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 13VAC10-180-100 - Tax-exempt bonds

Current through Register Vol. 40, No. 24, July 15, 2024
In the case of any buildings or development to be financed by
				  certain tax-exempt bonds of the authority, or an issuer other than the
				  authority, in such amount so as not to require under the IRC an allocation of
				  credits hereunder, the owner of the buildings or development shall submit to
				  the authority, prior to the issuance of the bonds, an application for
				  allocation of credits and supporting information and documents as described in
				  13VAC10-180-70, and such other
				  information and documents as the executive director may require (including a
				  market study, in form and substance satisfactory to the authority, that shows
				  adequate demand for the housing units to be produced by each applicant's
				  proposed buildings or development). The executive director shall determine, in
				  accordance with the IRC, whether such buildings or development satisfies the
				  requirements for allocation of credits hereunder. For the purposes of such
				  determination, buildings or a development shall be deemed to satisfy the
				  requirements for allocation of credits hereunder if (i) the application
				  submitted to the authority in connection therewith is assigned not fewer than
				  the threshold number of points under the ranking system described in
				  13VAC10-180-60,(ii) the executive director shall determine that the buildings
				  or development shall receive an amount of credits necessary for the financial
				  feasibility of the development and its viability as a qualified low-income
				  housing development throughout the credit period under the IRC, as more fully
				  described in
				  13VAC10-180-70, and (iii)
				  premature retirement of any of the tax-exempt bonds or principal portion
				  thereof issued to finance the buildings or development (including any
				  tax-exempt bonds issued solely for the purpose of satisfying the requirement in
				  § 42(h)(4)(B) of the IRC) shall be neither required by the terms of the
				  bonds nor anticipated by the applicant during the period commencing on the date
				  of issuance of such bonds and ending on the date seven years thereafter. For
				  the purpose of clause (iii) above, premature retirement shall be any total
				  reduction in the principal amount of such bonds or portion thereof during such
				  seven-year period in excess of 50% of the original principal amount of such
				  bonds or portion thereof. The principal of any bonds that are defeased or for
				  which funds (and any investments thereof) are otherwise determined by the
				  authority to be available during such seven-year period for payment of
				  principal thereof shall be deemed to be reduced by the principal amount so
				  defeased or by the amount of such available funds during such seven-year
				  period. Compliance with clause (iii) above shall be determined by the authority
				  based upon the substance of the transactions and without regard to any artifice
				  or device intended to evade the requirement prohibiting the premature
				  retirement of bonds as described in clause (iii) above. Notwithstanding
				  anything contained herein, the requirement in clause (iii) above shall not
				  apply to tax-exempt bonds, not exceeding $3,000,000 in original principal
				  amount, issued for the rehabilitation of any development secured by a Rural
				  Development 515 loan, provided such tax-exempt bonds are issued with the intent
				  to preserve the Rural Development 515 loan.
The owner of the buildings or development shall, as required
				  by the executive director, pay such fees as described in
				  13VAC10-180-50, and such good
				  faith deposits as described in
				  13VAC10-180-70. Furthermore, the
				  owner of the buildings or development shall satisfy all other requirements for
				  an allocation as required by the executive director, including execution,
				  delivery and recordation of an extended low-income housing commitment as more
				  fully described in
				  13VAC10-180-70 and all
				  requirements for compliance monitoring as described in
				  13VAC10-180-90.
Statutory Authority
§ 36-55.30:3 of the Code of
					 Virginia.