Virginia Administrative Code › Title 13 - HOUSING › Agency 10 - VIRGINIA HOUSING DEVELOPMENT AUTHORITY › Chapter 180 - RULES AND REGULATIONS FOR ALLOCATION OF LOW-INCOME HOUSING TAX CREDITS › Section 13VAC10-180-60 - Review and selection of applications; reservation of credits

Current through Register Vol. 40, No. 24, July 15, 2024
A. The executive
				director may divide the amount of credits into separate pools and each separate
				pool may be further divided into separate tiers. The division of such pools and
				tiers may be based upon one or more of the following factors: geographical
				areas of the state; types or characteristics of housing, construction,
				financing, owners, occupants, or source of credits; or any other factors deemed
				appropriate by him to best meet the housing needs of the
				Commonwealth.
B. An amount, as
				determined by the executive director, not less than 10% of the Commonwealth's
				annual state housing credit ceiling for credits, shall be available for
				reservation and allocation to buildings or developments with respect to which
				the following requirements are met:
1. A
				"qualified nonprofit organization" (as described in § 42(h)(5)(C) of the
				IRC) that is authorized to do business in Virginia and is determined by the
				executive director, on the basis of such relevant factors as he shall consider
				appropriate, to be substantially based or active in the community of the
				development and is to materially participate (regular, continuous and
				substantial involvement as determined by the executive director) in the
				development and operation of the development throughout the "compliance period"
				(as defined in § 42(i)(1) of the IRC); and
2.
a.
The "qualified nonprofit organization" described in the
				  preceding subdivision 1 of this subsection is to own (directly or through a
				  partnership), prior to the reservation of credits to the buildings or
				  development, all of the general partnership interests of the ownership entity
				  thereof;
b. The executive
				director of the authority shall have determined that such qualified nonprofit
				organization is not affiliated with or controlled by a for-profit
				organization;
c. The executive
				director of the authority shall have determined that the qualified nonprofit
				organization was not formed by one or more individuals or for-profit entities
				for the principal purpose of being included in any nonprofit pools (as defined
				below) established by the executive director, and
d. The executive director of the authority
				shall have determined that no staff member, officer or member of the board of
				directors of such qualified nonprofit organization will materially participate,
				directly or indirectly, in the proposed development as a for-profit
				entity.
3. In making the
				determinations required by subdivisions 1 and 2 b, 2 c, and 2 d of this
				subsection, the executive director may apply such factors as the executive
				director deems relevant, including:
a. The
				past experience and anticipated future activities of the qualified nonprofit
				organization,
b. The sources and
				manner of funding of the qualified nonprofit organization,
c. The date of formation and expected life of
				the qualified nonprofit organization,
d. The number of paid staff members and
				volunteers of the qualified nonprofit organization,
e. The nature and extent of the qualified
				nonprofit organization's proposed involvement in the construction or
				rehabilitation and the operation of the proposed development,
f. The relationship of the staff, directors
				or other principals involved in the formation or operation of the qualified
				nonprofit organization with any persons or entities to be involved in the
				proposed development on a for-profit basis, and
g. The proposed involvement in the
				construction or rehabilitation and operation of the proposed development by any
				persons or entities involved in the proposed development on a for-profit basis.
The executive director may include in the application of the
				  factors described in this subdivision any other nonprofit organizations that,
				  in his determination, are related (by shared directors, staff or otherwise) to
				  the qualified nonprofit organization for which such determination is to be
				  made.
For purposes of the requirements of this subsection, a
				  qualified nonprofit organization shall be treated as satisfying such
				  requirements if any qualified corporation (as defined in § 42(h)(5)(D)(ii)
				  of the IRC) in which such organization (by itself or in combination with one or
				  more qualified nonprofit organizations) holds 100% of the stock satisfies such
				  requirements.