The Maryland Department of Housing and Community Development (DHCD) has begun the process of revising the 2011 qualified allocation plan (QAP), and has released its draft 2011 Multifamily Rental Financing Program Guide. Proposed revisions to the 2011 QAP will be released by the end of August. DHCD is soliciting public comments on the 2011 Guide and QAP by September 13, and will hold a public hearing on September 8 at DHCD offices in Crownsville, MD. The draft 2011 Multifamily Rental Financing Program Guide incorporates changes to the threshold criteria, scoring schedule and program fees, including:
- Reduce the minimum age of an elderly household tenant from 62 to 55 years;
- Increase the Rental Housing Fund’s maximum loan amount from $1.5 million to $2 million or $50,000 per unit, whichever is less;
- Adds a $30,000 per unit cap to the $1.5 million per project cap for tax credits;
- Eliminates the ability to earn a developer’s fee on acquisition costs for related party transactions, adds a 15% overall cap for builders fees, and adds a separate civil engineer fee cap;
- Deducts points for development team members with significant construction or project completion problems;
- Sets the minimum reserve for replacement at $300 per unit per year for all projects (currently, senior projects have a $250 per unit per year minimum);
- Increases the minimum Debt Service Ratio in the first year from 1.1 to 1 to 1.15 to 1;
- Strengthens the development quality standards related to green and energy efficiency;
- Revises or clarifies available point totals for non-profit and PHA owners, income targeting, disabled households, tenant services, long-term operating subsidies, and construction or rehabilitation costs; and
- Increases amounts for legal fees, tax credit compliance monitoring fees, application fees, assumption fees, tax credit amendment fees, and cost of issuance
