Missouri Code of State Regulations
Title 4 - Department of Economic Development
Division 85 - Division of Business and Community
Chapter 5 - Historic Preservation Tax Credit Program
Section 4 CSR 85-5.090 - Developer Fees; General Contractor Overhead and Profit
Current through Register Vol. 49, No. 6, March 15, 2024
PURPOSE: This proposed amendment removes the requirement that applicants and developers use a specific department-created form for a developer fee agreement, instead allowing the parties to create their own agreement that can suit other needs besides those of the department and combines two separate percentage caps for contract overhead and contractor profit into one combined percentage to give applicants greater flexibility in such arrangements.
(1) For a developer fee to be a QRE, the developer fee agreement must meet the requirements of this rule.
(2) A developer fee shall be deemed a QRE only if-
(3) Up to ninety percent (90%) of a developer fee can be deferred (incurred but unpaid) and be a QRE, provided that the requirements in section (2) of this rule are met and the developer fee agreement requires full payment of the deferred amount of the developer fee by applicant within five (5) years of substantial completion.
(4) The applicant that is issued tax credits for deferred developer fees as set forth in section (3) of this rule shall be personally liable for repayment of all tax credits attributable to any amount of the developer fee for which tax credits were issued but the developer fee is not paid within five (5) years of substantial completion of the project.
(5) For a developer fee to be a QRE, any amendment to the developer fee agreement-
(6) Payment of a deferred developer fee within a reasonable period of time following it being incurred is material to the department's determination that a deferred developer fee is a QRE. The appropriate real party in interest to represent the state shall have standing to bring suit for an applicant's failure to pay a deferred developer fee for which tax credits have been issued within five (5) years of substantial completion of the project.
(7) In order to be a QRE, general contractor soft costs of overhead and profit must be separately listed on the expense report form submitted with the final application. General contractor profit and overhead must be reasonable.