Low Income Housing Tax Credits & Tax-Exempt Bonds in Hawaii, 2018-2019

Hawaii's 2018-2019 Qualified Allocation Plan (QAP) uses 4% tax-exempt bonds relevant to rehabilitation and preservation of affordable housing.

The thresholds relevant to rehabilitation and preservation of affordable housing with the use of 4% tax credits include;

4% LIHTC Developer Experience:

a. Minimum of one (1) LIHTC project Placed in Service by the Project Owner (General or Co-General Partner/Managing or Co-Managing Member).

b. Minimum of one (1) LIHTC project currently managed by the Management Agent.

Threshold

Developer Fees includes developer fees, developer overheads, management fees, consultant fees, etc. (as indicated in the Developer Fee section of Exhibit A of the Consolidated Application).

4% (non-volume cap) LIHTC:

i. Maximum developer fee of 15% of the total development costs (excluding developer fee) if the applicant waives its right to a qualified contract.

ii. Maximum developer fee of 5% of the total development costs (excluding developer fee) or $250,000 (whichever is less) if the applicant does not waive its right to a qualified contract.

Extended Use

Projects utilizing the 4% tax credit and tax bonds must commit to a minimum affordability period of 45 years.

Low Income Housing Tax Credit project financed with Tax-exempt Bonds: Projects financed with tax-exempt private activity bonds may qualify for LIHTC in excess of the State’s volume cap. Applicants may apply for an allocation of LIHTC with a commitment to issue private activity bonds from a state or local government. Applicants may submit an application for an allocation for LIHTC concurrently with an application for Private Activity Tax exempt bonds from the HHFDC.

Applicants requesting LIHTC must submit all documentation required in the application and will be subject to all feasibility reviews as required for an application for LIHTC from the State’s volume cap, with the exception of scoring under the Criteria Point System.

Contributed By: 
National Housing Trust

Other Items of Interest