Indiana Housing & Community Development Authority has released a draft policy to help deal with pricing changes in the equity market. The following is a summary:
- Exchange of Credits for 2015/16 Developments
For developments that received a reservation of 2015 or 2016 credits, entered into a Carryover Agreement, but have not yet closed on financing are eligible under part H(13) of the QAP. IHCDA waives any penalties listed in the QAP under this process, including payment of a nonrefundable reservation fee of 4% and point deductions on future applications. This policy would expire August 31, 2017.
- Development Fund as Additional Gap Funding for 2015/2016/2017 Developments
For 2015, 2016, and 2017 developments in a Carryover Agreement but have not yet closed on financing, IHCDA is offering the Indiana Affordable Housing and Community Development Fund for projects that can demonstrate a funding gap. Developments may request up to $800,000, and developments that already have Development Funds may not request funds to exceed $800,000 in the aggregate. The Development Fund Loan Limitation in Schedule J, Part E of the QAP is hereby waived. Terms will be offered on a case by case basis. This policy would expire on December 31, 2017.
- Calculation of Credits / Basis Boost for 2017 Developments
Changes to the QAP would allow IHCDA to hold a certain amount of credits back in order to later recalculate basis boost eligible projects at 130% rather than 120% if more credits are needed. Applicants would pay an adjusted reservation fee based on the new amount of credits. Furthermore, the gap identified must be filled with a 1:1 ratio of additional credits and Development Fund. This policy would expire on August 31, 2017.
Comments on the proposed policies should be sent to Matt Rayburn at mrayburn@ihcda.in.gov no later than 5pm ET on Monday, February 6, 2017. See the Draft Policy memo for more details.
