INDEX
1. General Information
2. Key Deadlines and Dates
3. Findings of the Division, Identification of Housing Needs
4. Apportionment Accounts and Initial Balances
5. Minimum "Threshold" Requirements
6. Non-Profit Set-Aside
7. USDA-RD Set-Aside
8. Geographic Apportionments
9. Preference Points Based on Project Location
10. Preference Points Based on Set-Aside Election
11. Preference Points for Lower Income Targeting
12. Preference Points for Project
Amenities
13. Preference Points for Acquisition/Rehab Projects
14. Preference Points for Readiness to Proceed
15. Preference Points for Nevada Based Applicant
16. Preference Points for Low-Income Housing Experience
17. Preference Points for Extended Compliance Periods
18. Preference Points for Tenant Populations with Special Needs/Senior
Projects
19. Adjustments to Eligible Basis for Projects located in Qualified
Census Tracts and Difficult to Develop Area
20. Maximum Per Project Tax Credits
21. Maximum 2000 Per Unit Development Cost
22. Operating Expenses
23. Tie Breakers
24. Estimation of Utility Allowances
25. Tax-Exempt Bond Program
26. Fees
27. Waiver of Annual Income Re-certification
28. Approval and Distribution of this Plan
29. Location of Public Hearings on Nevada’s 2000 QAP
30. Housing Division Offices
Section 1 General.
This 2000 annual allocation plan is adopted pursuant to regulations of the Division regarding Low-Income Housing Tax Credits and, when read together, the regulations, the application form, the instructions and the compliance manual constitute the Division's Qualified Allocation Plan for Low-Income Housing Tax Credits pursuant to Section 42 of the Internal Revenue Code of the United States and implementing regulations.
Provisions in this annual plan are for the plan year 2000 that begins on January 1, 2000, and terminates on December 31, 2000. All reservations of Tax Credits made during the plan year will be subject to this annual plan.
Section 2 Key Deadlines and Dates.
1. Training Dates, Reservations for Sessions.
The Division will conduct training on this annual plan as follows:
a. In Carson City on November 16, 19999 at the Division’s office. Persons desiring to attend should notify the Division by November 5, 1999 so that space and materials may be assured.
b. In Las Vegas on November 22, 1999 in the second floor conference room at 2501 E. Sahara Avenue. Persons desiring to attend should notify the Division by November 11, 1999 so that space and materials may be assured.
The cost of this training is $15.00 per person. The registration fee must be prepaid by check to the Division's offices in Carson City or Las Vegas, by either by November 5th or 11th, 1999 depending on the session chosen. (Cash cannot be accepted)
2. Application Deadlines. Pursuant to Nevada Administrative Code (“NAC”) 319.974, applications and all supporting documentation must be received by the Division at either its Carson City or Las Vegas office by 5:00 p.m., February 29, 2000 unless otherwise notified by the Division. Applications for projects located outside of Clark County need only submit the application form in duplicate. Applicants are encouraged to send in applications more than ten days before the deadline to take advantage of a pre-deadline review period.
3. Carryover Deadline. Certification of Eligible Basis and request for Carryover commitments will be due 270 days from the date of the Reservation Letter or a date specified in the Reservation Letter, or 5:00 p.m. November 6, 2000, whichever occurs first. In addition, the project sponsor must supply the Division with a Federal Tax Identification Number to receive a Carryover Commitment.
4. Market Area Saturation. Excepting communities located within Washoe County and Clark County, Nevada, projects located in communities with populations estimated at less than 25,000 may be ineligible for an allocation of Low-Income Housing Tax Credits from the current plan year if, within the preceding three years, an allocation of Tax Credits was made and the prior project has not reached an occupancy rate of 50%. However, if the proposed project is targeting a different population of tenants than the prior project, or if the applicant can demonstrate significant market demand that would not be met by 100% occupancy of the prior project, then the proposed project may be eligible for an allocation of Low-Income Housing Tax Credits from the current plan year. A community within this category is eligible for only one project from the current plan year.
The population estimate will be based on the State’s demographers estimate of record as of the date of application.
5. Request for Additional Tax Credits. Projects
requesting an additional allocation of Tax Credits to assist in covering
increases in construction costs will not be required to compete for those
Tax Credits. Requests for additional Tax Credits will be limited
to all allowable costs in eligible basis excepting developer fees.
An application for additional Tax Credits must meet the same
threshold requirements of the plan year that the project received its original
tax credit allocation. Applications for additional Tax Credits will
be ranked in descending order; the applicant requesting the largest amount
of Tax Credits will be ranked number one. Additional Tax Credits
will be awarded from Nevada’s general pool.
All requests must be supported by a letter of explanation submitted with the application. The application submitted can be limited to those sections that are modified from the original application.
Section 3 Findings of the Division, Identification of Housing Needs.
1. The Division has reviewed the State’s Consolidated Plan (CP) and the CPs of various state and local governments as well as materials it deems relevant to its inquiry regarding the availability of all types of affordable housing, including single family units, manufactured housing alternatives, rental units and public assisted housing. In addition, high concentrations of low-income persons, vacancy rates, and the conditions of existing housing units were reviewed. These studies included surveys of federal and public housing agencies located within the state, surveys of city planners, county assessors, and compilations of demographic statistics. After examining the information available, the Division has identified the following housing needs for this plan year.
a. There is an inadequate supply of transitional housing to support the needs of the homeless within Nevada. This element is critical in moving the homeless toward self-sufficiency and a clean and decent place to live.
b. A significant number of Nevada households live below the poverty level. Of those households, the number of persons ages 65 and older, families, including families with children and female heads of households, are significant.
c. There is an inadequate supply of affordable, standard housing units for low-income persons, generally low-income elderly and families with single heads of households.
d. There is a lack of affordable, handicapped accessible housing units for the physically disabled who generally have low incomes. Throughout this Qualified Allocation Plan, the term "handicapped" refers to those persons as defined in the Federal Fair Housing Act and implementing regulations by the Department of Housing and Urban Development.
e. The vacancy rate among three-bedroom units is significantly lower than the vacancy rate of one- and two-bedroom units. Such a low vacancy rate among three-bedroom rental units suggests a demand for larger units.
f. Certain counties and communities are experiencing economic growth. It appears as if little or no housing is being developed for low-income persons in these high growth counties and communities.
g. Rental housing needs related to overcrowding, lack of essential facilities, and disproportionate cost exists across the state.
h. A significant number of housing units within the state suffer from obsolescence and deteriorated housing conditions.
2. In consideration of the housing needs identified by the various CPs, the Division has established certain selection criteria and a schedule of preference points to determine which projects will receive priority in receiving the Tax Credits under provisions of this QAP and Internal Revenue Code §42, sub-section 42(m)(C)(i through vii) inclusive.
Notice: A request has been made that the Division consider the housing needs of Native Americans. Nevada’s 2001 Qualified Allocation Plan will address those needs and the Division will be working with representatives of the tribal communities within the state to determine those needs.
Section 4 Apportionment Accounts and Initial Balances.
The Per Capita Tax Credit (“PCTC”) amount has not been established. It is the responsibility of the project sponsor to contact the Division prior to the submission of an application to determine the actual amount of apportionment to each set-aside or other sub-account. If the PCTC is not available by February 29, 2000 the application deadline will be extended 10 days from the date that the PCTC is published in the Federal Register. This information will also be available on the Housing Division’s web site @ www.state.nv.us/b&i/hd
The Division reserves the right to round the actual dollar amount designated to any set-aside or geographical apportionment.
THE STATE CEILING IS:
Carryover and other credits
Total Available for 2000 allocation
NON-PROFIT SET-ASIDE(S)
Minimum required 10%
Total Non-profit set-aside(s)
USDA-RD SET-ASIDE(S)
10% of the State’s ceiling
THE GEOGRAPHIC APPORTIONMENT SUB-ACCOUNTS ARE:
(The remainder of the state ceiling, net of all set-asides, based on
population percentage)
Clark County
67%
Washoe County $300,000.00 or
17% Whichever is greater
Other Counties* $250,000.00 or
16% Whichever is greater
See NAC 319.972
*At the time of this writing the potential exists that the Housing Division may be required to award year 2000 Tax Credits to a project that had its 1998 Tax Credits terminated in 1999. The amount of Tax Credits in question is $287,971.00 and would be allocated from the Other County Geographical Apportionment.
Section 5 Minimum "Threshold" Requirements.
1. Execution of a letter agreeing to a minimum
thirty (30) year compliance period.
2. Rents must be restricted to one of the following
elections:
a. A minimum of 20% of the units will be occupied by households with incomes at or below 50% of area median income (“AMI”) or
b. A minimum of 40% of the units will be occupied by households with incomes at or below 60% AMI.
3. The project must be financially feasible at the time of application and at the time the Division makes a final award of Tax Credits.
4. The project must provide decent, safe and sanitary housing for low-income persons as set forth in any applicable statute or regulation and with minimum annual replacement reserves as follows:
a. For new construction senior projects $150.00 per unit.
b.
For all other projects $200.00 per unit.
Annual replacement reserves that exceed the above minimums by
more than 20% may be considered excessive and the Division may require
additional documentation supporting the higher annual replacement reserve.
5. The sponsor must provide a market study conducted by an independent third party that provides evidence of the need of the project at the proposed location. The market study must include:
a. Statement
of the competence of the market analyst;
b. A description
of the proposed site;
c. Demographic
analysis of the number of households in the market area which
are income eligible and can afford to pay the rent;
d. Geographic
definition and analysis of the market area;
e. Analysis
of household sizes and types in the market area;
f. A description
of comparable developments in the market area;
g. A description
of rent levels and vacancy rates of comparable properties;
h. An analysis
of available operating expenses and turnover rates of comparable properties
in the market area;
i. Projected
operating funds and expenses, when available;
j. Expected
market absorption of the proposed rental housing, including a description
of the effect on the market area;
k. An analysis
of the potential effect upon the project from the business closure
of a major area employer, and;
l. A certification that the market analyst would not financially benefit if the project was successful in winning a reservation or award of Tax Credits.
The Division acknowledges that obtaining funds and expenses and turnover rates on comparable properties may be difficult, therefore their absence from the market study will not cause the market study to be rejected.
6. For acquisition and/or rehabilitation projects a Capital Needs Assessment (“CNA”) must be provided by a competent independent party. The CNA must address whether the project would be able to maintain its affordability for a period of thirty (30) years or more.
7. Execution of an agreement to promote the Nevada Housing Division’s participation in the project during the construction phase. (See exhibit 4 to the application)
See NAC 319.987. (NAC 319.987(3)(e) does not apply to this plan year.)
8. Proof of site ownership or a valid and binding option or purchase contract subject only to the condition that the project will be allocated Low-Income Housing Tax Credits during the plan year.
Section 6 Non-Profit Set Aside.
Reservation or allocation of Low-Income Housing Tax Credits from this set-aside will be available to non-profit organizations acting alone or in partnership with a for-profit partner if the non-profit partner has received a determination letter from the Internal Revenue Service indicating that the organization is qualified under IRC § 501 (c) (3) or 501 (c) (4) and the application exhibit seven is included with the application package. If the project is successful in receiving a reservation and/or allocation of Tax Credits this exhibit is required quarterly, beginning with the reservation date and continuing until the project receives its 8609’s, at which time the exhibit is required annually. The non-profit organization must certify in writing, to the Division, that it meets the requirements of NAC 319.988. The project sponsor must also certify that no change has occurred in the organization since the issuance of the determination letter from the Internal Revenue Service that would affect the validity of the determination letter.
If the project is awarded Tax Credits from the non-profit set-aside, any new owner during the initial compliance period must qualify for an allocation of Tax Credits from the non-profit set-aside under the provisions of this QAP.
Section 7 USDA-RD Set Aside.
There will be a USDA-RD Set Aside in the amount of 10% of the State's ceiling. At the time of application, the project sponsor must supply the local USDA-RD office with a letter authorizing that office to release to the Division a copy of the sponsor’s application for USDA-RD funding. A copy of the letter must be submitted with the Tax Credit application.
A reservation or allocation of Tax Credits from this set-aside will be limited to those projects that are receiving direct funding from USDA. Projects receiving support in the way of loan guarantees, or other similar support will not be considered for a reservation or allocation from this set-aside.
USDA-RD Tax Credit applications will be processed with the normal tax credit reservation cycle. If the United States Department of Agriculture is unable to issue a certification of the availability of federal funding by the date the Division receives notice that National Pool Tax Credits are available, said reservations will be canceled and the USDA-RD set aside will be returned to the general pool for distribution.
See NAC 319.972
Section 8 Geographic Apportionment.
The geographic apportionment is based on Nevada’s population estimate
as provided by the Nevada State Demographer’s Office. This estimate
is used to establish the geographic apportionment percentages only and
may not be relied on in establishing the amount of per capita Low-Income
Housing Tax Credits available in this plan year.
See NAC 319.972
Section 9 Preference Points Based on Project Location.
1. 10 Preference Points will be awarded to projects located in Jackpot, Nevada.
2. 10 Preference Points will be awarded to projects located in a Qualified Census Tract.
3. 10 Preference Points will be awarded to projects that are located in a non-CDBG eligible census tract.
4. 10 Preference Points will be awarded to projects that are part of a Redevelopment Project as defined in Nevada Revised Statute 279.412.
5. 10 Preference Points will be awarded to projects located in a Designated Empowerment Zone/Enterprise Community.
6. 10 Preference Points will be awarded to projects located in an area that has been identified by an Economic Development Initiative.
Projects claiming preference points under number 3 through 6 require certification from the local governmental agency that the project is located in such an area.
Maximum number of points available: 10
See NAC 319.989
Section 10 Preference Points for the Set-Aside Election.
50 Preference Points will be awarded to projects that meet the requirements of IRC §42(g)(1)(A) (the 20@50 election).
Maximum number of points available: 50
Section 11 Preference Points for Lower Rent Targeting.
Preference points will be awarded to projects that agree to lower target rent levels based on the following scale. Once the lower rent targeting level elections are made and the application is accepted, a request for changes to the mix of units or rent levels targeted will be considered a request to make changes to the “Original” Tax Credit application and will not be allowed.
Maximum
Allowable AMI
Rent Level
# of Units Restricted
% of Units Restricted Weighted
Value Points Earned
45%
20
40%
40
30%
60
Total Preference Points Earned ___________
The preference points earned at each rent level must be rounded to the nearest whole number; at .50 and below round down, at .51 and above round up.
Maximum number of points available: 60
Section 12 Preference Points for Project Amenities.
Projects will receive 30 preference points for each of the following project amenities:
1. Swimming or lap pool;
2. Central air and heating system;*
3. Fully equipped weight room/exercise room;
4. Fully equipped dining room;
5. Fully equipped community room.
6. Emergency call system in each unit;
7. Security system in each unit;
8. Full size basketball court
Projects will receive 20 preference points for each of the following project amenities:
1. Washer and dryer for each unit at no cost
to the tenant;
2. Equipped laundry room, free to tenants;
3. Private patios, balconies or sitting porches
for each unit;
4. Fully equipped playground;
5. Fully equipped barbecue/picnic area;
6. Covered parking for each unit;
7. Shuffle board court;
8. Volleyball court;
9. Half court basketball court;
10. Air conditioning or swamp cooler in each unit;*
11. Additional wiring for internet service in each unit;
12. Security system for all building entrances;
Projects will receive 10 preference points for each of the following project amenities:
1. Two ceiling fans in each unit, excepting
SRO’s and one bedroom units;
2. Washer and dryer hookups in each unit;
3. Exterior locking storage area for each
unit;
For the project to receive preference points in this category
the project must commit to providing at least three different amenities.
However, there is no requirement to provide one from each preference point
category.
Upon written request by the project sponsor, the Division may award
10 preference points for any other amenity that adds benefit to the entire
project or benefits the individual tenants. An amenity must increase
the attractiveness or value of the project and/or increase the mental or
physical comfort of the tenants. An item that would be considered normal
for health or safety issues will not be awarded preference points.
Whether an amenity qualifies for preference points is within the full discretion of the Division. The approval must be received prior to the submission of the application with a copy included at the time the application is received by the Division.
*Swamp coolers or air conditioning for projects in Clark, Esmeralda, Lincoln, and the portion of Nye County that is south of Tonopah, Nevada are ineligible.
Maximum number of points available: 90
Section 13 Preference Points for Acquisition/Rehabilitation Projects.
Preference points will be awarded to acquisition and/or rehabilitation projects, provided that all of the existing buildings, excepting out buildings (e.g. garages, storage sheds, or workshops), are to be adapted for use as low-income rental dwelling units. The number of preference points awarded will be based on the following per unit rehabilitation investment:
Per unit
Rehabilitation Investment
Preference Point Value
More than 10,000.00
90
7,500.00 to 9,999.00
60
5,000.00 to 7,499.00
30
Projects applying for preference points in this category must
have a per-unit rehabilitation investment equal to or greater than the
minimum amount identified in the Capital Needs Assessment. The acquisition
price that will be allowed in eligible basis will be the as-is appraised
value as of the date of acquisition by the tax credit applicant.
The per unit investment eligible for preference points will be limited
to the costs that are allowed in eligible basis for 9% Tax Credits, excepting
therefrom any adjustment for the project being located in a Qualified Census
Tract or a designated Difficult to Develop Area.
Projects awarded preference points in this category are not eligible
for an award of preference points from Section 12.
Maximum number of points available: 90
Section 14 Preference Points for Readiness to Proceed.
30 preference points will be awarded to applicants who demonstrate
a Readiness to Proceed, promising that construction will begin within 270
days from the date the Division issues the Tax Credit Reservation letter.
Exhibit 5 of the application must be executed.
Maximum number of points available: 30
Section 15 Preference Points for Nevada Based Applicant.
Pursuant to NAC 319.989(14) 50, preference points will be awarded to the project sponsor if the project sponsor is deemed to be based in Nevada. To be deemed as based in Nevada, a project sponsor that is a natural person must be a resident of Nevada. If a project sponsor is a business entity, the project sponsor must:
1. Be organized as a corporation, partnership, limited-liability company or other similar entity pursuant to the laws of Nevada;
2. Maintain an office in Nevada from which a general partner, managing partner, principal officer of the applicant, including a president, or chief financial officer or chief operating officer conducts regular business; and
3. Maintain an office that is sufficiently identified and staffed to ensure that a member of the general public may visit the office to substantively discuss matters relating to the project with one of the persons identified in (2).
If a project is awarded preference points in this category, all correspondence, letters, facsimiles and telephone communications from the Division will be directed to the Nevada office.
Notice: Nevada’s 2001 QAP may require that a project sponsor receiving
preference points in this category meet certain residency requirements.
Under consideration, at this time, is a requirement that a Nevada based
sponsor would have maintained an office within the state for a period of
time prior to the application date.
Maximum number of points available: 50
Section 16 Preference Points for Low-Income Housing Experience.
10 preference points will be awarded for each Low-Income Housing project in which the applicant (or any general partner, managing member, or controlling shareholder of the applicant) has materially participated in the development. A Low-Income Housing Project is defined as a project whose rents are restricted by a recorded Declaration of Restrictive Covenants, for a specific number of years, and to an amount that does not exceed 60% AMI.
An addendum to the application is required to provide a brief description of each project including the name and location, date construction began, the date lease-up began, current occupancy levels and permanent financing sources. The sponsor is required to identify the individual or employee for which the experience is being claimed and their involvement in the project.
Maximum number of points available: 50
See NAC 319.989(16)
Section 17 Preference Points for Extended Compliance Periods.
10 preference points will be awarded for each five-year period that the project sponsor agrees to extend the compliance period beyond the thirty (30) year minimum.
Maximum number of points available: 40
See NAC 319.989(13)
Section 18 Preference Points for Tenant Populations with Special Needs/Senior Projects.
50 preference points will be awarded to an applicant that has a minimum of three years experience providing a service or assistance to persons with special needs and the proposed project is within the normal scope of their experience. “Special Need” populations include:
1. Persons with mental illness or retardation;
2. HIV/AIDS/Chronically Ill patients;
3. Persons with developmental and physical disabilities;
4. Persons with drug or alcohol addictions;
5. Transitional housing as defined in IRC Sec. 42(i)(3)(B)(iii); or
6. Affordable senior housing.
Units set-aside for persons with physical disabilities must meet the specifications as defined by the American Standards Institute, Inc. in Standard 117.1 of 1986. All units shall be subject to all state and federal fair housing laws.
To be considered senior housing, all of the units shall be restricted to households having all members 55 years of age or older and shall be subject to all state and federal fair housing laws with respect to senior housing.
The above list of “Populations with Special Need” (1 through 6) is not intended to be “all inclusive” and the Division reserves the right to award Preference Points to other Special Need Populations upon request of the sponsor and determined by the Administrator, in his sole discretion, to meet the intent of serving populations with special needs.
Projects receiving preference points in this category will not be eligible to receive preference points in the category “Low-Income Housing Experience”.
Maximum number of points available: 50
See NAC 319.989(19)
Section 19 Adjustments to Eligible Basis for Projects Located in Qualified Census Tracts and Difficult to Develop Areas.
Applicants who will be building projects located in a qualified census tract or in a difficult to develop area will be authorized to utilize 130% of eligible basis as a factor in determining the adjusted eligible basis.
1. Qualified Census Tracts are identified in NAC 319.991(4) of the regulation.
2. For plan year 2000, "Difficult to Develop Area(s)" as identified by The United States Department of Housing and Urban Development (“HUD”) is Douglas County, Nevada. See Federal Register Vol. 64 No. 178 dated Wednesday, September 15, 1999.
See NAC 319.991
Section 20 Maximum Amount Of Tax Credits That Can Be Awarded; Request That Exceed Set-Aside or Apportionment Account Balances.
Notwithstanding any other provision in this annual plan or the regulations to the contrary, Tax Credits will not be awarded to a project and the application will be rejected if the amount of Tax Credits requested exceeds $500,000.
See NAC 319.992
Applicants must avoid splitting projects and submitting multiple applications for what is in reality one project in order to circumvent this maximum. The Division may reject multiple applications if it is determined they are really for a project that has been split. In evaluating whether multiple applications are for one project, the Division may consider such factors including, but not limited to:
1. Whether the buildings and improvements are being built on contiguous or adjacent parcels of land or in the same assessors parcel;
2. Whether the same natural person has any ownership or management interest in or exercises direct control over each of the sponsor organizations (bona fide lenders and persons involved on projects solely for the purpose of purchasing the Tax Credits will not be considered unless they exercise management and/or control over the organization);
3. The similarly of the project characteristics (e.g. similar designs, purposes, target tenant characteristics, names, etc.); and
4. The existence of
overlapping or shared project management, offices, amenities, parking lots
or common areas.
Projects which are phased in from one tax credit plan year to
another will not be considered as one project for the purposes of this
maximum. For example, if a sponsor receives Tax Credits on a project
this year and next year qualifies and is appropriately ranked for an expansion
or new phase of the existing project, the sponsor may receive the maximum
Tax Credits for the new phase.
If an application has been ranked to receive Tax Credits from a particular set-aside and the amount of Tax Credits requested or required exceeds the balance available in that set-aside, and if the application is first ranked in another set-aside or apportionment account, then Tax Credits may be awarded from the respective set-asides accounts accordingly. For example, if an application is next ranked to receive Tax Credits from the non-profit set-aside, but the amount requested or required exceeds the balance available in the non-profit set-aside, and if the application is also first ranked to receive Tax Credits from its geographic sub-account, the application will be awarded the Tax Credits remaining in the set-aside and will be awarded Tax Credits out of the geographical sub-account. However, the amounts, when combined, may not exceed that maximum that has been established for this plan year.
Section 21 Maximum 2000 Per Unit Development Cost.
In allocating Low-Income Housing Tax Credits to a project, the Division will consider the number and size of units (based on the number of bedrooms) to the project’s eligible basis. The Division will not allocate Tax Credits for eligible basis costs that are in excess of the per unit amounts listed below. If a project’s per unit eligible basis exceeds the amounts listed below it will not automatically cause the application to be rejected, but the project sponsor must provide documentation to the Division that the project will be financially feasible.
The following figures are HUD Section 221(d)(3)-NP per unit limits. The effective date is January 1, 1998 and were issued February 2, 1998.
* Washoe
*Clark
*Other
Number of
Washoe QCT or DDA
Clark QCT or DDA
Other QCT or DDA
Bedrooms
County Maximum
County Maximum
Counties Maximum
None
$67,366 $87,536
$66,918 $86,993
$67,885
$88,250
One
77,221 100,387
75,882
98,646
78,549
102,113
Two
93,901 122,071
92,272 119,953
94,624
123,011
Three
121,475 157,917
119,368 155,178
122,566
159,335
Four
133,343 173,345
131,030 170,339
126,405
164,327
Notice: Nevada’s 2001 QAP may establish per unit development cost limits based on an average per unit costs from plan years 1997, 1998, 1999, and 2000. The limits will be identified by Nevada’s geographical categories for each type of housing.
Section 22 Operating Expenses.
Notice: Nevada’s 2001 QAP may establish per unit cost limits based on an average per unit cost from plan years 1997, 1998, 1999, and 2000. The limits will be identified by Nevada’s geographical categories for each type of housing.
Section 23 Tie Breakers.
In the event that one or more projects competing for Low-Income Housing Tax Credits in the same Set Aside or Geographical Apportionment receives an identical number of Preference Points, the following criteria will be applied on a per unit basis:
1. Lowest Total Developer Fee (including deferred) .25 point
2. Lowest Contractor Profit (including general requirements,
.33 point
contractor overhead, and contractor profit)
3. Lowest amount of Tax Credits requested based on the total square
.50 point
footage of the rent restricted units.
For projects utilizing the 130% adjustment to eligible basis, the eligible basis prior to the adjustment will be considered for purposes of determining the amount of Tax Credits requested under number 3 above.
If the above fails to break the tie, provisions of NAC 319.990 will be employed.
Section 24 Estimation of Utility Allowances.
At the time of application the project sponsor must estimate the amount of Utility Allowance applicable to each unit considering the square footage of the unit and the proposed source of energy in accordance with Treasury Regulations §1.42-10. At the time the project is placed in service the project sponsor must provide evidence that the utility allowance used conforms to the requirements of the Code and Treasury Regulation. Failure to do so will result in forfeiture of the Tax Credits. The project sponsor assumes the risk that these estimates will be reasonable and supportable at the time the project is placed in service.
For purposes of applying for Low Income Housing Tax Credits the project may provide a survey of actual utilities being paid in the area. The survey must:
1. Have been conducted within twelve months of the date of the application;
2. Sampled units must be located within a radius of 50 miles;
3. Sampled units must be similar in size (within 10%, based on units square footage) to those in the project;
4. Include a sample size of at least 10 units;
5. The energy source must be the same as the proposed project; and
6. Include the address and square footage of each unit surveyed.
The project assumes the responsibility that these estimates will be reasonable and supportable at the time the project is placed in service.
Section 25 Tax-Exempt Bond Program.
Projects may be eligible to receive an allocation of 4% Low Income Housing Tax Credits if the project complies with the requirements of Nevada’s Qualified Allocation Plan for the year in which the tax-exempt bonds were issued and all other state and federal regulations.
Section 26 Fees.
All fees paid to the Division are non-refundable.
1. Application Fee. The application fee for Low-Income Housing Tax Credit projects without tax-exempt bond financing is $950.00. For projects requesting tax-exempt bond financing the application fee is $1,250.00.
2. Resubmission Fee. If an application has been withdrawn or rejected during the previous allocation round, or if the project sponsor desires to make material changes to the application, a fee of $500.00 will be required. Resubmitted applications will not be accepted after the application closing date of any Tax Credit round.
3. Reservation Fee. A reservation fee equal to 6.8% of the credit reservation amount is payable at the time the Division reserves the Tax Credits for the project. Non-profits that are not joint-venturing or in partnership with a for-profit sponsor will have the option of (1) paying 1.8% of the credit amount at the time of reservation and the balance of 5.0% on or before six-months from the date of reservation, or (2) the total reservation fee of 6.8% at the time the Division reserves Tax Credits for the project. The Reservation Fee is due upon receipt of the Notice. See NAC 319.978(2).
4. Extension Fee. An additional 1.25% fee will be required by the Division for a request of a 45-day extension beyond the initial nine-month (270-day) closing requirement. Projects that receive preference points for Readiness to Proceed are not eligible to receive an extension.
5. Carryover Fee. An administrative fee of $200.00 will
be charged for each carryover
letter issued by the Division. The project sponsor's Federal Tax Identification
number must be supplied at the time the Carryover Commitment is requested.
6. Compliance Monitoring Fee. A fee of $150.00 plus $15.00
per low-income unit will be charged for each year of the compliance period.
Annual fees for each project are immediately due when the project is placed
in service and by January 31 of each year thereafter throughout the extended
use period (30 or more years). The Division reserves the right to
adjust monitoring fees as necessary on a project by project basis to cover
the cost and expense of monitoring compliance.
7. Compliance Manual Fee. Each project sponsor and the property management company will each receive one Compliance Monitoring Manual at the time the project is placed in service. Changes and updates to the Compliance Manual will be forwarded from time to time as required at no additional cost. Additional copies of the Compliance Monitoring Manual will be available from the Division for a pre-paid fee of $50.00.
8. Compliance Training Fee. The Division will provide one (1) compliance training session for each project. The project owner or representative and management staff are required to attend. This training is provided at the expense of the Division. Additional training will be provided upon the request of the project owner at a rate of twenty dollars ($ 20.00) per hour.
Section 27 Waiver of Annual Income Re-certification.
Owners of projects that are one hundred percent (100%) Low-Income Tax Credits eligible may request the waiver of annual income re-certification under provisions of IRS Revenue Procedure 94-64, a copy of which may be obtained from the Division.
Prior to the Division’s issuance of a statement that the project is in compliance with the Internal Revenue Code, the owner/sponsor must provide the Division with a third party certification that the project is eligible to receive such a waiver. The certification must:
1. Be conducted by a consulting firm that is nationally recognized as being proficient in the field of monitoring compliance under provisions of IRC §42;
2. Certify to the Division that as of the date of audit the project was in 100% compliance with all of the provisions of IRC §42, including, but not limited to, health and safety and fair housing issues; and,
3. Recommend that the project and sponsor be granted a waiver of annual income recertification as provided under IRS Revenue Procedure 94-64.
At the request of the owner/sponsor the Division will supply a list of consulting firms that are recognized as professionals in the area of IRC §42 compliance. The owner/sponsor will be responsible for contracting with the consulting firm of its choice. All fees and expenses will be the sole responsibility of owner/sponsor. The Division will not recommend any consulting firm. The Division reserves the right to reject an audit or to contact the audit firm directly for clarification of it findings or to discuss methodology. The audit and findings must be filed with the Division within 30 days of the completion of the report.
Section 28 Approval and Distribution of this Plan.
Hearing Dates. In accordance with the Regulations, hearings were or will be held on this annual plan on:
1. August 31, 1999 in Las Vegas, Nevada. 9:00 a.m. to 12:00 p.m.
2. September 1, 1999 in Sparks, Nevada. 9:00 a.m. to 12:00 p.m.
3. September 2, 1999 in Elko, Nevada. 9:00 a.m. to 12:00 p.m.
4. September 7, 1999 in Las Vegas, Nevada. Commencing at 1:30 p.m.
5. October 7, 1999 teleconferenced between the Division’s offices in Las Vegas and Carson City, commencing at 1:30 p.m.
Section 29 Location of Public Hearings on Nevada’s 2000 QAP.
Las Vegas
Grant Sawyer Building
Nevada Housing Division
555 East Washington Avenue
1771 East Flamingo Road, Suite 206B
Las Vegas, Nevada
Las Vegas, Nevada
Room 4401
Conference Room
Telephone (702) 486-2800
Telephone (702) 486-7220
Elko
Nevada Welfare Division
850 Elm Street
Elko, Nevada
Telephone (775) 738-2531
Sparks
Nevada Department of Transportation
310 Galletti Way
Sparks, Nevada
Telephone (775) 834-8300
Section 30 Housing Division Offices.
Nevada Housing Division
1771 East Flamingo Road, Suite 206B
Las Vegas, Nevada 89119
Telephone (702) 486-7220
Facsimile (702) 486-7226
Contact Person
Mark Licea, Loan Administration Officer
Telephone extension 226
Nevada Housing Division
1802 North Carson Street, Suite 154
Carson City, Nevada 89701-1229
Telephone (775) 687-4258
Facsimile (775) 687-4040
Contact Person
Michael C. Derloshon, Loan Administration Officer
Telephone extension 224