Temporary Changes to 2007 Qualified Allocation Plan
Regarding changes to the 2007 Qualified Allocation Plan listed below, OHCS will accept applications for additional 2008 tax credits used to fill equity gaps no later than October 1, 2008 for the department's consideration. These will be awarded from the additional tax credit authority received as a result of HR 3221 (Housing and Economic Recovery Act). For additional information, visit the Low-Income Housing Tax Credit Provisions page.
Oregon Housing and Community Services (OHCS) as the governor’s authorized allocator of the federal Low Income Housing Tax Credit (LIHTC) is issuing this public announcement as instructed under IRC § 42(m)(1)(A)(iv) of two temporary changes to the 2007 Qualified Allocation Plan (QAP).
Due to the current equity market conditions, equity pricing for tax credits is significantly less than anticipated. This drop in pricing and other economic impacts has resulted in funding gaps in several projects that were previously awarded credits. It’s OHCS’s desire to assist the owners of these projects to address the market changes. OHCS is therefore making the following two temporary changes to the already adopted QAP.
1st change is to waive the requirement that recipients who have completed carryover be required to reapply through the Consolidated Funding Cycle (CFC) if needing more LIHTCs. This waiver will apply to projects funded with 2007 or 2006 competitive credits. Projects requesting more credits must fill out the department’s request for additional funds application.
2nd change is to remove the maximum amount of $700,000 per project for projects that have enough basis and can use the excess basis to fill funding gaps on projects already awarded 2007 or 2008 LIHTCs. Projects requesting more credits must fill out the departments request for additional funds application.
Each request for additional funds will be reviewed on a case by case basis as to the amount of LIHTC needed and presented to Senior Management for approval.
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