points in subsections (A) and (B) above will be awarded in the highest applicable category and are not cumulative. For maximum points in either subsection (A) or (B) above, a completed previous participation form for the general partner or for the management agent respectively must be provided in the application. For points to be awarded in subsection (B), an enforceable management agreement executed by both parties for the subject application must be submitted at the time of application. “Projects” as used in subsections (A) and (B) means multifamily rental affordable developments of over 10 units that are subject to a recorded regulatory agreement, or, in the case of housing on tribal lands, where federal HUD funds have been utilized in affordable rental developments. General Partner and Management Company experience points may be given based on the experience of the principals involved, or on the experience of municipalities or other nonprofit entities that have experience but have formed single-asset entities for each project in which they have participated, notwithstanding that the entity itself would not otherwise be eligible for such points. Alternatively, a management company that provides evidence that the agent to be assigned to the project (either on-site or with management responsibilities for the site) has been certified prior to the application deadline pursuant to a housing tax credit certification examination of a nationally recognized housing tax credit compliance entity on a list maintained by the Committee, may receive 2 points. These points may substitute for other management company experience but will not be awarded in addition to such points.

 
Joomla SEO powered by JoomSEF