Transcript Section 42 Qualified Contracts

New Hampshire Housing
Multi-Family Conference
May 8, 2014
 Initial 15 year compliance period
 1989 Reconciliation Act added the 15 year extended use
period with an “opt out”
 The intent to balance preservation with incentive for
investors to have back end possibility
 “Bona fide” qualified contract
 Owners request to NHH
 Unless you waived this right- LURA or other governing
docs
 Verify all Right of First Refusal
 Properties Requirements
 First Year commencement
 Submitting the QCP
 Description of property
 Photographs
 Financial operating statements
 First year 8609’s
 Annual partnership tax returns
 Loan documents including Partnership Agreement
 Physical Needs Assessment
 Appraisal
 Market Study
 Phase I environmental (if necessary)
 60 days review of submittal
 60 days to validate the QCP
 Once QCP has been approved commencement of the 1
year begins
 Owner to hire a broker
 Post summary data on our website
 Cooperation with NHH on QCP, including additional
project data
 Provide access to the property for viewing
 NHH’s only obligation is to present a QC price
 No requirement in IRC 42 that prospective buyer
actually purchase the property
 “Bona Fide” offer declined by owner
 No “Bona Fide” is presented
 Three (3) year tenant protection period
 Commencing on the termination of compliance period
 Owner may not evict tenant (except for cause)
 Increase gross rent except as permitted by Section 42