Developers’ Workshop Agenda: 1.Welcome & Introductions 2.Employment Practices 3.Draft 2015 QAP & Appendix B 4.Preliminary Application Changes 5.Carryover.

Developers’ Workshop

Agenda:

1. Welcome & Introductions

2. Employment Practices

3. Draft 2015 QAP & Appendix B

4. Preliminary Application Changes

5. Carryover Loan Program

6. Questions

Employment Practices

Bryan Strickland

Director of Compliance and Fraud Investigations

North Carolina Industrial Commission

2015 QAP

Disclaimers

•Not covering every topic

• Focusing on changes and what you need to know before submitting an application

• Participants are responsible for knowing the rules

• If questions are not covered, ask today or follow up with staff

QAP Status

• First draft released on September 30

• Public Hearing is Oct. 16 at 2:00, Room 402

• Comments for 2nd Draft due by October 27

• Can submit more than once, on any topic

•As always, specificity is very helpful

•Will not be final until December due to official notice requirements

QAP Changes

•Agency Basis Boost• County Income Designations•Amenities• Incompatible Uses• Rent and Income Targeting•Workforce Housing Loan Program•Developer Experience• Smoke-Free Housing•Appendix B: Design

Agency Basis Boost

• Two categories, each up to 15%–new construction projects earning rent and

income targeting points –all projects if the flat 9% tax credit rate is not

reinstated

• Projects in QCTs/DDAs may claim up to 30%

Agency Basis Boost

•New Construction if earn targeting points–floating rate: up to 30% boost–fixed 9% rate: up to 15% boost

• Rehabs–floating rate: up to 15% boost–fixed 9% rate: no boost

County Income Designations

• Follows the 2014 County Tier Designations published by NC Dept. of Commerce

• Tier 3 High, Tier 2 Moderate, and Tier 1 Low

• Commerce considers four factors:–adjusted property tax base per capita–percentage population growth–median household income–average unemployment rate

County Income Designations

• Commerce tiers are a consistent source for income designations

• Transition from STC to WHLP a good time to change

• 26 counties will change from 2014–20 up (e.g., Moderate to High), 6 down–less impact with WHLP than STC

Amenities

•Grocery point increments reduced to 3 per mile

• Sites can make up amenities points if:–the application has $250k in NAHASDA funds–a public bus/transit stop

is in service at time of prelim application date has a covered waiting area has hourly service, seven days a week is within ¼ mile walking distance using existing

sidewalks/crosswalks

Incompatible Uses

•Distance reduced for:–frequently used railroad tracks–high traffic corridor–power transmission lines and tower

• Lose points if within 250 feet of a building

Rent & Income Targeting

•Number of units to earn points reduced to 20% for all counties:–High Income, 30% AMI–Moderate, 40% AMI–Low, 50% AMI

•Affordable to (rent) and occupied by (income)

•Generates 15% Agency basis boost

• RPP: 40% of units at 50% AMI in any county

Workforce Housing Loan Program

• $10 million appropriation, non-recurring

• Statute requires projects meet the Agency’s loan criteria and we consider other sources of funding

• 0% interest, 30 year balloon (no payments)

• Requesting WHLP may result in an application being ineligible due to inadequate funds

Workforce Housing Loan Program

• Percent of eligible basis will be the initial limit and cannot exceed statutory maximums

• The 20 ineligible counties receive the most federal funds which can be used for housing

County Income Designation

Percent of Eligible Basis

Statutory Maximum

High 2% $250,000 Moderate 6% $750,000 Low 10% $1,000,000

Developer Experience

• Can no longer qualify using waiver

•Must have one NC project PIS between Jan. 1, 2008 and Jan. 1, 2014

•Agency may disqualify an owner who has sold a TC project or requested a qualified contract–intended for transactions which may result in the loss

of affordable housing units–for example, selling to a market rate company

Smoke-Free Housing

• Projects awarded in 2015 (not retroactive) must prohibit smoking in–all indoor common areas,–individual living areas (patios & balconies), and–25’ of building entries or ventilation intakes

•A non-smoking clause must be included in the lease for each household

Appendix B: Design

•One elevator per 60 units in a building

•Dishwashers in elderly projects

•Water/ice dispenser rough-in box in every unit with cold water supply line in the wall

•Multi-purpose room required in family projects

•One parking space per unit in elderly projects

Preliminary Application

Carryover Loan Program

• Eight among 2013 awards, available for 2014

•Only covering up to 95% of land (max of $1M)

•Not paying for any other costs

•Will have first priority deed of trust on the land

• Paid off with the construction loan; otherwise the term is 12 months

Questions?

Draft 2015 QAP Public HearingOctober 16, 2014 at 2:00 PM Room 402 Raleigh Convention Center