Current through Register 2024 Notice Reg. No. 38, September 20, 2024
(h)
Standard application documents. The following documentation relevant to the proposed
project is required to be submitted with all applications:
(1) Applicant's Statement. A completed and signed
version of the CTCAC Applicant Statement signifying the responsibility of the
applicant to:
(A) provide application related
documentation to the Committee upon request;
(B) be familiar with and comply with Credit
program statutes and regulations;
(C)
hold the Committee and its employees harmless from program-related
matters;
(D) acknowledge the potential
for program modifications resulting from statutory or regulatory actions;
(E) acknowledge that Credit amounts reserved or
allocated may be reduced in some cases when the terms and amounts of project sources
and uses of funds are modified;
(F)
agree to comply with laws outlawing discrimination;
(G) acknowledge that the Committee has recommended
the applicant seek tax advice;
(H)
acknowledge that the application will be evaluated according to Committee
regulations, and that Credit is not an entitlement;
(I) acknowledge that continued compliance with
program requirements is the responsibility of the applicant;
(J) acknowledge that information submitted to the
Committee is subject to the Public Records Act;
(K) agree to enter with the Committee into a
regulatory contract if Credit is allocated; and,
(L) acknowledge, under penalty of perjury, that
all information provided to the Committee is true and correct, and that applicant
has an affirmative duty to notify the Committee of changes causing information in
the application or other submittals to become false.
(2) The Application form. Completion of all
applicable parts of Committee-provided application forms which shall include, but
not be limited to:
(A) General Application
Information
(i) Credit amounts requested
(ii) minimum set-aside election
(iii) application stage selection
(iv) set-aside selection
(v) housing type
(B) Applicant Information
(i) applicant role in ownership
(ii) applicant legal status
(iii) developer type
(iv) contact person
(C) Development Team Information
(D) Subject Property Information
(E) Proposed Project Information
(i) project type
(ii) Credit type
(iii) building and unit types
(F) Land Use Approvals
(G) Development Timetable
(H) Identification and Commitment Status of Fund
Sources
(I) Identification of Fund
Uses
(J) Calculation of Eligible,
Qualified and Requested Basis
(K)
Syndication Cost Description
(L)
Determination of Credit Need and Maximum Credit Allowable
(M) Project Income Determination
(N) Restricted Residential Rent and Income
Proposal
(O) Subsidy
Information
(P) Operating Expense
Information
(Q) Projected Cash Flow
Calculation
(R) Basic Threshold
Compliance Summary
(S) Additional
Threshold Selection
(T) Tax-exempt
Financing Information
(U) Market
Study
(3) Organizational
documents. An organizational chart and a detailed plan describing the ownership role
of the applicant throughout the low-income use period of the proposed project, and
the California Secretary of State certificate for the project owner (if available).
An executed limited partnership agreement may be submitted as documentation that the
project ownershp entity is formed. If the project owner is not yet formed, provide
the certificate for the managing general partner or the parent company of the
proposed project owner. A reservation of credit cannot be made to a to-be-formed
entity.
(4) Designated contact person. A
contract between the applicant and the designated contact person for the applicant
signifying the contact person's authority to represent and act on behalf of the
applicant with respect to the Application. The Committee reserves its right to
contact the applicant directly.
(5)
Identification of project participants. For purposes of this Section all of the
following project participants, if applicable will be considered to be members of
the Development Team. The application must contain the company name and contact
person, address, telephone number, and fax number of each:
(A) developer;
(B) general contractor;
(C) architect;
(D) attorney;
(E) tax professional;
(F) property management company;
(G) consultant;
(H) market analyst and/or appraiser; and
(I) CNA consultant.
If any members of the Development Team have not yet been selected
at the application filing deadline, each must be named and materials required above
must be submitted at the 180 or 194 day deadline described in Section
10325(c)(7).
(6) Identities of interest.
Identification of any persons or entities (including affiliated entities) that plan
to provide development or operational services to the proposed project in more than
one capacity, and full disclosure of Related Parties, as defined.
(7) Legal description. A legal description of the
subject property.
(8) Site Layout,
Location, Unique Features and Surrounding Areas.
(A) A narrative description of the current use of
the subject property;
(B) A narrative
description of all adjacent property land uses, the surrounding neighborhood, and
identification and proximity of services, including transportation
(C) Labeled photographs, or color copies of
photographs of the subject property and all adjacent properties;
(D) A layout of the subject property, including
the location and dimensions of existing buildings, utilities, and other pertinent
features.
(E) A site or parcel map
indicating the location of the subject property and showing exactly where the
buildings comprising the Tax Credit Project will be situated. (If a subdivision is
anticipated, the boundaries of the parcel for the proposed project must be clearly
marked; and
(F) A description of any
unique features of the site, noting those that may increase project costs or require
environmental mitigation.
(9)
Appraisals. Appraisals are required for 1) all rehabilitation applications except as
noted in subsection (A), below, 2) all adaptive reuse applications, 3) all
competitive applications, except for new construction projects that are on tribal
trust land or that have submitted a third party purchase contract with, or evidence
of a purchase from, an unrelated third party, 4) all applications seeking tiebreaker
credit for donated or leased land, or land with a soft loan and 5) all new
construction applications involving a land sale from a related party. For purposes
of this paragraph only, a purchase contract or sale with a related party shall be
deemed to be a purchase contract or sale with an unrelated party if the applicant
demonstrates that the related party is acting solely as a pass-through entity and
the tax credit partnership is only paying the acquisition price from the last
arms-length transaction, plus any applicable and reasonable carrying costs.
Appraisals shall not include the value of favorable financing.
Appraisals must be prepared by a California certified general
appraiser having no identity of interest with the development's partner(s) or
intended partner or general contractor, acceptable to the Committee, and include, at
a minimum, the following:
(i) the highest
and best use of the proposed project as residential rental property, considering any
on-going recorded rent restrictions;
(ii) for rehabilitation applications, the Sales
Comparison Approach and Income Approach valuation methodologies shall be used; for
new construction applications, the Sales Comparison Approach shall be used; for
adaptive reuse applications, the Cost Approach valuation methodology shall be used
for adaptive reuse of office buildings, retail buildings, and similar, and the Sales
Comparison and Income Approaches may be used for hotels, motels, and
similar;
(iii) the appraiser's
reconciled value, in cases that require multiple methodologies;
(iv) a value for the land of the subject property
("as if vacant");
(v) an on-site
inspection; and
(vi) a purchase contract
verifying the sales price of the subject property.
(A) Rehabilitation applications. An "as-is"
appraisal is required with a date of value that is within 120 days before or after
the execution of: a purchase contract; for leased land, an executed development
agreement negotiated between the landowner and the applicant or developer; an option
agreement; any other site control document pursuant to Section
10325(f)(2); or the
transfer of ownership by all the parties.
For tax-exempt bond-funded properties receiving credits under
Section 10326 only or in combination with State
Tax Credits, the applicant may elect to forego the appraisal required pursuant to
this section and use an acquisition value equal to the sum of the third-party debt
encumbering the seller's property, which may increase during subsequent reviews to
reflect the actual amount.
(B)
New construction applications. Projects for which an appraisal is required above
shall provide an "as-is" appraisal with a date of value that is within either:
(i) 120 days before or after the execution of a
purchase contract; for leased land, an executed development agreement negotiated
between the landowner and the applicant or developer; an option agreement; any other
site control document pursuant to Section
10325(f)(2); the
transfer of ownership by all the parties, or
(ii) one year of the application date if the
latest purchase contract, development agreement, option agreement, or any other site
control document pursuant to Section
10325(f)(2) was
executed within that year.
An amendment to an agreement does not constitute any of the
agreements listed in (i) or (ii) above.
For applications with existing project-based rental subsidy, the
Income Approach shall not include post-rehabilitation contract rent(s). Rent(s) used
in the Income Approach, if not the existing approved contract rent, must be
supported by a rent comparable study or similar. For applications with existing
affordability restrictions, the Income Approach must be based on the affordability
restrictions and restricted rents encumbering the property (a "restricted value")
unless all affordability restrictions will expire within five years.
CTCAC may contract with an appraisal reviewer who may review
submitted appraisals. If it does so, CTCAC shall commission an appraisal review. If
the appraisal review finds the submitted appraisal to be inappropriate, misleading,
or inconsistent with the data reported and with other generally known information,
then the reviewer shall develop his or her own opinion of value and CTCAC shall use
the opinion of value established by the appraisal reviewer.
(10) Market
Studies. A full market study prepared or updated within 180 days of the filing
deadline by an independent third-party having no identity of interest with the
development's partners, intended partners, or any other member of the Development
Team described in Subsection (5) above. The study must meet the current market study
guidelines distributed by the Committee, and establish both need and demand for the
proposed project. CTCAC shall publicly notice any changes to its market study
guidelines and shall take public comment consistent with the comment period and
hearing provisions of Health and Safety Code Section
50199.17.
For scattered site projects, a market study may combine information for all sites
into one report, provided that the market study has separate rent comparability
matrices for each site. A new construction hybrid 9% and 4% tax credit development
may combine information for both component projects into one report and, if not,
shall reflect the other component project as a development in the planning or
construction stages.
A market study shall be updated if the proposed project rents
change by more than five percent (5%), or the distribution of higher rents increases
by more than 5%, or more than 12 months have passed since the most recent site
inspection date of the subject property and comparable properties. All market
studies shall meet all of the requirements listed in the CTCAC Market Study
Guidelines as listed on the CTCAC website. If the market study does not meet the
guidelines, and support sufficient need and demand for the project, the application
may be considered ineligible to receive Tax Credits and may be disqualified.
For acquisition/rehabilitation projects meeting all of the
following criteria, a comprehensive market study as outlined in IRS Section
42(m)(1)(A)(iii) shall mean a written statement by a third-party market analyst
certifying that the project meets these criteria:
* All of the buildings in the project are subject to existing
federal or state rental assistance or operating subsidies, an existing CTCAC
Regulatory Agreement, or an existing regulatory agreement with a federal, state, or
local public entity.
* The proposed tenant-paid rents and income targeting levels shall
not increase by more than five percent (5%) (except that proposed rents and income
targeting levels for units subject to a continuing state or federal project-based
rental assistance contract may increase more and proposed rents and income targeting
levels for resyndication projects shall be consistent with Section
10325(f)(11) or Section
10326(g)(8)).
* The project shall have a vacancy rate of no more than ten
percent (10%) for special needs units and non-special needs SRO units without a
significant project-based public rental subsidy and five percent (5%) for all other
units at the time of the tax credit application.
(11) Construction and design description. A
detailed narrative description of the proposed project construction and design,
including how the design will serve the targeted population.
(12) Architectural drawings. Preliminary drawings
of the proposed project, including a site plan, building elevations, and unit floor
plans (including square footage of each unit). The project architect shall certify
that the development will comply with building codes and the physical building
requirements of all applicable fair housing laws. In the case of rehabilitation
projects proceeding without an architect, the entity performing the Capital Needs
Assessment shall note necessary fair housing improvements, and the applicant shall
budget for and implement the related construction work. The site plan shall identify
all areas or features proposed as project amenities, laundry facilities, recreation
facilities and community space. Drawings shall be to a scale that clearly shows all
requested information. Blueprints need not be submitted. A project applying as a
High-Rise Project must include the project architect certification in accordance
with the High-Rise Project definition in Section
10302.
(13) Placed-in-service schedule. A schedule of the
projected placed-in-service date for each building.
(14) Identification of local jurisdiction. The
following information related to the local jurisdiction within which the proposed
project is located:
(A) jurisdiction or tribe
(e.g., City of Sacramento)
(B) chief
executive officer or tribal chairperson and title (e.g., Susan Smith, City
Manager)
(C) mailing address
(D) telephone number
(E) fax number
(15) Sources and uses of funds. The sources and
uses of funds description shall separately detail apportioned amounts for
residential space and commercial space.
(16) Financing plan. A detailed description of the
financing plan, and proposed sources and uses of funds, to include construction,
permanent, and bridge loan sources, and other fund sources, including rent or
operating subsidies and reserves. The commitment status of all fund sources shall be
described, and non-traditional financing arrangements shall be explained.
(17) Eligible basis certification. A certification
from a third party certified public accountant or tax attorney that project costs
included in applicant's calculation of eligible basis are allowed by IRC Section 42,
as amended, and are presented in accordance with standard accounting procedures.
This must be delivered on the tax professional's corporate letterhead, in the
prescribed CTCAC format and must include a statement that the Sources and Uses
Budget was reviewed and that the accountant or attorney discussed the budget with
the applicant as needed.
(18) Use of tax
benefits description. If the Tax Credits are not to be offered to investors, a
detailed explanation of how the tax benefits will be used by the
applicant.
(19) Terms of syndication
agreement. Written estimate(s) from syndicator(s) or financial consultants on their
corporate letterhead and in the prescribed CTCAC format, of equity dollars expected
to be raised for the proposed project, based on the amount of Tax Credits requested,
including gross and net proceeds, pay-in schedules, syndication costs (including
syndicator consulting fees), and an estimated net tax Credit factor, for both
Federal and State Tax Credits if both are to be used or if State Tax Credits
exchange points are requested. The syndicator shall not pay any fees or provide any
other financial or other substantive benefit to a partnership developer unless all
such fees or benefits are fully and completely disclosed to CTCAC in the Executed
Letter of Intent.
(20) Tax Credit
certification. If the Tax Credits are not to be syndicated, a letter from a third
party certified public accountant establishing the Tax Credit actor.
(21) Utility allowance estimates. Current utility
allowance estimates consistent with
26 CFR Section
1.42-10. The applicant must indicate which
components of the utility allowance schedule apply to the project. For buildings
that are using an energy consumption model utility allowance estimate, the estimate
shall be calculated using the most recent version of the California Utility
Allowance Calculator (CUAC) developed by the California Energy Commission (CEC), and
incorporated in the CEC's compliance program (CBECC). The CUAC estimate shall be
signed by a California Association of Building Energy Consultants (CABEC) Certified
Energy Analyst (CEA). Measures that are used in the CUAC that require field
verification shall be verified by a certified HERS Rater, in accordance with current
HERS regulations. Use of CUAC is limited to (i) new construction projects, (ii)
rehabilitation projects applying for tax credits for which the rehabilitation
improves energy efficiency by at least 20%, as determined consistent with the
requirements of Section
10325(c)(5)(D) and (G),
or installs solar generation that offsets 50% of tenant loads, as determined
consistent with the requirements of Section
10325(c)(5)(G), and
(iii) existing tax credit projects with new
photovoltaics installed through a solar program administered by a municipal utility
or joint powers authority, which offsets tenants' electrical load, and which
includes site installation verification by a qualified HERS Rater. Projects
utilizing the CUAC are approved for use upon the field verifications being
completed. For projects using the CUAC where the field verification has not been
completed prior to occupancy, the project must use an approved utility allowance
source per 26 CFR Section
1.42-10 until the field verification is completed.
Owners shall provide the tenants with a 90 day notification prior to the effective
date with an informative summary about the current utility allowance and the
proposed CUAC allowances before the utility allowances can be used in determining
the gross rent of rent-restricted units. For projects applying for tax credits, the
CUAC with supporting documentation shall be submitted in the Placed-in-service
application required in Section
10322(i). The CUAC and
supporting documentation requires a quality control review and CTCAC approval
following submission in the Placed-in-service application. For existing tax credit
projects not applying for tax credits, the CUAC with supporting documentation shall
be submitted to CTCAC upon field verification completion for a quality control
review and CTCAC approval. CTCAC will submit modeled CUAC utility allowance
estimates to a quality control reviewer and shall establish a fee to cover the costs
for this review.
(22) Certification of
subsidies. The applicant must certify as to the full extent of all Federal, State,
and local subsidies which apply (or for which the taxpayer expects to apply) with
respect to the proposed project. (IRC Section 42(m)(2)(C)(ii)) If rental assistance,
operating subsidies or annuities are proposed, all related commitments that secure
such funds must be provided. Tax-Exempt Bond Projects may receive a reservation of
tax credits with the condition to provide the applicable subsidy commitment no later
than the CDLAC bond issuance deadline. The source, monthly contract rent, annual
amount (if applicable), term, number of units receiving assistance, and expiration
date of each subsidy must be included.
(23) Cash flow projection. A 15-year projection of
project cash flow. Separate cash flow projections shall be provided for residential
and commercial space. If a capitalized rent reserve is proposed to meet the
underwriting requirements of Section
10327, it must be included in the cash
flow projections. Use of a capitalized rent reserve is limited to Special Needs
projects, projects applying under the Non-profit Homeless Assistance set-aside, HOPE
VI projects, and Section
8 project based projects.
(24) Self-scoring sheet as provided in the
application.
(25) Acquisition Tax Credits
application. Applicants requesting acquisition Tax Credits shall provide:
(A) a chain of title report or, for tribal trust
land, an attorney's opinion regarding chain of title; and
(B) if applicable, an applicant statement that the
acquisition is exempt from, or a third-party tax attorney's opinion stating that the
acquisition meets the requirements of IRC Section 42(d)(2)(B)(ii) as to the 10-year
placed-in-service rule; or,
(C) if a
waiver of the 10-year ownership rule is necessary, a letter from the appropriate
Federal official that states that the proposed project qualifies for a waiver under
IRC Section 42(d)(6).
(26)
Rehabilitation application. Applicants proposing rehabilitation of an existing
structure shall provide:
(A) An independent,
third-party appraisal prepared and submitted with the preliminary reservation
application consistent with the guidelines in Section
10322(h)(9).
(B) A Capital Needs Assessment ("CNA") performed
within 180 days prior to the application deadline (except as provided in Section
10322(h)(35)) that
details the condition and remaining useful life of the building's major structural
components, all necessary work to be undertaken and its associated costs, as well as
the nature of the work, distinguishing between immediate and long-term repairs. The
Capital Needs Assessment shall also include a pre-rehabilitation 15-year reserve
study, indicating anticipated dates and costs of future replacements of all current
major building components. The CNA must be prepared by the project architect, as
long as the project architect has no identity of interest with the developer, or by
a qualified independent 3rd party who has no identity of interest with any of the
members of the Development Team. An adaptive reuse application is not required to
submit a CNA.
(27)
Acquisition of Occupied Housing application. Applicants proposing acquisition of
occupied rental residential housing shall provide all existing income, rent and
family size information for the current tenant population.
(28) Tenant relocation plan. In addition to any
other applicable relocation requirements, applicants proposing rehabilitation or
demolition of occupied housing shall comply with the requirements of the California
Relocation Assistance Law, California Government Code Section
7260 et seq,
or, if the Uniform Relocation Assistance and Real Property Acquisition Policies Act
of 1970 already applies to the project, pursuant to this federal law. Applicants
shall provide an explanation of the relocation requirements that they are complying
with, and a detailed relocation plan consistent with one of the above-listed
relocation standards including an itemized relocation cost estimate that calculates
the tenant relocation expenses required pursuant to the applicable California or
federal relocation law. The relocation plan must also address the potential
displacement of current tenants who do not meet the CTCAC income eligibility
requirements or who will receive a rent increase exceeding five percent (5%). The
relocation plan must include: a detailed description of proposed temporary onsite or
offsite relocation and any corresponding relocation payments for tenants who meet
CTCAC income eligibility requirements; an estimate of the number of current tenants
who do not meet CTCAC income eligibility requirements or will receive a rent
increase exceeding five percent (5%), how this estimate was determined, and the
estimated relocation cost; and a detailed description of how the current tenants
will be provided notice and information about the required relocation assistance,
including copies of such noticing document(s).
(29) Owner-occupied Housing application.
Applicants proposing owner-occupied housing projects of four units or less,
involving acquisition or rehabilitation, shall provide evidence from an appropriate
official substantiating that the building is part of a development plan of action
sponsored by a State or local government or a qualified nonprofit organization (IRC
Section 42(i)(3)(E)).
(30) Nonprofit
Set-Aside application. Applicants requesting Tax Credits from the Nonprofit
set-aside, as defined by IRC Section 42(h)(5), shall provide the following
documentation with respect to each developer and general partner of the proposed
owner:
(A) IRS documentation of designation as a
501(c)(3) or 501(c)(4) corporation;
(B)
proof that one of the exempt purposes of the corporation is to provide low-income
housing;
(C) a detailed description of
the nonprofit participation in the development and ongoing operations of the
proposed project, as well as an agreement to provide CTCAC with annual
certifications verifying continued involvement;
(D) a third-party legal opinion verifying that the
nonprofit organization is not affiliated with, controlled by, or party to
interlocking directorates with any Related Party of a for-profit organization, and
the basis for said determination; and,
(E) a third-party legal opinion certifying that
the applicant is eligible for the Nonprofit Set-Aside pursuant to IRC Section
42(h)(5).
(31) Rural
Set-Aside application. Applicants requesting Tax Credits from the Rural set-aside,
as defined by H & S Code Section 50199.21 and Section
10315(c) of these
regulations, shall provide verification that the proposed project is located in an
eligible rural area. Evidence that project is located in an area eligible for
Section 515 financing from RHS may be in the
form of a letter from RHS's national process branch.
(32) RHS Section
514,
515, HOME or CDBG-DR program
applications. Rural housing applicants requesting Tax Credits for projects financed
by the RHS Section
514 or
515 program or from a HOME or CDBG-DR
Participating Jurisdiction shall submit evidence from RHS, or the HOME or CDBG-DR
Participating Jurisdiction that such funding has been committed, and such evidence
shall meet the requirements of Section
10325(f)(8).
(33) Community service facility. An applicant
requesting basis for a community service facility shall submit a third-party tax
attorney's opinion stating that the community service facility meets the
requirements of IRC Section 42(d)(4)(C). CTCAC may use its discretion in determining
whether the community service facility meets the qualifications.
(34) Mixed housing types. An applicant proposing a
project to include senior housing in combination with non-senior housing shall
provide a third-party legal opinion stating that the project complies with fair
housing law.
(35) Reapplication
documents. Notwithstanding the time sensitive document requirements, the Committee
may permit the site control title report and the capital needs assessment report of
an unsuccessful application to be submitted, only once, in the reapplication cycle
immediately following the unsuccessful application.
(i) Placed-in-service application. Within one year
of the last building placed-in-service date for new construction projects and within
one year of the rehabilitation completion date for rehabilitation projects, the
project owner shall submit the documents listed below. If conversion to permanent
financing has not taken place, documents (2), (5), (6), (12) and (15) below shall be
submitted within 60 days of the permanent financing conversion date. A regulatory
agreement provided by CTCAC shall be executed and recorded in the County Recorder's
Office for which the project is located and the compliance monitoring fee shall be
submitted upon request from CTCAC as required by Section
10335. For projects subject to a lease
rider pursuant to Section
10337(a)(4), a lease
rider shall be executed and recorded in the County Recorder's Office for which the
project is located. CTCAC shall determine if all conditions of the reservation have
been met. Changes subsequent to the initial application, particularly changes to the
financing plan and costs or changes to the services amenities, must be explained by
the project owner in detail. If all conditions have been met, tax forms will be
issued, reflecting an amount of Tax Credits not to exceed the maximum amount
permitted by these regulations. The following must be submitted:
(1) certificates of occupancy for each building in
the project (or a certificate of completion for rehabilitation projects). If
acquisition Tax Credits are requested, evidence of the placed-in-service date for
acquisition purposes, and evidence that all rehabilitation is completed;
(2) an audited certification, prepared and signed
by an independent Certified Public Accountant identified by name, under generally
accepted auditing standards, with all disclosures and notes. The Certified Public
Accountant (CPA) or accounting firm shall not have acted in a manner that would
impair independence as established by the American Institute of Certified Public
Accountants (AICPA) Code of Professional Conduct Section
101 and the Securities and Exchange
Commission (SEC) regulations 17 CFR Parts 210 and 240. Examples of such impairing
services, when performed for the final cost certification client, include
bookkeeping or other services relating to the accounting records, financial
information systems design and implementation, appraisal or evaluation services,
actuarial services, internal audit outsourcing services, management functions or
human resources, investment advisor, banking services, legal services, or expert
services unrelated to the audit. Both the referenced SEC and AICPA rules shall apply
to all public and private CPA firms providing the final audited cost certification.
In order to perform audits of final cost certifications, the auditor must have a
peer review of its accounting and auditing practice once every three years
consistent with the AICPA Peer Review Program as required by the California Board of
Accountancy for California licensed public accounting firms (including proprietors);
and make the peer review report publicly available and submit a copy to CTCAC along
with the final cost certification. If a peer review reflects systems deficiencies,
CTCAC may require another CPA provide the final cost certification. This
certification shall:
(A) as identified by the
certified public accountant, reflect all costs, in conformance with
26 CFR §
1.42-17, and expenditures for the project up to
the funding of the permanent loan as well as all the sources and amounts of all
permanent funding. Projects developed with general contractors who are Related
Parties to the developer must be audited to the subcontractor level;
(B) include a CTCAC provided Sources and Uses form
reflecting actual total costs incurred up to the funding of the permanent
loan;
(C) certify that the CPA has not
performed any services, as defined by AICPA and SEC rules, that would impair
independence; and
(D) certify permanent
financing conversion date
(3)
an itemized breakdown of placed-in-service dates, shown separately for each
building, on a Committee-provided form. If the placed-in service date(s) denoted are
different from the date(s) on the certificate(s) of occupancy, a detailed
explanation is required;
(4) photographs
of the completed building(s);
(5) a
request for issuance of IRS Form(s) 8609 and/or FTB Form(s) 3521A;
(6) a certification from the investor or
syndicator of equity raised and syndication costs in a Committee-provided
format;
(7) an updated application
form;
(8) an owner-signed certification
documenting the services currently being provided to the residents, including
identifying service provider(s), describing services provided, stating services
dollar value, and stating services funding source(s) (cash or in-kind), with
attached copies of contracts and MOUs for services;
(9) a copy of the project owner limited
partnership agreement;
(10) a list of
all amenities provided at the project site including any housing type requirements
of Section 10325(h) committed to
in the Tax Credit application, and color photographs of the amenities. If the list
differs from that submitted at application, an explanation must be provided; housing
type requirements must be completed. In addition, the project owner must provide a
list of any project amenities not included in basis for which the property owner
intends to charge an optional fee to residents;
(11) a description of any charges that may be paid
by tenants in addition to rent, with an explanation of how such charges affect
eligible basis;
(12) if applicable, a
certification from a third-party tax professional stating the percentage of
aggregate basis (including land) financed by tax exempt bonds for projects that
received Tax Credits under the provisions of Section
10326 of these regulations;
(13) all documentation required pursuant to the
Compliance and Verification requirements of Sections
10325(f)(7) and
10326(g)(6);
(14) all documentation required pursuant to the
Compliance and Verification requirements of Sections
10327(c)(5)(B);
(15) if seeking a reduction in the operating
expenses used in the Committee's final underwriting pursuant to Section
10327(g)(1) of these
regulations, the final operating expenses used by the lender and equity
investor;
(16) a certification from the
project architect or, in the case of rehabilitation projects, from an architect
retained for the purpose of this certification, that the physical buildings are in
compliance with all applicable fair housing laws;
(17) all documentation required pursuant to the
Compliance and Verification requirements of Section
10325(c)(5), if
applicable;
(18) evidence that the
project is in compliance with any points received under Section
10325(c)(8);
(19) a current utility allowance estimate as
required by 26 CFR Section
1.42-10(c) and Section
10322(h)(21) of these
regulations. Measures that are used in the CUAC that require field verification
shall be verified by a certified HERS rater, in accordance with current HERS
regulations; and
(20) for tribal trust
land, the lease agreement between the Tribe and the project owner.
(21) Evidence that the subject property is within
the control of the project owner in the form of an executed lease agreement, a
current title report within 90 days of application except as provided in section
10322(h)(35) (or
preliminary title report, but not title insurance or commitment to insure) showing
the project owner holds fee title, a grant deed, or, for tribal trust land, a title
status report or an attorney's opinion regarding chain of title and current title
status.
(22) Evidence that the project
is in compliance with the provisions of the CDLAC resolution, if
applicable.
(23) If the application
includes a legal separation or subdivision of a building that is not a condominium
plan:
(A) a legal opinion of how the legal
separation meets the IRS definition of a building. The opinion must include a
summary of the common area and building access ownership structure and any shared
use agreements; and
(B) if the project
owners are proposing any kind of proportionate cost where there is a single common
area owner, a tax attorney must provide an opinion on how proportioning a cost and
corresponding eligible basis to an entity that does not own the space is permissible
under IRS LIHTC and/or tax law. The opinion must include an estimated cost breakdown
and the methodology for how these shared area costs were proportioned and is subject
to review and approved by CTCAC.
(24) For multiphase projects proposing to share
use of common areas and community space, a joint use agreement must be provided in
the placed in service application. In addition, if there is any kind of
proportionate cost for common area and community space to a project that does not
own the area/space, a tax attorney must provide an opinion of how apportioning a
cost and corresponding eligible basis to an entity that does not own the area/space
is permissible under IRS LIHTC and/or tax law. The opinion must include an estimated
cost breakdown and the methodology for how these shared area costs were apportioned
and is subject to review and approval by CTCAC.
The Executive Director may waive any of the above submission
requirements if not applicable to the project.
Note: Authority cited: Section 50199.17, Health and Safety Code.
Reference: Sections
12206, 17058 and 23610.5, Revenue and
Taxation Code; and Sections 50199.4, 50199.5, 50199.6, 50199.7, 50199.8, 50199.9,
50199.10, 50199.11, 50199.12, 50199.13, 50199.14, 50199.15, 50199.16, 50199.17,
50199.18, 50199.20, 50199.21 and 50199.22, Health and Safety
Code.
Note: Authority cited: Section 50199.17, Health and Safety Code.
Reference: Sections 12206, 17058 and 23610.5, Revenue and Taxation Code; and
Sections 50199.4, 50199.5, 50199.6, 50199.7, 50199.8, 50199.9, 50199.10, 50199.11,
50199.12, 50199.13, 50199.14, 50199.15, 50199.16, 50199.17, 50199.18, 50199.20,
50199.21 and 50199.22, Health and Safety Code.
