New York Codes, Rules and Regulations › Title 21 - Miscellaneous › Chapter XXXV - New York State Housing Finance Agency › Subchapter F - Low Income Housing Tax Credit Qualified Allocation Plan › Part 2188 - Low Income Housing Tax Credit Qualified Allocation Plan › Section 2188.2 - Definitions

Current through Register Vol. 46, No. 28, July 10, 2024
(a)
"42(m)
				  Letter"
- Letter prepared by the issuer of the tax exempt obligations
				  financing a project indicating that a project eligible for Private Activity
				  Bond Credits generally complies with the provisions of this QAP and estimating
				  the amount of LIHTC which will be allocated if the project is completed as
				  planned.
(b)
"Adjusted
				  project cost
" - The proportional amount of approved project costs
				  attributable to the LIHTC regulated portion of the project.
(c)
"Agency"
or
"HFA
" - The New York State Housing Finance Agency, a public
				  benefit corporation organized by and under Article 3 of the Private Housing
				  Finance Law.
(d)
"Ceiling
				  Credits," "State Credit Ceiling LIHTCs,"
or
"9% Credits
" -
				  LIHTC which count against the State Credit Ceiling. Under certain
				  circumstances, such as an acquisition of a building in an acquisition and
				  rehabilitation project, the project may receive "4%" LIHTCs which are subject
				  to the State's Credit Ceiling. These credits are often also called "cap
				  credits."
(e)
				  "
Commissioner/CEO
" - shall mean the Commissioner of the Division
				  of Housing and Community Renewal of the State of New York who is also the CEO
				  of the New York State Housing Finance Agency.
(f)
"Code" -
Internal Revenue
				  Code of 1986, as amended, and the Treasury Regulations, Revenue Rulings and
				  Procedures and other publications of the IRS with binding authority applicable
				  thereunder.
(g)
"Commitment
				  Letter"
- Letter committing the Agency to finance a project assuming all
				  conditions in the letter are met.
(h) "
Cost Certification
" - An
				  audited report by an independent third party Certified Public Accountant, with
				  content and opinion in form and substance satisfactory to HFA, verifying all
				  project costs, the tax credit eligible costs incurred and any other cost data
				  required by HFA for a project as support for the amount of the project's
				  allocation of LIHTCs or as support for the project's eligibility for an IRS
				  Form 8609 allocation.
(i)
"Credit Allocation Authority" -
Authority granted by DHCR to the
				  Agency to allocate State Credit Ceiling LIHTCs.
(j)
"DHCR" or "Division"
- New
				  York State Division of Housing and Community Renewal
(k) "
Due Diligence Reports"
-
				  Appraisals, Market Studies, Environmental Reports and, studies required for
				  rehabilitation or preservation projects, Physical Condition Assessments or
				  other engineering reports which are sought by the Agency in connection with the
				  financing and LIHTC allocation for the project.
(l)
"Feasibility Review"
- A
				  review by the Agency to determine that the proposed project can be financed,
				  completed and operated in compliance with LIHTC regulatory requirements based
				  upon, but not limited to, the reasonableness of development cost, the plan of
				  financing, constructability of the proposed project, rents to be charged, the
				  income and expenses of the project and the market for the units.
(m) "
Housing Opportunity
				  Projects
" - shall mean family projects in an area of opportunity linked
				  to schools that meet or exceed minimum performance standards and that meet or
				  exceed other measures of opportunity, including, but not limited to, the rate
				  of poverty, as may be set forth in a request for proposals.
(n) "
Identity of Interest"
-
				  shall mean any financial, familial or business ownership relationship between
				  any general partner and any participant in the project's development. This
				  includes, but is not limited to, existence of a reimbursement arrangement or
				  exchange of funds; common financial interests; common officers, directors or
				  stockholders; or family relationships between officers, directors, or
				  stockholders.
(o)
"IRS" or
				  "Service
" - Internal Revenue Service.
(p) "
LIHTC" -
Low Income Housing
				  Tax Credit, as the meaning of such term is defined in and by Section 42 and
				  other applicable provisions of the Code.
(q) "
LIHTC Underwriting
" - A
				  review to determine that the proposed or completed project conforms to the
				  requirements of IRC Section 42 and most specifically §42(m)(2) of the
				  Code.
(r)
"Low Income
				  Units
" - Units subject to rent restrictions pursuant to IRC
				  §42(g).
(s) "
Market Rate
				  Units
" - Units not subject to rent restrictions pursuant to IRC
				  §42(g).
(t)
				  "
Members
" - The New York State Housing Finance Agency's membership
				  consisting of the Commissioner of the Division of Housing and Community
				  Renewal, the Director of the Budget, the Commissioner of Taxation and Finance
				  and four Members appointed by the Governor with the advice and consent of the
				  Senate.
(u) "
Members'
				  Approval
" - The Members' authorization of a financing structure and/or
				  an allocation of LIHTC. This authorization gives the Agency's President and
				  Chief Executive Officer, or their designee, the authority to finance a project
				  and/or make an allocation of LIHTC.
(v) "
Other Issuer" -
An issuer,
				  other than the Agency, of tax exempt bonds subject to the Private Activity Bond
				  Volume Cap established pursuant to Section 142 of the Code.
(w) "
Owner's Certification
" -
				  Sworn statement by the owner of a project, submitted to the Agency at least
				  annually during the compliance period, certifying that, for the preceding
				  12-month period, various actions were taken, or not taken, as required by the
				  Code and this QAP.
(x) "
Per
				  Unit Eligible Basis Limit" -
$575,000 per unit. This limit is applicable
				  beginning in calendar year 2020 and may be adjusted thereafter, no more than
				  annually, using such indexes of inflation and deflation of construction costs
				  as the Agency in its discretion may determine to apply. The limit in effect on
				  the date of a project's construction closing will apply to that project. The
				  currently effective limit will be published on the Agency's website.
(y) "
Private Activity Bond Volume
				  Cap
" - A limit on the volume of tax exempt bonds established pursuant to
				  Section 142 of the Code.
(z)
"Plan"
or
"QAP"
- Low Income Housing Tax Credit
				  Qualified Allocation Plan.
(aa)
				  "
Private Activity Bond Credit
" or "
4% Credit" -
LIHTCs which do not count against the State Credit Ceiling because:
(a) 50% or more of the aggregate basis of any
				  building, and the land upon which the building is located, receiving LIHTC is
				  financed by tax exempt bonds subject to the Private Activity Bond Volume Cap
				  contained in Section 142 of the Code; or
(b) the LIHTCs are solely based on the
				  portion of the eligible basis of the project receiving the LIHTC which is
				  actually financed by tax exempt bonds subject to the Private Activity Bond
				  Volume Cap established pursuant to Section 142 of the Code.