Developers Workshop Agenda Welcome & Introductions 2019 Funds Draft 2019 QAP Appendix B Questions

Disclaimers Not covering every QAP topic Focusing on significant changes and what you need to know before submitting an application Applicants are responsible for knowing rules If questions are not covered, ask today or follow up with staff Opportunity to ask questions on topics not covered at the end of the presentation Questions are also welcome during the presentation – If you have a question, please raise your hand and Tara or Suma will bring a microphone

2019 Funds LIHTC - approximately $27.8 million using 2018 population and multiplier WHLP - $20 million (same as 2018) RPP - was $12 million in 2018; amount not finalized for 2019 but is expected to be similar to 2018

National Housing Trust Fund Is another source of RPP Only available in High Income counties Project must commit to at least 25% of units at or below 30% of AMI $3,990,025 was available for 2018 (funded 5 projects); 2019 amount will be $5,286,772 (approximately 7 projects) Agency can adjust awards to ensure funds are allocated

Workforce Housing Loan Program $20 million appropriation for 2019 All counties are eligible; available for 9% projects only Funds split between regions using same percentages as credits after Metro usage Maximum loan is the lesser of calculated amount or statutory maximum; any amount can be requested up to the maximum loan amount

Workforce Housing Loan Program Statutory maximums set by Legislature: - High Income county: $250,000 - Moderate Income county: $1,500,000 - Low Income county: $2,000,000 Requesting WHLP may result in an application being ineligible due to inadequate funds; same as RPP or credits

Draft 2019 QAP

QAP Status First draft released July 26 Public Hearing was held October 18 3 comments were made during the Hearing Second draft was released October 22 Anticipate final approval next month Application will be available in early December All written comments received are posted on our web site

QAP Topics Site Scoring Disaster Recovery Income Averaging Credits per Unit Average Applicant Bonus Point Charts A and B Bond Cycle

Site Scoring - Amenities Double or triple-counting an establishment is permitted. For example: Walmart Supercenter or Super Target can count as Grocery, Shopping, and Pharmacy Harris Teeter with a pharmacy can count as Grocery and Pharmacy

Site Scoring - Maps The drivable route must be shown in map format using Google Maps Must have a separate map showing route for each amenity Pins must be dropped at entrance to the amenity and the proposed entrance to the site Map should be the satellite view and clearly show both entrances A photo of each amenity must be provided

Satellite View Map

Undesired Map

Disaster Recovery 12.5% of total credit allocation will be added to the East Approximately $2.8 million in additional credits (4-5 projects) Counties in Central and East declared federal disaster area (Individual Assistance designation) under Hurricane Florence are eligible for a 2nd award after all other counties with an eligible application have received one award, credits permitting Example: 12 awards can be made in East; receive applications from 9 counties; the last 3 awards go to the 2nd highest scoring applications in 3 highest scoring disaster counties Cumberland County is guaranteed 1 award in the Metro The initial maximum award of credits will not apply to Cumberland if the county is eligible for a 2nd award

Disaster Recovery New construction projects in federally declared disaster counties (Individual Assistance designation) under Hurricane Florence are eligible for Disaster Recovery funds Funds will be awarded by the Agency to projects in those counties receiving an allocation of 9% tax credits and will be used to reduce requests of tax credits and/or WHLP Intent is to use freed-up resources to fund additional projects 31 declared disaster counties (Individual Assistance designation) as of today: Anson, Beaufort, Bladen, Brunswick, Carteret, Columbus, Craven, Cumberland, Duplin, Greene, Harnett, Hoke, Hyde, Johnston, Jones, Lee, Lenoir, Moore, New Hanover, Onslow, Orange, Pamlico, Pender, Pitt, Richmond, Robeson, Sampson, Scotland, Union, Wayne, and Wilson

Income Averaging Income average for the property cannot exceed 60% AMI Income average for any bedroom type cannot exceed 60% AMI Market rate units are prohibited Owners must select that each building is part of a multiple building set-aside on line 8b in Part II of IRS Form 8609 Cannot have more than 4 income bands (applies to any application) Available to 4% and 9% applications Not available to projects with an existing LURA

Credits per Unit Average Points will be awarded based on a project’s per unit credit request as it relates to the average per unit credit request for a given region All full application projects in a region will be used to calculate the average, including those that may be determined to be ineligible for award Average is derived by taking per unit credit request for each project in a region, then determining the average of those amounts within a given region 2018 Averages: Central - $11,724 East - $11,712 Metro - $11,747 West - $12,078

Credits per Unit Average - Points Change for 2019 will be to award points as follows: - Within 4% of the average: 2 points - Within 8% of the average: 1 point - More than 8% above or below the average: 0 points

Credits per Unit Average Rationale In 2018, a project requesting $12,310 per unit in credits scored more points than a project requesting $10,552 per unit in credits Change lessens rewarding an Applicant for an inefficient use of the credit Projects scoring 0 and 1 point in this category received an allocation of credits in 2018

Applicant Bonus Point 1 point per Applicant or Principal No application can receive more than 1 bonus point Election is made at full application Should an Applicant or Principal place a bonus point on more than 1 application, the bonus point will be placed on the lowest scoring application

Bond Cycle First cycle: follows same time line as 9% beginning in January Second cycle: preliminary application can be submitted any time between May 1 and October 1 Schedule for project milestones will be developed once preliminary application is submitted Expect time between milestones to be similar to 9% schedule Full application submission date will determine whether Applicant receives 2019 or 2020 volume cap

Appendix B The required exterior storage closet for each unit may not be inside the dwelling unit All interior common areas, hallways, and enclosed corridors must be served by heating and cooling systems Dishwasher must be installed beside kitchen sink Grab bars installed behind toilets must be a minimum of 36” in length All call for aid devices must be installed below bedroom and bathroom light switches In all Type A units, a 60” minimum turning radius is required in all usable areas of the kitchen, accessible bathroom, laundry room, and closets deeper than 48”

Appendix B In vinyl siding applications, all siding penetrations must be in plastic j-boxes Dryer exhaust ducts, bath exhaust fans, and range hood fans may not be vented through the roof Clothes dryer vent connection box must be metal Compact parking spaces may be included but will not count toward the required minimum number of full sized parking spaces

Appendix B Awarded projects must submit full set of drawings for plan review including civil, architectural, structural, mechanical, fire sprinkler, landscaping, and site lighting plans. All plumbing fixture schedules must be complete. The plans must be 24” x 36” and be professionally bound.

Questions?