rental production department overview july 29, 2014
TRANSCRIPT
Rental Production Department
Overview
July 29, 2014
Program Funding Opportunities
• 9% Competitive Low Income Housing Tax Credits (LIHTC)
• 4% Non-Competitive LIHTC• HOME Initiative Utilizing 4% Tax Credits• CDBG Initiative for Targeted Areas• Risk Share Program
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2015 LIHTC Funding Round
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2015 LIHTC Funding Round
Tentative Timeline
• October 8, 2014 Presentation of DRAFT QAP to Board of Directors• October 10, 2014 Statewide Publication of Draft QAP/Hearing Notice• November 4, 2014 Official Public Hearing – location LHC• December 10, 2014 Board adopts Final QAP• January 19, 2014 Deadline for submitting written QAP questions• January 22, 2014 Posting of FAQ and Application Workshop• March 2, 2015 Preliminary Submittal of Project Site Information• March 16, 2015 Application Deadline• April 8, 2015 Presentation of Preliminary Ranking and Scores• June 10, 2015 Approval of Final Ranking
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2015 LIHTC Funding Round
Changes in the following areas:
• Online Application• One application for various funding sources• Emphasis on preservation of existing housing• Incentives for leveraging funds• Cost control measures• QAP tailored to meet specific housing needs
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4% Non-Competitive LIHTC
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4% Non-Competitive LIHTC
Program Information:
•The 4% LIHTC is available year-round to projects that are able to utilize the 4% LIHTC with Multifamily Revenue Bonds (MRB).
•Applicants are required to meet the standards established in the current year’s QAP.
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4% Non-Competitive LIHTC
Program Information (continued):
•The application process is approximately 45 days.
•Program Contact Person:Louis Russell
Executive Management [email protected]
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HOME Initiative Utilizing 4% Tax Credits
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HOME Initiative Utilizing 4% Tax Credits
Funding Information:
•LHC will be making available HOME funds to be used in conjunction with 4% LIHTC under Section 42 of the IRS code.
•Participating projects must apply for and receive approval of Tax Exempt Bonds and an allocation of 4% LIHTC.
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HOME Initiative Utilizing 4% Tax Credits
Tentative Timeline
• August 2014 Presentation of Draft Initiative to Board of Directors
• August 2014 Posting of Notice of Availability of Funds• October 2014 Application Deadline• November 2014 Approval by Board of awarded projects• November 2014 Issuance of award letters and HOME commitments
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HOME Initiative Utilizing 4% Tax Credits
Funding Priorities:
•Ability to leverage requested funds with local governmental funding or support
•Readiness to Proceed
•Projects currently on the 2014 Waiting List
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HOME Initiative Utilizing 4% Tax Credits
Funding Priorities (continued):
•Material Participation by a Community Housing Development Organization (CHDO)
•Preservation Project as defined by the Department of Housing and Urban Development (HUD)
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CDBG Funds Availability
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CDBG Funds Availability
Funding Priorities:
•LHC will make available CDBG funds in conjunction with 4% Credits and Bond Allocation.
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Risk Share Pilot Program
Risk Share Pilot Program
Purpose:
•To foster the production and preservation of affordable multifamily housing; and
•To provide FHA Risk-Sharing Loans to qualified projects that are applying for Non-Competitive Low Income Housing Tax Credits.
•Under the Risk Sharing Program, LHC and HUD share full insurance risk for the project’s permanent financing.
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Risk Share Pilot Program
Program Requirements:
•Insured projects must meet minimum project set-asides by assisting households with incomes at or below 60% of the AMI.
•Compliance with LHC’s underwriting requirements and the FHA Risk-Sharing Underwriting and Development Policies contained in HUD Handbook No. 4590.01 Rev-1 is required.
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Risk Share Pilot Program
Eligible Projects:
•The Risk Share Program is available to the following projects:
o Certain Existing Residential Rental Developmentso Substantial Rehabilitation o Single Room Occupancy Projectso Elderly Projectso Board and Care/Assisted Living Facilities
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Risk Share Pilot Program
Program Information:
•LHC is finalizing the guidelines to the Risk Share Program.
•Detailed program information is available on the LHC website through www.lhc.la.gov.
•The initial step in applying for a Risk Sharing Loan is meeting with LHC staff.
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Contact Information
Brenda EvansProgram Administrator
Marjorianna WillmanDeputy [email protected]
225.763.8686
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