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

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Selection Priorities Developer Minnesota Housing Claimed Awarded 7. Intermediary Costs (Soft Costs) 1 to 6 Points Points will be given to projects with the lowest intermediary costs on a sliding scale based on percentage of total development costs. For HTC selected projects, this percentage will be enforced at issuance of the IRS Form 8609. Intermediary cost amount: $ divided by Total Development Costs $ Equals Intermediary Percentage % (rounded to the nearest tenth). ❑ 0 .0 -15% — 6 points ❑ 15.1— 20% —3 points ❑ 20.1— 25% — 2 points ❑ 25.1— 30% —1 point ❑ 30.1 & over — 0 points 8. Unacceptable Practices -10 to -25 Points Minnesota Housing will impose penalty points for unacceptable practices as identified in Chapter 3 F of the Housing Tax Credit Procedural Manual. 9. Eventual Tenant Ownership 1 Point The proposal must include a financially viable plan to transfer 100 percent of the HTC unit ownership after the end of the 15-year compliance period from the initial ownership entity (or Minnesota Housing approved "Transfer of Ownership") of the project to tenant ownership. The unit purchase price at time of sale must be affordable to buyers with 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 homeownership 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 the HTC Procedural Manual for additional information.) Until the time the HTC units are purchased by qualified tenants or in the event the HTC units are not acquired by qualified tenants, the owner will extend the duration of low-income use for the full extended use period (30 years). —3 points (NOTE: see selection priority #4 for Disabled Individuals) 2013 HTC Self -Scoring Worksheet Selection Priorities 7 of 17 Rev. 04/2012