State of Utah 2016 Federal Housing Credit Program Allocation Plan Approved By UHC Trustees July 30, 2015 Approved By Governor Gary R. Herbert August 4, 2015 State of Utah Housing Credit Program Qualified Allocation Plan 1. GENERAL OVERVIEW ............................................................................................................................................... 1 THE HOUSING CREDIT PROGRAM AND ALLOCATION PLAN .......................................................................... 2 INTRODUCTION ........................................................................................................................................................... 3 FAIR HOUSING ............................................................................................................................................................. 5 GOVERNMENT RECORDS ACCESS AND MANAGEMENT ACT ........................................................................... 5 OVERVIEW OF ALLOCATION PLAN ......................................................................................................................... 6 HOUSING CREDIT PROGRAM TRAINING ................................................................................................................ 7 A. Application Training ................................................................................................................................................... 7 B. Housing Credit Program Training .............................................................................................................................. 7 THE APPLICATION ......................................................................................................................................................... 8 APPLICATION PROCESS FOR COMPETITIVE PROJECTS ...................................................................................... 9 COMMON APPLICATION AND SHARING OF INFORMATION WITH OTHER FINANCIAL SOURCES .......... 12 TAX CREDIT RATE ..................................................................................................................................................... 12 DOCUMENTATION REQUIREMENTS ..................................................................................................................... 13 A. Required Third Party Documentation ....................................................................................................................... 13 B. Documentation for Acquisition/Rehabilitation Projects ........................................................................................... 13 C. Special Needs Units Documentation ......................................................................................................................... 14 D. Chronically Homeless Projects ................................................................................................................................. 14 E. Market Study ............................................................................................................................................................. 14 DEVELOPER, CONTRACTOR AND GENERAL REQUIREMENT FEE LIMITS.................................................... 16 A. Developer Fee/Owner Equity .................................................................................................................................... 16 B. Contractor Fee (Builder Fee) ................................................................................................................................... 17 C. General Requirements ............................................................................................................................................... 17 D. Maximum Fee Ceiling ............................................................................................................................................... 17 FEES………… .............................................................................................................................................................. 18 A. Application Fee ......................................................................................................................................................... 18 B. Reservation Fee ........................................................................................................................................................ 18 C. Re-Application Fee ................................................................................................................................................... 18 D. Additional Credit Reservation ................................................................................................................................... 18 E. Carryover Allocation Fee(s) ..................................................................................................................................... 18 F. Allocation Fee ........................................................................................................................................................... 19 G. Initial Compliance Monitoring Fee ........................................................................................................................... 19 H. Subsidy Layering Review Fee ................................................................................................................................... 19 I. Subordination Fee ..................................................................................................................................................... 19 J. Documentation Revision Fee .................................................................................................................................... 19 K. Annual Compliance Monitoring Fees and Non-Compliance Monitoring Fees ......................................................... 20 PROJECT AND POPULATION TARGETING ........................................................................................................... 21 ALLOCATION PRIORITIES ....................................................................................................................................... 22 A. Market Saturation ..................................................................................................................................................... 23 SUSTAINABLE DESIGN ............................................................................................................................................. 24 A. Requirements, Energy Star ........................................................................................................................................ 24 B. Submit Energy Star Certification .............................................................................................................................. 24 C.Enterprise Green Communities Initiative or LEED ................................................................................................... 24 SPECIAL NEEDS UNITS ............................................................................................................................................. 26 A. Fully Accessible Units for Long Term Mobility-Impaired Tenants ........................................................................... 27 B. All Other Special Needs Units ................................................................................................................................... 28 THE ALLOCATION PROCESS .................................................................................................................................... 29 PROJECT SELECTION PROCESS .............................................................................................................................. 30 A. Introduction ............................................................................................................................................................... 30 B. Project Underwriting and Threshold Requirements ................................................................................................. 30 MAXIMUM HOUSING CREDIT ALLOCATION....................................................................................................... 33 i State of Utah Housing Credit Program Qualified Allocation Plan A. Allocation of Housing Credits .................................................................................................................................. 33 B. Financial Feasibility ................................................................................................................................................ 33 C. Safe Harbors ............................................................................................................................................................. 34 D. Final Determination of Reservation of Housing Credits .......................................................................................... 34 SCORING DISCREPANCIES ...................................................................................................................................... 34 APPEALS PROCESS .................................................................................................................................................... 34 PROHIBITED ACTIVITIES ......................................................................................................................................... 35 AFTER RECEIVING HOUSING CREDITS ...............................................................................................................