Preguntas frecuentes sobre aplicaciones LIHTC 2024

• Respuesta To qualify as a local nonprofit for points under Scoring Criterion No. 1, the local nonprofit must be a qualified, nonprofit organization with a board of directors comprised of a majority of New Mexico residents at the time the Application is submitted and was incorporated in New Mexico before January 1 of the year in which the Application is submitted, in this case on or before December 31, 2023. Therefore, if the “local chapter” you describe is incorporated, not merely registered as a foreign entity qualified to do business in the state of New Mexico, and that domestic nonprofit corporation meets all requirements of the Scoring Criterion, it could be eligible for points, assuming that proper documentation is included in the Application.
  
  If the nonprofit organization does not meet the criteria to be eligible for points as a local nonprofit organization, it could still qualify for points under Tier 2 by having net worth/net assets of at least $2,000,000 and meeting the other criteria in the Scoring Criterion.

• Respuesta 2024 QAP Section III.E.17 states: “Projects that include the demolition of Blighted building(s)… are eligible for points under this criterion.” That the demolition of the Blighted Building must be part of the Project is further supported by the requirement that the Applicant “include a demolition budget.” If the building was previously demolished, there would be no need for a demolition budget.
  
  Whether the demolition of the Blighted Building is part of the Project will depend on the facts and circumstances. For example, if the local jurisdiction put out a request for proposals for a site with a Blighted Building and required, as part of the development of the site, that the Blighted Building be immediately demolished when the Developer acquired the site, that demolition could be seen as part of the Project. On the other hand, if a Developer purchased a parcel of land and the seller demolished the Blighted Building at the request of the local jurisdiction, that demolition activity would not be considered to be part of the Project.
  
  In addition, the square footage of the demolished Blighted Building must account for at least 10% of the Gross Square Feet of the entire completed Project and all required documentation would need to be included in the Application.

What is the distance between two projects where MFA would not consider them adjacent to each other? 

Basis for this question is the following:

• We will be submitting two 9% applications in the 2024 round with each being 72-unit family developments on a 12-acre site.  

• This 12-acre site is going to be subdivided into separate legal parcels for these two 72-unit family developments as well as a parcel for a 128-unit 4% family development. 

• To ensure that these two 9% 72-unit family developments are not adjacent to each other, we would have a distinct and separate parcel between these two 9% site parcels that would have landscape, hardscape, playground and/or drainage basin.   This separate parcel would most likely be owned by the 128-unit 4% family development.

• Respuesta Section IV.E.3 limits the tax credits awarded to a single Project or Principal and states “[t]wo 9% LIHTC Projects to be located on adjacent sites proposed by the same Applicant in the same LIHTC Application round will be treated as a single Project.” 

  Tienes varias opciones:

  1. Pursue a Hybrid 9%/4% Development (See 2024 QAP Section II.U) on the entire 12-acre parcel that will include all 272 Units by increasing the number of 4% Units and reducing the number of 9% Units to meet the limitation on 9% tax credits in Section IV.E.3 of the 2024 QAP.

  2. Reduce the size of one or both planned 9% projects and use the land to build the Units removed from the project(s) in a future year.  In other words, the subdivided parcel would need to meet local government planning standards to build additional development (i.e., housing units or commercial development rather than landscape, hardscape, playground and/or drainage basin associated with a portion of the 272 units planned).

  3. Have separate Applicants develop each 9% Project.  The definition of Applicant in the QAP precludes entities that both participating in the partnership from applying separately as Applicants to develop adjacent parcels.  However, two Developers without an identity of interest are permitted to develop properties that are adjacent to one another.

  4. Only submit one of the two 72-Unit Projects in 2024 and submit the second one in a future round.

• Respuesta The 2024 Mandatory Design Standards for Multifamily Housing states: “In cases where it is not technically and/or economically feasible to adhere strictly to all design or submission requirements, individual requirements may be waived at MFA’s discretion. The applicant must complete and submit the Waiver Procedure for Design Requirements form found in the 2024 Universal Rental Development Application Package. This request will be reviewed with the Application and determination of approval given following the design review process.” The waiver request form is found at Tab 11 and is submitted with the Application. 

• Respuesta Another site visit is not required. MFA’s Market Study Parameters require that the date of the field work and site visit be included in the report, but an update of a recent existing report does not require an additional site visit if physical market conditions have not substantially changed.

Por ejemplo:

• Current Unit Mix: 8 units @ 40% AMI; 24 units @ 50% AMI; 8 units @ 60% AMI

• Potential Application Unit Mix: 10 units @ 50% AMI;30 units @ 60% AMI*

*Sujeto a cambios

The owner would continue following the more restrictive AMI unit mix in the original LURA and the new AMI unit mix would not be applicable to the project until the original LURA expires. We just want to verify that the application for the new award of credits would not be disqualified if we do not select the same AMI unit mix that was promised in the original LURA.

• Respuesta An Applicant with an existing Project with deeper income restriction targeting will not automatically be disqualified from the 9% LIHTC round if the proposed rent and income restrictions conform with what is currently allowable. However, the existing rent and income restrictions will not be lifted until the existing LURA has expired.