The Montana Board of Housing (MBOH) released the first draft of its 2012 QAP. Significant changes include:

  • A Debt Coverage Ratio (DCR) has been implemented to judge the long-term financial viability of the property. The DCR dictates that the development’s net operating income to the foreclosable, currently amortizing debt service obligations should be between 1.15 and 1.25.
  • One year after the property is placed in service, owners may submit 12 months of actual utility bills for MBOH to average and approve an agency approved utility allowance.
  • Certain amenities such as swimming pools, tennis courts, and golf courses cannot be funded by tax credits. These items are allowed if funded by sources other than tax credits.
  • A nonrefundable application fee equal to 1.5% of total request credit amount is due upon submission of the application. In addition, a reservation fee equal to 3.5% of credits reserved is due by December 1 of the year of the award. The reservation fee is refundable up until a Reservation Agreement is signed.
  • New Market Study Analysis Requirements to guide market analysts when conducting market studies.
  • Applicants will now have until December 1st of the award year to sign the Reservation Agreement and must provide evidence to MBOH that the project is progressing.

To read the full Draft 2012 QAP, click here. Comments may be sent to Mary Bair by e-mail or mail comments to:

Montana Board of Housing (MBOH)
Attn: Mary Bair
301 S Park Avenue, STE 240
Helena, MT 59601

Public Comment will be accepted until October 7, 2011 at 5:00 p.m. Oral Public Comments will be accepted at a 2012 Draft QAP Public Hearing on October 17, 2011 at 8:30 a.m. at 301 S Park Avenue, Room 228, Helena MT 59601.