| (22) Comparable Unit--A Unit, when compared to the
subject Unit, is similar in net rentable square footage, number of
Bedrooms, number of bathrooms, overall condition, location (with respect
to the subject Property based on proximity to employment centers,
amenities, services, and travel patterns), age, Unit amenities, utility
structure, and common amenities.
(23) Competitive Housing Tax Credits --Sometimes referred
to as Competitive HTC. Tax credits available from the State 9% Housing
Credit Ceiling.
(24) Compliance Period--With respect to a building
financed, in part with proceeds of Housing Tax Credits, the period
of 15 taxable years, beginning with the first taxable year of the
credit period, pursuant to Code, §42(i)(1).
(25) Continuously Occupied--The same household has
resided in the Unit for at least 12 months.
(26) Contract--A legally binding agreement between
the Development Owner and the Department, setting forth the terms
and conditions under which Multifamily Direct Loan Program funds will
be made available.
(27) Contract Rent--Net rent based upon current and
executed rental assistance contract(s), typically with a federal,
state, or local governmental agency.
(28) Contractor--See General Contractor.
(29) Control (including the terms "Controlling," "Controlled
by," and "under common Control with")--The power, ability, or authority,
acting alone or in concert with others, directly or indirectly, to
manage, direct, superintend, restrict, regulate, govern, administer,
or oversee. As used herein "acting in concert" involves more than
merely serving as a single member of a multi-member body. A member
of a multi-member body is not acting in concert and therefore does
not exercise control in that role, but may have other roles, such
as executive officer positions, which involve actual or apparent authority
to exercise control. Controlling entities of a partnership include
the general partners, may include special limited partners when applicable,
but not investor limited partners or special limited partners who
do not possess other factors or attributes that give them Control.
Persons with Control of a Development must be identified in the Application.
Controlling individuals and entities are set forth in subparagraphs
(A) - (E) of this paragraph. Multiple Persons may be deemed to have
Control simultaneously.
(A) For for-profit corporations, any officer authorized
by the board of directors, regardless of title, to act on behalf of
the corporation, including, but not limited to, the president, vice
president, secretary, treasurer, and all other executive officers,
and each stock holder having a 50% or more interest in the corporation,
and any individual who has Control with respect to such stockholder.
(B) For nonprofit corporations or governmental instrumentalities
(such as housing authorities), any officer authorized by the board,
regardless of title, to act on behalf of the corporation, including,
but not limited to, the president, vice president, secretary, treasurer,
and all other executive officers, the Audit committee chair, the Board
chair, and anyone identified as the executive director or equivalent.
(C) For trusts, all beneficiaries that have the legal
ability to Control the trust who are not just financial beneficiaries.
(D) For limited liability companies, all managers,
managing members, members having a 50% or more interest in the limited
liability company, any individual Controlling such members, or any
officer authorized to act on behalf of the limited liability company.
(E) For partnerships, Principals include all General
Partners, and Principals with ownership interest and special limited
partners with ownership interest who also possess factors or attributes
that give them Control.
(30) Debt Coverage Ratio (DCR)--Sometimes referred
to as the "Debt Coverage" or "Debt Service Coverage." Calculated as
Net Operating Income for any period divided by scheduled debt service
required to be paid during the same period, and as described in §11.302(d)(4)
of this chapter (relating to Operating Feasibility).
(31) Deferred Developer Fee--The portion of the Developer
Fee used as a source of funds to finance the development and construction
of the Property, and as described in §11.302(i)(2) of this chapter
(relating to Feasibility Conclusion).
(32) Deobligated Funds--The funds released by the Development
Owner or recovered by the Department canceling a Contract or award
involving some or all of a contractual financial obligation between
the Department and a Development Owner or Applicant.
(33) Determination Notice--A notice issued by the Department
to the Development Owner of a Tax- Exempt Bond Development which specifies
the Department's preliminary determination as to the amount of tax
credits that the Development may be eligible to claim pursuant to
the Code, §42(m)(1)(D).
(34) Developer--Any Person entering into a contractual
relationship with the Owner to provide Developer Services with respect
to the Development and receiving the right to earn a fee for such
services and any other Person receiving any portion of a Developer
Fee, whether by subcontract or otherwise, except if the Person is
acting as a consultant with no Control. The Developer may or may not
be a Related Party or Principal of the Owner.
(35) Developer Fee--Compensation in amounts defined
in §11.302(e)(7) of this chapter (relating to Total Housing Development
Costs) paid by the Owner to the Developer for Developer Services inclusive
of compensation to a Development Consultant(s), Development Team member,
or any subcontractor that performs Developer Services or provides
guaranties on behalf of the Owner will be characterized as Developer
Fee. A person who is entitled to a Developer Fee assumes the risk
that it may not be paid if the anticipated sources of repayment prove
insufficient.
(36) Developer Services--A scope of work relating to
the duties, activities, and responsibilities for pre-development,
development, design coordination, and construction oversight of the
Property generally including, but not limited to:
(A) Site selection and purchase or lease contract negotiation;
(B) Identifying and negotiating sources of construction
and permanent financing, including financing provided by the Department;
(C) Coordination and administration of activities,
including the filing of applications to secure such financing;
(D) Coordination and administration of governmental
permits, and approvals required for construction and operation;
(E) Selection and coordination of development consultants
including architect(s), engineer(s), third- party report providers,
attorneys, and other design or feasibility consultants;
(F) Selection and coordination of the General Contractor
and construction contract(s);
(G) Construction oversight;
(H) Other consultative services to and for the Owner;
(I) Guaranties, financial, or credit support if a Related
Party or Affiliate; and
(J) Any other customary and similar activities determined
by the Department to be Developer Services.
(37) Development--A residential rental housing project
that consists of one or more buildings under common ownership and
financed under a common plan which has applied for Department funds.
This includes a proposed qualified low income housing project, as
defined by Code, §42(g), that consists of one or more buildings
containing multiple Units that is financed under a common plan, and
that is owned by the same Person for federal tax purposes, and may
consist of multiple buildings that are located on scattered sites
and contain only rent restricted Units. (§2306.6702(a)(6)).
(A) Development will be considered to be a scattered
site if the property where buildings or amenities are located do not
share a common boundary and there is no accessible pedestrian route
that the Development Owner controls (transportation in a motor vehicle
will not meet the requirement for an accessible route).
(B) A Development for which several parcels comprise
the Development Site and are separated only by a private road controlled
by the Development Owner, or a public road or similar barrier where
the Development Owner has a written agreement with the public entity
for at least the term of the LURA stating that the accessible pedestrian
route will remain, is considered contiguous. The written agreement
with the public entity must be in place by the earlier of the 10%
Test for Competitive HTC, the Determination Notice date for a Tax-Exempt
Bond Development issued by the Department, Cost Certification for
Tax-Exempt Bond Developments where the Determination Notice is issued
administratively, or the execution of the Multifamily Direct Loan
Contract, as applicable.
(38) Development Consultant or Consultant--Any Person
who provides professional or consulting services relating to the filing
of an Application, or post award documents, as required by the program.
Cont'd... |
