2005 QAP WORKSHOP and SYNDICATION MARKETPLACE

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2005 QAP WORKSHOP andSYNDICATION
MARKETPLACE February 25, 2005
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Application Deadlines

• Family, Senior Special Needs Cycles Due APRIL
  6th
• Awards JULY 6th
• Final Cycle Due AUGUST 2nd
• Awards OCTOBER 12th
• Hardship Applications Due JULY 15th

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Funding Amounts and Set-Asides
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Family Cycle

• 5,000,000 Available
• Maximum annual allocation 1.8 mil
• At least 15 large family units
• 3 set-asides
• Affordability/Mixed Income 1 project
• HOPE VI 1 project
• Qualified Nonprofit 1 project

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Senior Cycle

• 2,400,000 Available
• Maximum annual allocation 1.2 mil
• No more than 15 of units are 2BR
• 2 set-asides
• Affordability/Mixed Income 1 project
• HOPE VI 1 project

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Special Needs Cycle

• 1,200,000 Available
• Maximum annual allocation 600k
• 1 set-aside
• Developmentally Disabled 1 project

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Final Cycle

• Balance of credits
• Maximum annual allocation 1.8 mil
• 2 (or 3) set-asides
• Nonprofit (if necessary)
• HOPE VI 1 project
• Preservation 1 project

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Eligibility

• Project Narrative Market Study
• Market Study lt 6 months
• Analyst to strictly adhere to market study
  requirements
• HMFA review consultant to contact analyst
  directly
• 5 business days for analyst to respond
• Pictures!

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Eligibility

• Site control
• Current owners recorded deed is required
• Eminent Domain
• Written offers
• Declaration of taking to be recorded within 3
  months after tax credit award

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Eligibility

• Preliminary site plan approval
• Environmentals
• submit Phase I if available
• Funding Commitments
• No more than 50 dev. fee pledge as a permanent
  source
• Energy Star
• Rebates included as a source of funds at PIS
• Partnership Agreement signed by both parties

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Feasibility Operating Budget Guidelines

• Income/Expense/Vacancy 2/3/7
• Debt Coverage Ratio 1.15 to 1.20
• Replacement Reserves 300 to 400/du
• Core Operating Expenses 1,800-3,400 per unit
  (means expenses for administration, salaries,
  maintenance and repairs, maintenance contracts
  and insurance)
• 2 operating comps to be submitted

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Feasibility Capital Budget Guidelines

• Minimum Equity Factor .75
• Eligible Basis Limits same as 2004
• Tax Credit Percentage
• 70 Present Value Credit 8.15
• 30 Present Value Credit 3.50
• Signature Page for Capital Operating Budgets
• signed by applicant, lender and syndicator
• Tax Credit fees OUT of basis

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Point System
Equitable Distribution - 2 projects per cycle/3
projects per year - Per developer and/or
municipality Minimum point score required 65
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Point System
Large Family Units - 3 or more bedrooms, at
least 950 sq ft. - At least 1.5 bathrooms Tax
Abatement - If terms are not in ordinance,
submit financial agreement
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Point System

• 2-year Tax Escrow
• - Municipal confirmation of assessment
• COAH/Court-Ordered
• - Petition/Pending judgment OK for application
• - Substantive Cert/Final judgment needed to
  draw down Home Express/BHP funds
• Interim source of funds must be shown

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Transit Villages

• Riverside Pleasantville
• Morristown Rahway
• South Orange South Amboy
• Rutherford Metuchen
• Belmar Bloomfield
• Boundbrook Collingswood
• Cranford Matawan
• Journal Sq/Jersey City New Brunswick

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Point System
Community Revitalization Plan (CRP) - Meet all
7 criteria (listed in QAP) - Heather Mahaley
(609-278-7504) to review - To ensure a response
before the 4/6 deadline, submit to Heather by
3/28
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School Renaissance Zones

• Trenton Neptune
• Paterson Union City
• Contact Maureen Hassett, EDA,
• [phone]

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Brownfields

• Remedial Action Work Plan from DEP OR
• BMSI Tracking Number from Brownfields
  Redevelopment Task Force
• Fran Hoffman, Office of Smart Growth

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WARNING!!!
Follow through on point categories! Failure to
do so can delay or prevent issuance of the IRS
Form 8609
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Substantially Incomplete
Substantially incomplete 3 missing docs
and/or signatures OR 6 msg docs, signatures
and/or clarifications NO opportunity to cure!
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THANK YOU!!!

• Questions?
• Deb Urban [phone]
• Kevin Kavanaugh [phone]
• Steve Grieco [phone]