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 2040.4 - Projects financed by private activity bonds

Current through Register Vol. 46, No. 28, July 10, 2024
(a)
Eligible projects.
After March 1, 2008, applications for LIHTC from projects
						financed by tax-exempt bonds subject to the private activity bond volume cap in
						accordance with section 42(h)(4)(A) of the code will be processed by the New
						York State Housing Finance Agency under its procedures. This section shall
						apply to applications filed with DHCR pursuant to section 42(h)(4)(A) of the
						code. All other provisions of this Part shall remain in full force and effect
						for applications filed pursuant to this section prior to March 1, 2008.
						Projects financed by tax-exempt bonds subject to the private activity bond
						volume cap in accordance with section 42(h)(4)(A) of the code may be allocated
						low-income housing credit which is not taken into account regarding the State
						housing credit ceiling.
(b)
Application process.
Complete applications must be submitted at 60 days prior
						to the proposed construction start date on a form approved by DHCR and will be
						accepted and processed throughout the calendar year. The division may request
						any and all information it deems necessary for project evaluation. If any
						submission is incomplete or if documentation is insufficient to complete any
						evaluation of the proposed project, processing will be suspended. Complete
						applications will be reviewed relative to criteria contained in section
						2040.3(e) and (f)
						of this Part for eligibility and public purpose. Within 60 days after receipt
						of a complete application the division will issue to the applicant a finding as
						to whether the application is consistent with this qualified allocation plan
						and the amount of LIHTC for which the project qualifies pursuant to section
						2040.3(g) of this
						Part. If the application is consistent with this qualified allocation plan, the
						applicant will receive processing instructions for a final allocation of
						credit. If the project is found to be inconsistent with the division's
						qualified allocation plan the owner will be notified of the reasons.
(c)
Processing fees.
The division shall charge an application fee of $2,000,
						due at the time of application. A credit allocation fee of three percent of the
						first year credit allocation amount is due at the time of request for the
						issuance of final credit allocation. Not-for-profit applicants (or their
						wholly-owned subsidiaries) which will be the sole general partner of the
						partnership/project owner or sole managing member of the limited liability
						company/project owner may request and be approved to defer payment of the
						application fee until the time of issuance of the final credit
						allocation.
(d)
Determination of credit amount.
In accordance with code section 42(m)(2)(D) the issuer of
						the tax exempt bonds is responsible for determining the dollar amount of credit
						which is necessary for the financial feasibility of the project and its
						viability as a qualified low-income housing project throughout the credit
						period. Such determination must be included in the applicant's request to the
						division for a final allocation of credit. The division will process requests
						for a final allocation of credit within 60 days from receipt of all required
						documentation including an executed credit regulatory agreement with proof of
						recording. The division will apply the criteria as set forth in section
						2040.3(g) of this
						Part (except for section
						2040.3[g][1][ii]
						of this Part) in determining the amount for the final credit allocation.
(e)
Regulatory term.
The regulatory requirements of projects receiving an
						allocation under the terms of this section is described in section
						2040.5 of this Part and shall be
						subject to compliance monitoring as described in section
						2040.7 of this
						Part.