Updates to Application Package
This LIHTC Applications FAQ page is the method for submitting questions related to application requirements and scoring criteria for the 2019 competitive low income housing tax credit allocation round. Staff will make a good faith effort to post responses to questions within three business days of receipt. Note that staff may edit questions for clarity before posting them to this page. If you believe that your question was misrepresented and your question was not answered correctly, please submit a follow-up question or clarification of your question. Questions will not be accepted after 5PM, January 24, 2019.
NOTICE: Site control must be in the name of the Project Owner, if formed, or the General Partner or a managing member of the General Partner. The QAP anticipates that in many cases the legal entity that will ultimately be the Project Owner (the Limited Partnership) will not have been formed at the time that the Initial Application is submitted. The QAP, therefore, allows for site control in the name of a General Partner or managing member of a General Partner.
Cost and Fee Limits
Q1: If a municipality does not typically issue statements determining blight, what alternative documentation will be acceptable for the Blighted Buildings and Brownfield Site Reuse criteria?
A1: The application must include a letter from the Local Government Building Division stating the proposed site meets the requirements of the QAP for blight. In the event that the Local Government will not issue a determination of blight, the Applicant must provide a letter from the Local Government stating the Local Government’s policy, a third party report indicating that the site meets the QAP’s definition of blight, and the Applicant must provide documentary support such as notices of violation of: (1) Local Government’s codes or regulations or, (2) the recorded covenants, conditions and restrictions for the property or, (3) a condemnation notice from public record. The application must also include photos of the blighted structure, neighborhood, or area. MFA reserves the right to determine whether or not the site meets these requirements.
Q2: Can a project receive the 3 points under “Other Scoring Points Available” for being “located in a town or municipality with a population less than 16,000 people pursuant to data published by the 2016 US Census Bureau, and the MFA-ordered Market Study supports need for the project,” if the town is an unincorporated Census Designated Place (CDP), with their own zip code?
A2: Yes, a Census Designated Place (CDP) may be considered in the Small Town scoring criteria, if the edge of the CDP is separated by at least five straight miles from the border of the next town or CDP.
Q3: A requirement criterion 1 is that net worth/net assets of the nonprofit must be substantiated by reviewed or audited financial statements. The nonprofit was established recently, and while they currently have the asset requirements of the QAP, they will not have the audited financials by the submission deadline. The financials have been reviewed by a CPA and all returns per IRS requirements have been filed.
A3: If a CPA has reviewed the nonprofit financials, that would suffice. As stated above, the requirement is to have the assets of the nonprofit substantiated by reviewed or audited financial statements. In this case they would be substantiated by a CPA review.
Feasibility and Underwriting
Q1: If a market study shows a lower vacancy rate than 7 percent (or 5 percent for senior properties), can the lower rate be used in the proforma?
A1: No, 7 percent (or 5 percent for a senior project) is the lowest vacancy rate allowable in the proforma.
ASDN Tier Reclassification