New York Codes, Rules and Regulations › Title 9 - EXECUTIVE DEPARTMENT › Subtitle S - Division of Housing and Community Renewal › Chapter VI - Neighborhood Park Land Acquisition Program › Subchapter B - Low-income Housing Tax Credit Program › Part 2040 - Low-income Housing Tax Credit Program › Section 2040.3 - DHCR allocation process

Current through Register Vol. 46, No. 28, July 10, 2024
(a)
Funding rounds.
The division will publish at least annually in the
State Register
a notice of credit availability which informs
						applicants of submission dates and deadlines for future funding rounds.
(b)
Documentation.
Applicants requesting an allocation of credit must submit
						an application in a form approved by DHCR. The division may request any and all
						information it deems necessary for project evaluation. If any submission or
						documentation is insufficient to complete any evaluation of the proposed
						project, processing will be terminated. DHCR will not request or accept updated
						information related to incomplete or insufficient exhibits or attachments used
						primarily for rating an application.
(c)
Processing fees.
The division shall charge an application fee of $3,000,
						due at the time of application. The division shall charge a fee of $1,000 if a
						binding agreement is requested. A credit allocation fee of eight percent of the
						first year credit allocation amount is due at the time of request for the
						issuance of carryover allocation. Non-profit applicants (or their wholly-owned
						subsidiaries) which will be the sole general partner or partners of the
						partnership/project owner or sole managing member or members of the limited
						liability company/project owner may request and be approved to defer payment of
						processing fees until the time of carryover allocation.
(d)
Credit allocation process.
Only applications submitted by a published deadline will
						be evaluated for an allocation. Applications will be reviewed for completeness,
						eligibility, scoring, project feasibility, site suitability, consistency with
						the division's underwriting standards and whether a proposed project advances
						the State's housing goals and objectives, including any goals set forth by the
						Regional Economic Development Council strategic plan applicable to the area in
						which the project is located. The division expects to notify applicants within
						150 days from the application deadline on allocation decisions. The process the
						division employs for allocating credit entails the following:
(1) Credit reservation or binding agreement.
					 The division will determine, in its sole discretion, whether to provide the
					 applicant with a credit reservation or binding agreement based upon the
					 readiness of the project and the availability of credit.
(i) Credit reservations will contain
					 deadlines for: closing on construction financing in an amount sufficient to
					 complete the project; attainment of commitments for permanent financing in an
					 amount sufficient to complete the project; construction start; the project
					 owner to incur more than 10 percent of the reasonably expected basis in the
					 project; and submission of documents necessary for the issuance of an
					 allocation of credit.
(ii)
					 Applicants, after meeting the conditions of the credit reservation, may request
					 a binding agreement if the applicant has obtained commitments from all sources
					 of construction and permanent financing and has obtained all necessary local
					 approvals. Generally, a binding agreement will be issued to an applicant
					 qualifying for a credit reservation to facilitate a project's attainment of
					 construction and/or permanent financing.
(iii) If the applicant does not comply with
					 the deadlines contained in the credit reservation or binding agreement, the
					 division may revoke the reservation or binding agreement and require the
					 applicant to re-apply for credits.