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

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Selection Priorities Developer Minnesota Housing Claimed Awarded 11. Preservation 10 or 20 Points Points will be awarded to projects that either Preserve Federally Assisted Units or Preserve Existing Tax Credit Housing (check one box below): ❑ Preservation of Federally Assisted Units — 20 Points These points are available to projects that are at risk of loss of project based federal assistance within two years. DEFINITION - Any housing receiving project based rental assistance, operating subsidies, or mortgage interest reduction payments. This includes public housing, Section 236 and Section 221(d)(3) interest reduction payments, and any development with project based Section 8, rent supplement, rental assistance payments contract, or are effectively project based by written contract (e.g. NAHASDA). In order to obtain the related points, the owner shall continue renewals of existing project based housing subsidy payment contract(s) for as long as the assistance is available; and shall maintain the Credit units in the Project for at least 30 years and shall agree that sections 42(h)(6)(E)(i)(II) and 42 (h)(6)(f) of the code shall not apply to the project. Except for "good cause" the owner must not evict existing subsidized residents and must continue to renew leases for those residents. Please indicate the reason why property is at risk of loss within two years (check all that apply): ❑ 1. Prepayment/opt-out/mortgage maturity and conversion to market rate housing. Minnesota Housing, at its sole discretion, must agree that a market exists for a conversion to market rate housing. Attach evidence, including eligibility dates, with copies of relevant expiring contracts, filing documents of intent to opt out, loan documents that describe the ability to pre -pay the financing including required approvals and/or penalties AND documentation to fully evidence la. or 1b. below (check the box(es) that apply): ❑ la. Conversion risk due to strategic location: Attach a map detailing the strategic location and include specific proximity to services, transit and employment centers. ❑ 1b. Conversion risk due to market differential: Attach at least three market comparables for each bedroom size to indicate what market rents might be achievable at the property without the federal assistance restrictions. ❑ 2. Serious physical condition issues: Attach evidence with a copy of the most recent REAC inspection report or other evidence of physical deterioration that would threaten the HAP contract. ❑ 3. Deterioration of capacity of current ownership/management entity: Attach a narrative description of the history and issues. 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. 2013 HTC Self -Scoring Worksheet Selection Priorities 9 of 17 Rev. 04/2012