The Michigan State Housing Department Authority (MSHDA) has posted an updated version of the Scoring Criteria for the Low Income Housing Tax Credit (LIHTC) program to its website. MSHDA made this necessary update to modify the Cost Containment criteria to reflect new data that is now available following the completion of awards of 9% LIHTC from the 2013 allocation year.
The following are changes made to the application:
- Utility allowances entered in Section H of the application will no longer automatically transfer over to Section I and now must be entered individually in the “Distribution of Rents” chart in Section I. This change allows greater flexibility within the application in situations where units with the same number of bedrooms may have differing utility allowances.
- An adjustment was made to the “Base Rent” column in the “Distribution of Rents” chart in Section I of the application. Now, the applicant simply enters the full contract rent in this column for those units that have rental assistance and the tenant paid portion of the rent for these units no longer need to be estimated.
- The “Equity Pay-In Schedule” chart in Section G of the application was adjusted to now have the applicant enter in benchmarks for expected LIHTC capital contributions rather than the expected date of such contributions.
- Other formatting, calculations adjustments, and clarification notes were made throughout the application.
MSHDA also announced that the first competitive funding round for 2014 Low Income Housing Tax Credit will have an application submission deadline on August 15, 2013 at 5:00 P.M. EST. MSHDA will allocate approximately 50% of Michigan’s 2014 tax credit ceiling in the August 15, 2013 funding round with an expected notification date in November 2013. The second funding round application is due February 14, 2014 with an expected notification date in May 2014. Applications for projects financed with the proceeds of tax-exempt bonds may be submitted at any time.
To view the brief summary of changes to the LIHTC Program Application click here.
To view the notice of credit funding round for the state of Michigan click here.
To access the current Michigan QAP for 2013-2014 click here.