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b. The applicant must complete and submit the Supportive Housing application materials, including <br />the narratives, forms and submittals identified in the Common Application for Multifamily Rental <br />Housing Resources, and; <br />c. The applicant agrees to pursue and continue renewal of rental assistance, operating subsidy, or <br />service funding contracts for as long as the funding is available. <br />Minnesota Housing recognizes that rental assistance, or operating subsidies, and supportive services may be <br />necessary to effectively serve households experiencing long-term homelessness. If the necessary rental <br />assistance, operating support, or tenant service funding for the project is withdrawn or terminated due to <br />reasons not attributable to the actions or inactions of the owner, and alternative funding is unavailable, and <br />the project is otherwise in full compliance with all the terms of the funding for the project, the owner may <br />petition Minnesota Housing to modify its requirements. Minnesota Housing may (i) relax or eliminate the <br />requirement for supportive services or (ii) relax or eliminate the requirement that the assisted units be <br />occupied by households experiencing long-term homelessness. Should Minnesota Housing eliminate the <br />requirement that the assisted units be occupied by households experiencing long-term homelessness, <br />Minnesota Housing will permit the owner to phase out the targeting of tax credit units to households <br />experiencing long-term homelessness and convert the rents of those units to the 50% tax credit rent limit <br />without jeopardizing the tax credit allocation, provided that more restrictive threshold, selection priority or <br />funding requirements do not apply. If such conversion occurs, in order to retain the tax credit allocation, <br />the above described 50% tax credit rent limit and the Section 42 minimum set aside elected for the project <br />by the owner must be maintained for the remainder of the tax credit compliance period and extended use <br />period. <br />A proposal which is awarded scoring points from this category and is selected to receive tax credits will be <br />required to comply with the Long Term Homelessness reporting requirements as defined by Minnesota <br />Housing. The Tax Credit Declaration of Land Use Restrictive Covenants, including a specific Rider to the <br />Declaration, will contain performance requirements related to these long-term homelessness units and will <br />be recorded with the property. <br />Smoke Free Building/s*: <br />If applicable, provide the written policy prohibiting smoking in all the units and all common areas within the <br />building/s of the project for the term of the declaration. The project must include a non-smoking clause in <br />the lease for every household. <br />The written policy must be submitted with the application and should include procedures regarding <br />transitioning to smoke -free for existing residents and establishment of smoking areas outside of units and <br />common areas if applicable. Consequences for violating the smoke -free policy are determined by owner but <br />must be included in the written policy. <br />Other documents: <br />Instruments as are necessary and as may be required by Minnesota Housing. <br />B. Carryover Requirements <br />Several changes to Section 42 of the Internal Revenue Code were included in legislation passed by Congress in <br />July 2008 as part of the Housing and Economic Recovery Act of 2008. These amendments made certain changes <br />to the Carryover Allocation requirements. Only limited guidance has been issued by the IRS regarding these <br />changes. No assurances can be given that additional IRS guidance will not require further adjustments to the <br />QAP and additional reviews of selected developments relating to carryover. <br />In addition to meeting requirements of federal law, the applicant of a selected project must provide no later <br />than 5:00 p.m., November 1 or the next calendar business day of the year in which the reservation was issued, a <br />complete carryover package in final form containing all the required documents in a form satisfactory to <br />Minnesota Housing. Late fees will be enforced (See Chapter 9). <br />39 12012 Housing Tax Credit Procedural Manual <br />Rev. 04/2011 <br />