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Minnesota Housing's Housing Tax Credit carryover procedures are intended to conform to the federal laws and <br />are based upon the limited guidance received from the IRS. At any time, additional IRS guidance may be issued <br />that will require further adjustments to the QAP and additional reviews of developments relating to carryover. <br />S. Final Allocations <br />Except for carryover allocations, no allocation of tax credits will be made until a building or project is placed in <br />service, and the proper documentation and fees have been received. The final amount of credits is determined <br />when the project is placed in service. <br />Final allocations (Form 8609) may be requested when all eligible buildings are placed in service and the proper <br />documentation and fees have been received. Minnesota Housing may establish, at its sole discretion, required <br />deadlines prior to year-end for final allocation requests in order to permit timely processing of documents. If an <br />owner of a tax credit development does not intend to obtain a carryover allocation, but instead intends to take a <br />project from credit reservation directly to placed -in-service status, an allocation via issuance of 8609 must be <br />obtained prior to year-end of the allocation year for which the reservation was issued. The tax credit application <br />for issuance of such 8609's must be submitted to Minnesota Housing on or before November 1 of the allocation <br />year for which the reservation was issued. <br />A project that has neither received a Carryover Allocation nor has been placed in service and issued appropriate <br />8609's before December 31st of the year of allocation will lose its entire allocation of credits. <br />The tax credit amount that will be allocated is based on Minnesota Housing's final determination of the qualified <br />basis for the building or project and a review of the project costs as outlined in this Procedural Manual. The <br />allocation may be reduced to comply with federal law based on the final review of the project. <br />Prior to final allocation, the project owner is required to execute and record a Declaration of Land Use <br />Restrictive Covenants. <br />Non-compliance with the terms of a reservation of credits or a carryover allocation will result in a loss of credits. <br />T. Monitoring for Compliance <br />Federal law requires that Minnesota Housing provide a procedure to be used in monitoring for compliance with <br />Section 42 and for notifying the Internal Revenue Service of noncompliance. Minnesota Housing is required to <br />apply the monitoring procedure to all tax credit projects developed within Minnesota Housing's jurisdiction <br />including tax credits issued with tax-exempt bonds since the inception of the HTC Program. Minnesota Housing <br />shall perform such duties in accordance with its Housing Tax Credit Compliance Manual. Copies are available <br />upon request. <br />1. All tax credit recipients shall submit an annual certification to Minnesota Housing in a manner, form, <br />and time established by Minnesota Housing. The certification will include, but is not limited to, the <br />submission of completed IRS forms and compliance monitoring fees. Owners are required to certify <br />whether or not the property is in compliance with Section 42 regulations and also whether or not the <br />property complies with the restrictions and/or set -asides under which the allocation was awarded. <br />In addition to the annual owner certification requirements, owners shall submit a copy of the <br />Characteristics of Tenant Household report, which details demographic data on households initially <br />occupying units in the development from the placed in service date to the end of the compliance <br />period. <br />2. A review of tenant certifications including the tenant applications, third party verifications and <br />supporting documentation of income, as well as general project appearance will be conducted in <br />accordance with Minnesota Housing's Compliance Manual. The compliance report including tenant <br />name(s), household information, amount and sources of income, rents, utility allowance or cost, and <br />other unit information is required to be maintained at all times and will be submitted annually. All tax <br />13 12012 Housing Tax Credit Procedural Manual Rev. 04/2011 <br />