99-346 C.M.R. ch. 16, § 8 - ALLOCATION OF CREDIT
A. Allocation.
MaineHousing will issue one or more IRS Form(s) 8609 after receipt of the
following:
1. A complete request for
allocation of Credit in a form prescribed by MaineHousing.
2. An audit report on the schedule of project
costs prepared by an independent, third party certified public accountant
including all associated costs (such as commissions, due diligence, legal,
accounting, reserves, and other similar items).
3. Certification of the Project's sources,
including all federal, state and local subsidies in any stage of commitment.
This certification must include income, operating and development cost
projections and methods for satisfying any deficits.
4. The allocation fee and monitoring fee less
the amount of any allocation fee paid in connection with the issuance of a
carryover allocation.
B.
Carryover Allocation.
1. The Applicant must
submit the following to receive a carryover allocation:
a) A complete request for carryover
allocation in the form prescribed by MaineHousing no later than the first day
of December of the year in which the carryover allocation is made.
b) Certification of the Project's sources,
including all federal, state and local funding. This certification must include
income, operating and development cost projections and methods for satisfying
any deficits.
c) Development
progress report, including completion likelihood.
2. The applicant must execute a carryover
allocation and return it to MaineHousing, together with the allocation fee, no
later than December 31 of the year in which the carryover allocation is
made.
3. A carryover allocation
will be subject to the following conditions:
a) satisfactory evidence that more than 10%
of the Project's reasonably expected basis is incurred within 12 months of the
carryover allocation, including an audit report prepared by an independent,
certified public accountant; and
b)
any performance conditions MaineHousing may require.
Failure to comply with these conditions may result in termination of the carryover allocation.
C. Tax Credit Compliance
Experience. Prior to an allocation the Applicant must demonstrate that the
entity managing the Project has sufficient Credit compliance experience and
training. The entity must complete a Credit compliance training or receive a
certification from a MaineHousing-approved trainer.
D. Extended Use Agreement. Prior to an
allocation of Credit, the Owner must enter into an Extended Use Agreement with
MaineHousing obligating the Owner to comply with Section 42 of the Code, the
threshold requirements in Section
5, and commitments for which the
Application was awarded points. The Extended Use Agreement must be recorded in
the appropriate registry of deeds prior to all mortgage liens and encumbrances
on the Project and before MaineHousing issues any IRS Form 8609 for the
Project.
E. Converting a Carryover
Allocation. MaineHousing may convert a carryover allocation to the year in
which it is terminated or the following year if there are extenuating
circumstances beyond the Applicant's control. The carryover allocation must be
rescinded by the mutual consent of MaineHousing and the Applicant. There can be
no change in the design or financing that would render the Application
withdrawn under Section
4. I. The Project will be subject to
the QAP in effect at the time of the original allocation.
F. Forward Allocation of Credit. MaineHousing
may issue a binding commitment to allocate State Ceiling available in the
subsequent year upon determining that the amount of Credit in the current
year's State Ceiling is insufficient.
Notes
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