Yesterday, the Delaware State Housing Authority (DSHA) held a 2011 Qualified Allocation Plan (QAP) Meeting. I would like to provide some hightlights, but before doing so would like to emphasize that the 2011 Qualified Allocation Plan (QAP) is still in process so everything is subject to change.
Initially, the Delaware State Housing Authority (DSHA) provided an update on the 2010 low income housing tax credits (LIHTC) round. DSHA received applications representing over $6 million in low income housing tax credits (LIHTC) requests. DSHA ranked developments to receive all $2.6 million of the 2010 low income housing tax credits (LIHTC) and forward committed $100,000 from the 2011 low income housing tax credits (LIHTC). As such, there will be $2.5 million in low income tax credits (LIHTC) available for application in the 2011 round of tax credits. For more basic information on what a low income housing tax credit (LIHTC) represents and this process, see the my basics page here.
On with the highlights:
- The Governor’s administration is working on new livable Delaware standards, including “Complete Street” standards, and when ready, they will be incorporated into the 2011 Qualified Allocation Plan (QAP).
- Some of the same and many new amenities, including but not limited to many environmentally sensitive amenities, will be added which will allow an application a maximum of 5 points.
- For construction standards, the Delaware State Housing Authority (DSHA) highlighted that they will not accept team changes after the application and there are efforts to hold the architects more accountable. There was also more discussion of the mandatory construction contract bidding protocols, including discussion of the pre-qualification process for contractors.
- Financing threshold requirements are still a work in progress, but the Delaware State Housing Authority (DSHA) promised clear objective requirements and deadlines.
- Sussex County is now eligible again for the basis boost.
- Efforts are underway to facilitate the bundling of Rural Development properties to create more economies of scale.
- The HDF requirements will be changing to decrease the required equity at the construction loan closing from 30%+ to 15%.
- Saturation Areas could be a completely separate post. In brief, due to litigation issues in other states, DSHA wants to make sure its funds are not facilitating the saturation of certain areas with low income housing. To this end, DSHA will be determining saturation areas and not allow financing for new housing creation units in those areas. This does not apply to preservation.
- The application process may end up on a web based application this year or soon thereafter. At this point, DSHA will still require one bound application and maybe one CD. The web based application will include a Pro Forma feature to help developers work through the numbers.
A draft Qualified Allocation Plan (QAP) will be provided after considering comments made at the meeting and incorporating them. The final Qualified Allocation Plan (QAP) is targeted by year-end. The current time table is here: 2011 Delaware LIHTC QAP Timetable.