06/07/2010 Council Packet - Laserfiche WebLink

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Index 3. Unit Transfers. Unit transfers from building to building are allowed without triggering noncompliance regardless of the multiple - building election or whether a household's income is over the applicable limit at the time of transfer. 4. Available Unit Rule. The available unit rule is revised to provide that if a household's income goes over 140% of the applicable income limit, a currently vacant unit or the next unit in the same building must be rented to a qualifying household (the "comparable or smaller" requirement no longer applies). This is essentially a one - for -one unit replacement. 5. Applicable Fraction. Only the unit fraction will be examined to determine a building's applicable fraction. 6. Rent Limits. Rent limits as elected by the owner at the time of allocation continue to be in force during the Extended Use Period. Owners of properties that were awarded selection points for additional rent restrictions should refer to the respective Qualified Allocation Plan or Declaration to determine whether those additional rent restrictions are time - limited or if they are in effect for the full term of the Extended Use Period. 7. Utility Allowances. Utility Allowances must continue to be updated annually. Revised utility allowances must be implemented within 90 days of their published effective date. Minnesota Housing will continue to update the Housing Tax Credit Program income and rent limits published by HUD annually. D. Monitoring Compliance During the Extended Use Period The following is the monitoring procedure Minnesota Housing will follow during the Extended Use Period: 1. Annual Certification. By February 15, or the next business day, Minnesota Housing will require all owners to submit an annual certification of compliance. The Owner's Certification of Compliance During the Extended Use Period, form HTC 12(Y15), contains agency- defined certification language pursuant to the terms of the Declaration. 2. Annual Reporting. The Tax Credit Summary Report (HTC 13) and related Applicable Fraction Summary must be submitted to Minnesota Housing annually along with the HTC 12(Y15), but owners are not required to report on student status. 3. Inspections. Every five years, Minnesota Housing will perform a physical inspection of the property and review of tenant files and other pertinent documentation. The first review in the Extended Use Period will be five years from the last inspection conducted during the Compliance Period. A minimum of 3 low- income units chosen at random, or maximum of 10% of the low - income units not to exceed 15 units in any development will be inspected. If the first 3 units pass inspection, then no additional units need to be inspected. Different units may be chosen for the file review as those receiving a physical inspection. Minnesota Housing Tax Credit compliance staff will continue to work with other inspection entities such as local inspection officials, other government agencies, Minnesota Housing staff etc., 69 I Minnesota Housing - Housing Tax Credit Compliance Manual 01/2010