9 NYCRR 2040.4

After March 1, 2008, applications for LIHTC from projects financed by tax-exempt bonds subject to the private activity bond volume cap in accordance with section 42(h)(4)(A) of the code will be processed by the New York State Housing Finance Agency under its procedures. This section shall apply to applications filed with DHCR pursuant to section 42(h)(4)(A) of the code. All other provisions of this Part shall remain in full force and effect for applications filed pursuant to this section prior to March 1, 2008. Projects financed by tax-exempt bonds subject to the private activity bond volume cap in accordance with section 42(h)(4)(A) of the code may be allocated low-income housing credit which is not taken into account regarding the State housing credit ceiling.

Complete applications must be submitted at 60 days prior to the proposed construction start date on a form approved by DHCR and will be accepted and processed throughout the calendar year. The division may request any and all information it deems necessary for project evaluation. If any submission is incomplete or if documentation is insufficient to complete any evaluation of the proposed project, processing will be suspended. Complete applications will be reviewed relative to criteria contained in section 2040.3(e) and (f) of this Part for eligibility and public purpose. Within 60 days after receipt of a complete application the division will issue to the applicant a finding as to whether the application is consistent with this qualified allocation plan and the amount of LIHTC for which the project qualifies pursuant to section 2040.3(g) of this Part. If the application is consistent with this qualified allocation plan, the applicant will receive processing instructions for a final allocation of credit. If the project is found to be inconsistent with the division's qualified allocation plan the owner will be notified of the reasons.

The division shall charge an application fee of $2,000, due at the time of application. A credit allocation fee of three percent of the first year credit allocation amount is due at the time of request for the issuance of final credit allocation. Not-for-profit applicants (or their wholly-owned subsidiaries) which will be the sole general partner of the partnership/project owner or sole managing member of the limited liability company/project owner may request and be approved to defer payment of the application fee until the time of issuance of the final credit allocation.

In accordance with code section 42(m)(2)(D) the issuer of the tax exempt bonds is responsible for determining the dollar amount of credit which is necessary for the financial feasibility of the project and its viability as a qualified low-income housing project throughout the credit period. Such determination must be included in the applicant's request to the division for a final allocation of credit. The division will process requests for a final allocation of credit within 60 days from receipt of all required documentation including an executed credit regulatory agreement with proof of recording. The division will apply the criteria as set forth in section 2040.3(g) of this Part (except for section 2040.3[g][1][ii] of this Part) in determining the amount for the final credit allocation.

The regulatory requirements of projects receiving an allocation under the terms of this section is described in section 2040.5 of this Part and shall be subject to compliance monitoring as described in section 2040.7 of this Part.