Oklahoma Administrative Code › Title 330 - Oklahoma Housing Finance Agency › Chapter 36 - Affordable Housing Tax Credit Program › Subchapter 4 - Development Applications and Selection › Section 330:36-4-2 - Selection of Applications for award of TCAs

Current through Vol. 41, No. 20, July 1, 2024
(a)
General.
For the purpose of selecting Applications for awards of TCAs, OHFA shall develop Threshold and Selection Criteria that conform to the Code, the OAHTC Program purposes and these Chapter 36 Rules for inclusion in the next AP. The number, severity, or value of any one or more of the Threshold or Selection Criteria items may be increased by adoption of an AP for a given year that contains such increased Threshold or Selection Criteria items. However, each AP must contain for any AP, criteria to evaluate set-asides and all Threshold and Selection Criteria.
(b)
Minimum Threshold Criteria.
Failure to meet all Threshold Requirements set forth in the AP upon initial submission of the Application may result in the Application being rejected without further review. The Threshold Criteria may include, but are not necessarily limited to the following:
(1)
Market analysis.
All Applicants must submit a third party, independent housing market analysis conforming to the Threshold Criteria set forth in the AP, demonstrating and documenting the status of the market demand for the type and number of Housing Units proposed to be developed.
(2)
Nonprofit Owners.
Applicants proposing Developments under the Nonprofit set-aside must demonstrate and document that the Nonprofit Owner and/or Nonprofit ownership participant meet the definition of a Nonprofit Sponsored Development as defined in Section 42h(5)(C) of the Code and these Chapter 36 rules at 330:36-1-4. Applicants for Nonprofit set-aside TCAs must demonstrate that the Nonprofit participant:
(A) demonstrates more than fifty percent (50%) Ownership in the general partner or managing member;
(B) will materially participate, on a regular basis, in the planning and construction of the Development, and in the operation and management of the Development throughout the entire Compliance Period pursuant to  26 CFR §
												1.469;
(C) has a Board of Directors and Officers that are independent from any for-profit Development partner; and
(D) is duly authorized to do business within the State; and
(E) has at least one year of affordable housing experience.
(3)
Capacity and prior performance.
Each Applicant must demonstrate and document the degree of expertise of Applicant and Owner, the Development Team, general partner, management, and principals thereof in the use of TCAs in the development, rehabilitation and/or conversion, management and operation of properties related to the type of the proposed Development. Instances of nonperformance include, but are not limited to:
(A) having been involved in uncured financing defaults, foreclosures, or placement on HUD's list of debarred contractors;
(B) events of material uncorrected noncompliance with any Federal or State assisted housing programs within the prior seven (7) years;
(C) the appointment of a Receiver; conviction on a felony criminal charge; or bankruptcy within the prior seven (7) years;
(D) removal as a general partner/managing member;
(E) failure to meet and maintain any material aspect of a Development as represented in a Development Application;
(F) failure to meet and maintain minimum property standards;
(G) failure to bring any Development back into compliance after receiving written notice from OHFA's Compliance Staff.
(H) failure to comply with OHFA's requests for information or documentation on any Development funded or administered by OHFA;
(I) Extension requests depending on number and severity; and/or
(J) excessive late or incomplete reports to OHFA.
(4) Waiver of Qualified Contract. Applicants applying for Affordable Housing Tax Credits must waive their right to a Qualified Contract. Waiving the right to a Qualified Contract will not prohibit the Applicant from selling the Tax Credit Development after the initial 15-year compliance period. However, it will require the Tax Credit Development itself to remain Affordable for a minimum of 30 years.
(5)
Acquisition Credits.
Applicants requesting acquisition Credits must provide an opinion of independent unrelated counsel, in a form satisfactory to OHFA, that the requirements of Code Section 42(d)(2)(B) have been met or a waiver obtained from the IRS.
(6)
Financial feasibility and viability.
Applicants must demonstrate that there are Commitments to the Development's financial feasibility and viability as a qualified low-income housing Development. Applicants must demonstrate to OHFA's satisfaction that the Applicant has financing Commitments for one hundred percent (100%) of the project's total estimated construction and permanent financing. Items required to be included in financing Commitments will be established in the AP. Requirements set out in 36-4-2.1 (b)(c) and (d) are part of the analysis for financial feasibility.
(7)
Readiness to proceed.
Applicants must demonstrate readiness to proceed in a timely manner should they be awarded a TCA. Factors that may be considered regarding Development readiness may include but not be limited to:
(A) Site Control;
(B) preliminary plans or specifications;
(C) proper zoning for the proposed Development; and
(8) Certifications. Refer to the application for required certification attachments to be completed.
(9) Fair Housing Training. Refer to the application for details regarding what training sessions OHFA will accept for the Developer, Architectural firm, general contractor, and managers.
(10)
Capital Needs Assessment.
All Applications for rehabilitation will be accompanied by a Capital Needs Assessment as established in the AP.
(11)
Development amenities.
Each Application will be analyzed and evaluated as to Commitments made therein for the provision of amenities. Amenities and documentation requirements will be established in the AP. This may be considered as a Threshold or Selection item in the AP.