Agenda - Council Work Session - 01/10/2012

Home

Selection Priorities Developer Minnesota Housing Claimed Awarded 9. Readiness to Proceed 1 to 24 Points Financial Readiness to Proceed — (0-20 points) Minnesota Housing shall award points to applicants who have secured funding commitments for one or more funding sources at the time of application except that commitments for funding from Minnesota Housing and Funding Partners (i.e. Minnesota Department of Employment and Economic Development, Family Housing Fund, Greater Minnesota Housing Fund, Metropolitan Council Local Housing Incentive Account, Minnesota Green Communities) are only included if obtained in a previous funding cycle/round. Commitment documentation must state the amount, terms and conditions and be executed or approved by the lender or contributor and the applicant. Documentation containing words synonymous with "consider" or "may", (as in "may award") regarding the commitment will not be considered acceptable. The calculation below must exclude first mortgage financing and any anticipated proceeds from the current tax credit request. Syndication proceeds from tax credits awarded in a previous cycle/round may be included if verification is included in the application Acceptable verification is an executed syndicator agreement or executed Letter of Intent from the syndicator which is acceptable to Minnesota Housing; The executed Letter of Intent must: • Be current within 15 days of submission of the application • Contain a projected closing date for the development • Contain a projected equity price for the purchase of the credit • Contain a detailed explanation of the assumptions being used by the syndicator to arrive at the projected equity price Total eligible funding secured, awarded or committed (excluding first mortgage financing and any anticipated proceeds from the current tax credit request) $ Divided by Total Development Cost $ equals Percentage of Funds Committed % (round to nearest tenth) ❑ 50% or more of funding secured, awarded or committed —10 points ❑ 40% to 49.9% or more of funding secured, awarded or committed — 8 points ❑ 30% to 39.9% or more of funding secured, awarded or committed — 6 points ❑ 20% to 29.9% of funding secured, awarded or committed — 4 points ❑ 10% to 19.9% of funding secured, awarded or committed — 2 points ❑ 9.9% and below of funding secured, awarded or committed — 0 points OR ❑ Minnesota Housing competitive round projects with no funding gap and no request for deferred loan funding through the Multifamily Consolidated RFP exclusive of amortizing first mortgages and proceeds from the tax credits requested at the time of this application*. — 20 points *Projects that have secured all of the necessary funding are expected to proceed more quickly and add to the affordable housing supply, therefore, developments awarded points in this Selection Priority are expected to make significant progress towards closing within 180 days of selection. Significant progress towards closing includes but is not limited to establishing and maintaining site control, completion of infrastructure, obtaining all required municipal approvals, demonstration of financial feasibility including commitments for interim and permanent financing and firm commitment for syndication or executed limited partnership agreement. A subsequent request for deferred loan funding prior to issuance of 8609 or failure to submit sufficient documentation of such continued and significant progress to Minnesota Housing may result in the development's housing tax credit award being rescinded and subsequently awarded to other competitive tax credit developments. Non -Financial Readiness to Proceed — (1 point for each box checked up to a maximum of 4 Pts) Points will be awarded to projects that evidence Non -Financial Readiness to Proceed by submitting verification of the following; ❑ Land use and zoning approvals ❑ Project Specific Title Commitment and Survey* (if project is located on tribal trust land, only the survey needs to be submitted to be eligible) ❑ Verification that all infrastructure for the project is complete ❑ Draft Building permits *At application, a new survey does not need to be conducted if the legal description and building footprint has not changed for a rehabilitation development. 2012 HTC Self -Scoring Worksheet Selection Priorities 6 of 16 Revised 04/2011