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2014 LIHTC Qualified
Allocation Plan (QAP), Application and
Market Study GuideChanges
We want you to know!
Tax Credit Team & Appraiser
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Mike Pacheco
Tasha WeaverDenise Tamulis Paula Harrison
Terry BarnardKim Dillinger
Amount Available
For 2014 a total of $12 million in Housing Credit is available. $10.75 will be available in two competitive rounds
Up to $1.25 million for DHA’s Set‐Aside
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DHA‐Housing Choice Vouchers
Beginning in round 2, DHA will have 50 Housing Choice Vouchers available to be Project Based.
It is anticipated 50 Vouchers per round will be allocated from a total of 300, subject to funding availability, over a three year period.
Proposals must be submitted to DHA 60 days prior to CHFA’s Letter of Intent deadline (April 1, 2014).
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DHA‐Housing Choice Vouchers
The project must:
be located in the City and County of Denver
meet DHA’s selection criteria comply with HUD regulations receive an award of competitive tax
credits
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DHA‐Housing Choice Vouchers
Contact Debra Gray at720‐932‐3124 [email protected]
Information will be posted after February 1st on DHA’s website www.denverhousing.org.
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Critical Elements of the Selection Process
Strong competitive projects will align with the Guiding Principals and meet all Criteria for Approval.
Guiding Principles Criteria for Approval
9% Applicable Percentage Rate
All applications in 2014 must use the most current Floating Rate APR.
Because Colorado forward reserves the Housing Credit all Applications in 2014 will be competing for 2015 Housing Credit
Projects receiving reservations should pay special attention to the floating APR and the Gross Rent Floor elections at time of Carryover.
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Energy Efficiency Changes
New for 2014, CHFA has made several changes to the energy efficiency requirements based on feedback from the Colorado development community. Enterprise Green Communities is still the national standard to which CHFA requires projects to comply. However, we have added several new options to meet the energy efficiency measures and have provided further clarification on others.
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Energy Efficiency Changes
Items 4.1, Water‐Conserving Fixtures, and 5.3, Sizing of Heating and Cooling Equipment and Ducts – for projects involving rehabilitation, we are not requiring the replacement of plumbing fixtures or HVAC equipment that has more than 7 years of remaining useful life.
Item 4.3 – Water Reuse – we have eliminated points available for this option since it is not applicable to Colorado due to state water laws.
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Energy Efficiency Changes
Item 5.1a and 5.1b – Building Performance Standard for New Construction – we have added an option to use Xcel Energy’s Energy Design Assistance Program to meet the measure.
Item 5.1c and 5.1d – Building Performance Standard for Substantial or Moderate Rehabilitation – we have added an option to use Energy Outreach Colorado’s Multifamily Weatherization program to meet the requirements.
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Energy Efficiency Changes
Item 7.9c – Mold Prevention: Tub and Shower Enclosures – we have added an option that eliminates the requirement for cement based backerboard if the project installs a fiberglass surround in the tub/shower, given these create a water tight barrier.
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LIHTC Reservation Timeline
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You Send the Letter of Intent, Market Study Engagement Letter , Designate your PMA census tracts, & the Quiet Period Begins
CHFA sends you the BlueApplication Tabs. For 2014 Tab Instructions will be available on the CHFA website.
Deliver to CHFA the Electronic & Hard Copy Application, Exhibits, Market Study (with the Designated Docs to the CHFA Web Portal) & the App Fee ($3,000).
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LIHTC Reservation Timeline
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YES NO
CHFA checks to see that Threshold Review is passed
5-Day Clarification Letter sent to you
CHFA conducts its Full Application Review & Site Visit
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Application Returned
LIHTC Reservation Timeline
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By 5-days you clear up the Clarification Items
Sponsors present their projects to CHFA’s Tax Credit committee. Then the committee meets to Select Applications for a Reservation
Notifications sent CHFA Staff meets with all non-selected applicants
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10NOYES
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LIHTC Reservation Timeline
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Fee Letter sent to selected projects
You submit Fee (4%) within 10-days to CHFA
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Quiet Period
Once again the quiet period begins with submittal of the Letter of Intent (February 3 & June 2)
Ends upon the issuance of reservations.
Requires that all communication for projects submitting a preliminary application applying for 9% competitive tax credits, be directed to the CHFA Tax Credit Allocation Staff only.
Communication is allowed at any time with any CHFA staff or department if the project has not submitted a letter of intent or an application for 9% Housing Credits because it would not be subject to the Quiet Period.
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During the Quiet Period please communicate with any of the following Tax Credit Team Members
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Mike Pacheco
Tasha WeaverDenise Tamulis
Paula Harrison
Terry Barnard
Kim Dillinger
Threshold Items #1 thru #5
In 2014 once again threshold items #1 thru #5 must be provided at the time of the application and are not subject to the five‐day cure period. #1 Minimum Score, #2 Site Control, #3 Market Study, #4 Outstanding Noncompliance Issues, #5 Submittal of the Electronic Application.
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Top Three Threshold Mistakes
Site Control-incomplete or missing extensions.
Market Study-does not match up with the Application as to unit count, square footage, rents or AMI targeting.
Scoring-marking items that the project is not eligible for which causes the score to drop below 130.
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2014 QAP Checklists
The checklists for all processes of the application have been updated and can be found on:
Page 17 for the Preliminary Application Page 24 for the Carryover Application Page 28 for the Placed‐In‐Service Application Page 29 for the Final Application Page 65 for the PAB Initial Determination Application Page 72 for the PAB Placed‐in‐Service Application Page 73 for the PAB Final Application
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Clarification Letter
Top Five Clarification Letter Items (after initial threshold has been met):
Number 5: Narrative-is not provided in WORD format and/or is not on the CHFA Template.
Number 4: Zoning Letter-does not explain parking requirements or does not provide current zoning status.
Number 3: Required Charts-are not submitted, or are not received in the proper electronic format. Unit/Project Amenities Green Building Walk Score Market Study Comparables
Number 2: Green Communities Workbook-Drop down menu questions not answered and the Excel file not received.
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Clarification Letter
The Top Clarification Letter Item is (after initial threshold has been met):
Number 1: Cost Estimate-is not submitted in Excel format and the summary and detail are not provided.
Secure File Delivery Portal
Once again the list of required documents is found starting on page 17 of the QAP.
For 2014, again all required documents must be submitted via the Secure File Delivery Portal.
Instructions on how to access the Secure File Delivery Portal will be provided to all projects submitting a Letter of Intent.
The portal will open beginning Feb 26th for Round 1 and June 27th for Round 2
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Applicant Presentations
The same as last year each Developer will have an opportunity to present their project before the Tax Credit Committee the week that all applications will be considered for reservations.
The presentation can include a total of 3 persons (from the development team).
Presenter can handout a one page overview of the project and can use up to two story boards for schematic drawings, site plans, pictures, etc.
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4% Non‐Competitive Projects
For 2014, all projects applying for the 4% non‐competitive credit will be required to submit a letter of intent to apply at least 60‐days prior to the submission of the application.
Development teams of these projects will be encouraged to contact CHFA’s Allocation Staff to schedule a “concept meeting” to discuss the plans for the project prior to the letter of intent.
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4% Non‐Competitive Application Narrative
The Narrative must be submitted in WORD format and should explain why the project should receive an Initial Determination.
The PAB Narrative Template is available on CHFA’s website.
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2014 LIHTC Application
We will now cover the changes in the 2014 LIHTC Application. Please make note that once the application is received it is merged into our data base and this data, as entered by you, is used to create a variety of reports and documents.
Please keep this in mind when completing the application and DO NOT:
Enter information in ALL CAPS
Enter spaces before or after the data; and most important
Never add formulas anywhere in the application – this will result in the application being returned
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2014 LIHTC Application Fees
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The Fee has increased by one percent of the annual credit amount at the time of reservation and one percent of the annual credit amount at the time of the Carryover or Final application in order to help cover costs of the application review and approval process.
2014 LIHTC Application
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The application for Carryover and Final Allocation must be entered on the most recent LIHTC application
available.
2014 LIHTC Application Scoring
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Secondary Selection CriteriaSection 4.a. Applicant Characteristics changed
For 2014 non-profit points are available to any qualified tax exempt organization 501(C)(3) or (4).
2014 LIHTC Application
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Reminder, we will again request additional information for 4% Non-Competitive applications in the Development Information
Worksheet
We would like to know if the project will be seeking private activity bonds from CHFA.
2014 LIHTC Application
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In 2014, we will again request additional information for 4% Non-Competitive Projects and Other Project Base Vouchers in the
Development Information Worksheet
Continuing with the
Development Information Worksheet
2014 LIHTC Application
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In 2014, we again will request additional information the about Construction Loan in the Development Financing Worksheet
Now let’s go to the
Development Financing Worksheet
construction loan information.
2014 LIHTC Application
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In 2014, we will again have a Construction Interest Test and the same additional information as last year to the Summary Worksheet
2014 LIHTC Application
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For 2014, as a reminder we are requesting contact information about additional project members in the Applicant-Info Development Information Worksheet
Permanent Lender Construction Lender General Contractor Architect Environmental Phase I Preparer Capital Needs Report Preparer Cost Estimate Preparer Green Consultant Bond Issuer (non-competitive 4%) Bond Counsel (non-competitive 4%)
2014 Market Study Guide Update
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Changes in 2014
1. Letter of IntentThe PMA census tracts must be includedin the Letter of Intent.
2. Senior ProjectsRegardless if the proposed project willallow tenants 55 years and older, themarket analyst should only consider the62 year and old population in theirdemand analysis.
2014 Market Study Guide Update
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Reminders
The market study must match the LIHTC application regarding unit count, unit mix, square footage, AMI mix, and proposed rents
Proposed rents = what the tenant will actually pay
2014 Market Study Guide Update
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Reminders
Provide a complete inventory of “like-kind” LIHTC properties in PMA
Family ≠ Senior Exclude 100% Project-based Rental
Assistance properties
Show unit count that will be used in the demand analysis calculations
CHFA Tax Credit Team Contact Information:Tasha Weaver, Mgr. (303) 297‐7429 or [email protected]
Denise Tamulis (303) 297‐7386 or [email protected] Harrison (303) 297‐7316 or [email protected] Barnard (303) 297‐4866 or [email protected] Pacheco (303) 297‐7368 or [email protected]
Kim Dillinger (303) 297‐7361 [email protected]