Agenda - Council Work Session - 01/10/2012

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have a direct impact on Minnesota Housing's analysis and underwriting of the project proposed in the application Ten Year Rule Compliance: For applications seeking acquisition credits, provide evidence that each building complies with the 10-year rule in 42(d) or an approved IRS waiver of the 10-year rule. A 15-year after tax cash flow pro forma: Must reflect required payments of any deferred developer fees. Nonprofit Proof of Status: If nonprofit, proof of nonprofit status (IRS approval) must be included: (See Chapter 3.C. for more details.) a. A description of the nonprofit's intended participation in the development and operation of the project. b. Articles of Incorporation. c. Internal Revenue Service (IRS) documentation of status. A nonprofit must have IRS 501(c)(3) or (4) or appropriate approval from the IRS or expect to receive such designation prior to carryover allocation and meet requirements of Internal Revenue Code 42(h)(5). Tenant Ownership Plan*: If applicable, provide a detailed proposal for eventual tenant ownership. The proposal should incorporate a financially viable plan to transfer 100 percent of the HTC unit ownership after the 15-year compliance period from the initial ownership entity of the project (or Minnesota Housing approved "Transfer of Ownership") to tenant ownership. The unit purchase price at the time of sale must be affordable to incomes meeting HTC eligibility requirements. To be eligible, the buyer must have an HTC qualifying income at the time of initial occupancy (HTC rental tenant) or time of purchase. The plan must incorporate an ownership exit strategy and the provision of services including home ownership education and training. The Declaration of Land Use Restrictive Covenants will contain provisions ensuring compliance with these home ownership program commitments by the Owner. (Refer also to Chapter 4.W of this Manual for additional information.) Evidence of Supportive Services*: To obtain points under the Special Populations Priority (Self Scoring Worksheet), if a proposal sets aside a percentage of units for persons with disabilities, and if the project will be delivering supportive services to residents in these units, the applicant must complete and submit the Supportive Housing application materials, including the narratives, forms and submittals identified in the Common Application for Multifamily Rental Housing Resources. Housing for Persons with Disabilities*: (submit electronically) The applicant must contact the human services department for the county where the project will be located to discuss the proposal. The applicant must submit a letter from the human services department indicating that its staff has reviewed the proposed project, and stating whether there is a need for such housing and if the project would be eligible for funds to assist with the social service needs of the residents. Evidence of targeting units for Households Experiencing Long -Term Homelessness*: In accordance with the State's Plan to End Long -Term Homelessness, Minnesota Housing, in cooperation with the Departments of Human Services and Corrections, and a broadly inclusive working group, has developed a business plan to achieve this goal. Tax credits represent one of several resources selected to attain this goal. To receive points under this category, the proposal must meet all of the following conditions: a. Proposals must set aside a minimum of 5% of the total units, but no fewer than 4 units serving households experiencing long-term homelessness as defined in Minnesota Rule, Chapter 4900.3705; 2012 Housing Tax Credit Procedural Manual I 38