Hawaii Administrative Rules › Title 15 - DEPARTMENT OF BUSINESS, ECONOMIC DEVELOPMENT AND TOURISM › Hawaii Housing Finance and Development Corporation › Chapter 313 - LOW INCOME HOUSING TAX CREDIT PROGRAM › Subchapter 2 - FEDERAL LOW INCOME HOUSING TAX CREDITS › Section 15-313-10 - Selection of application; reservation of credits

Current through June, 2024
(a) Based on
				  the review of the applications, documents, and any additional information
				  submitted by the applicants or obtained from other sources by the corporation,
				  the executive director shall make a determination as to the likelihood of the
				  applicant being able to qualify for the credit under the Code and the
				  corporation's qualified allocation plan. The executive director shall then
				  prepare a recommendation to the board for a reservation of federal tax credits
				  for applications selected pursuant to the corporation's qualified allocation
				  plan.
(b) The board shall review
				  the recommendation of the executive director for the reservation of federal tax
				  credits, and, if the board determines that the project will contribute to the
				  housing goals of the State, it may approve the application and authorize the
				  executive director to reserve an appropriate amount of credits to the
				  applicant, subject to such terms and conditions as it shall deem necessary or
				  appropriate to assure compliance with the Code and these rules. The board shall
				  either approve, defer, or deny applications received no later than sixty days
				  after an application with required exhibits is deemed complete and satisfactory
				  by the executive director.
(c) Upon
				  the board's approval of a reservation of federal tax credits to an applicant,
				  the executive director shall notify the applicant of the federal credit
				  reservation by issuing a commitment letter which shall outline any terms and
				  conditions imposed with respect thereto.
(d) If the board determines to defer an
				  application for a reservation of federal tax credits, such application shall
				  remain active. If the board determines to disapprove an application, such
				  application shall be considered null and void. Deferred applications may be
				  brought back before the board as determined by the executive director but such
				  applications shall become null and void at the end of each calendar year if not
				  brought back before the board for further action. Applicants whose applications
				  have been deferred by board action shall be notified within seven days of their
				  applications being reheard before the board and within ten days of the end of
				  the calendar year if such applications have not been reheard and have therefore
				  become null and void.
(e) When a
				  federal credit reservation is approved, the executive director shall require
				  the applicant to make a good faith deposit with the corporation of an amount
				  equal to ten per cent of the federal tax credit reserved to assure that the
				  applicant will comply with all requirements under the Code and these rules for
				  allocation of the federal tax credits. Upon allocation of the federal tax
				  credits, a portion of the ten per cent good faith deposit shall be retained by
				  the corporation as an administrative fee and the remainder refunded. The amount
				  of the administrative fee to be retained shall be established each calendar
				  year effective January 1.
Upon the cancellation by applicant or withdrawal by
					 executive director of a tax credit reservation, applicant is entitled to a
					 refund of the good faith deposit less the corporation's administrative fee
					 provided that the credits withdrawn or canceled are reserved for another
					 project. No deposits shall be refunded other than as provided in this
					 paragraph.