Agenda - Council Work Session - 01/10/2012

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Preference Priorities Developer Minnesota Housing Claimed Awarded 2. Preservation of Federally Assisted Units 20 Points DEFINITION - Any housing receiving project based rental assistance, operating subsidies, or mortgage interest reduction payments. This includes public housing, Section 236 and Section 221(d)(3) interest reduction payments, and any development with project based Section 8, rent supplement, or rental assistance payments contract. Preserves federally assisted low income housing which, due to mortgage prepayments or expiring rental assistance, would convert to market rate use or due to physical deterioration or deterioration of capacity of current ownership/management entity would lose its federal subsidies. Minnesota Housing, at its sole discretion, must agree that a market exists for a conversion to market rate housing. In order to obtain the related points, the federally assisted housing must meet the following: 1 Units must be considered at risk of losing assistance within two years of the Housing Tax Credit Application date as supported by information contained in the application and with final determinations made by Minnesota Housing. 2 Applicant must agree to continue renewals of existing project based housing subsidy payment contract for as long as the assistance is available. 3 Applicant must agree to maintain the Housing Tax Credit Units in the development for at least 30 years. Except for "good cause" applicant must not evict existing subsidized residents and must continue to renew leases for those residents. Following selection, developments awarded points through this category which have an identity of interest will be required to provide an as -is appraisal acceptable to Minnesota Housing to substantiate the acquisition price reflected in the application. Prices which are unsubstantiated or inconsistent with comparable current market pricing will be subject to re-evaluation and adjustment of the tax credits or RFP award, up to and including the total recapture of tax credits or RFP funds. 3. QCT/Community Revitalization 1 Point A point is awarded to projects that are located in a Qualified Census Tract (See Qualified Census Tract — Reference Materials Index) and are part of a concerted plan that provides for community revitalization. This must be evidenced by a letter from the city verifying that the proposed project is part of an approved community revitalization area as established by resolution or other legal action. 2011 HTC Self -Scoring Worksheet Preference Priorities 14 of 16 Revised 4/2011