Virginia Housing

1 Virginia Housing Low income Housing tax credit Manual 2021. Version 01/01/2021. Virginia Housing Low income Housing tax credit Manual Version: Trademarks Trademarked names may appear throughout this document. Rather than list the names and entities that own the trademark or insert a trademark symbol with each mention of the trademarked name, the names are used for editorial purposes only and to the benefit of the trademark owner with no intention of infringing upon that trademark. File Information Requirements Template Version: Last Saved At: 12/30/2020 10:44 AM. Revision History Date Version Who Description 01/12/2021 Aniyah Moaney Updated UD Guidelines to 2021. 02/02/2021 Aniyah Moaney Updated RD High Priority List 02/02/2021 Aniyah Moaney Updated RESNET Rater Certification form Virginia Housing lihtc Page i Last Modified: 12/30/2020.

2 Virginia Housing Low income Housing tax credit Manual Version: Table of Contents FOR 2021 .. 1. 2. PROGRAM UPDATES .. 2. 3. GENERAL PROGRAM INFORMATION .. 3. PROGRAM OVERVIEW ..3. SUBSIDY LAYERING REQUIREMENTS ..4. 4. POOLS AND PERCENTAGE OF AVAILABLE CREDITS .. 6. NON-PROFIT POOL ..6. NEW CONSTRUCTION POOL ..7. NORTHERN Virginia /PLANNING DISTRICT 8 (INNER WASHINGTON MSA) POOL ..7. NORTHWEST/NORTH CENTRAL Virginia AREA POOL ..7. RICHMOND MSA POOL ..8. TIDEWATER MSA POOL ..9. BALANCE OF STATE POOL ..9. LOCAL Housing AUTHORITY POOL .. 10. AT-LARGE 11. ACCESSIBLE SUPPORTIVE Housing POOL .. 11. PRE-ALLOCATED CREDITS .. 12. 5. RANKING AND SCORING .. 13. RULES OF RANKING .. 13. MINIMUM THRESHOLD SCORING REQUIREMENTS .. 13. 6. MINIMUM PROGRAM REQUIREMENTS .. 14. MINIMUM PROGRAM REQUIREMENTS.

3 14. COMPLIANCE MONITORING .. 16. 7. lihtc APPLICATION 17. RESERVATION APPLICATION FOR 9% CREDITS .. 17. RESERVATION SPECIFICATIONS .. 17. DEVELOPER FEE CALCULATION .. 19. RESERVATION 20. RESERVATION APPLICATION MANDATORY ITEMS .. 21. PROJECT READINESS POINT ITEMS .. 25. Housing NEEDS CHARACTERISTICS POINT 28. DEVELOPMENT CHARACTERISTICS POINT 30. TENANT CHARACTERISTICS POINT 36. SPONSOR CHARACTERISTICS POINT ITEMS .. 39. EFFICIENT USE OF 44. BONUS POINT ITEMS .. 45. Virginia Housing lihtc Page ii Last Modified: 12/30/2020. Virginia Housing Low income Housing tax credit Manual Version: RESERVATION APPLICATION- 4% TAX-EXEMPT BONDS .. 47. HOW TO SUBMIT RESERVATION APPLICATIONS (9% AND 4%) .. 48. 8. ALLOCATION INFORMATION .. 49. ALLOCATION APPLICATIONS .. 49. HOW TO SUBMIT ALLOCATION 49.

4 ALLOCATION APPLICATION MANDATORY 50. MEETING THE 10% TEST .. 51. 9. APPLICATION FOR 8609 52. APPLICATION FOR 8609 .. 52. DEADLINE FOR 8609 53. HOW TO SUBMIT THE 8609 APPLICATION .. 53. APPLICATION FOR 8609 MANDATORY DOCUMENTS .. 53. APPLICATION FOR 8609 54. CORRECTIONS TO 8609(S) .. 54. 10. RECAPITALIZATION .. 55. 11. QUALIFIED CONTRACT 56. 12. PROGRAM ADMINISTRATION .. 57. SUMMARY OF PROGRAM FEES .. 57. HOW TO SUBMIT 59. UPDATING PROGRAM INFORMATION .. 59. CHANGE OF GENERAL PARTNER OR MANAGING MEMBER .. 59. RELATED ENTITIES LIMIT .. 60. APPLICATIONS ARE OPEN TO THE PUBLIC .. 60. AUTHORIZATION OF THE EXECUTIVE DIRECTOR .. 60. APPENDICES .. 61. A. MARKET STUDY GUIDELINES AND APPROVED ANALYST LIST .. 62. B. 2021 COST 76. C. REVITALIZATION AREA INFORMATION .. 78. D. SUBSIDIZED FUNDING 80.

5 E. BRICK CALCULATION .. 82. F. BASELINE ENERGY EFFICIENCY REQUIREMENT .. 84. G. GREEN CERTIFICATION OPTIONS .. 86. H. DEVELOPER FEE AND DEFERRED DEVELOPER FEE GUIDELINES ..90. I. ACCESSIBLE SUPPORTIVE Housing POOL REQUIREMENTS .. 92. J. GENERAL CONTRACTOR COST CERTIFICATION K. CREDIT REFRESH PROCESS ..101. L. income AVERAGING ..103. M. RULES OF RANKING ..105. N. COMPLIANCE MONITORING ..107. O. PREVIOUS PARTICIPATION CERTIFICATION ..109. Virginia Housing lihtc Page iii Last Modified: 12/30/2020. Virginia Housing Low income Housing tax credit Manual Version: P. SITE CONTROL DOCUMENTATION ..114. Q. RESNET RATER CERTIFICATION ..116. R. ATTORNEY'S OPINION ..119. S. APPRAISAL GUIDELINES ..125. T. ZONING CERTIFICATION ..134. U. PLANS AND SPECIFICATIONS REQUIREMENTS ..138. V. RELOCATION PLAN GUIDELINES.

6 140. W. PLAN OF DEVELOPMENT CERTIFICATION ..146. X. SECTION 8 WAITING LIST PREFERENCE ..150. Y. PROJECT-BASED VOUCHER REQUIREMENTS ..154. Z. RURAL DEVELOPMENT HIGH PRIORITY ..156. ROOM BB. MARKETING PLAN REQUIREMENTS ..160. CC. PROXIMITY TO TRANSPORTATION CERTIFICATION ..162. DD. UNIVERSAL DESIGN EE. EFFICIENT USE OF RESOURCES CALCULATIONS ..179. FF. PERMANENT SUPPORTIVE Housing CERTIFICATION ..183. GG LIST OF DEVELOPMENTS (SCHEDULE A) ..186. PLAN INFORMATION ..188. II. DEVELOPER EXPERIENCE ..190. JJ. FINAL INSPECTION ..192. KK. FINAL COST CERTIFICATION..195. LL..CERTIFICATION OF SOURCES AND USES (8609)..198. MM. QUALIFIED CONTRACT REQUEST PROCESS ..200. NN. HYBRID 9% - 4% DEAL OO. NON-PROFIT QUESTIONNAIRE ..,..212. PP. 2019-2021 MINIMUM DESIGN AND CONSTRUCTION REQUIREMENTS ..221.

7 QQ. EXISTING CONDITIONS QUESTIONNAIRE ..242. VERSION HISTORY .. 247. Virginia Housing lihtc Page iv Last Modified: 12/30/2020. Virginia Housing Low income Housing tax credit Manual Version: 2021. 1. Schedule for 2021. Below is the schedule for the 2021 Low income Housing tax credit cycle. These dates are approximate and may be subject to change. Date Description January 7, 2021 lihtc Workshop- Virtual Locality Notification Information (LNI) deadline January 28, 2021 @ 12 (all 9% applications). March 18, 2021 @ 12 Reservation application deadline (9%). March 18, 2021 @ 12 Accessible Supportive Housing (ASH) application deadline March 25, 2021 Applications posted to Virginia Housing website May 6, 2021 Preliminary rankings announced/begin comment period May 13, 2021 End comment period/begin rebuttal period May 20, 2021 End rebuttal period June 6, 2021 10% test deadline for Disaster Relief deals June 10, 2021 Final rankings announced June 24, 2021 Review final rankings with Virginia Housing Board Early to mid-July, 2021 VHDA mails Reservation documents (Agreement, Contract to Enforce Representations, Extended Use Agreement, Election to Fix, Gross Rent Floor Election).

8 September 30, 2021 @ 12:00 Allocation application deadline November 18, 2021 Finalize allocations Note: 10% tests are due 30 days prior to the 12-month deadline for meeting the expenditure test. This is to ensure the test will be met. Please contact the tax credit Allocation department if you have any concerns with meeting this deadline. Virginia Housing lihtc Program Page 1 Last Modified: 12/30/2020. Virginia Housing Low income Housing tax credit Manual Version: 2. Program Updates The following program updates go into effect on January 1, 2021. Program Updates Following the transformation from to Virginia Housing , some of our legal documents may still refer to VHDA in lieu of Virginia Housing . Extended Use Agreement(s) moving forward will all have language that enables the use of income Averaging.

9 The QAP mandates that all procedures and requirements in the IRC must be complied with and satisfied. The QAP further recites that federal law requires Virginia Housing to monitor developments receiving credits for compliance with the requirements of 42 of the IRC. In furtherance of that mandate, Virginia Housing supplements the QAP, effective January 1, 2021, to provide that Virginia Housing will monitor compliance, as required by Section 5 of the federal income Tax Regulations, in accordance with final regulations published February 26, 2019, in the Federal Register (84 FR 6076) documents/2019/02/26/2019-03388/amendmen ts-to-the-low- income - Housing - credit-compliance-monitoring-regulations , as amended by proposed regulations published July 7, 2020, in the Federal Register (85 FR 40610) https://.

10 Please use fixed 4% rate for all tax-exempt applications. Virginia Housing lihtc Program Page 2 Last Modified: 12/30/2020. Virginia Housing Low income Housing tax credit Manual Version: 3. General Program Information This is a very brief, general overview of the rules applicable to the tax credit program and should not be substituted for competent legal counsel and accounting advice. Additional information can also be found in the appendices of this manual. Program Overview The Tax Reform Act of 1986 established the lihtc to encourage private investment in affordable Housing . More specifically, the lihtc is a dollar-for-dollar reduction in tax liability to the owner of a qualified low- income Housing development for the acquisition, rehabilitation ( rehab ), or construction of low- income rental Housing units.