2021 credit round

2021 Credit RoundJanuary 14th, 2021

Agenda

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1. Welcome & Introductions2. Housing Credit Production3. Pool Percentages & Available Credits4. Cost Limits5. 2021 Programmatic Updates 6. Change Requests & Minimum Design & Construction Requirements7. Reminders for 20218. QAP Change Process Discussion9. Q&A Wrap Up

Virginia Housing

Welcome and Introductions

Housing Credit Team

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J.D. BONDURANTDirectorPhone: (804) 343‐[email protected]

STEPHANIE FLANDERSSr. TC Allocation OfficerPhone: (804) 343‐[email protected]

SHEILA STONESr. TC Allocation OfficerPhone: (804) 343‐[email protected]

PHIL CUNNINGHAMTC Associate Allocation OfficerPhone: (804) 343‐[email protected]

PAMELA FREETHTax Credit Allocation AnalystPhone: (804) 343‐[email protected]

Aniyah MoaneyTax Credit Allocation CoordinatorPhone: (804) 343‐[email protected]

Additional Players

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ART BOWENManaging Director Rental Housing

FRED BRYANTDeputy General Counsel

NEAL ROGERSDir. of Compliance & Asset Mgt.

ERICA ETTERLING, HCCPCompliance Support Manager

EVERETT GARDNERRental Housing Sr. Counsel Mgr.

ALENA HENDERSONRental Housing Business Analyst

ABBY BOYDDirector of Housing Opportunities

SERGIO GAMBALE, LEED AP BD+C Design & Construction Group Mgr.

MICHAEL ARCHERDesign & Construction Officer

MICHAEL STEINDesign & Construction Officer

ANDREA BLINNConstruction Control Officer

RON MANGANOSr. Construction Control Officer

Virginia Housing

Housing Credit Production

Housing Credit Production 2020

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9% Developments29 developments awarded credits in 2020; 2,002 units

Total 9% developments 2016-2020= 146Total 9% units 2016-2020= 9,669

4% Developments22 applications received in 2020: 2,741 unitsApplications received in 2019: 30Average number of applications received from 2016-2020: 24

Total 4% developments 2016-2020: 121Total 4% units 2016-2020: 15,804


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Virginia Housing

Pools and Housing Credits

Rules of Ranking

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Virginia Housing 12

2021 Pool Percentages

Estimated Housing Credits

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• Per Capita Credits$2.81 per person*

‣Returned Credits:‣National Pool:• LHA Pool and Tier I • New Construction: • Accessible Supportive Housing Pool:

• Estimated 2021 Credits:

$ 24,006,147

$0$101,904

($7,165,794)($2,898,994)($2,071,000)

$11,972,263

*Population Estimate = 8,535,519(U.S. Census Bureau 7/1/20)

Estimated Housing Credits

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• 2021 Capita Credits

‣New Construction :‣Accessible Supportive Housing Pool :• Minimum Estimated Credits:•• Potential for additional credits:• Maximum Estimated Credits:

$ 11,972,263

$3,600,922$1,440,368

$ 17,013,553

$4,561,168$21,574,721

*Population Estimate = 8,535,519(U.S. Census Bureau 7/1/20)

Virginia Housing

Cost Limits

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2020CostLimits

Square Foot Cost Limits with Acquisition Costs RemovedNorthern VA and Supportive Housing

Rehab $ 260New Construction $ 325

Northwest/North CentralRehab $ 150

New Construction $ 198

Richmond MSARehab $ 164


TidewaterRehab $ 147


Balance of StateRehab $ 126


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2021CostLimits

Square Foot Cost Limits with Acquisition Costs RemovedNorthern VA and Supportive Housing

Rehab $ 312New Construction $ 390

Northwest/North CentralRehab $ 180


Richmond MSARehab $ 197


TidewaterRehab $ 176


Balance of StateRehab $ 151


Virginia Housing

2021 Programmatic Updates

Manual Updates

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Additional Items

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• Relocation Plans – Incorporate suggested language to address COVID and tenant/worker safety issues (link on website)

• Universal Design Certification will soon be an online course

• We will be requesting submission of 50% tests for all 4% deals moving forward

Tenant Selection Plan2021 Guidance

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The goalTo improve access to available LIHTC units under Department of Behavioral Health and Developmental Services (DBHDS) for DD/ID and target populations.Target population has been expanded to include individuals with Serious Mental Illness (SMI).

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DD/IDDevelopmental disabilities involve severe cognitive or physical impairments.Intellectual disability is characterized by significant limitation in intellectual functioning.

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SMISerious mental illness is defined as a mental, behavioral, or emotional disorder resulting in serious functional impairment, which substantially interferes with or limits one or more major life activities.

TSP Best Practice Criteria

Promote consistency in the application review.

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Compliance with federal and state Fair Housing Requirements, including written policies on equal opportunity and non-discrimination.

Implement practices which provide equal access to any aspect of the application and leasing process, or the property’s programs and services for all applicants.

Comply with the HUD guidance on Criminal Background Screenings.

After application denial: provide written reason for denial; apply a process which allows the applicant to provide supplemental evidence; review individual circumstances against reasonable risk; include appeals process.

Include reasonable accommodation Policies and Procedures for all applicants with disabilities as defined under the ADA.

Eligibility criteria for tenancy to include $0 minimum income limit and maximum income limit, occupancy or age restrictions, waitlist management etc.

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So we started here.Contact information:

Abby Boyd, MSWDirector of Housing [email protected]

Virginia Housing

Change Requests & Minimum Design and Construction Requirements MDCRs

Change Request Process

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Waiver Request Information (Required)

Define Requirement *Please define the requirement requesting to be waived/changed as well as the regulation year and type of construction. Request Explanation *Please give a brief explanation of why this waiver should be considered.

*Please attach any supporting documentation and submit to VHDA. Submittal of this form to VHDA does not guarantee exemption from requirements. Requests will be approved, approved with conditions, or rejected in writing by the VHDA TC Allocation Department.

VHDA LIHTC Change Request Form Please submit document, via email, to [email protected] *Please submit this document in Word format.

Property Information (Required)

Development Name: Street: City:

Requester Information (Required)

Name: Email: Date:

VHDA Information (Required)

Request Date: Request Number: Regulation Year:

Change Request Summary

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Architectural17%

Electrical7%

Mechanical7%

Plumbing2%

Site Work5%

TC Allocation62%

TOTAL REQUESTS 215 ‐ 2019Architectural

15%

Electrical7%

Mechanical4%

Plumbing2%

Site Work3%

TC Allocation69%

TOTAL REQUESTS 184 ‐ 2020

Change Request Summary

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0

2

4

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ARCHITECTURAL ELECTRICAL MECHANICAL PLUMBING SITE WORK

Approved Denied

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Minimum Design and Construction Requirements

• Failure to meet Virginia Housing’s MDCRs will result in developer penalties and may result in credit loss and/or a ban from the program

• These are not minimum recommendations!

Minimum Design & Construction Requirements and Minimum Cabinet Requirements are available at VirginiaHousing.com

Virginia Housing

Reminders for 2021

Locality Notification Link (LNI)

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‣Required by Code

‣Link to the portal on website main page

‣Online tutorial available on website under Reference Documents

‣We will accept minor modifications to the LNI without resubmitting (do not focus challenge efforts on LNI submissions)

‣Due January 28th by noon

Physical Needs Assessment &Environmental Assessments

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‣Reports are due at Allocation application for 9%

‣Reports are due with Reservation application for 4%

‣Physical Needs only for rehabilitation (NOT Adaptive Reuse)

‣Unit by Unit write up still mandatory at Reservation for 9% (example on our website)

Payment Options

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VHDA accepts checks, wire transfers and Automated Clearing House (ACH) deposits.

Checks can be mailed or delivered to:VHDAAttn: Tax Credit Allocation601 S. Belvidere StreetRichmond VA 23220

Checks are ‘received’ when they arrive in the LIHTC department!

This is the least desired method of payment, particularly in our current remote work setting.

Payment Options:ACH/Wire Transfer

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To make an ACH or wire payment:

1. Email Aniyah Moaney, [email protected], the following:‣ The name of the development

‣ The type of fee

‣ The date that you will be making the transaction

‣ How much you will be sending (to the cent)

‣ You can make one payment for multiple applications

2. IMMEDIATELY AFTER completing the transaction, you MUST forward a remittance advice slip (i.e. confirmation that your transaction has been completed).‣ Payment is ‘received’ when it arrives in Virginia Housing’s account!

Uploading Your Application

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Procorem.com‣Email Pamela Freeth ([email protected]) to create a WorkCenter for each deal ‣ Must be done in advance of the deadline date

‣Your log in will give you access to all your deals

‣Upload all documents, make sure to mark them as “final”. Must all be uploaded before time deadline

‣After all documents are loaded, email Pamela separately to tell her you are ready to submit‣ Your application isn’t submitted until you have sent Pamela this email

Blackout Period

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‣1) all comments and responses during the mandatory item review, points scoring, and comment and rebuttal periods must be in writing so that they may be posted to the website; and

‣(2) to ensure a level playing field, staff will not meet with individual applicants during these periods (from application deadline to June Board meeting) to discuss the scoring and ranking of applications.

2021 Schedule

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2021 Schedule

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Job Opportunities to Low Income Residents

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Virginia Housing encourages developers to provide job training, employment and/or contracting opportunities to low/very low‐income residents in communities where LIHTC developments are rehabbed/constructed.

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So we started here.

USE ACCURATE NUMBERS andYou are responsible for meeting all Virginia Housing Minimum Design and Construction Requirements

(MDCR)

Virginia Housing

QAP Change Process

QAP Opportunity to Address Multiple Policy Drivers

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‣Special Needs and Vulnerable Populations‣Regional Greenhouse Gas Initiative (RGGI)‣Public Housing Transformation ‣811Funding‣HB 2050 Virginia Housing Opportunity Tax Credit‣Service-Enriched Housing

QAP Update Schedule

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2021 QAP Update Schedule (Tentative)

February QAP Input Session and Discussion Forums – Virtual

April Present possible QAP Changes to Board

July 2021 QAP Focus Group

August QAP Items presented to VHDA Board of Commissioners

September QAP Focus Group held during VHA Credit Conference

September 2021 QAP Public Hearing/Close Comment Period

October VHDA Board of Commissioners approve 2021 QAP

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Wrap Up JD BondurantPhil CunninghamStephanie FlandersPamela FreethAniyah MoaneySheila Stone

•804‐343‐5725•804‐343‐5514•804‐343‐5939•804‐343‐5563•804‐343‐5818•804‐343‐5822

Virginia Housing

Thank You.