Agenda - Council Work Session - 01/10/2012

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D. Reserves/Contingencies Minnesota Housing will require documentation of the amount and disposition of reserves/contingencies. If they revert back to the developer, general partner, or any ownership interest, Minnesota Housing will consider the reserves/contingencies as deferred developer fees and the above limits will apply. For letters of credit, bonds, etc., use the actual cost, not face value, when completing the Development Cost Section VI of the HTC application. E. Comparative Analysis Notwithstanding these Development Standards and the Selection Criteria within this manual and the QAP, each and every proposed project is analyzed on a comparative basis in a variety of categories to ensure the highest value for the tax credits awarded. F. Property Standard The purpose of design standards is to provide the best long-term affordable housing value for the resources that are invested and to further "best practice" designs that improve quality and control costs. To accomplish this, Minnesota Housing architects will emphasize providing technical assistance for these purposes. More detailed review and imposition of requirements will be reserved for those projects in which Minnesota Housing is a significant lender, when necessary for legal compliance, or to further a specifically articulated policy goal. In all instances, the goal will be to provide design review at the time and in the manner in which it can be most useful to further the goals of a project. The following sets forth more specific details: All completed developments must comply with all applicable codes, rules and regulations, mandated by the funding sources including but not limited to: • The Minnesota State Building Code (all State adopted codes including but not limited to International Building Codes, including the Minnesota Amendments), even in municipalities and cities where the State Building Code has been rescinded. • Minnesota Housing Accessibility Requirements. • Fair Housing Act (for accessibility) must be complied with as prescribed in the current edition of Fair Housing Act Design Manual, as published by U.S. Department of Housing and Urban Development. • Federal Section 504 must be followed through, when funded by United States Department of Housing and Urban Development (HUD), United States Department of Agriculture (USDA) (for rural housing) and United States Department of Health and Human Services (HHS) (for transitional housing). • All developments must comply with Section 5: Energy Efficiency criteria as contained in the 2008 Enterprise national Green Communities Criteria as amended by the 2009-2010 Minnesota Overlay in accordance herewith: • New construction - compliance with MANDATORY Criteria 5-1a, 5-2, 5-3a, 5-3b, and 5-4 is required. • Rehabilitation — compliance with MANDATORY Criteria 5-1a, 5-2, 5-3a 5-3b and 5-4 is applicable only to those improvements enacted upon at time of rehabilitation. Existing equipment and/or appliances that shall remain (not improved) are exempt from this requirement. • Compliance with MANDATORY Criteria 5-lb is not required. Furthermore, when a tax credit proposal receives a Minnesota Housing first mortgage and/or a significant percentage of its funding from Minnesota Housing deferred funds, the development is subject to an additional Minnesota Housing design review for the compliance with the Minnesota Housing Multifamily Housing Design Standards. When a tax credit development receives a smaller percentage of funding from Minnesota Housing deferred funds without a Minnesota Housing first mortgage, the applicability of the Minnesota Housing Multifamily Housing Design Standards is solely determined by Minnesota Housing. The development must comply with any additional design requirements imposed pursuant to such review. The Standards can be found at: http://www.mnhousing.gov/housing/architects/multifamily/index.aspx . 27 12012 Housing Tax Credit Procedural Manual Rev. 04/2011