Missouri Code of State Regulations › Title 4 - Department of Economic Development › Division 170 - Missouri Housing Development Commission › Chapter 5 - Affordable Housing Assistance Program › Section 4 CSR 170-5.100 - Introduction

Current through Register Vol. 49, No. 14, July 15, 2024
PURPOSE: This rule establishes guidelines to assist
				  eligible donors and eligible agencies in the implementation of the Affordable
				  Housing Assistance Program (AHAP).
PUBLISHER'S NOTE: The secretary of state has
				  determined that the publication of the entire text of the material which is
				  incorporated by reference as a portion of this rule would be unduly cumbersome
				  or expensive. This material as incorporated by reference in this rule shall be
				  maintained by the agency at its headquarters and shall be made available to the
				  public for inspection and copying at no more than the actual cost of
				  reproduction. This note applies only to the reference material. The entire text
				  of the rule is printed here.
(1) All term(s) used in 4 CSR 170-5 shall
				bear the same meaning as the defined term(s) described herein and in
				4 CSR 170-1.100, the
				state housing act, and, as applicable, in sections 135.350-135.363,
				RSMo.
(2) The Missouri Housing
				Development Commission (commission), as an instrument of the state of Missouri,
				shall administer the Affordable Housing Assistance Program (AHAP), subject to
				the requirements of state of Missouri law and any regulations promulgated
				pursuant to state of Missouri law. The commission staff shall provide the
				application forms to eligible agencies seeking to provide affordable housing
				and to take advantage of the tax credits issued under this program. Said
				applications may be obtained at the commission's website or by contacting the
				commission directly.
(3) As used in
				the implementation of the AHAP, the following terms shall mean:
(A) Adjusted gross income. An amount equal to
				adjusted income as such amount is defined under Title 24,
Code of
				Federal Regulations
, Part 5, published annually in January, herein
				incorporated by reference and made a part of this rule, as published by the
				United States Superintendent of Documents, 732 N Capital Street NW, Washington,
				DC 20402-0001, phone: toll free (866) 512-1800, DC area (202) 512-1800,
				website:
http://bookstore.gpo.gov
. This rule does
				not incorporate any subsequent amendments or additions;
(B) Affordable Housing Assistance Programs
				(AHAP). Those programs designed to provide affordable housing to very
				low-income persons who would not otherwise be adequately housed;
(C) Affordable housing assistance activities.
				Includes money, real or personal property, or professional services expended or
				devoted or contributed through an eligible agency which is providing affordable
				housing units-
1. Through the use,
				construction, or rehabilitation of those units; or
2. To eligible occupants through an
				affordable housing rent subsidy program approved by the commission staff, all
				in accordance with the criteria established in subsection (3)(C) herein, with
				the exception of fees to administer rent subsidy programs, which shall not be
				paid from eligible donations;
(D) Affordable housing rent subsidy. Eligible
				donation funds that may be set aside to provide to low-income residents a
				monthly rental assistance. They may not be used for households already
				receiving rental assistance through other resident assistance
				programs;
(E) Affordable housing
				unit. For the purposes of AHAP, means a residential unit generally occupied by
				persons and families with incomes at or below the levels described in this rule
				and charging a gross rental rate or bearing a cost to the occupant no greater
				than thirty percent (30%) of the maximum eligible household income for the
				affordable housing unit. In the case of owner-occupied units, the cost to the
				occupant shall be considered the amount of the gross monthly mortgage payment,
				including casualty insurance, mortgage insurance, and taxes. Gross rent
				includes the cost of any customary utilities, other than telephone, as approved
				by the commission staff. If any utilities are paid directly by the occupant,
				the maximum rent that may be paid by the occupant is to be reduced by a utility
				allowance prescribed by the commission staff;
(F) AHAP land use restriction agreement (AHAP
				LURA). An agreement between the commission and the approved mortgagor which
				shall be prepared by the commission staff, executed by the applicable parties,
				and shall restrict the use of the property during the compliance
				period;
(G) AHAP tax credit. A one
				(1)-time credit that may be allocated to an eligible donor for up to fifty-five
				percent (55%) of the total value of the eligible donation;
(H) Application. A written submission of a
				request for production credits and/or operating assistance credits by an
				eligible agency which is providing affordable housing units through affordable
				housing assistance activities, including use, construction, rehabilitation, or
				grant of affordable housing rent subsidies to eligible occupants in a manner
				consistent with the AHAP requirements;
(I) Chief elected official. That official
				elected to the highest governing position in the local jurisdiction in which
				the development is located;
(J)
				Compliance period. The AHAP LURA shall restrict the use of the property
				receiving the benefit of production credits for a period of ten (10) years or
				for such other period as may be set forth below-
1. For properties that have existing
				residents, the AHAP LURA shall be filed at the time of the eligible donation or
				at the closing of the deal, whichever occurs first, and shall remain in place
				for a period of ten (10) years;
2.
				For new construction, conversion, or rehabilitation of properties with no
				existing residents, the AHAP LURA shall be filed at the time of the first
				eligible donation, and restriction will begin upon issuance of the first
				certificate of occupancy and shall remain in place for a period of ten (10)
				years;
3. If the eligible donation
				is of vacant land for the purpose of developing affordable housing units, the
				AHAP LURA shall be filed upon donation of the vacant land but will not be
				effective until the first certificate of occupancy is issued, after which time
				it shall remain in place for a period of ten (10) years; and
4. Developments receiving an affordable
				housing rent subsidy shall be subject to the restrictions of the AHAP LURA for
				as long as the affordable housing rent subsidy is in place and only with regard
				to those units receiving the affordable housing rent subsidy;
(K) Eligible agency. Any
				organization performing community services or economic development activities
				in the state of Missouri having the producing, maintaining, or operating of
				low-income housing as part of their charter and as one (1) of their stated
				purposes, and-
1. Holding a ruling from the
				Internal Revenue Service of the United States Department of Treasury that the
				organization is exempt from income taxation under the provisions of the
Internal Revenue Code
sections 501(c)3, 501(c)4, or 501(c)6;
				or
2. Incorporated in the state of
				Missouri as a not-for-profit corporation under the provisions of Chapter 355,
				RSMo; or
3. Designated as a
				community development corporation by the United States government under the
				provisions of 42 U.S.C.A. 9802; and
4. Not controlled by a for-profit
				corporation, company, partnership, or entity of any kind; and
5. Any organization not solely relying on
				AHAP tax credit in the furtherance of their business activities must meet the
				minimum requirements of subsection (3)(K) and shall have conducted their
				business activities for at least one (1) year;
(L) Eligible donation. A donation that may be
				in the form of cash, stock, real estate, professional services, or
				materials/products and must be eligible for the federal income tax charitable
				deduction. The donation must be made to an eligible agency which has already
				received a reservation of AHAP tax credits from the commission staff. To
				allocate the credit, the commission staff requires supporting documentation
				evidencing the receipt and value of the donation and a certification form
				executed by the eligible donor and the eligible agency. To be an eligible
				donation, the donation must be received by the eligible agency after the date
				of reservation and prior to the deadline outlined in the reservation
				letter;
(M) Eligible donor. A
				person, firm, or corporation doing business in the state of Missouri and
				subject to the income tax imposed by the provisions of Chapter 143, RSMo, or a
				corporation subject to the annual corporation franchise tax imposed by the
				provisions of Chapter 147, RSMo, or an insurance company paying an annual tax
				on its gross premium receipts in the state of Missouri, or other financial
				institution paying taxes to the state of Missouri or any political subdivision
				of the state of Missouri under the provisions of Chapter 148, RSMo, or an
				express company which pays an annual tax on its gross receipt in the state of
				Missouri.
1. Employees of an eligible agency
				which has been allocated AHAP tax credits are not eligible to make donations
				for AHAP tax credits. However, they are eligible to receive AHAP tax credits
				through the transfer process;
(N) Eligible occupants. Persons or families
				whose household combined adjusted gross income, as defined by the commission
				staff, is equal to or less than the percentages of median family income set
				forth in section
				32.105, RSMo. Median
				family income is that for the geographic area in which the residential unit is
				located or the median family income for the state of Missouri, whichever is
				larger. Geographic area means the metropolitan area or county designated as an
				area by the federal Department of Housing and Urban Development under Section 8
				of the
United States Housing Act of 1937
for purposes of
				determining fair market rental rates;
(O) Fiscal year. As defined by the
				commission, shall be from July 1 through June 30;
(P) Operating assistance credits. Tax credits
				allocated through the AHAP to eligible agencies to provide for qualified
				operating expenses of the eligible agency pursuant to section
				32.112,
				RSMo;
(Q) Production credits. Tax
				credits allocated through the AHAP to eligible agencies for affordable housing
				assistance activities pursuant to section
				32.111,
				RSMo;
(R) Qualified operating
				expenses. For the purposes of operating assistance credits, may include
				salaries, office supplies/equipment, office rent/mortgage payments, utilities,
				taxes, insurance, maintenance/repairs, professional services procured by the
				eligible agency, and any other expenses approved by the commission staff.
				However, the cost of applying for the AHAP tax credits and the tax credit fee
				shall not be included in qualified operating expenses;
(S) Reservation. The process by which the
				commission staff sets aside AHAP tax credits for use by a specific eligible
				agency;
(T) Reservation letter. A
				letter issued by the commission staff to the eligible agency upon approval of
				their application which sets out the approved AHAP tax credit amount, the
				beginning and end dates for receiving eligible donations, and any additional
				terms for administration of the program; and
(U) Tax certification. A form provided to the
				commission staff by the eligible donor and the eligible agency to certify the
				information provided by each as it pertains to the donations and all applicable
				requirements for receiving the AHAP tax credit.