Agenda - Council Work Session - 01/10/2012

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parties involved will not be eligible for future participation in Minnesota's HTC Program for a period of up to ten years. 5. Filing of Non -Agency Approved 8609 with the IRS: When Minnesota Housing becomes aware that a development's owner/agent has filed an 8609 with the Internal Revenue Service in advance of the owner/agent's receipt of the Minnesota Housing signed version of the approved 8609, or if the owner/agent electronically files an 8609 with the Internal Revenue Service which does not accurately reflect the information contained on the Minnesota Housing signed version of the approved 8609, Minnesota Housing will file an 8823 Notice of Non -Compliance with the IRS and reserves the right to determine that all parties involved will not be eligible for future participation in Minnesota's HTC Program for up to a period of ten years. This applies to credits issued by Minnesota Housing, suballocators and in conjunction with tax-exempt bonds. 6. Repeated non-compliance with Minnesota Housing's Fair Housing Policies, Procedures, and/or Requirements: Repeated failure to comply with Minnesota Housing's Fair Housing Policies, Procedures, or Requirements will be penalized. Minnesota Housing will impose up to a -25 point penalty on future housing credit developments to all parties involved in ownership and/or management on the development(s) that repeatedly are found in non-compliance. The penalty points will be in effect for four funding rounds following notification of the assessment of the negative points by Minnesota Housing. This also applies to tax-exempt tax credit projects, owners, and managers. H. Minimum Underwriting Factors A development selected for a reservation of tax credits is selected based upon the underwriting factors relating to maintenance and operating expenses and permanent financing stated by the applicant in its application and as approved by Minnesota Housing (See Chapter 6.H). These factors will be monitored throughout the tax credit process until Minnesota Housing's issuance of the approved IRS Form 8609. Minnesota Housing WILL NOT ALLOW ANY SIGNIFICANT ADJUSTMENTS TO THESE FACTORS. Changes in these factors could lead to the revocation of the tax credit allocation. I. Identity of Interest The applicant must disclose any and all relationships (generally based on financial interests or family ties) with others involved in the project. A written disclosure to Minnesota Housing detailing the nature of all identity of interest relationships is required for all parties. J. Disclosure and Eligibility of Development Team The applicant must disclose on the Multifamily Rental Housing Common Application Form the names and addresses, including corporate officials where applicable, of all parties that have a significant role in the project ("significant parties"). These significant parties include, but are not limited to general partners, accountants, architects, engineers, financial consultants, any other consultants, management agents and the general contractor (each team member must complete a Qualification Form.) Minnesota Housing must be satisfied that those who will own and operate the project are familiar with and prepared to comply with the requirements of the program. The following significant parties are not eligible to participate in the Tax Credit Program: 1. Significant parties who have been convicted of, enter an agreement for immunity from prosecution from, or plead guilty, including a plea of nolo contendere, to a crime of dishonesty, moral turpitude, fraud, bribery, payment of illegal gratuities, perjury, false statement, racketeering, blackmail, extortion, falsification or destruction of records; 2012 Housing Tax Credit Procedural Manual I 8