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 13VAC10-180-110 - Qualified contracts

Current through Register Vol. 40, No. 24, July 15, 2024
After the first day of the 14th year of the compliance
				  period, an owner of a low-income housing tax credit development may seek to
				  terminate the extended use period pursuant to § 42(h)(6)(E) of the IRC by
				  requesting the authority to present a qualified contract for the acquisition of
				  the low-income portion of the development, unless such right to terminate has
				  already been waived by the owner for the tax credits allocated to such
				  development. A request for a qualified contract shall be commenced by filing
				  with the authority a complete application, on such forms as the executive
				  director may from time to time prescribe or approve, together with such
				  documents and additional information as may be requested by the authority in
				  order to comply with the IRC and this chapter and to determine the qualified
				  contract price in accordance with § 42(h)(6)(F) of the IRC. The executive
				  director may reject any application from consideration for a qualified
				  contract, if in such application, the owner does not provide the proper
				  documentation or information on the forms prescribed by the executive director.
				  Acceptance of the application and approval of the request shall be contingent
				  upon the developments being in compliance with IRC requirements at the time of
				  the application and continuing through the qualified contract process.
The application should include the following information
				  sufficiently detailed to enable the authority to ascertain the qualified
				  contract amount: first year IRS Form 8609 for each building, the owner's annual
				  tax returns for all years of operation since the start of the credit period
				  ("all years"), annual project financial statements for all years, loan
				  documents for all secured debt during the credit period, the owner's
				  organizational documents (original, current and all interim amendments), and
				  accountant work papers for all years. The application may require a physical
				  needs assessment, appraisal for the entire project, market study for the entire
				  project, a title report showing marketable title, and a Phase I environmental
				  assessment at the time of the original submission of the application or the
				  executive director may permit such items to be obtained after the confirmation
				  of the qualified contract price.
The executive director may also require the submission of a
				  legal opinion or other assurances satisfactory to the executive director as to,
				  among other things, compliance with the IRC and a certification, together with
				  an opinion of an independent certified public accountant or other assurances
				  satisfactory to the executive director, setting forth the calculation of the
				  qualified contract amount requested in the application and certifying, among
				  other things, that the owner is entitled to the qualified contract amount
				  requested.
The executive director may establish criteria and assumptions
				  to be used by the owner in the calculation of qualified contract amount, and
				  any such criteria and assumptions may be indicated on the application form,
				  instructions or other communication available to the public.
The authority shall charge reasonable fees in such amounts as
				  the executive director shall determine to be necessary to cover third party
				  costs and the authority's actual costs incurred in producing a qualified
				  contract. Such fees shall not include any general costs associated with the
				  general operations of the authority. Such fees shall be payable at such time or
				  times as the executive director shall require.
NOTICE: The following forms used in administering the
				  regulation were filed by the agency. The forms are not being published;
				  however, online users of this issue of the Virginia Register of Regulations may
				  click on the name of a form with a hyperlink to access it. The forms are also
				  available from the agency contact or may be viewed at the Office of the
				  Registrar of Regulations, 900 East Main Street, 11th Floor, Richmond, Virginia
				  23219.
Statutory Authority: §
											36-55.30:3
					 of the Code of Virginia.