Agenda - Council Work Session - 01/10/2012

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Projects with tax-exempt bond financing, which are subject to a separate volume limitation, are not counted against the state volume limit. (See Article 9 of the QAP and Chapter 8 of the Manual for further details.) U. Recapture Minnesota Housing reserves the right to recapture tax credits from projects that do not provide evidence satisfactory to Minnesota Housing of progress toward completion of the project in accordance with the project schedule (submitted at initial application and updated at carryover), or noncompliance with the terms of the allocation. Part of the credit will also be recaptured if the qualified basis at the close of any year is less than the amount of such basis at the close of the preceding taxable year, or if the minimum number of qualified low-income units is not maintained for the complete extended use period. V. Market Study Internal Revenue Code Section 42(m)(1)(A)(iii) requires that a comprehensive market study of the housing needs of low-income individuals in the area to be served by a developer's housing credit project must be conducted by a disinterested party, at the developer's expense, who is approved by the housing credit agency. (Also refer to the Market Study Guidelines on the Minnesota Housing web site) W. Tenant Ownership Minnesota Housing will review projects incorporating tenant ownership provisions in accordance with Sec. 42 (h)(6), IRS Revenue Ruling 95-49 and Minnesota Housing's requirements. It is the responsibility of the applicant to provide Minnesota Housing with any additional information or clarification as may be necessary. Minnesota Housing requires that developments proposing an eventual tenant ownership component must have 100 percent of the development's tax credit units specified for this ownership component. (See also Chapter 7.A.) X. Fair Housing and Contract Compliance Policy 1. It is the policy of Minnesota Housing to administer and provide fair and equal housing opportunity in all Minnesota Housing programs to ensure all residents of Minnesota of similar income levels in the same housing market area have equal access to Minnesota Housing programs in a manner that affirmatively furthers fair housing. Further, it is the policy of Minnesota Housing to prohibit discrimination in the sale, rental, financing, or other services related to housing on the basis of race, color, creed, religion, national origin, sex, sexual orientation, marital status, status with regard to receipt of public assistance, disability, or familial status. The Policy exists to assist all persons involved with Minnesota Housing financed programs in providing fair housing opportunities. The Policy applies to Minnesota Housing staff and everyone doing business with Minnesota Housing. It is required that all Minnesota Housing programs are marketed affirmatively using specific steps for each program. These steps include but are not limited to: a. Conducting public information forums and other outreach activities geared toward informing and encouraging participation of protected groups. b. Marketing strategies that reach protected groups (groups of people that come under any of the categories on which bases discrimination is prohibited as mentioned in the opening paragraph) using conventional methods such as print and electronic media, as well as personal contact, mailings, and use of consultants or Minnesota Housing staff. c. Reviewing federal, state and/or local fair housing guidelines periodically to ensure compliance. Failure to comply with Minnesota Housing's fair housing policies, procedures or requirements will prompt Minnesota Housing staff to report non-compliance matters to Minnesota Housing's Commissioner. Continued non-compliance may result in appropriate action by the Commissioner, including the assessment of up to -25 penalty points. (Refer to Chapter 3.G Unacceptable Practices.) 23 12012 Housing Tax Credit Procedural Manual Rev. 04/2011