Low Income Housing Tax Credits & Rural Housing in Georgia, 2019

DCHA's 2019 Qualified Allocation Plan provides incentives for rural developments

Rural

“Rural” means those areas designated by USDA as being eligible Rural areas or those counties that appear on Exhibit A of Appendix II in the Scoring section. A list of USDA Rural areas can be accessed on the USDA website at [http://eligibility.sc.egov.usda.gov/]

See Exhibit A to Appendix II that designates the Rural Counties according the USDA.


Rural HOME Preservation Set Aside

Up to one million five hundred thousand ($1,500,000) of the available 9% credits will be set aside for the rehabilitation and refinancing of existing 9% tax-credit Rural projects that

State of Georgia Qualified Allocation Plan have existing HOME loan balances. Up to five (5) Applications may be selected to receive up to three-hundred seventy-five thousand ($375,000) of the available 9% credits each. (The terms of this set aside are contained in Appendix I.)

 

Rural Pool

35% of the available 9% Credits (approximately eight million dollars) will be awarded to Applications proposing sites in Rural areas. If slightly less than 35% of available credits have been awarded to Applications in the Rural Pool after initial review, DCA may select the next highest scoring Application in the pool to ensure that no less than 35% of 9% Credits are awarded to Applications serving Rural areas. Applicants in the Rural Pool will be competitively ranked against other members of the pool in the selection process.

 

Rural Pool Low-Poverty Communities (Up to 3 Points)

1. Three (3) points will be awarded to projects in the Rural Pool that are located

a) Less than 10% below Poverty level (see Income)

b) Designated Middle or Upper Income level (see Demographics)

OR

2. Two (2) points will be awarded to projects in the Rural Pool that are

a) Less than 15% below Poverty level (see Income)

b) Designated Middle or Upper Income level (see Demographics)

OR

3. One (1) point will be awarded to projects in the Rural Pool that are

a) Less than 20% below Poverty level (see Income)

b) Designated Middle or Upper Income level (see Demographics)

 

Previous Projects (Rural Pool) (Up to 4 Points)

1. Four (4) points will be awarded to an Application in the Rural Pool if the proposed development site is within a Local Government boundary which has not been awarded 9% Credits since the 2000 DCA Housing Credit Competitive Round.

OR

2. Three (3) points will be awarded to an Application in the Rural Pool if the proposed development site is within a Local Government boundary which has not received an award of 9% Credits within the last six (6) DCA funding cycles.

OR

3. Two (2) points will be awarded to a Rural Application if the proposed development site is within a Local Government boundary which has not received an award of 9% Credits within the last four (4) DCA funding cycles.

 

DCA HOME Funds

Applicants that will utilize DCA HOME funds as a funding source in a competitive tax credit Application must obtain DCA’s consent during the pre-application process. To be eligible for a HOME award, all Project Team members must be free of any default in existing loans and have no outstanding compliance issues. Additionally, either the General Partner or Developer must currently operate at least one (1) Multifamily HOME Loan funded property in which that member was the owner and developer. This Multifamily HOME Loan funded property must have been awarded after January 1, 2000. At least 60% of the available HOME funds will be given in the rural pool. Once this threshold is met, the remaining funds will be given to the flexible pool. In the rural pool, at least 50% of the Applications selected for a HOME consent will be designated for a senior tenancy.

Projects applying under the Rural HOME Preservation set aside must receive an award through the Preservation Set aside pre-application process. DCA will award up to one million five hundred thousand ($1,500,000) of the available 9% tax credits to up to five Applications that meet the following requirements. $1,500,000 of the Rural Set Aside will be allocated towards the Rural HOME Preservation set aside.

 

Only one (1) HOME consent will be given per County. DCA may also consider proximity of projects requesting a HOME consent in the selection process.

 

DCA will not consider 9% Credit Applications for the preservation of existing Housing Credit developments with a placed-in-service date that is within 18 years of Application Submission outside of Applications under the Rural HOME Preservation set aside.

 

Note that there are Geographic Allocation Limitations for Projects selected in the 2018 round:

a. DCA will not select more than one phase of a planned multi-phase development.

b. DCA will select only one Rural Application located in the same Local Government area.

c. DCA will select up to two flexible pool Applications located in the same Local Government area.

d. DCA will not select more than three Applications for funding in the City of Atlanta.

 

Contributed By: 
National Housing Trust

Other Items of Interest