QAP pre-flight declarations

Leave a question unanswered and the rule that reads it reports “not evaluated” and says what it needs. It never assumes “no”: an unanswered compliance record is not a clean one, and an unstated title report date is not a missing title report.

Basis, fee and state credit

Four of these, the rehabilitation use, the contractor bundle inside it, the requested basis and the annual federal credit, are convergence-engine outputs rather than things the deal stores, so they are entered here until the pre-flight reads them from a converged run. Leave any question unanswered and the rule that needs it says so.

I. INSTRUCTIONS - SECTION 1: INSTRUCTIONS

I

Instructions

A

Overview

The Electronic California Tax Credit Allocation Committee (TCAC) Application was designed to enhance consistency of information, increase efficiency in the application process, and reduce the amount of paperwork required for a TCAC tax credit application. All applicants are required to submit the application, current year TCAC attachment forms, and all supporting documentation in electronic format. Only the signed applicant statement may be submitted in hardcopy format; for all other application materials, no paper documentation will be accepted. TCAC will accept a signed applicant statement (pages 1-3 of the Application sheet) in either hardcopy format or PDF. All other application materials must be submitted in electronic format. Instructions for a complete electronic submission are found under Instructions-Electronic Submit. We encourage you to provide suggestions based on your experiences in preparing the application. In that way, TCAC can build upon and improve the process of completing a tax credit application.

Mail the application materials to TCAC at: 915 Capitol Mall, Room 485, Sacramento, CA 95814. Enclose a $2,000 application filing fee in the form of a check. For scattered site and resyndication applications, the application fee is $2,500. For scattered site projects in differing jurisdictions, an extra $1,000 application filing fee is required per additional local review. If the local review agency(ies) has agreed to waive their $1,000 portion of the fee, enclose written confirmation from the local review agency(ies). Refer to the TCAC website for more complete filing instructions:

https://www.treasurer.ca.gov/ctcac/2021/applications/competitive-tax-app-instructions.asp

http://www.treasurer.ca.gov/ctcac/2019/lra/index.asp

Please contact Sarah.Gullikson@treasurer.ca.gov if you find any errors in the electronic application. For general application questions, please contact the regional analyst.

http://www.treasurer.ca.gov/ctcac/assignments.asp

http://www.treasurer.ca.gov/ctcac/contacts.asp

B

Application General Information

1)

Instructions for preparing the electronic version

a)

Many of the required calculations in the application are automatically performed by the spreadsheet program.

(i)

Use this spreadsheet with Microsoft Excel 97 or above.

b)

Applicants must submit the application on a flash drive.

(i)

TCAC cannot accept applications submitted via e-mail.

(ii)

It is recommended that a back-up copy of the application be created for future use.

c)

DO NOT UNPROTECT OR UNLOCK CELLS in the spreadsheet. TCAC will verify formulas and data and will scan for viruses upon receipt. Any tampering may result in disqualification of the application.

2)

Submission Requirements

a)

Applicants must submit the following:

(i)

TWO ELECTRONIC VERSIONS OF THE APPLICATION IN THE FORM OF A USB FLASH DRIVE TO TCAC. THE APPLICATION MUST BE SIGNED.

(ii)

ONE COPY OF THE ORIGINAL APPLICATION, ATTACHMENTS AND "TCAC LRA EVALUATION FORM" WITH INSTRUCTIONS (HARD COPY OR ELECTRONIC) TO THE LOCAL REVIEWING AGENCY.

3)

General Instructions

The electronic version is partitioned into the following categories:

a)

Instructions

(i)

This section provides overall guidance for the preparation of the electronic version. Each Attachment to the application contains detailed, specific instructions for that particular attachment.

(ii)

The electronic version is prepared using an Excel format. The application is divided into separate worksheets. To access a desired section of the application, simply click on the worksheet tab.

b)

Application

(i)

The application was designed to eliminate as many of the calculations as possible using the information provided by the applicant.

(ii)

All highlighted areas must be completed by the applicant. You may scroll through the highlighted cells by clicking the Tab button on your keyboard.

Certain areas, when selected, will only allow the applicant to respond to the

choices provided in the "pull-down" menu for that item.

(iii)

All applicable cells must be completed by the applicant

a.

For those numbered amounts that are not applicable, insert a "0" (zero).

b.

For any question response areas, if not applicable, select "N/A".

c)

Sources and Uses Budget

The applicant must complete the yellow cells. Permanent Lenders are automatically pulled from a previous section for up to 12 lenders. Be sure each funding source total at the bottom of the sheet corresponds to the loan totals under Permanent Lenders.

d)

Basis & Credits

The applicant must only complete any Ineligible Basis items and the applicable tax credit factors that apply to the project as evidenced by the syndication letter (please refer to the checklist for Attachment 16).

e)

Points System

The applicant should click on each highlighted item, selecting either the automatic "pull-down" option or entering appropriate amounts.

f)

Service Amenities Budget

In this section, the applicant must complete the yellow cells. This section is completed as part of the requirements listed under Attachment 24.

g)

Final Tie Breaker Self-Score

In this section, the applicant must calculate a final tie breaker self-score. A portion of the calculations in this sheet are pulled from other areas of the application. The applicant must complete the yellow cells. The Final Tie Breaker Self-Score sheet includes written guidance.

h)

15 Year Pro Forma

This sheet is linked to the income and expense section of the Application sheet. Complete all applicable items, making any necessary changes. The worksheet may be adjusted to meet project specifications, but the overall formatting and formulas should not be changed.

i)

Checklist Items

Following the checklist items in sequence with the completion of the electronic application is encouraged to help prevent omitting any required documentation.

j)

Applicant Notes

A blank sheet has been included for any supplemental information the applicant wishes to provide.

k)

Post Award Project Cost Changes

In this section, the applicant provides updated Sources and Uses Budget information over the course or the project development. Separate instructions exist for this section at the end of this Excel file.

l)

State Credit Exchange Basis and Credits

To be completed post-award if a state credit exchange is required or requested. Please contact your regional analyst if you have questions about this section:

http://www.treasurer.ca.gov/ctcac/assignments.pdf

The remaining instructions pertain to each particular section of the application. Although many of the items may appear obvious, follow instructions provided in this section.

II

Application

Section 1

Applicant Statement and Certification

A

Applicant Statement and Certification

1)

Applicant Name

Fill in the name of the general partner or the entity which is applying for; and receiving

the requested tax credits.

2)

Project Name

Fill in the proposed name of the project.

3)

Federal Credit Amount and State Credit Amount requested

The annual federal credit amount and the total state credit amount will auto-populate after

credits have been calculated in the Basis and Credits sheet.

4)

Applicant Statement

After carefully reading the applicant statement and certification the applicant must provide

an originally signed applicant certification.

5)

Local Jurisdiction

Provide the name and contact information of the local jurisdiction's City Manager or equivalent.

Section 2

General and Summary Information

A

Application Type

Provide the requested information.

B

Project Information

Provide the requested information.

C

Credit Amounts Requested

The credit type, the annual federal credit amount and the total state credit amount will all be auto-populated after credits have been calculated in the Basis and Credits sheet.

D

Federal Minimum Set-Aside Election (IRC Section 42 (g)(1))

Toggle the desired option: 20%/50%, 40%/60%, or 40%/60% Average Income

E

Set-Aside Election (TCAC Reg. Section 10315(a)-(g))

Toggle the desired set-aside election, if project is applying under one of these set-asides.

F

Housing Type Selection (TCAC Reg. Sections 10315(g) & 10325(g))

1)

Toggle the selected housing type.

2)

The applicant must select at least one housing type.

a)

If you selected Special Needs please list the percentage of Special Needs Units.

b)

If Special Needs portion is between 50% and 75%, specify other housing type construction standards to be met.

G

Geographic Area (TCAC Reg. Section 10315(h))

Select the appropriate TCAC geographic area and provide the requested information.

Section 3

Applicant Information

A

Applicant Contact Information

Provide the current information for the applicant.

B

Legal status of the applicant

Select the appropriate legal type for the applicant.

If the legal status is "Other," provide a detailed statement as to the organization type.

C

General Partner(s) Information

1)

List the name of the General Partner(s) or Principal Owner(s).

2)

Enter the address and contact information of the General Partner(s) or Principal Owner(s).

3)

Identify if each is either nonprofit or for profit entities.

D

General Partner(s) or Principal Owner(s) Type?

This auto-populates from the previous section (D).

E

Status of Ownership Entity

Toggle and select the appropriate ownership entity type.

If not yet formed, enter the estimated formation date.

Federal Identification Number MUST be provided at Carryover Allocation.

F

Contact Person During Application Process

1)

Fill in the appropriate information for each section.

2)

Identify the participatory role of the contact person.

Section 4

Development Team Information

Fill in all development team member information.

Section 5

Project Information

A

Type of Credit Requested

1)

Check applicable boxes.

If proposing Rehabilitation, see minimum requirements in Reg. § 10326(g)(7).

2)

Select "Yes" or "No" to answer if a New Construction project is proposing demolition.

a)

If "Yes", will relocation of existing tenants be involved?

B

Acquisition and Rehabilitation/Rehabilitation-only Projects (including Resyndication projects)

Toggle to select the appropriate answers.

Answer the questions regarding resyndication, if applicable.

C

Purchase Information

Answer the questions as shown.

D

Project, Land, Building and Unit Information

1)

Project Type

a)

Select housing type being proposed.

b)

If more than one housing type being proposed, list in space provided.

c)

Identify all buildings with and/or without an elevator.

E

Land

Indicate parcel size and any irregularity.

F

Building Information

1)

Indicate the total number of commercial, rental and community service buildings.

2)

If Commercial Space, explain the use, size, location, purpose, and reasoning behind the use

3)

Indicate if buildings are on a contiguous site.

a)

If "No", indicate whether or not they meet the requirements of IRC Sec. 42(g)(7).

4)

Indicate if any of the proposed buildings consist of four or fewer units.

a)

If "Yes", indicate if any of the proposed buildings of four or fewer units will be occupied by the owner (IRC 42 (i)(3)(C)).

G

Project Unit Number and Square Footage

Fill in all highlighted lines. Totals will be auto-populated as the highlighted items are entered.

H

Tenant Population Data

Answer the questions as shown.

Section 6

Required Approvals and Development Timetable

1)

Required Approvals Necessary to Begin Construction

a)

Fill in all highlighted lines. These should be consistent with Attachment 14: Verification of Zoning and Attachment 26: Approvals Necessary to Begin Construction.

2)

Development Timetable

a)

Complete the highlighted line for the estimated timetable for the development and completion of the project.

III

Project Financing

Section 1

Construction Financing

1)

Provide the lender name, the percentage rate, the amortizing term, and the loan amount.

2)

In corresponding order, list the required lender information.

Section 2

Permanent Financing

1)

Provide the lender name, the percentage rate, the amortizing term, the loan amount and the annual

debt service amount.

2)

In corresponding order, list the required lender information.

3)

Amounts must be consistent with totals shown in the Sources and Uses Budget sheet.

Section 3

Income Information

1)

Income categories should begin with the placed-in-service date and year.

List annual income

2)

Income information must correlate to the 15-year pro forma.

a)

Utility allowances must be itemized and correlated with the appropriate utility allowance

schedule.

b)

The public housing authority (PHA) or the California Energy Commission (CEC) utility allowance

listed in the attachments must be the same shown on this page.

A

Low Income Units

1)

Complete the low-income section by completing the rows by unit type and affordability levels.

2)

Columns (a)-(g) should be completed in ascending order (i.e. Studio, 1 bdrm, 2 bdrm, etc.)

3)

Where different affordability levels exist for the same unit type, place this information in ascending

order also (i.e. 1 bdrm @30%, 1 bdrm @35% etc.).

4)

Columns (d), (f), (h) and the totals below will be auto-populated after highlighted cells are filled in.

B

Manager Unit(s)

Fill in the appropriate information by unit type in ascending order similar to the low-income units.

C

Market Rate Units

Fill in the appropriate information by unit type in ascending order similar to the low-income units

(if applicable).

D

Rental Subsidy Income/Operating Subsidy

Complete as appropriate. Amounts should be consistent and verifiable with information in the

application and Checklist attachments.

E

Miscellaneous Income

Complete as appropriate. Amounts should be verifiable from information in the application and/or

Checklist attachments.

F

Monthly Resident Utility Allowance by Unit Size

Complete the highlighted cells in the table. Totals will auto-populate as the highlighted cells are

completed.

Must match the Utility Allowances provided by the public housing authority (PHA) or

the California Energy Commission California Utility Allowance Calculator (CUAC).

G

Annual Residential Operating Expenses

1)

Expense categories should begin with the placed-in-service date and year.

List annual expenses

2)

No depreciation or amortization expenses are included.

3)

Fill in the annual operating expense amounts for the following line items as appropriate:

a)

Administrative Expenses

b)

Management Fee (must be supported by contract document)

c)

Utilities

d)

Payroll/Payroll Taxes

e)

Maintenance

f)

Other

4)

Total and total per unit will be auto-populated after highlighted cells have been completed.

5)

Complete all highlighted cells.

Annual Internet Expense (point category only), Service Amenities Budget,

Replacement Reserves, Real Estate Taxes, and Other Expenses must be entered

here and NOT included in the "Annual Residential Operating Expenses" line items.

H

Commercial Income

Complete as appropriate. Amounts should be verifiable from information in the application and

Checklist attachments.

Section 4

Loan and Grant Subsidies

A

Inclusion/Exclusion From Eligible Basis

1)

Indicate/identify the loan type and grant subsidies that are proposed for the project. Identify the

inclusion/exclusion from eligible basis for each subsidy. Funds must be listed according to the

actual source of funds. For example, if an agency is providing a loan that includes HOME and

CDBG funds, the funding must be listed separately for each source and amount.

B

Rental Subsidy Anticipated

Indicate/identify the operating and/or rental subsidies that are proposed for the project.

C

Pre-Existing Subsidies (Acquisition and Rehabilitation/Rehabilitation-only Projects)

Indicate/identify the operating and/or rental subsidies that currently exist for the project; or, if

replacement public housing projects eligible for prior subsidies, evidence of the terms that were

"grandfathered" into the new project.

Section 5

Threshold Basis Limit

A

Threshold Basis Limit

1)

Indicate/identify any threshold boosts by selecting either "Yes" or "No" for (a)-(h).

2)

Fill in the highlighted cells with the appropriate amounts.

All of the cells except for the highlighted cells, are auto-populated after the

"Income Information" in Section 3 is completed.

IV

Sources and Uses Budget

Section 1

Sources and Uses Budget

A

Sources and Uses Budget

1)

Fill in each of the appropriated highlighted cells.

All cells not highlighted will be auto-populated as the highlighted cells from this section and previous

sections are completed.

2)

Funding sources and costs should be aligned appropriately. For example, public funding sources for

land purchase or construction costs should be shown as paying for these costs. Do not randomly

select funding sources for line item costs if they have a dedicated source of payment.

Section 2

Sources and Basis Breakdown by DDA/QCT and non-DDA/non-QCT

Use ONLY IF: Project consists of both: 1) Building(s) located in a DDA/QCT area; AND 2) Building(s) located in a non-DDA/non-QCT area. If not applicable, skip this section and go to V. Basis and Credits.

1)

The total costs (Column B) and basis (Column E & Column H) are auto-populated based on cost and basis entered in the Sources and Basis Budget tab. Breakdown the total cost and basis by DDA/QCT and non-DDA/non-QCT, then fill in each of the appropriated highlighted cells.

2)

Make sure that funding sources and costs are aligned appropriately. The total basis (Row 106) will auto-link to Basis & Credits tab, where only NC/Rehab basis for building(s) located in DDA/QCT area will receive the 130% basis boost.

V

Basis and Credits

A

Determination of Eligible and Qualified Basis

1)

List any non-qualified and non-recourse financing, non-qualifying portions of higher quality units

and any historic tax credits in the highlighted cells.

The total ineligible amounts will be auto-populated as the highlighted cells are completed.

2)

Insert the desired amount of Eligible Basis that is being voluntarily deducted.

3)

All cells that are not highlighted will be auto-populated after highlighted cells have been completed

in this section and previous sections.

Projects w/ buildings located in both DDA/QCT & Non-DDA/Non-QCT areas must bifurcate by DDA/QCT and non-DDA/non-QCT unless proposing Special Needs Housing Type.

Only NC/Rehab DDA/QCT building(s) will receive the 130% basis boost. The NC/Rehab non-DDA/non-QCT building(s) will not receive the 130% basis boost.

B

Determination of Federal Credit

All cells will be auto-populated after highlighted cells have been completed in this section and

previous sections.

C

Determination of Minimum Federal Credit Necessary For Feasibility

1)

Complete the highlighted cell for the federal tax credit factor.

See Basis and Credits tab for the tax credit factor minimum and maximum range.

2)

The federal tax credit factor must match the required syndication letter or tax credit factor certification.

ATTACHMENT 16: Terms of Syndication Agreement must include separate tax credit factors when

both federal and state tax credits are being requested.

D

Determination of State Credit

Cells will be auto-populated after highlighted cells have been completed in this section and

previous sections (if applicable).

E

Determination of Minimum State Credit Necessary for Feasibility

1)

Complete the highlighted cell for the state tax credit factor (when applicable).

See Basis and Credits tab for the tax credit factor minimum and maximum range.

2)

The state tax credit factor must match the required syndication letter or tax credit factor certification.

ATTACHMENT 16: Terms of Syndication Agreement must include a separate tax credit factor for

state tax credits when they are being requested.

VI

Points System

Section 1

Points System

1)

Answer the questions in the cells indicated. If the question does not apply, answer with "N/A"

2)

Complete only the highlighted cells.

3)

If the project is a scattered site, please contact TCAC for application instructions.

Section 2

Point System Summary

Total points achieved is auto-populated by the previous sections in the Points System sheet.

Section 3

Service Amenities Budget

1)

This sheet is required for applicants requesting service amenity points.

2)

For each service point category indicated in the points section, complete columns D through J

as applicable.

VII

Final Tie Breaker Self Score

This section must be completed. Note that TCAC will independently determine each project's final

tiebreaker.

For additional guidance, please contact your regional TCAC analyst.