Agenda - Council - 03/26/2013 - Laserfiche WebLink

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Selection Priorities Developer Minnesota Housing Claimed Awarded 5. Federal/Local/Philanthropic Contributions 2 to 10 Points Points are awarded for projects that are receiving contributions from the federal government; a local unit of government; an area employer; and/or a private philanthropic, religious or charitable organization. Identity of Interest exclusion: Contributions from any part of the ownership entity will be considered general partner cash and excluded from the calculation unless the contributions are awarded by local units of government or nonprofit charitable organizations pursuant to a funding competition. Total federal/local/philanthropic contributions $ divided by Total Development Cost $ equals (rounded to the nearest tenth) ❑ 20.1% and above —10 points ❑ 15.1— 20% — 8 points ❑ 10.1-15% — 6 points ❑ 5.1-10% — 4 points ❑ 2.1— 5% — 2 points ❑ 0 — 2% — O points Federal/Local/Philanthropic Contributions include: • Monetary grants/donations • Tax increment financing - calculate Net Present Value (NPV) by using NPV discounted by Applicable Federal Rate (AFR) • Tax abatement (calculate NPV by using NPV discounted by AFR) • Land donation or city write down of the development site • In -kind work and materials donated at no cost • Local government donation/waiver of project specific costs, assessments or fees (eg. SAC/WAC) • Reservation land not subject to local property taxes • Reservation land with long-term low cost leases • Deferred loans with a minimum term that is co -terminus with the HTC Declaration with an interest rate at or below the AFR • Grants from nonprofit charitable organizations converted to deferred loans with a minimum term that is co -terminus with the HTC Declaration with an interest rate at or below the AFR. Award letter from the nonprofit charitable organization contributor must be provided at the time of application verifying the project specific (restricted) contribution • Below Market Interest Rate (BMIR) Loans —calculate NPV based on the difference between the AFR and the BMIR rate (eg. RD 515, NHASDA first mortgage). • Historic Tax Credits To qualify for points for tax increment financing or tax abatement, there must be satisfactory documentation that the contribution is committed to the development at the time of application. At the time of application, written documentation from the contributor justifying the amount and the terms of the contribution must be provided and be consistent with current market comparable costs. The documentation must be in the form of a project specific letter of intent, city or council resolution, letter of approval, statement of agreement or eligibility, or memorandum of understanding. 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, authorization or approval of the federal/local/philanthropic contribution(s). The documentation must state the amount, terms and conditions and be executed or approved at a minimum by the contributor. Documentation containing words synonymous with "consider" or "may", (as in "may award") regarding the contribution, 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. 2013 HTC Self -Scoring Worksheet Selection Priorities 5 of 17 Rev. 04/2012