Ms. Karen Miller
Chair
Mr. Kim Herman
Executive Director
memorandum
To: From: CC: Date: Re: Tax Credit Program Stakeholders Steve Walker Kim Herman; Paul Edwards October 9, 2009 Tax Credit Program 2010 Program Policy AmendmentCreation of a Three Year (2010-2012) HOPE VI Credit Set-Aside
At its September 24, 2009 board meeting, the Commission adopted the Tax Credit Program Policy for the 2010 program year. At this meeting the Commission also endorsed the opportunity for staff to return at the upcoming October 22nd meeting with a recommendation for amending the 2010 Tax Credit Program Policies to address the needs of three HOPE VI Projects with new (2008 and 2009) HOPE VI funding awards. Staff has been meeting with stakeholders regarding this issue and has drafted a policy that seeks to balance the significant federal leveraging opportunity that a HOPE VI award brings to the State with the Hope VI project Applicant’s need for certainty regarding the timing of when they will receive an award of tax credits given the time constraints imposed on Hope VI awards. This must also be balanced against all other tax credit program policies and priorities. We seek your input regarding this proposed policy and want to bring your attention to this upcoming public hearing and potential Commission action scheduled for October 22, 2009. Please provide comments by Wednesday, October 21, 2009. Email responses may be sent to askusTC@wshfc.org. If you have questions please feel free to call me at (206) 287-4467. The following represents proposed policy language for establishing a new Temporary HOPE VI Credit SetAside to begin in 2010 and last thru the 2012 round (3 years). TEMPORARY CREDIT SET-ASIDE FOR HOPE VI PROJECTS For Tax Credit program years 2010-2012, 20% of per capita Annual Authority, less the prior year’s Forward Credit Commitment, will be set-aside for HOPE VI Projects each year. Ten percent of such “HOPE VI” set aside will be set-aside for HOPE VI Projects in King County and 10% percent for HOPE VI Projects in Kitsap County. This HOPE VI Set-Aside will not be expanded or extended for the current
HOPE VI projects in King and Kitsap Counties, nor for any other HOPE VI funding secured during the 2010-2012 period. A “HOPE VI Project” is a project located within a public housing community revitalization project that is entitled to receive HOPE VI financing from HUD pursuant to an enforceable grant agreement. In order to receive an award of Credit from the HOPE VI Set-Aside for any Credit year from 2010-2012, the HOPE VI funding must be derived from an enforceable grant agreement executed in 2008 or 2009. An award of Credit under the HOPE VI Set-Aside is subject to the following terms, conditions and requirements: 1. If an Applicant selects the HOPE VI Set-Aside category but does not receive an award of Credit there under, the Project is not eligible for Credit from the balance of the Annual Authority. 2. No more than 50% of the Credit available under this Credit Set-Aside shall be awarded to any single HOPE VI Project in a given year. 3. Applications seeking an award of credit under the HOPE VI Credit Set-Aside must satisfy the program’s Fully Funded policy. If a project fails to meet the Fully Funded policy in any one year during the 3 year HOPE VI Credit Set-Aside period, credit will not be awarded to that project. Furthermore, credit requests will not be held or carried forward for not fully funded HOPE VI Credit Set-Aside Applications, nor will the Credit Set-Aside be extended beyond 2012. 4. An Applicant requesting an award of HOPE VI Set-Aside Credit may not submit an Application (on its own behalf or as part of a partnership or limited liability company) for an award of competitive Credit with respect to any other Project in the same Application round. This limitation does not prohibit the Applicant from requesting an award of Noncompetitive 4% Credits. 5. With respect to the 2010 Application and all subsequent applications for Credit under this Set-Aside, an Applicant must select the maximum points in each of the following: At least 50% of the units developed using HOPE VI Set-Aside Credit shall be committed for households at or below 30% of AMGI. i. Public housing residents returning to the site shall be included in the units subject to the Additional Low-Income Housing Commitment regardless of their current income, provided that upon turnover the unit is rented to a household with an income at or below 30% AMGI in accordance with Commitment requirements. the “Additional Low-Income Use Period” Allocation Criteria (i.e., commit to an additional period of 22 years), and the “Developer Fee” Allocation Criteria (i.e., commit to limit developer fees to 10%), and select the “Donation in Support of Local Housing Needs” Allocation Criteria, and Special Needs Housing Commitment totaling at least 20 allocation points (i.e., commit to at least two 20% Special Needs Housing Commitments.)
6. The reservation and allocation of Credit shall be subject to such other terms, conditions and requirements as the Commission determines may be reasonably necessary to further the housing priorities, preferences and goals of the Tax Credit Program.
1000 Second Avenue, Suite 2700, Seattle, WA 98104-1046 tel 206.464.7139 800.767.HOME fax 206.587.5113 www.wshfc.org
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HOPE VI Credit Set-Aside Policy Specific to King County Projects: 1. Credit awarded pursuant to the HOPE VI Set-Aside to Projects located in King County shall count, dollar for dollar, against the King County Credit limitation described in Chapter 3, Section G of these Policies. 2. If the funding in any one year of this set-aside displaces other projects in King County which otherwise would have been funded under the King County cap, then the amount required to fund those projects may be funded through the Forward Commitment of tax credits from the following year in an amount not to exceed 10% of per capita Annual Authority. This Forward Commitment would come from the following years allocations allowed under the King County 40% maximum limit.
1000 Second Avenue, Suite 2700, Seattle, WA 98104-1046 tel 206.464.7139 800.767.HOME fax 206.587.5113 www.wshfc.org
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