Virginia Housing Development Authority 601 S Belvidere St

Virginia Housing Development Authority 601 S. Belvidere St. Richmond, VA 23220 -6500 877 -VHDA-123 | vhda. com Virginia Housing Development Authority

Jobs Opportunities to Low-Income Residents VHDA encourages developers to provide job training, employment and/or contracting opportunities to low/very low-income residents in communities where LIHTC developments are rehabbed/constructed. 1

Our Mission is to help low and moderate-income Virginians attain quality, affordable housing. 2

This Power. Point presentation will be posted to our website (VHDA. com) after workshops are completed. Virginia Housing Development Authority

LIHTC Staff JAMES M. CHANDLER Director, LIHTC Programs Phone: (804) 343 -5786 jim. chandler@vhda. com J. D. BONDURANT Assistant Director Phone: (804) 343 -5725 jd. bondurant@vhda. com JAYNELL PITTMAN-SHAW Sr. LIHTC Allocation Officer Phone: (804) 343 -5733 jaynell. pittman-shaw@vhda. com HOPE COLEMAN RUTTER LIHTC Allocation Officer Phone: (804) 343 -5574 Hope. rutter@vhda. com STEPHANIE FLANDERS LIHTC Allocation Analyst Phone: (804) 343 -5939 stephanie. flanders@vhda. com PAMELA FREETH LIHTC Allocation Coordinator Phone: (804) 343 -5518 pamela. freeth@vhda. com 4

Up next… 1. 2. 3. 4. 5. 6. 7. 8. 2016 QAP 2016 Program Changes 2016 Cost Limits & Enforcement Minimum Threshold Scores Pool Percentages 2016 Available Credits 2016 Estimated Credits DOJ Settlement Virginia Housing Development Authority

2016 QAP Zoning is Mandatory • no points 6

2016 Program Changes • Zoning points removed • New HUD-designated, zip code-based, Difficult to Develop Areas (DDAs), effective 7/1/2016 • The application fee has increased to $1, 000 • Universal Design & accessibility features • Op Expenses are increased to $4, 000/unit, excluding replacement reserves • Accessible Supportive Housing Pool • Loudoun County Cost Per Unit and Credit Per Unit parameters are now divided by zip code 7

Loudoun County Zip Codes Inner Northern Virginia 20105, 20120, 20147, 20148, 20152, 20164, 20165, 20166, 20175, 20176 Outer Northern Virginia 20117, 20129, 20132, 20135, 20141, 20158, 20180, 20184, 20197 8

2016 Cost Limits § Inner Northern Virginia: Arlington County, Fairfax County, City of Alexandria, City of Fairfax and City of Falls Church – New construction or adaptive reuse – $387, 809/unit, or – New construction or adaptive reuse w/dehumidifier hookups - $389, 309 plus § up to an additional $43, 090/unit if there is underground or structured parking – Acquisition/rehab: $338, 564/unit or – Acquisition/rehab w/dehumidifier hookups - $340, 064 9

2016 Cost Limits cont’d § Prince William County, Loudoun County and Fauquier County – New construction or adaptive reuse - $288, 087/unit, or – New construction or adaptive reuse w/dehumidifier hookups - $289, 587 plus § up to an additional $43, 090/unit if there is underground or structured parking – Acquisition/rehab - $203, 138/unit – Acquisition/rehab w/dehumidifier hookups - $204, 638 10

2016 Cost Limits cont’d § Balance of State – New construction or adaptive reuse - $215, 450/ unit, or – NC/AR w/dehumidifier hookups - $216, 950 plus § up to an additional $43, 090/unit if there is underground or structured parking – Acquisition/rehab - $166, 204/unit or – Acquisition/rehab w/dehumidifier hookups - $167, 704 11

Cost Limits Enforcement Developments seeking LIHTCs that exceed the published cost limits will not be funded. § Cost Limits are adjusted annually in Dec (4 th Quarter) in accordance with Marshall & Swift cost factors § A 50 -point penalty may apply if the development exceeds the cost limit when costs certified. This penalty will apply for 3 calendar years (beginning on January 1 after costs are certified). This Penalty may be waived for extenuating circumstances by the Board of Commissioners. 12

Minimum Threshold Scores 425 = 9% applications 325 = 4% applications 13

2016 Pool Percentages Non-Profit 15. 00% LHA 15. 00% New Construction 15. 00% • 15% of the following year’s credits Northern VA/Planning District 8 (Inner Wash. ) Northwest/North Central VA 18. 02% 9. 20% Richmond 11. 63% Tidewater 17. 00% Balance of State 14. 15% 14

2016 Available Credits § Per Capita Credits $2. 35 person* § Previous Allocations: § National Pool: § 10% of 2017 Credits: § Accessible Supportive Housing Pool: § Returned Credits § Estimated 2016 Credits: $19, 700, 033 ($5, 683, 657) $75, 000 $1, 970, 003 ($2, 627, 626) $185, 776 + $13, 619, 529 *Population Estimate = 8, 382, 993 (U. S. Census Bureau 7/1/15) 15

2016 Estimated Credits Non-Profit 2, 042, 929 LHA 2, 042, 929 New Construction 2, 955, 004 • 15% of 2017 credits No. VA/Planning District 8 (Inner Wash. ) 2, 454, 239 Northwest/North Central VA 1, 252, 997 Richmond 1, 583, 951 Tidewater 2, 315, 320 Balance of State 1, 927, 164 16

Jim discusses DOJ Settlement 17

Up next… 1. Pools: Non-profit, LHA, New Construction, Accessible Supportive Housing 2. Rules of Ranking 3. Point Categories 4. Parameters Virginia Housing Development Authority

Non-Profit Credit Pool § Authorized to do business in Virginia § Material participation in the project § Substantially based or active in the community § 100% share of general partnership or managing member interest if LLC § Not controlled by for-profit § Board and staff not involved as for-profits 19

Non-Profit Credit Pool cont’d § Not formed for purpose of Non-Profit Pool § Not a joint venture unless 100% non-profit § $750, 000 limit unless all Non-Profit Pool developments funded § Non-Profit Questionnaire - submit supporting documents ONLY upon request by VHDA - LHAs not required to submit NP Questionnaire 20

Non-Profit Credit Pool cont’d § Each new construction or adaptive re-use development eligible for the New Construction Pool (PD 8) that is not funded in this NP Credit Pool will move to the New Construction Pool § All other developments not funded in this NP Credit Pool will move to their applicable geographic pool 21

Local Housing Authority (LHA) Credit Pool § 100% Local Housing Authority (LHA) ownership within the LHA’s jurisdiction or is a HOPE VI development § Local IDA may compete in pool if no LHA in the jurisdiction § LHA-sponsored developments may only compete in the LHA pool 22

New Construction Pool § New construction or adaptive re-use developments § Located in: Alexandria Arlington Fairfax City Fairfax County Falls Church Manassas Loudoun County Manassas Park Prince William County § Developments are funded with 15. 0% of next year’s annual credit authority 23

Accessible Supportive Housing Pool 6% of Per Capita Total § Apps accepted no earlier than June 15 and due no later than 2 p. m. July 29, 2016 § Coordination with DHCD for any applications requesting Housing Trust Funds § No less than 15% and no more than 25% of the units use HUD Section 811 funds for rent subsidies § At least 25% of the units provide: ü Fully accessible housing for persons with disabilities ü With incomes at or below 40% AMI and ü Project-based rent subsidy 24

Rules of Ranking • Developments qualifying to compete in the Non-Profit Pool compete there first • Developments qualifying to compete in the New Construction Pool compete there next; thereafter the application will compete in the Northern VA Geographic Pool • If not ranked high enough to receive credits in the NP Pool, developments then drop into the appropriate geographic pool • Developments will not receive partial credits from any pool; those credits drop into the At-Large Pool (except New Construction Pool) 25

Rules of Ranking cont’d § No more than 20% of the credits in any pool will go to an elderly development Exception: existing subsidized elderly properties § Once the limit is reached, all other elderly deals become “ineligible” and drop to bottom of the pool ranking, unless all non-elderly applications have been fully funded 26

Rules of Ranking cont’d § At-Large Pool: created for all applications not ranking high enough to be fully funded with credits in geographic pools - 2 tiers Ø Tier 1 – Highest-ranking “eligible” developments not fully funded from the geographic pools Ø Tier 2 - All other developments above threshold not funded 27

Point Categories Virginia Housing Development Authority

Readiness Category Points Plan of Development 0 or 40 § N/A if receiving 50 Developer Exp. Points 29

Housing Needs Characteristics Category Locality Notification Information form § -25 points if the locality submits an opposition letter with the required attorney’s opinion (see Manual) § -50 points if the LIHTC applicant fails to submit this information with its 9% application by deadline Located in Revitalization Area (due 4/1/16) Developments w/out Sec 8, project-based assistance and where leasing preference is given to PHA waiting list § Points pro-rated if <100% of the units have projectbased rental assistance 30 Points 0 or -25, -50 0 or 10 Up to 10

Housing Needs Char. cont’d Category Points Subsidized Funding Commitment Up to 40 § VHDA REACH funds not eligible for these points § donated land/below market land leases based on 2015 RE assessments Existing Rural Dev. , HUD, Sec. 8 or 236 0 or 20 Tax abatement or new project-based HUD or RD rental subsidy (> of 5 units or 10%) 0 or 10 Ø Local/state subsidy not eligible for these points Located in Census Tract <10% poverty rate and no other similar Tax Credit properties 0 or 25 Rural Dev. – “High Priority Rehab” list 0 or 15 31

Housing Needs Char. cont’d Category Points New construction located in an area with little or no increase in rent-burdened population. Some exceptions apply. Up to -20 Located in an area with an increasing rentburdened population Up to 20 Above scoring categories to be removed if developments compete in At-Large Pool 32

Development Characteristics (Amenities) Category Community/Meeting Room Brick or other similar low-maintenance material covering ≥ 30% of the building exterior (10 points); § plus 1/5 th point for each % of brick or other similar low-maintenance material >30% (up to 10 points); or § 1/10 th point for each % of exterior wall covered by fiber-cement board (up to 7 points) 33 Points 0 or 5 0, 10 or up to 22

Brick: Example 1 Percentage of brick or other similar low-maintenance material 30. 00% approved by the Authority covering the exterior walls 0. 00% Percentage of exterior walls covered by fiber cement board Exterior Low Maintenance Category Exterior % greater than or equal to 30? 34 Response Points TRUE 10. 00 Additional % greater than 30% 20. 00% 4. 00 Remaining amount in cement siding? 0. 00% 0. 00 Total Points for Scoresheet: 14. 00

Brick: Example 2 Percentage of brick or other similar low-maintenance material 80. 00% approved by the Authority covering the exterior walls 20. 00% Percentage of exterior walls covered by fiber cement board Exterior Low Maintenance Category Exterior % greater than or equal to 30? 35 Response Points TRUE 10. 00 Additional % greater than 30% 50. 00% 10. 00 Remaining amount in cement siding? 20. 00% 2. 00 Total Points for Scoresheet: 22. 00

Dev. Characteristics: Amenities Category Points Water. Sense-labeled toilets 0 or 2 EPA Energy. Star bath vents (New constr. only) 0 or 2 Continuous R-3 or greater rated wall sheathing 0 or 5 § also awarded to existing developments that at the time of application have this feature Energy Star Kitchen/Laundry Appliances Energy Star Windows Heat/AC-SEER-AFUE. Every unit heated and cooled with either: 36 1. heat pump equipment with both a ≥ 15. 0 SEER rating and ≥ 8. 5 HSPF rating; or 2. AC equipment w/ a ≥ 15. 0 SEER rating + gas furnace with an ≥ 90% AFUE rating 0 or 5 0 or 10

Dev. Characteristics: Amenities cont’d Category Points Sub-metered water expense 0 or 5 § total capture – NOT just hot water § n/a if locality prohibits sub-metering § n/a if owner is paying for water 37 Water. Sense faucets & showerheads in baths 0 or 2 High-Speed Cable, DSL, Wireless Internet 0 or 1 Water Heater Efficiency – Meets efficiency standards § incl centralized commercial system OR solar system 0 or 5 Cooking surfaces equipped with non-removable fire prevention or suppression features 0 or 2

Dev. Characteristics: Amenities cont’d Category Points 0 or 5 Historic Rehab § must be listed in the National Register of Historic Places or located in a registered historic district Front-Control Ranges Emergency Call System Supplemental Heat in Bath Two Eye Viewers If points rcvd for these 4 amenities, they must be present in 100% of units *These points are for properties serving the elderly 38 0 or 1* 0 or 3* 0 or 1*

Dev. Characteristics: Accessibility ü Submit a project-specific marketing plan! ü Plan must state that the development will be listed on http: //virginiahousingsearch. com Category Points Project subsidies w/HUD 504 accessibility & marketing (>5 units or 10% of units) or 0 or 50 § must incl roll-in showers for 50 points 39 ID/DD Waiting List Preference (these points only w/50 point category above) 0 or 25 HUD 504 accessibility & marketing (>5 units or 10% of units) or 0 or 30 HUD 504 accessibility for 5% of units & marketing 0 or 15

Dev. Characteristics: Accessibility cont’d § Follow fully/permanently accessible Uniform Federal Accessibility Standards (UFAS) and specifics for point category § Hold vacant 60 days (retroactive for all deals receiving these points) § Document marketing efforts to find household with qualified disability; submit that evidence to VHDA Program Compliance Officer § Then may accept applicant agreeing to a lease provision to move to another vacant unit if/when a qualified household is found (move to be paid for by owner) § Click here to access UFAS Requirements 40

Development Characteristics: Proximity to Publ. Transportation Category Points Located within ½ mile of an existing commuter rail, light rail or subway station or ¼ mile of an existing public bus stop 0 or 10 Meets the above qualifications and is competing in the New Construction, Northern Virginia/Planning District 8 or Tidewater MSA pools 41 0 or 20 (10 points in the At-Large Pool)

Development Characteristics Category Earth. Craft or LEED development certification • Architect of Record must have attended Earth. Craft Multi-family Professional Training since 1/1/2011 Points 0, 15, 30 or 45 • next training 1/12/16 Units meet VHDA’s Universal Design Standards • Elderly-all units • Family % UD of total • Architect of Record must have attended VHDA UD Seminar since 1/1/2011 • next training 1/28/16 42 Up to 15

Development Characteristics Category Points <100 Units Up to 20 • < 50 units (20 points) • 51 -99 units (0. 4 points for each unit above 50) • 100 units (0 points) 20, 30, 40 Any development in which the 9% LIHTC applicant will also make an application for 4% (points only apply credits - same or contiguous site to 9% app) • 30% - 39% of the units (20 points) • 40% - 49% of the units (30 points) • ≥ 50% of the units (40 points) 43

Tenant Population Characteristics 44 Category Points No more than 20% of units are 1 BR or Efficiency units 0 or 15 0. 75 points for each % of low-income units in the development with three or more bedrooms Up to 15

Sponsor Characteristics Category Points 3 LIHTC developments w/ 3 x proposed # units or 6 LIHTC developments (as Controlling GP/ Managing Member) or 0 or 50 3 LIHTC developments as principal and have at least $500, 000 in liquid assets or 45 1 development w/ 1 x proposed # units (as Controlling GP/ Managing Member) 0 or 10 Uncorrected life threatening hazard (ends 3 years after the actual date of correction) 0 or – 50 Uncorrected 8823 (penalty begins Jan 1 of the year following the year 8823 issued and ends after Dec 31 of the 3 rd calendar year); unless VHDA training prior to App deadline 0 or -15

Sponsor Characteristics, cont’d Category Not built as represented (for 3 years after last 8609 issued) 46 Points -2 x pts per category Failure to provide minimum building requirement (for 3 years after last 8609 issued) 0 or -20 Termination of credits by VHDA (for 3 years after return) 0 or -10 Exceeds cost limits at Certification 0 or -50 Unsatisfactory Management Company 0 or -25

Bonus Points Category Points Units w/rents at ≤ 40% AMI Up to 10 Units w/rents and income ≤ 50% AMI Up to 50 or Units w/rents = 50% AMI and incomes ≤ 60% AMI Up to 25 or Units w/rents ≤ 50% AMI and incomes ≤ 60% AMI only in low-income jurisdictions 47 Up to 50

Bonus Points cont’d Category Points Extended compliance (25 or 35 extra years) 40 or 50 or ‘For Sale’ to Non-profit or LHA (at the end of the minimum 15 -year compliance period) 0 or 60 § The qualified NP must have a minimum of 10% ownership in the GP or Managing Member for the full 15 -year compliance period Non-profit or LHA homeownership option NOTE: N/A if receiving extended compliance points 48 0 or 5

Efficient Use of Resources Category Credit per unit - Refer to Sample Calculations & Efficient Use of Resources Parameters Points Up to 200* NOTE: possible to score negative points Cost per unit - Refer to Sample Calculations & Efficient Use of Resources Parameters NOTE: possible to score negative points 49 Up to 100*

Application Parameters Virginia Housing Development Authority

Developer Fee The lesser of… 1. Acquisition: <10% of building’s eligible basis or 8% if RD; plus Rehabilitation: <25% of rehab’s eligible basis; or New Construction: <20% of building’s eligible basis 51

Developer Fee cont’d 2. ≤ 15% of Total Development Costs 3. Related Contractor - TDC (x) 18% (-) Contractor overhead & profit 4. Related Architect – Formula = TDC (x) 16. 5% (-) all Architectural & Engineering fees 5. Related Contractor & Architect: Formula = TDC (x) 19. 5% (-) contractor overhead & profit, architectural fees & engineering fees 52

Developer Fee cont’d 6. Additional Developer Fee (cumulating declining scale)… • 15% if <$1 million in total development costs; plus • 12% if $1 – $10 million ; plus • 8% if >$10 million 7. 4% TEB deals can qualify for a 20% developer fee, in which none of the previous limits apply, if the development is Earth. Craft/LEED certified v Contractor’s General Requirements, Overhead and Profit: <14% 53

Operating Pro Forma • Pro forma Rent Increases: <2% per year • Pro forma Operating Expenses Increase: >3% • Vacancy: ≥ 7% of Gross Potential Income or market • Replacement Reserves: >$250 per unit for New Construction Elderly; >$300 for all others • Operating Expenses: >$4, 000 per unit (excluding Replacement Reserves) 54

Equity, Applicable Percentage Tax Credit Equity Factor: use reasonable estimate for the proposed development Applicable Tax Credit Percentages: • 9% - permanently fixed @ 9. 0% • 4% - use March 2016 percentage 55

15 -minute Break 56

Up next… 1. 2. 3. 4. 5. 57 Min. Design & Construction Requirements (General) 2016 Minimum Design & Construction Requirements Highlights UD and Accessibility Elements (including elevator requirements) Architect’s Certification (clarification) Earth. Craft

Minimum Design & Construction Requirements – General Info • 2016 Minimum Design & Construction Requirements and Minimum Cabinet Requirements • Pre-construction meeting • Review amenity point items and Design & Construction Requirements • Notify LIHTC Allocation Department when construction begins • On-site, ongoing inspections through completion 58

2016 Minimum Design & Construction Requirement Highlights • Use of ZIP System wall sheathing, or similar, is accepted with conditions • Alternate location of HVAC supply diffusers • Use of PVC foam core pipe will not be accepted • Locations of hard wired telephone lines • Removal of abandoned and non-operable equipment • Continuous R-25 insulation above flat roof decks • Language change, 15/32” roof sheathing in lieu of ½” nominal 59

2016 U. D. Highlights 1. Pass/Fail assessment during the application review period. All tax credit applications seeking amenity points for providing UD units must include architectural drawings that clearly identify the following: – Location of dwelling units on overall building plans which will meet the VHDA Universal Design Guidelines (Minimum scale 1/8”=1’-0”); – Accessible pedestrian routes from all Universal Design units to accessible parking. Architect must consider running slope and cross slope of route and any vertical obstructions; 60

2016 U. D. Highlights cont’d – Accessible pedestrian routes from all UD units to the leasing office, community room, laundry facility, mailboxes, garbage collection areas and public transportation pick up areas. The architect must consider running slope and cross slope of route and any vertical obstructions; – The means of vertical transportation along the accessible route. (Anything other than an accessible elevator may not be accepted depending on the desired function); – Enlarged Universal Design unit plans (min. scale 1/4”=1’-0”) 2. Modification to refrigerator type 61

2016 U. D. Highlights cont’d The UD checklist must be signed and dated by: 1. the developer applying for tax credits; 2. the site engineer (if owner retained); and 3. the Architect of Record must – be a current VHDA UD certificate holder (certificates expire after 5 years); – be the architect who will sign VHDA’s Architect Certificate; – submit the completed UD checklist to VHDA prior to the VHDA pre-construction meeting 62

Architect’s Certification 63

Earth. Craft Multifamily 2016 • 2016 worksheets are more prescriptive and less dependent upon energy model; worksheets can be found at: http: //www. earthcraftvirginia. org/builders/programs/ea rthcraft-multifamily/ • Renovation improvement thresholds decreased to 20%, 30% and 40% (previously 30%, 40%, 50%) due to the improved existing housing stock 64

Earth. Craft Multifamily 2016 • Complete submittals will be reviewed in the order submitted • Submittals require the completion of the “Architect Checklist” tab within the worksheet by the project architect, identifying where in the drawings program minimums are found. NOTE: If design is not at a level conducive to completing this, Architects should initial in the spaces provided to ensure that all requirements have been reviewed 65

Up next… 1. 2. 3. 4. 5. 6. 7. 66 Registering to be a VHDA Business Partner Locality Notification Information Reservation App: 9% Reservation App: 4% Allocation Application 8609 Application Payment Options

Become a VHDA Business Partner § Access to LNI information system (first step to completing an application) § Viewing access to submitted LIHTC applications 67

Access registration page via VHDA. com 68

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Forget password? 70

LNI Link 71

Locality Notification Information § Required by IRS § Web-based § Collect info about the locality CEO & development from owner/developer § Used (1) to prepare the Locality CEO Notice Letter, which (2) informs localities about and (3) allows localities to comment on prospective LIHTC developments § Due January 27, 2016 at 2 p. m. (except Accessible Supportive Housing and TEB apps) § 50 -point penalty if received after deadline § Not compatible with Mozilla/Firefox or Google Chrome 72

Reservation App: 9% Deadline & Fees u Application is due in VHDA’s office on or before March 4, 2016 by 2: 00 pm Ø Strict deadline! No exceptions! u Application Fee is due w/Reservation Application u Reservation Fee is due w/Reservation Agreement, except LHA or Non-Profit Pool recipients, which is due by November 2, 2016 u Reservation Fee = 7% of total annual credit amount 73

Reservation App: 9% cont’d Application Process • The LIHTC application was prepared using Microsoft Office 2010 • Applicants must submit application and all supporting documentation in electronic format, e. g. , CD/DVD, flash drives or via Procorem • Do not submit any application materials to VHDA email addresses • Use VHDA-provided tab divider pages 74

Reservation App: 9% cont’d Mandatory Items: 1. Application Fee: $1, 000 2. Application for Reservation –active Microsoft Excel workbook 3. Application for Reservation - signed application, including self-score sheet • Include all application attachments/tab documents 75

Reservation App: 9% cont’d 76 4. Market Study – stand alone document 5. Appraisal – stand alone document 6. Plans & Specs - be sure all minimum design & construction requirements and UD/accessibility elements (if applicable) are shown; or 7. Unit-By-Unit work write up (rehabs only) 8. Executed partnership/operating agreement w/ownership structure chart (org chart) showing principals –individual’s names must be listed here!

Reservation App: 9% cont’d 8. Certification from Virginia SCC 9. Signed PPC, resumé(s), Schedule A(s) & proof 8609 s issued for no more than 6 projects, if not listed on Exp. Dev list 10. Evidence of Site Control • • • 77 Extends at least 4 months past app deadline (except TEB) In the name of owner applying for credits Most recent RE tax assessment documentation

Reservation App: 9% cont’d 11. Relocation Assistance Guidelines – Required in all cases where the project receives LIHTCs and tenants are displaced – Include at Tab G – Can be found at VHDA. com 12. Attorney’s Opinion – Changes ONLY if absolutely necessary – Submit blackline for approval before application is due; otherwise, 10 -point penalty 13. Properly executed Architect's Certification All developments must have an architect 78

Reservation File Name Protocol Naming Protocol Description [Dev Name] - Reservation App Active Microsoft Excel workbook [Dev Name] – Reservation App PDF file which includes the following: PDF copy of the signed application, including selfscore sheet [Dev Name] - Market Study all application attachments (i. e. tab documents, excluding the market study, plans, specs and/or work write-up) PDF or other readable electronic format [Dev Name] - Plans & Specs Electronic Plans and Specifications Or [Dev Name] - Plans [Dev Name] - Specs [Dev Name] - Ux. U Work Write-up PDF or other readable electronic format Other - [Dev Name] – [Doc Name] Other document(s) relevant to the application * [Dev Name] = type in the name of the development 79

Reservation App: 9% cont’d Late Mandatory Documents: • The market study may not be late; the application will be disqualified • Other than the Market Study, one or more of the mandatory items can be submitted after the application deadline, however, a 10 -point penalty per item will be assessed 80

Reservation App: 9% cont’d • Applications will be posted by 3/21/16 • Can view and print any application and attachments • Plans, specs & market studies are not posted • Must be registered as a VHDA Business Partner for access (refer to previous discussion) 81

Reservation App: 9% cont’d Reservation docs mailed by VHDA in July, including: Reservation Letter Reservation Agreement Extended Use Agreement Contract to Enforce Representations Election to Fix Applicable Percentage Notice of Appraisal Fee (if applicable) Return docs by deadline stated in docs 82

Reservation App: 4% (TEB) • TEB Application and forms are available at vhda. com – use application available online at the time of submission • Submit Locality Notification Information (LNI) on-line • VHDA mails locality notification letter * Locality CEO has 45 days to respond, so you are encouraged to submit LNI 30 days prior to submitting the App • Submit TEB App to VHDA no less than one month before VHDA bond pricing or 75 days before non. VHDA bond issuance 83

Reservation App: 4% (TEB) cont’d • $1, 000 application fee • Application must meet or exceed threshold score, 325 points • Market studies are mandatory (same as 9% deals) • Appraisals are required for acqu/rehab and adaptive reuse developments, if acquisition credits are requested (same as 9% deals) • Federal EIN verification required w/Reservation App 84

Reservation App: 4% (TEB) cont’d • After feasibility review is completed, VHDA sends Reservation Fee letter (fee is 7% of the annual credit amount) • After the fee is received, VHDA sends Section 42(m) letter, Extended Use Agreement and Election to Fix • Applicable % can be locked no later than the 5 th day following the month the bonds were issued; otherwise the rate will be the PIS date 85

Allocation Application: • VHDA sends customized application • Allocation Application is due in VHDA’s office on or before November 2, 2016 by 2: 00 pm Penalties and Fees: • $500. 00 penalty per calendar day for late submission • $50. 00 fee to replace original docs (i. e. , EUA) 86

Allocation Application cont’d Docs to Return w/Application: • Site control documentation • Extended Use Agreement • Purchase Option/Right of First Refusal (Non-profit or LHA) • Owner’s Cost Certification • Attorney’s Opinion • IRS EIN# assignment letter • Letter of Intent from syndicator stating equity price 87

Allocation File Name Protocol Naming Protocol Description Allocation – [Dev Name] – Application Active Microsoft Excel workbook Allocation – [Dev Name] - Application PDF copy of the signed application Allocation – [Dev Name] – Attorney’s Opinion Allocation – [Dev Name] – IRS EIN # Allocation - [Dev Name] – Site Control Documentation Allocation - [Dev Name] – Owner’s Certification Allocation - [Dev Name] – EUA (Recorded) Recorded EUA Allocation - [Dev Name] – ROFR (Recorded) Non-Profit or Local Housing Authority (LHA) Right of First Refusal Allocation – [Dev Name] – Investor LOI Allocation – [Dev Name] – [Document Name] Other document(s) revised Reservation Application *[Dev Name] = type in the name of the development 88 since the

Allocation Application cont’d Allocation Types & Documents: Regular Allocation Owner will receive Form(s) 8609 – if buildings placed in service in the same year as allocation Carryover Allocation § Owner will receive Carryover Allocation if buildings are not placed in service (ready for occupancy) by the year of allocation § VHDA will mail mid-December § Carryover Agreements due January 2017 (to VHDA) § Meet 10% test no later than 12 months from the Allocation Date, including submitting documentation! 89

Pre-8609 App Submission • The Construction Completion Notice is due to the LIHTC Allocation Dept within 30 days of last residential building PIS – New Construction - copy of Certificate of Occupancy for each building – Rehab - Certificate of Substantial Completion from the architect • Penalty: $100 per day for each calendar day after the deadline (max. of $7, 500 + interest monthly thereafter) 90

8609 Application Deadline: • 8609 Application is due within 6 months of the last building’s placed-in-service date • or April 30 deadline Contract to Enforce Representations - 8609 Apps for 9% developments due no later than April 30 th of the 2 nd year following the year of allocation. Extensions may be granted for up to 12 months beyond April 30 th with prior approval from VHDA. 91

8609 Application: • VHDA sends customized application Penalties and fees: • Late submission = a fine of $100 per calendar day, up to $7, 500… • $100 for each Form 8609 to be corrected and reissued 92

8609 Application cont’d Docs to return w/Application: 1. Completed 8609 App (active Excel workbook) 2. Electronic/PDF copy of the signed App 3. VHDA-requested supporting documents (refer to 8609 App Submission Checklist) 4. Permanent financing documentation (or other documentation if closing has not occurred) 5. Construction Contract 93

8609 Application cont’d Docs to return w/Application: 6. Grant Agreement(s), if applicable 7. Final Partnership Agreement and Development Agreement (if changed since Reservation) 8. Independent Auditor’s Report 9. Final Cost Certification (itemization match) 10. Certification of Sources and Uses 94

Mandatory (Before VHDA Can Issue 8609 s) • Earth. Craft/LEED Certification, if applicable • Universal Design Certification, if applicable • Final VHDA inspection • Certified Property Management Company • Fees due 95

Payment Options VHDA accepts checks, wire transfers and Automated Clearing House (ACH) deposits Checks can be mailed or delivered to: VHDA Attn: Tax Credit Allocation 601 S. Belvidere Street Richmond VA 23220 • Checks are received when they arrive in the LIHTC department! 96

Payment Options, cont’d Before making an ACH or wire payment you MUST send Pamela Freeth, pamela. freeth@vhda. com, an email that describes the following: 1. 2. 3. 4. 5. 97 The name of the development The type of fee The date that you will be making the transaction How much you will be sending (to the cent) One payment for multiple developments

Payment Options, cont’d Wire & ACH Deposits 1. Payable to: Virginia Housing Development Authority 2. Account Name: LIHTC Fees 3. Account #1000160925987 4. ABA # 061000104 Note: Transactions are considered received at the time funds are received (into VHDA’s account) IMMEDIATELY AFTER completing the transaction, you MUST forward a remittance advice slip (i. e. confirmation that your transaction has been completed). 98

10 -minute Break 99

Up next… 1. Often Misunderstood: Previous Participation Certification 2. Often Misunderstood: Tab T vs. Tab Q 3. Market Studies 4. Appraisals 5. Experienced LIHTC Developer list 6. Using the Online Reference Map 100

Often Misunderstood: Tab Q: Documentation of Rental Assistance What should be included: § Ex. RD/HUD HAP Contract NOTE: Subsidized funding is not rental assistance. 101

Often Misunderstood: Tab T: Financing Sources (including Subsidized Funding) Documentation that should be included: § § § 102 Donated land or below market land leases Virginia Housing Trust Fund VOICE $ Bank loan commitment Locality resolution Subsidized Funding = firm commitment

Market Studies § VHDA has an Approved Analysts’ list § Market Study Reservations: 103 1. The developer/owner confirms with the analyst that it can secure a contract with the analyst 2. The developer/owner notifies Jaynell Pittman-Shaw, jaynell. pittman-shaw@vhda. com, of its selection for an analyst 3. The analyst confirms with VHDA that it will accept the developer/owners request for assignment

Market Studies cont’d § Must meet VHDA Market Study Guidelines § Must be submitted in electronic format § Must come directly from the applicant § Used in conjunction with VHDA property data § Effective Date of report = date of site inspection – 6 -12 months old will require an update letter from analyst; – >12 months old, NOT accepted under any circumstances 104

Appraisals Required with all acquisition/rehab and adaptive reuse applications, if acquisition credits are requested § VHDA will accept RD appraisals § Must meet VHDA Appraisal Guidelines § MAI designation required § Obtained independently by the applicant § Submitted with the application § VHDA at its discretion, may require an additional appraisal - VHDA will select appraiser (at owner’s cost) 105

Appraisals cont’d Values requested: § § 106 Land “As-Is” Market value “As-Is” Restricted value “Prospective” – post construction & upon achieving stabilized occupancy

Experienced LIHTC Developer List § If listed, no need to submit copies of 8609 s at Tab D, with the Previous Participation Certification (PPC) § If qualified, but not listed, submit no more than six 8609 s (1 per property) and documentation supporting that the person to be listed is CGP, Managing Member or principal § Points also allowed for a principal who has developed at least three LIHTC deals and who has at least $500, 000 in liquid assets (per audited financial statement) § If not listed by 2/15/16, prepare to submit above with the application or may lose points (i. e. can’t correct w/10 -point penalty) 107

Often Misunderstood: Previous Participation Certification § Complete the PPC even if you are incl on the Experienced LIHTC Developer list § One Certification per applicant (not per principal), but Schedule A’s for each principal § Schedule A’s for INDIVIDUALS, unless non-profit, (widely-held) corporation or LHA § Provide supporting documentation only for uncorrected 8823 s § No more than six 8609 s required (1 per property), if not listed on Experienced LIHTC Dev list 108 § No brochures

Online Reference Map Web – based address search designed to provide pertinent LIHTC information 109 Census Tract Identification Jurisdiction Identification • QCT Status • DDA Status • Eligibility for 25 points for locating in a census tract <10% Poverty and no similar LIHTC properties • Revitalization Reference • Geographic Pool Identification • New Construction Pool Eligibility • Congressional Districts • Planning District • State House and Senate District Cost Limits

Provides Multiple Answers 110

VHDA’s GIS Landing Page 111

Launching the Map 112

The Map 113

Address-based Search Enter an address 114

Click for Details 115

Site-Specific Results Pop up provides relevant site information 116

Existing LIHTC Properties (orange dots) 117

Reservation Application DEMO Virginia Housing Development Authority

Procorem (submitting documents to VHDA) DEMO Virginia Housing Development Authority

Virginia Housing Development Authority

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2016 SCHEDULE 1/27/16 Locality Notification Information due – enter online 3/04/16 App for Reservation & Market Study due (w/$1, 000 application fee) by 3/21/16 Apps posted to web (can view with Business Partner password) 4/1/16 CEO Letter & Revitalization Area documentation due 5/03/16 Announce prelim. rankings; begin comment period 5/10/16 Close general comment period; begin rebuttal period 5/17/16 Close rebuttal comment period 5/25/16 Announce final rankings 6/8/16 Review final rankings with VHDA Board 131

2011 SCHEDULE SUMMARY, cont’d 2016 SCHEDULE cont’d Early to mid- VHDA sends Reservation documents to developers July September VHDA sends Allocation Apps to developers 11/02/16 App for Allocation due to VHDA 12/16/16 Finalize allocations – mail Carryover Allocation documents or issue Form(s) 8609 for regular allocation 1/2017 Carryover Agreements due to VHDA 10% Test– 12 Months from Allocation Date 132

• • • 133 Jim Chandler JD Bondurant Jaynell Pittman-Shaw Hope Coleman Rutter Stephanie Flanders Pamela Freeth 804 -343 -5786 804 -343 -5725 804 -343 -5733 804 -343 -5574 804 -343 -5939 804 -343 -5518