Arkansas Administrative Code › Agency 109 - Arkansas Development Finance Authority › Division 04 - Multi-Family Housing › Rule 109.04.08-007 - 2009 Qualified Allocation Plan Amendment

Current through Register Vol. 49, No. 6, June, 2024
The following amends
Section III.A.
of the
				2009 QAP to reflect the increase in the dollar amount of state housing credit
				ceiling to $2.20 and to reflect the right of those development owners,
				including those receiving allocations prior to July 30, 2008, whose new
				buildings are not federally subsidized and will be placing in service between
				July 30, 2008 and December 31, 2013, that elected to lock-in the credit
				percentage at a rate less than nine percent (9%) to rescind such election upon
				request.
A.
AMOUNT
The base amount of annual credit authority is currently
				calculated at $2.20 per capita. This per capita amount is based upon population
				estimates released each year by the Internal Revenue Service.
The maximum amount of Housing Credits that may be reserved for
				allocation to one individual development shall be no more than
$450,000
of the annual Housing Credits available in the calendar year.
HOWEVER
,
the maximum amount of Housing
				Credits that may be reserved for allocation to one individual
				development:
1) that is located in a
			 Designated Low-Income County as defined in the 2005-2009 State Consolidated
			 Plan;
2) whose structure(s) are
			 individually listed in the National Register of Historic Places or have been
			 determined to contribute to a Registered Historic District;
3) that is a qualified Assisted Living
			 development; or
4) a development
			 with a commitment letter from USD A Rural Development, shall be no mqre than
$475,000
of the annual Housing Credits available in the calendar
			 year.
If allowed by federal law, development owners, including those
				receiving allocations prior to July 30, 2008, whose new buildings are not
				federally subsidized and will be placing in service between July 30, 2008 and
				December 31, 2013, that elected to lock-in the credit percentage at a rate less
				than nine percent (9%) may request the Authority in writing to rescind such
				election. If allowed by federal law, the Authority will automatically approve
				of the rescission; however, owners will receive no. federal low-income housing
				tax credits in excess of the amount previously allocated for the construction
				or rehabilitation of the development.
The following amends
Section VLB. 19
of the
				2009 QAP to publicly set forth when the Authority will increase or "boost" the
				eligible basis of a development not located a qualified census tract or
				difficult to develop area.
19.
Minimum Debt Coverage Ratio
.
The development
			 will be required to establish a minimum debt coverage ratio of 1.10. For this
			 purpose, debt coverage ratio is defined as the ratio of a development's net
			 operating income (rental income less operating expenses and reserve payments)
			 to total debt service obligations., The minimum debt coverage ratio of 1.10
			 must be reflected at Section
			 XI X, Annual Expense Information,
			 of the Multi-Family Housing Application.
The Authority may increase or "boost" the eligible basis of any
				development, not located in a designated qualified census tract or difficult to
				develop area, by up to thirty percent (30%) of such basis if it is determined
				that such increase is required in order for the development to meet the minimum
				debt coverage ratio of 1.10. The Multi-Family Housing Application must reflect
				that the terms of the development's financial sources are competitive with the
				market place. This subparagraph does not apply to developments financed with
				tax-exempt bonds.
HR 3221 amends Section 42(m)(l) by requiring states to take
				into account, as a selection criterion, the historic nature of the development.
				The following amends
Section VL.C..10. and Section
				VI LA.4.
of the 2009 QAP
				and awards selection points to those developments whose structure(s) are
				individually listed in the National Register of Historic Places or have been
				determined to contribute to a Registered Historic District.
10.
Historical
			 Developments
.
Historical development applicants must submit
			 proof that the structure(s) to be rehabilitated are listed in the National
			 Register of Historic Places prior to the issuance of IRS Form 8609. Failure to
			 submit such proof will limit the development to the $450,000 per development
			 Housing Credit cap. However, in order to receive the selection points under
Section VILA. 4. of this QAP below,
the applicant must submit
			 proof that the structures to be rehabilitated are listed in the National
			 Register of Historic Places
by the
Application Deadline.
4.
Involves rehabilitation of residential rental
						  housing under an existing state or federal affordable housing program; or
						  rehabilitation of structures that are individually listed in the National
						  Register of Historic Places or have been determined to contribute to a
						  Registered Historic District.
If applicable, points are awarded based on
						  the percentage of units under the affordable housing program that become LIHTC.
See Section
						  VI.C.10.
of
this
QAP above.
10
The following amends
Section HI.A.
of the 2009
				QAP to reflect:
1) the increase in the
			 dollar amount of state housing credit ceiling to $2.20;
2) the removal of the previous development
			 credit caps, and
3) the right of
			 those development owners, including those receiving allocations prior to July
			 30, 2008, whose new buildings are not federally subsidized and will be placing
			 in service between July 30, 2008 and December 31, 2013, that elected to lock-in
			 the credit percentage at a rate less than nine percent (9%) to rescind such
			 election upon request: