Low-Income Housing Tax Credit Program (4% LIHTC Program – HFA Administered)

Low-Income Housing Tax Credit Program (4% LIHTC Program – HFA Administered)

Overview

The federal Low-Income Housing Tax Credit ("LIHTC") Program is frequently used in conjunction with New York State Housing Finance Agency ("HFA") financing. HFA provides 4% LIHTC financing to qualified residential rental projects which are generated through the use of the proceeds of federally tax-exempt private activity bonds issued by HFA.

HFA may also provide 4% LIHTC to projects financed by Private Activity Bonds issued by other State agencies (“4% Stand-alone LIHTC”), such as Industrial Development Agencies and Public Housing Authorities, pursuant to the 4% Stand-alone LIHTC Term Sheet linked below.

The LIHTC application for projects financed by HFA tax-exempt bonds and for 4% Stand-alone LIHTC projects financed by other State agencies, as referenced above, is incorporated in the overall Multifamily Financing Applications.

HFA may also allocate 9% LIHTC from the State’s annual allocation authority to projects which are not subject to tax-exempt bond financing if designated to do so by the New York State Division of Housing and Community Renewal (“DHCR”), the primary LIHTC allocation agency in New York State.

HFA retains a Qualified Allocation Plan ("QAP") which sets forth many of the parameters and guidelines for the issuance by HFA of both 4% and 9% LIHTC. Additional Agency information concerning LIHTC issuance is set forth in the pertinent program term sheet(s) and other Agency guidance.

Part 2188 Low-Income Housing Tax Credit 4 Percent Qualified Allocation Plan

4% LIHTC and SLIHC Cost Certification Forms

Mandatory Cost Certification Forms and Opinion Letters Required for Issuance of 4% LIHTC Forms 8609 and SLIHC DTF Form 625

All worksheets are protected without any password.  If protection is removed from any sheet, additional rows or columns can be added to meet any project’s specific needs.  In the multiple Buildings templates, worksheets can also be copied where needed to add buildings.

4% LIHTC/SLIHC projects:

Opinion Letters are based on the National Council of State Housing Agencies Model Cost Certification Opinion Letter.

Cost Certification Opinion Letter for 4% LIHTC Projects

HCR Average Income Minimum Set Aside Guidance

4% Stand-alone LIHTCs

Allocation of 4% Stand-alone LIHTC to Projects Financed by Bonds from an Issuer Other than NYS HFA

NYS Housing Finance Agency (“HFA”) is authorized to provide 4% Stand-alone LIHTC to projects financed by Private Activity Tax-Exempt Bonds issued by other State agencies, such as Industrial Development Agencies and Public Housing Authorities, which only require the allocation of 4% LIHTC from the Agency. 

HFA’s issuance of LIHTC for stand-alone projects is made in accordance with the Agency's QAP, the 4% Stand-alone LIHTC Term Sheet linked below, and other relevant Agency guidance.  Any project receiving 4% LIHTC from the Agency (including stand-alone projects) will be subject to the Agency’s compliance monitoring, as described in the QAP and further detailed in HFA’s Regulatory Agreement executed with the project owner.

HFA maintains an application process for 4% Stand-alone LIHTC, which entails the use of the Agency’s standard Multifamily Financing Application. Applications for 4% Stand-alone LIHTC may be submitted throughout the year, unless otherwise set forth by the Agency on HCR’s website. The Agency may limit the submission of 4% Stand-alone LIHTC applications, without prior notice, at its discretion.

Pursuant to §2188.4(i)(3) and §2188.7(d)(3) of the QAP, HFA may charge reasonable application, allocation and monitoring fees to 4% Stand-alone LIHTC projects which are financed by tax-exempt bonds issued by other State agencies and request 4% Stand-alone LIHTC from HFA.

The Agency requires payment of an application fee of $3,000, due at the time of initial application submission. A credit allocation fee of eight percent (8%) of the first-year credit   amount allowed to the stand-alone project is due when a project requests the issuance of IRS Form(s) evidencing the final credit amount to be provided to the project. 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 (i.e., IRS Form(s) 8609). Annual monitoring fees will be set at one percent (1%) of the maximum restricted rents for the low-income units with a minimum annual monitoring fee of $10,000.

These fees are subject to revision by the Agency without prior notice and will be adjusted, if necessary, to reflect the cost to the Agency of the application, allocation and monitoring review processes.

4% Stand-alone LIHTC Term Sheet