Agenda - Council Work Session - 01/10/2012

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funders other than Minnesota Housing, it must be submitted to Minnesota Housing as soon as it becomes available. Minnesota Housing reserves the right to require that a Capital Needs Assessment be produced by a qualified individual and submitted as part of the underwriting and due diligence submissions it requires for the proposal. Proposed Sources of Funds Including Local and Philanthropic Contributions*: (submit electronically) Provide a current form of documentation of proposed sources of funds including but not limited to a. through f. below, stating all terms and conditions (e.g. source dollar amount, term, amortization as applicable, interest rate, debt service coverage, etc.). a. Construction financing; b. Permanent financing (for RD Projects AD622 and letter of conditions); c. Secondary financing; d. Grants — letter from granting authority; e. Syndication proceeds; and f. Other sources of funds and contributions, including any federal, state, local and private subsidies. At the time of application, written documentation from the lender or contributor justifying the amount and the terms of the funds and/or contributions must be provided. Documentation for local and philanthropic contributions must be consistent with current market comparable costs. Within 6 months of the date of selection (Minnesota Housing Board selection date) the applicant must provide Minnesota Housing with documentation of a firm commitment (or authorization of approval) for each funding source and/or contribution. The documentation must state the amount, terms and conditions and be executed or approved at a minimum by the lender or contributor. Documentation containing words synonymous with "consider" or "may," (as in "may award") regarding a commitment of funding, will not be considered acceptable. Lack of acceptable documentation will result in the reevaluation and adjustment of the tax credits or RFP award, up to and including the total recapture of tax credits or RFP funds. Additionally, for tax credit developments using tax abatement, there must be satisfactory documentation that the resource will provide additional investment capital to the development that will reduce the demands on the state and federal housing resources. For tax increment financing to qualify for points, there must be satisfactory documentation that the resource is committed to the development at the time of application. Preservation of Federally Assisted Housing*: If the proposal is for preservation of federally assisted housing, please provide a copy of all relevant documents such as, HAP Contract, Regulatory Agreement, Note, Mortgage, amortization schedules, restrictive covenants, copy of most recent REAC or RD inspection report. If applicable, 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. Relocation Plan: (submit electronically) If temporary or permanent displacement or relocation of current tenants is necessary, include a relocation plan for minimizing relocation and displacement of tenants and a relocation budget. Rent Roll: (submit electronically) If an existing development, provide the most recent rent roll. For applications seeking points through the Self -Scoring Worksheet category of Temporary Priority — Foreclosed Properties, the applicant must also supply narrative which clearly identifies (1) the number of tenant leases which are valid and in force and (2) the terms and conditions of those leases which would 37 12012 Housing Tax Credit Procedural Manual Rev. 04/2011