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 15-313-8 - Application for federal credit reservation

Current through June, 2024
(a) Applications on
				  the prescribed forms will be accepted by the corporation and considered as they
				  are received. Applications must be fully completed and contain information as
				  required under this section and by the application.
(b) Application for a reservation of federal
				  tax credits shall be commenced by filing with the corporation the following:
(1) An application, on such form or forms as
				  the executive director may prescribe;
(2) Certified copies of the organizational
				  documents of the applicant, including its articles of incorporation and bylaws,
				  declaration of trust, partnership or limited partnership agreement, together
				  with all amendments thereto and, in the case of nonprofit organizations, a copy
				  of the determination letter from the Internal Revenue Service as to recognition
				  of exemption from federal income taxation. The applicant shall submit the
				  certified copies of the aforementioned documents to the corporation at the time
				  of application;
(3) A copy of the
				  applicant's audited annual financial statement prepared in accordance with
				  generally accepted accounting principles covering a period ended within twelve
				  months of the date submitted. In the event the applicant has not commenced
				  material operations, the developer shall be required to submit federal tax
				  returns and financial statements for the previous three years. The applicant
				  must also submit any and all other financial information as requested by the
				  executive director;
(4) Evidence of
				  site availability for the project, e.g., a deed, lease, agreement of sale,
				  option agreement or similar document. In the event the applicant does not have
				  proper zoning, a plan and timetable for obtaining proper zoning must be
				  contained in the development schedule;
(5) A proposed development
				  timetable;
(6) A description
				  certified by the applicant of how the project qualifies for federal tax credits
				  under the Code;
(7) A pro forma
				  calculation of the applicant's qualified basis and the amount of federal tax
				  credits requested by the applicant, together with an opinion of a certified
				  public accountant certifying that under the existing facts and circumstances
				  the applicant will be eligible for such qualified basis;
(8) A description of the experience of the
				  applicant and its capacity to place the low income housing units in service in
				  accordance with the Code;
(9) A pro
				  forma operating budget and information supporting the likelihood of meeting the
				  compliance period set forth in the Code including the sources of funds that
				  will allow the project to remain in compliance for the duration of the
				  compliance period. In addition, a description of funds which will be available
				  to the project in the event the project should operate at a deficit must be
				  included;
(10) Financial
				  information relating to the project including a construction or development
				  budget which sets forth, to the satisfaction of the corporation, the sources
				  and the application of funds for development of the project, including the
				  extent to which the applicant is "at risk" under the Code;
(11) A covenant by the applicant in a form
				  satisfactory to the executive director that should it be allocated the tax
				  credits applied for that it shall maintain the applicable portion of the
				  project as low income housing units for the extended use period;
(12) A market analysis prepared by an
				  independent firm as to the present and projected demand for the proposed
				  development in the market area. Such marketing analysis shall include, but not
				  be limited to, the estimated number of individuals or families in the area
				  within the applicable income limits needing affordable housing, demand for
				  units when a project elected to set aside units for tenants with a special
				  housing need as specified in the Code and the qualified allocation plan, demand
				  for a community service facility that may be elected by the project as defined
				  in the Code, and the comparable rental rates for the area; and
(13) Any and all other information as shall
				  be required by the application and requested by the executive director. Any
				  information or materials submitted must be in form and substance satisfactory
				  to the corporation in all respects.