| (D) If ingress and egress to a public right of way
are not part of the Property described in the site control documentation,
the Applicant must provide evidence of an easement, leasehold, or
similar documented access, along with evidence that the fee title
owner of the property agrees that the LURA may extend to the access
easement by the time of Commitment, Determination Notice or Contract
(as applicable).
(E) If control of the entire proposed Development Site
requires that a plat or right of way be vacated to remove a right
of way or similar dedication, evidence that the vacation/re-platting
process has started must be included in the Application, and evidence
of control of the entire Development Site must be provided by the
time of Commitment or Contract (as applicable).
(10) Zoning. (§2306.6705(5)) Acceptable evidence
of zoning for all Developments must include one of subparagraphs (A)
- (D) of this paragraph. In instances where annexation of a Development
Site occurs while the Application is under review, the Applicant must
submit evidence of appropriate zoning with the Commitment or Determination
Notice. Letters evidencing zoning status must be no more than 6 months
old at Application submission, except where such evidence is for an
area where there is no zoning and such letters must be updated annually
by the political subdivision.
(A) No Zoning Ordinance in Effect. The Application
must include a letter from a local government official with appropriate
jurisdiction stating that the Development is located within the boundaries
of a political subdivision that has no zoning. This requirement does
not apply to a Development Site located entirely in the unincorporated
area of a county, and not within the ETJ of a municipality.
(B) Zoning Ordinance in Effect. The Application must
include a letter from a local government official with appropriate
jurisdiction stating the Development is permitted under the provisions
of the zoning ordinance that applies to the location of the Development.
(C) Requesting a Zoning Change. The Application must
include evidence in the form of a letter from a local government official
with jurisdiction over zoning matters that the Applicant or Affiliate
has made formal application for a required zoning change and that
the jurisdiction has received a release whereby the Applicant has
agreed to hold the political subdivision and all other parties harmless
in the event the appropriate zoning is not granted. Documentation
of final approval of appropriate zoning must be submitted to the Department
with the Commitment or Determination Notice.
(D) Zoning for Rehabilitation Developments. In an area
with zoning, the Application must include documentation of current
zoning. If the Property is currently conforming but with an overlay
that would make it a non-conforming use as presently zoned, the Application
must include a letter from a local government official with appropriate
jurisdiction which addresses the items in clauses (i) - (v) of this
subparagraph:
(i) a detailed narrative of the nature of non-conformance;
(ii) the applicable destruction threshold;
(iii) that it will allow the non-conformance;
(iv) Owner's rights to reconstruct in the event of
damage; and
(v) penalties for noncompliance.
(11) Title Commitment/Policy. A title commitment or
title policy must be submitted that includes a legal description that
is consistent with the Site Control. If the title commitment or policy
is dated more than six months prior to the date of Application submission
or the first day of the Application Acceptance Period for Competitive
HTC Applications, then a letter from the title company indicating
that nothing further has transpired during the six-month period on
the commitment or policy must be submitted. Tax-Exempt Bond Developments
that do not include a request for Direct Loan or include the Department
as the bond issuer are exempt from this requirement.
(A) The title commitment must list the name of the
Development Owner as the proposed insured and list the seller or lessor
as the current owner of the Development Site.
(B) The title policy must show that the ownership (or
leasehold) of the Development Site is vested in the name of the Development
Owner.
(12) Ownership Structure and Previous Participation.
(A) The Department assumes that the Applicant will
be able to form any one or more business entities, such as a limited
partnership, that are to be engaged in the ownership of a Development
as represented in the Application, and that all necessary rights,
powers, and privileges including, but not limited to, Site Control
will be transferable to that entity. The formation of the ownership
entity, qualification to do business (if needed), and transfer of
any such rights, powers, and privileges must be accomplished as required
in this chapter and Chapters 12 and 13, as applicable.
(B) Organizational Charts. A chart must be submitted
that clearly illustrates the organizational structure of the proposed
Development Owner and of any Developer and Guarantor, identifying
all Principals thereof and providing the names and ownership percentages
of all Persons having an ownership interest in the Development Owner,
Developer and Guarantor, as applicable, whether directly or through
one or more subsidiaries, whether or not they have Control. Persons
having Control should be specifically identified on the chart. Individual
board members and executive directors of nonprofit entities, governmental
bodies, and corporations, as applicable, must be included in this
exhibit and trusts must list all beneficiaries that have the legal
ability to control or direct activities of the trust and are not just
financial beneficiaries. In the case of Housing Tax Credit Applications
only in which private equity fund investors are passive investors
in the sponsorship entity, the fund manager, managing member or authorized
representative of the fund who has the ability to Control, should
be identified on the organizational chart, and a full list of investors
is not required. The List of Organizations form, as provided in the
Application, must include all Persons identified on the organizational
charts, and further identify which of those Persons listed exercise
Control of the Development.
(C) Previous Participation. Evidence must be submitted
that each individual and entity shown on the organizational charts
described in subparagraph (B) of this paragraph has provided a copy
of the completed previous participation information to the Department.
Individual Principals of such entities identified on the organizational
chart and on the List of Organizations form, must provide the previous
participation information, unless excluded from such requirement pursuant
to Chapter 1 Subchapter C of this title (relating to Previous Participation
Review ). The information must include a list of all Developments
that are, or were, previously under ownership or Control of the Applicant
or each Principal, including any Person providing the required experience.
All participation in any Department funded or monitored activity,
including non-housing activities, as well as Housing Tax Credit developments
or other programs administered by other states using state or federal
programs must be disclosed. The individuals providing previous participation
information must authorize the parties overseeing such assistance
to release compliance histories to the Department.
(D) Direct Loan. In addition to the information required
in (B) and (C) of this subparagraph, if the Applicant is applying
for Direct Loan funds then the Applicant must also include the definitions
of Person, Affiliate, Principal, and Control found in 2 CFR Part 180
and 2424, when completing the organizational chart and the Previous
Participation information.
(13) Nonprofit Ownership. Applications that involve
a §501(c)(3) or (4) nonprofit, housing finance corporation or
public facility corporation as the General Partner or Owner shall
submit the documentation identified in subparagraph (A) or (B) of
this paragraph, as applicable. Additionally, a resolution approved
at a regular meeting of the majority of the board of directors of
the nonprofit, indicating their awareness of the organization's participation
in each specific Application, and naming all members of the board
and employees who may act on its behalf, must be provided. For Tax-Exempt
Bond Developments, if the bond issuer is the sole member of the General
Partner, a copy of the executed inducement resolution will meet the
resolution requirement in this paragraph.
(A) Competitive HTC Applications for the Nonprofit
Set-Aside. Applications for Competitive Housing Tax Credits involving
a §501(c)(3) or (4) nonprofit General Partner and which meet
the Nonprofit Set-Aside requirements, must submit all of the documents
described in clauses (i) to (v) of this subparagraph and indicate
the nonprofit status on the carryover documentation and IRS Forms
8609. (§2306.6706) Applications that include an affirmative election
to not be treated under the Nonprofit Set-Aside and a certification
that they do not expect to receive a benefit in the allocation of
tax credits as a result of being Affiliated with a nonprofit, only
need to submit Cont'd... |
