Source: http://register.dls.virginia.gov/details.aspx?id=7351
Timestamp: 2019-04-19 12:46:39+00:00

Document:
Title of Regulation: 13VAC10-190. Rules and Regulations for Qualified Mortgage Credit Certificate Programs (amending 13VAC10-190-10, 13VAC10-190-30, 13VAC10-190-40, 13VAC10-190-50, 13VAC10-190-60, 13VAC10-190-70, 13VAC10-190-200).
Public Comment Deadline: February 5, 2019.
Agency Contact: Jeff Quann, Senior Counsel, Virginia Housing Development Authority, 601 South Belvidere Street, Richmond, VA 23220, telephone (804) 343-5603, or email jeffrey.quann@vhda.com.
The proposed amendments update the mortgage credit certificate (MCC) regulations for consistency with other regulations, including (i) adding definitions and (ii) clarifying language used in the regulation and conditions under which the authority may issue an MCC to an applicant.
"Applicant" means the individual applying for a mortgage credit certificate.
"Authority" means the Virginia Housing Development Authority, a political subdivision of the Commonwealth of Virginia constituting a public instrumentality.
"Certificate credit rate" has the meaning set forth in IRC § 25.
"Certified indebtedness" has the meaning set forth in IRC § 25. It is the indebtedness loan or portion thereof that the applicant will incur uses to acquire his principal residence and that, in the determination of the authority, meets the requirements of IRC § 25 and will be used in calculating the amount of the potential tax credit under the mortgage credit certificate MCC.
"Commitment" means the obligation of the authority to provide a mortgage credit certificate to an eligible applicant pursuant to an approved application.
"Commitment term" means the period of time during which the applicant must close on his loan to be entitled to a mortgage credit certificate pursuant to his commitment.
"Executive director" means the executive director of the authority or any other officer or employee of the authority who is authorized to act on behalf of the executive director or the authority pursuant to a resolution of the board of the authority.
"Internal Revenue Code" or "IRC" means Title 26 of the United States Code, as the same may be amended from time to time.
"Loan" means any extension of credit that finances the purchase of and will be secured by a principal residence.
"Mortgage credit certificate" or "MCC" means a certificate issued by the authority pursuant to IRC § 25.
"Participating lender" means any person or organization that is legally authorized to engage in the business of making loans for the purchase of principal residences and meets the qualifications in this chapter to participate in the programs.
"Principal residence" means a dwelling that will be occupied as the primary residence of the purchaser, that will not be property held in a trade or business or as investment property, that is not a recreational or second home, and no part of which will be used for any business purposes for which expenses may be deducted for federal income tax purposes.
"Program" means a qualified mortgage credit certificate program as defined in IRC § 25, in particular IRC § 25(c)(2)(A).
"Private activity bonds" has the meaning set forth in IRC § 141.
"Qualified home improvement loan" has the meaning set forth in IRC § 143(k)(4).
"Qualified mortgage bond" has the meaning set forth in IRC § 143.
"Qualified rehabilitation loan" has the meaning set forth in IRC § 143(k)(5).
"Qualified veteran's mortgage bond" has the meaning set forth in IRC § 143.
13VAC10-190-30. Purpose, applicability, and scope of regulations.
A. All programs described in 13VAC10-190-20 and all of the MCCs issued by the authority pursuant to such programs are subject to this chapter.
B. This chapter is intended to provide a general description of the authority's requirements and processing and is not intended to include all actions involved or required in the processing and administration of MCCs. This chapter is subject to amendment by the authority at any time and may be supplemented by policies, rules, and regulations adopted by the authority from time to time with respect to all of the programs.
C. Notwithstanding anything to the contrary in this chapter, the executive director is authorized with respect to any MCC program to waive or modify any provision of this chapter where deemed appropriate by him for good cause, to the extent not inconsistent with the IRC.
D. Notwithstanding anything to the contrary in this chapter, MCCs can only be issued when and to the extent permitted by the IRC and the applicable federal laws, rules, and regulations governing the issuance of MCCs.
E. Notwithstanding anything to the contrary in this chapter, the federal laws, rules, and regulations governing the MCCs shall control over any inconsistent provision in this chapter, and individuals applicants to whom MCCs have been issued shall be entitled to the privileges and benefits thereof only to the extent permitted by the IRC.
F. Wherever appropriate in this chapter, the singular shall include the plural; the plural shall include the singular; and the masculine shall include the feminine.
The authority may only issue an MCC to an individual only if he would be eligible to be a borrower of a tax exempt bond financed loan pursuant to 13VAC10-40-30, 13VAC10-40-40, 13VAC10-40-50, 13VAC10-40-70, 13VAC10-40-90, and 13VAC10-40-100 applicant if the applicant meets the requirements the authority establishes for the program, which include requirements that ensure the applicant qualifies under 26 CFR 1.25-3T so that the MCC would be a qualified mortgage credit certificate pursuant to 26 CFR 1.25-3T.
The authority may issue an MCC to an individual applicant only if his application for the MCC is based upon his purchasing a principal residence that qualifies under 26 CFR 1.25-3T so that the MCC would be eligible for a tax exempt bond financed loan a qualified mortgage credit certificate pursuant to 13VAC10-40-40 through 13VAC10-40-80 26 CFR 1.25-3T.
The authority may issue an MCC to an individual applicant only if his application for the MCC is based upon his obtaining a loan from a participating lender.
6. Otherwise satisfies the requirements of 26 CFR 1.25-2T(c)(1).
After each MCC is issued, the authority shall have the right, but not the obligation, to investigate the facts and circumstances relating to any application and the issuance and use of the related MCC and, if there are proper grounds, to revoke the MCC and take other appropriate legal action.
VA.R. Doc. No. R19-5801; Filed January 15, 2019, 3:31 p.m.

References: § 25
 § 25
 § 25
 § 25
 § 25
 § 25
 § 141
 § 143
 § 143
 § 143
 § 143