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

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Preference Priorities Developer Minnesota Housing Claimed Awarded 1. Serves Lowest Income Tenants/Rent Reduction 5 to 13 Points Scores are based on gross rent level including utilities before rental assistance. Eligible units must have rents affordable to households whose incomes do not exceed 30 percent or 50 percent of median income without rental assistance. In addition to the elected income limit of 50 percent or 60 percent AMI for the full term of the declaration (refer to the Minimum Set - Aside), the applicant agrees to maintain deeper rent structuring for which selection points are requested. Applicants may choose either option 1 or 2, and in addition, option 3 for the development. This selection will restrict rents only (tenant incomes will not be restricted to the 50 percent or 30 percent income level by claiming points in this section). ❑ Option 1 — A project in which 100 percent of the HTC unit rents representing units are in the county 50 percent HUD area median rent limit —10 points ❑ Option 2 — A project in which at least 50 percent of the HTC unit rents representing units are at the county 50 percent HUD area median rent limit-5 points OR ❑ Option 3 — In addition to Option 1 or 2, a project that further restricts 30 percent of the above restricted units to the county 30 percent HUD area median rent limit representing units —3 additional points NOTE: If points are claimed/awarded for this category, then no points may be claimed/awarded from the selection priority category of Rental Assistance for the same units. IMPORTANT' All 50 percent rent restricted units must meet the 50 percent area median rent for a minimum of five years after the last placed in service date for any building in the property. After the five year period has expired, rent may be increased to the 60 percent rent limit over a three year period with increases not to exceed the amount listed in the table below, provided that more restrictive threshold, selection priority or funding requirements do not apply. All 30 percent rent restricted units must meet the 30 percent area median rent for a minimum of five years after the last placed in service date for any building in the property. After the five year period has expired, rent may be increased to the 40 percent rent limit over a three-year period with increases not to exceed the amount listed in the table below, provided that more restrictive threshold, selection priority or funding requirements do not apply. YEAR 30% of 50% Rent Levels 30% of 30% Rent Levels 1— 5 30% of 50% 30% of 30% 6 30% of 53% 30% of 33% 7 30% of 57% 30% of 37% 8 30% of 60% 30% of 40% Minnesota Housing will incorporate these restrictions into the Declaration of Land Use Restrictive Covenants. The applicant must demonstrate to sole satisfaction of Minnesota Housing that the property can achieve these reduced rents and remain financially feasible [IRC § 42(m)(2)]. Points are contingent upon financial plans demonstrating feasibility, positive cash flow on a 15-year pro forma and gaining Minnesota Housing management approval (for management, operational expenses, and cash flow assumptions). 2013 HTC Self -Scoring Worksheet Preference Priorities 14 of 17 Rev. 04/2012