Transcript HTCC - Overview 2015 Session

HTCC PROGRAM OVERVIEW
MARCH 4, 2015
HTCC Program Overview Agenda
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Program History and Objective
Procedural Changes
Application Process & Timeline
Consolidated Application
Compliance
Project Closeout
Questions and Answers
Program History and Objective
• The Housing Tax Credit Contribution
(HTCC) Program was initiated in 1987
with the passage of CGS 8-395 by the
Connecticut legislature for non-profit
entities
• In 1995, CHFA assumed
administration of the HTCC Program
• $185 million in HTCC funds have
been awarded since programs
inception
Program History and Objective
The HTCC Program provides funding to non-profit
developers undertaking housing programs such as:
• Rehabilitation or new construction of rental or
homeownership housing that benefits very
low-, low- and moderate-income families;
• Capitalizing a Revolving Loan Fund that lends
money for housing developments for the
construction or rehabilitation for individuals
purchasing affordable homes; and/or
• Capitalizing a Workforce Housing Loan Fund
that lends money to individuals and families
purchasing a home in the city/town where they
work
Program History and Objective
• Program criteria establishes set asides for
supportive housing, workforce housing,
and a general housing class
• Applications are rated and ranked based on
the following criteria:
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Readiness to Proceed
Use of Funds
Income Groups Serviced
Applicant Capacity/Goals Accomplished
Neighborhood Revitalization/Leveraging
Compliance
• Not to be strictly considered as gap funding
Palmer Square - Stamford
Palmer Square:
76 Units
Supportive / Family
Housing
Alfred E. Plant – West Hartford
Alfred E. Plant:
137 Units
Elderly
Belden Street- New London
Belden Street:
6 Units
Family Housing
Cedarwoods Apartments - Willimantic
Cedarwoods
Apartments:
56 Units
Supportive/Family
Highwood Square - Hamden
Highwood Square
27 Units
Supportive/Family
Procedural Changes
• The Procedures governing the Housing
Tax Credit Contribution (HTCC) Program
may be found at www.chfa.org under
Section V. TAX CREDIT PROGRAMS | C.
HOUSING TAX CREDIT CONTRIBUTION
PROGRAM including all CHFA policies
and programmatic requirements
• CHFA’s Board of Directors recently
approved changes to the published
HTCC Procedures, which were approved
by the State Department of Revenue
Services.
Summary of Procedural Changes
• C-2(c) Definitions were expanded to
include CDFI for clarity
• CDFI is defined: “CDFIs” means
Community Development Financial
Institutions. A CDFI is a specialized
financial institution incorporated within
the state as a nonprofit tax exempt
financial institution, designated and
certified by the CDFI Fund, a bureau of
the United States Department of the
Treasury
Summary of Procedural Changes
• C-12(e) New language was included
to permit CDFIs and eligible
nonprofit entities to retain an
administrative fee from its interest
earned.
Summary of Procedural Changes
• C-12(f) Added clarifying language as
to the nature of the quarterly reports
to be provided by CDFIs awarded
funding for Revolving Loan Funds
• “…a quarterly compilation of the
revolving loan fund(s) must be
provided to the Authority.”
2015 Updates
• As of February 27, 2015 the following
have been updated in preparation for
the upcoming round:
 Guidelines
 Scoring sheet
 Quarterly reports
 2015 Income limits
Application Process
and Funding Timeline
Process and Timeline
• The electronic application will be due
on May 1, 2015 and must be
received no later than 4:00 PM that
day
• Applicants must use the CHFA-DOH
Consolidated Application currently
posted on our website www.chfa.org
• Deficiency Letters will be sent in May
with a two-week required response
Process and Timeline
• After the deficiency responses are
received, applications will be scored
against the program criteria
• Top scoring developments/programs
will be recommended for reservations
until the $10 Million pool is exhausted
• Announcements are expected in July,
2015
• Approved applicants will have until
September 2, 2015 at 4:00 PM to
provide executed business firm
commitments
Process and Timeline
• The business firm then makes the
HTCC payment or “contribution” to
the non-profit for housing
development or revolving loan fund
• The non-profit applicant will provide
evidence in the form of a notarized
statement with a copy of the check
and then CHFA will issue a tax credit
voucher to the business firm
Process and Timeline
• After September 2, 2015, any
uncommitted funds become available to
the highest ranked applicants who are
able to secure business firm
commitments
• Business firm commitments for
uncommitted funds will be due no later
than October 1, 2015 at 4:00 PM
• HTCC reservations will be made to the
next highest ranked applications.
2015 Timeline Review
• May, 2015
 Applications received and deficiency letters are sent to
applicants
 Applicant have two weeks to respond
• July, 2015
 List of eligible Housing Programs of non-profit corporations to
which business firms contribute to posted on-line by CHFA
• September 2, 2015
 Contributing Business Firm applications, set asides and Tier I
recipients are due at CHFA offices in Rocky Hill, CT by 4:00 P.M.
 Uncommitted funds become available to the highest ranked
applicant who are able to secure business firm commitments
• October 1, 2015
 Applications for Contributing Business Firms for uncommitted
funds are due at the CHFA offices in Rocky Hill, CT by 4:00 P.M
Using the
Consolidated
Application
Funding Buttons
Funding Buttons Tailor Application
to Your Needs
Core Items
Click “Core Items” button
before starting
Application
Click on the Program Type you are
applying for (For example “HTCC”)
Program Type will appear in yellow box
(In this case no program type has been selected)
Boxes highlighted in
yellow have drop-down
choices
Submission
• Applications must be submitted electronically
through the State of Connecticut BizNet Portal
www.biznet.ct.gov
• Applicants may not submit applications as
hardcopy
• No Application materials will be accepted via
email
• Deficiency responses must also be submitted
through BizNet Portal
• Only hard copy requirements are:
 Plans & Specs
 CHFA Application Fee (if applicable)
BizNet Portal
• Account Set-up
Owner
Team members
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“Program Cycles”
Multiple Applications
Signature Pages
Uploading Documents
Send
CHFA/DOH
ConApp
Compliance
HTCC Compliance
• After credits are awarded, program
compliance begins
• HTCC compliance consists primarily
of Quarterly Reports but may also
include site visits and periodic
inspection of sponsor records
• Quarterly Reports are due no later
than the 15th of April, July, October,
and January in each year
HTCC Compliance
• Quarterly Reports must be submitted
via email to
[email protected]
• The reports are intended to document a
development’s progress so it is essential
that the reports are complete and the
amount of funds spent to date is
updated
• If there are material changes being
contemplated to your development
program, please contact CHFA
immediately to obtain CHFA’s consent
HTCC Compliance
• As a reminder, failure to submit Quarterly Reports
and/or respond to findings of non-compliance will
have a negative impact on all future applications by
the sponsor or all affiliated entities
• For example, the failure to provide timely Quarterly
Reports can range from a warning to a reduction of
up to 30 points on future applications
• Applicants who fail to timely provide four (4)
quarterly reports or those with developments in
material non-compliance may be ineligible to apply
for funds and will be classified as programmatic
non-compliant
HTCC Compliance
• More specifically, a failure to provide a
Quarterly Report may result in a warning
• Failure to provide two (2) Quarterly Reports in
one calendar year, may result in a 20 point
penalty for two consecutive years
• Failure to provide three (3) Quarterly Reports
may result in a 30 point penalty
• Failure to report four (4) quarters may make
the applicant or affiliate ineligible to apply for
funds for three (3) years
HTCC Closeout
• Upon project completion, each applicant is
required to complete a project closeout form
• Applicants should provide Certificates of
Occupancy and the original, notarized CHFA
Certificates of Completion to: CHFA “Attn:
Multifamily Department HTCC Program”
• Additional documents for this closeout may
include a summary of expenditures and
evidence of non-profit continued compliance
HTCC Closeout
• Failure to comply with closeout
provisions may result in point
penalties of five points (5 pts) for all
subsequent applications for a period
of two (2) consecutive HTCC funding
rounds
Helpful Advice
• Cultivate potential relationships: the pool
of investors is not deep
• Maintain program compliance
• Obtain CHFA consent for any program
changes
• Be sure to close the project upon
completion
• Don’t wait till the last minute to apply and
upload to BizNet
• Applications must be submitted by 4:00 PM
May 1, 2015
2015 HTCC Program Overview
Questions & Answers