Code of Maine Rules › 99 - INDEPENDENT AGENCIES › 346 - MAINE STATE HOUSING AUTHORITY › Chapter 16 - LOW-INCOME HOUSING TAX CREDIT RULE › Appendix 346-16-A - Definitions

Current through 2024-29, July 17, 2024
"Above Average" means an average overall score of 4 in the
				  rating category - Physical plant inspections, Project Reports submissions, or
				  Management and Occupancy Reviews. Physical plant inspections, and Management
				  Occupancy Reviews are scored on the following scale: 1- Unsatisfactory, 2 -
				  Below Average, 3 - Average, 4 - Above Average, and 5 - Superior. Project
				  Reports submissions are scored as 5-Timely Submission and 1-Late Submission for
				  each required submission report - Audited Financial Review (AFR), Budget, and
				  Owner Certification of Continued Compliance.
"Act" means the Maine Housing Authorities Act,
				  30-A
				  M.R.S. §4701 et seq., as may be amended
				  from time to time.
"Activities Important to Daily Living" means activities or
				  destinations that are important to the course of daily living of the population
				  served by the Project, which include a grocery store, a public school only if
				  the Project is housing for families, a daycare only if the Project is housing
				  for families, a senior center only if the Project is Housing for Older Adults,
				  a pharmacy, a bank or credit union, a post office, a store that offers
				  regularly purchased household supplies, a general health care practitioner's
				  office, a public library, a location where people socialize, a hospital and
				  other activities or destinations approved by MaineHousing. Convenience stores
				  and gas stations are not eligible destinations for purposes of this subsection.
				  If there is more than one activity or destination important to the course of
				  daily living within a single establishment, each activity or destination will
				  be counted separately (e.g. a retail store that also includes a pharmacy and a
				  bank branch will be treated as 3 destinations important to the course of daily
				  living).
"Adaptive Reuse" means the conversion of an existing
				  non-housing building or structure to multi- family residential rental housing
				  or the reconstruction of existing housing that has become functionally
				  obsolete, as determined by MaineHousing.
"Affiliates" means any person or entity directly or
				  indirectly controlling, controlled by, or under common control with another
				  person or entity.
"Affordable Housing" means multi-family rental housing that
				  has five or more units and is assisted under a HUD or Rural Development program
				  or is subject to a restrictive covenant requiring units in the housing to be
				  restricted to households with income at or below 60% of area median income, as
				  determined by HUD.
"Affordable Housing TIF" means an affordable housing
				  development district and development program approved by MaineHousing pursuant
				  to MaineHousing's Affordable Housing Tax Increment Financing Program, 30-A
				  M.R.S., Chapter 206, Subchapter 3 and the Act, as may be amended.
"Applicant" means the entity applying for Credit, its
				  successors and assigns, which must be the entity that will be the owner of the
				  Project for tax purposes; must be duly organized and validly existing under the
				  laws of the state in which it is formed, and if not formed in this State, must
				  be duly authorized to conduct business in this State; and must be in good
				  standing under the laws of this State and its state of formation, if not this
				  State.
"Application" means an application to MaineHousing for an
				  allocation of Credit.
"Capitalized Lease Value" means the net present value of all
				  lease payments under a lease calculated over the term of the lease using the
				  10-year Treasury note rate 60 calendar days before the Application deadline
				  plus 300 basis points.
"Code" means the Internal Revenue Code, Title 26 of the
				  United States Code, and applicable regulations promulgated pursuant thereto, as
				  may be amended.
"Community Revitalization Plan" means (1) a community that
				  has been designated by HUD or RD as an Empowerment Zone, a Renewal Community or
				  Enterprise Community, or a Neighborhood Revitalization Strategy Area; or (2) a
				  written plan that was formally adopted by the governing body of a municipality
				  no more than twelve (12) years prior to the Application deadline following a
				  concerted planning process and public input, specifically targets a
				  neighborhood or area in the community (not a single building or site or the
				  entire municipality) for redevelopment or revitalization, and includes (a) an
				  assessment of the existing physical structures and infrastructure of the area,
				  (b) detailed policy goals with respect to economic redevelopment, the
				  rehabilitation or development of housing (including multi-family rental
				  housing) and the improvement or expansion of infrastructure, and (c) proposed
				  activities and a timetable for implementing the policy goals. Plans for a
				  single development and plans formulated by or on behalf of the Applicant are
				  not Community Revitalization Plans. A comprehensive plan that meets all of the
				  requirements in (2) may qualify.
"Compliance Period" means the period defined in Section
				  42(i)(1) of the Code.
"Credit" or "LIHTC" means the low-income housing tax credit
				  established pursuant to Section 42 of the Code and allocated pursuant to this
				  rule.
"Credit Period" means the period defined in Section 42(f)(1)
				  of the Code.
"Credit Units" means units in a Project that are eligible for
				  Credit.
"Demand Response Transportation" means on-call transportation
				  services that operate at least 3 days per week and provide service throughout
				  the day.
"Developer Fee" means the total compensation for the work,
				  costs and risks associated with developing a Project, including without
				  limitation, creating the Project concept, identifying and acquiring the Project
				  site, obtaining construction and permanent financing, obtaining necessary
				  subsidies, negotiating the syndication of investment interests in the Project,
				  obtaining all necessary regulatory approvals, constructing and/or
				  rehabilitating the Project and marketing, and includes all amounts paid to
				  consultants to perform this work, except fees for professional services such as
				  environmental assessments, rental market studies, soil tests, and water tests,
				  and includes all reserves, in the form of cash, expected to be paid to the tax
				  credit developer from the Project.
"DDA" means an area of the State that is designated by HUD as
				  a difficult development area pursuant to Section 42(d)(5)(B)(iii) of the Code
				  or an area of the State that is designated by MaineHousing as a
				  difficult-to-develop area in Section 7.A.3 pursuant to Section 42(d)(5)(B)(v)
				  of the Code.
"Extended Use Agreement" means an agreement that satisfies
				  the requirements of Section 42(h)(6)(B) of the Code.
"Extended Use Period" means the period of time specified by
				  MaineHousing in the Extended Use Agreement executed in connection with a
				  Project pursuant to Section 42(h)(6)(D) of the Code, which is the period set
				  forth in Section 5.A. for Projects allocated Credit under the State
				  Ceiling.
"Extremely Low Income" means income that is at or below 30%
				  of the area median income as determined pursuant to the regulations and
				  guidance governing the National Housing Trust Fund.
"Family Housing" means housing for families that qualifies
				  for points under the Family Housing scoring criteria set forth in Section
				  6.E.
"Fiscal Year" means the fiscal year for a LIHTC Project as
				  defined in the Owner's organizational documents.
"Fixed-route Public Transportation" means year-round,
				  regularly scheduled public transportation that operates at least 5 days per
				  week and provides regular service throughout the day.
"Housing Development Costs" means the total of all direct and
				  indirect costs incurred in financing, creating, purchasing or rehabilitating a
				  LIHTC Project except the costs attributable to the acquisition of the land and
				  any existing buildings as determined by MaineHousing.
"Housing for Older Adults" means a Project that is designated
				  as elderly or senior housing and receives funding and project-based rental
				  assistance under a RD or HUD multi-family elderly housing program (such as RD's
				  Section 515 Rural Rental Housing Program and HUD's Section 202 Supportive
				  Housing for the Elderly Program) or that meets the definition of "housing for
				  older persons" under the federal Fair Housing Act,
				  42 U.S.C. §
										3607(b)(2) and the Maine
				  Human Rights Act,
				  5 M.R.S.
				  §4581 et seq. and all associated
				  regulations, as may be amended.
"HUD" means the United States of America acting through the
				  United States Department of Housing and Urban Development.
"Intermediary Costs" means all Housing Development Costs
				  except the actual construction costs or eligible rehabilitation costs under
				  Section 42(e) of the Code attributable to the development of the units.
"IRS" means the United States Department of Treasury, Bureau
				  of Internal Revenue Service.
"LIHTC Project" means a qualified low-income housing project
				  as defined in and governed by Section 42(g) of the Code.
"MaineHousing" means Maine State Housing Authority.
"MaineHousing's Construction Standards" means MaineHousing's
				  Quality Standards and Procedures Manual in effect 60 calendar days prior to the
				  applicable deadline for an Application for Credit which include without
				  limitation certain energy efficiency standards and UPCS and incorporate
				  MaineHousing's accessibility policy and procedures.
"Maximum Credit Amount" means the maximum amount of Credit a
				  Project is eligible to receive pursuant to Section 3.C.
"National Housing Trust Fund" means the Housing Trust Fund
				  established under Title I of the Housing and Economic Recovery Act of 2008,
				  12 U.S.C. §
										4568, together with associated regulations
				  and guidance now or hereafter promulgated pursuant thereto.
"Net Developer Fee" means the Developer Fee with respect to a
				  Project that does not exceed the applicable limit set forth in Section 7.B.2.,
				  including any portion thereof that is deferred or loaned to pay for costs
				  associated with the Project (and does not include any additional Developer Fee
				  allowed under Section 7.B.3).
"Notice to Proceed" means the notice that a Project has been
				  selected for further evaluation to determine the Project's eligibility for
				  Credit and the amount of Credit to be allocated for the Project. The Notice to
				  Proceed will require the submission of all information necessary for
				  MaineHousing to determine the amount of Credit, if any, to be allocated to the
				  Project, obligate the Applicant to fulfill all commitments made in the
				  Application, and require the Applicant to promptly and diligently develop and
				  complete the Project according to the deadlines specified in the notice.
"Owner" means the legal owner of a LIHTC Project or Qualified
				  Building for which an Application has been submitted to MaineHousing or which
				  has received an allocation of Credit from MaineHousing pursuant to this
				  Qualified Allocation Plan or a prior Qualified Allocation Plan for the
				  State.
"Ownership Transfer Rule" means Chapter 27 of MaineHousing's
				  rules,
Transfers of Ownership Interests
, and the policies and
				  procedures related thereto, all as may be amended.
"Passive House Certification" means certification from
				  Passive House Institute US, Inc. (PHIUS) or Passive House Institute (PHI) prior
				  to MaineHousing's issuance of IRS Form 8609.
"Persons Experiencing Homelessness" means persons sleeping in
				  a place not meant for human habitation, in an Emergency Shelter, or in other
				  emergency housing; persons exiting an institution where they resided for 90
				  days or less and who had resided in an Emergency Shelter, other emergency
				  housing, or place not meant for human habitation before entering that
				  institution; and persons fleeing, or attempting to flee, domestic violence,
				  dating violence, sexual assault, stalking, or other dangerous or
				  life-threatening conditions in the individual's or family's current housing
				  situation, including where the health and safety of children are jeopardized,
				  and who have no other residence and lack the resources or support networks to
				  obtain other permanent housing.
"Placed in Service" means the date on which a Qualified
				  Building is suitable and available for occupancy as determined in accordance
				  with Section 42 of the Code.
"Principal" means any person or entity with a controlling
				  interest in another entity, including without limitation, a person or entity
				  with an ownership interest in an Applicant that controls the development and
				  day-to-day operation of a Project, such as the general partner(s) of a limited
				  partnership or the manager(s) or member(s) invested with the management
				  authority of a limited liability company, and all persons and entities with an
				  ownership interest in or control of said entity.
"Project" means the property described in the Application,
				  which must be a qualified low-income housing project as defined in and governed
				  by Section 42(g) of the Code.
"Project Reports" means the annual certification and tenant
				  data required under Section 10.C., and if required for the LIHTC Project, the
				  audited financial report (AFR) and the annual project budget.
"QCT" means an area of the State designated by HUD as a
				  qualified census tract pursuant to Section 42(d)(5)(B)(ii) of the Code.
"Qualified Allocation Plan" or "Plan" means the plan for
				  allocating and administering the Credit adopted by the housing credit agency
				  pursuant Section 42(m)(1)(B) of the Code.
"Qualified Building" means a qualified low-income building as
				  defined in and governed by Section 42(c)(2) of the Code.
"Qualified Contract" means a contract as defined in Section
				  42(h)(6)(F) of the Code.
"Qualified Nonprofit Organization" means a qualified
				  nonprofit organization as defined in Section 42(h)(5)(C) of the Code.
"Rehabilitation Costs" means with respect to a Project (1)
				  the site costs, (2) the costs of complying with the construction requirements
				  of other funding sources except those required by the Applicant, any Principal
				  thereof or Affiliates of either, (3) contractor profit, overhead and general
				  conditions, and (4) certain costs identified in the capital needs assessment
				  required under Section 5.C.1. of the QAP, including (a) the cost of correcting
				  all violations of applicable federal, state and local health, safety and
				  building codes and correcting deferred maintenance, (b) the rehabilitation or
				  replacement of all structures, systems, facilities and components that have
				  reached or exceed their useful life or will reach their useful life within 5
				  years, (c) the cost of complying with MaineHousing's Construction Standards,
				  (d) the cost of complying with the most current accessibility requirements for
				  new construction projects under applicable federal, state and local
				  accessibility laws, regulations, standards and guidance, and (e) the
				  remediation and disposal of any environmental or other hazards identified in
				  environmental reports. Rehabilitation Costs do not include construction
				  contingency, relocation costs, or other soft costs.
"Related Development" means any development of which the
				  Project is a part or is related and the Project cannot be completed, either
				  structurally or financially, without the completion of the development.
"RD" or "Rural Development" means the United States of
				  America acting through the United States Department of Agriculture, Rural
				  Housing Services.
"Safe Walking Distance" means a pedestrian route appropriate
				  to the area, as determined by MaineHousing, with sidewalks, crosswalks and
				  traffic signals at busy roads or intersections and year- round walkability,
				  which includes being plowed during the winter.
"Section
				  8" means Section
				  8 of the United States Housing Act of
				  1937, 42 U.S.C. §
										1437f, as may be amended.
"Service Center Community" means an entire municipality that
				  provides jobs and retail to surrounding areas and is a center for education,
				  health care, cultural, recreational and social services, designated pursuant to
				  the Municipal Planning Assistance Program of the State's Department of
				  Agriculture, Conservation and Forestry as a Regional Service Center as of
				  January 2013.
"State" means the State of Maine.
"State Ceiling" means the State's housing credit ceiling
				  established pursuant to Section 42(h)(3)(C) of the Code.
"Tax Increment Financing" means any type of tax increment
				  financing, including without limitation an Affordable Housing TIF, a
				  development district and development program approved by a municipality or a
				  tax increment financing district approved by the State's Department of Economic
				  and Community Development pursuant to 30-A M.R.S., Chapter 206, as may be
				  amended.
"TDC Index" means the calculation described in Section
				  5.B.
"TDC Index Cap" means the limit on Total Development Cost set
				  forth in Section 5.B.
"Telehealth" means the use of interactive real-time visual
				  and audio or other electronic media for the purpose of consultation and
				  education concerning and diagnosis, treatment, care management, and
				  self-management of a patient's physical and mental health and includes
				  real-time interaction between the patient and the telehealth provider,
				  synchronous encounters, asynchronous encounters, store and forward transfers
				  and remote patient monitoring. Telehealth includes telephonic services when
				  interactive telehealth services are unavailable or when a telephonic service is
				  medically appropriate for the underlying covered service.
"Total Construction Cost" means the sum of site costs, costs
				  of constructing or rehabilitating structures, systems, facilities, units and
				  components, general requirements, bond premiums, and contractor overhead and
				  profit as determined by MaineHousing.
"Total Development Cost" or "TDC" means Total Project Cost
				  less (1) the fees required by MaineHousing, (2) the Project's operating deficit
				  account to the extent required by MaineHousing and (3) the costs associated
				  with any commercial space developed in connection with the Project.
"Total Project Cost" means the sum of all costs associated
				  with the development, construction and rehabilitation of a Project, as
				  determined by MaineHousing. Total Project Cost includes, without limitation,
				  acquisition costs, the Capitalized Lease Value of all leases of land and
				  building(s), demolition costs, Total Construction Cost, construction
				  contingency, costs associated with community service facilities included in the
				  Eligible Basis of the Project, soft costs (such as permits, design and
				  engineering fees, environmental reports, appraisals, market studies and legal
				  fees), syndication costs, Developer Fee, financing costs and project reserves.
				  Community service facilities are not considered commercial space for purposes
				  of Total Project Cost.
"UPCS" means the Uniform Physical Conditions Standards
				  established by HUD pursuant to
				  24 CFR §
										5.703, as may be amended.