Neighborhood Assistance Program (NAP) Application Workshop Fiscal Year

Agenda Community Development Staff What is NAP? Program Trends Application Package Application Forms

Community Development Staff Cecelia Johnson-Powell – Community Development Supervisor 8 Community Development Representatives Sara Cobb & Diane Cook – Community Development Coordinators

What is NAP? Organizations use NAP tax credits to help them leverage more/larger donations NAP gives the donor incentive to contribute to an organization, i.e. tax credit for exactly 50% of the donation amount Organizations apply to IHCDA for NAP tax credits

Goals of NAP Provide organizations with a tool to help them increase charitable contributions, build their donor base, and achieve self-sufficiency. Provide Indiana citizens & businesses an incentive to contribute to not-for-profit corporations. Serve as a creative way to improve the standard of living & quality of life for all Hoosiers. Be flexible enough to respond to the changing needs throughout the State of Indiana.

Award Amounts Maximum Award Amount = $50,000 in tax credits / $100,000 leveraged NAP funds Minimum Award Amount = $1,000 in tax credits / $2,000 leveraged NAP funds Award Term = 24 Months

Eligible Activities Affordable Housing Construction or Rehabilitation Child Care Services Counseling Services Downtown Revitalization Educational Assistance Emergency Food Assistance Emergency Shelter Housing Job Training Medical Care Services Recreational Facility Transportation Services

Eligible Activities Religious Organizations May not engage in inherently religious activities as part of NAP assistance May not discriminate against a program beneficiary or prospective beneficiary on the basis of religious belief

Eligible Costs Salaries and benefits of an individual (employee of the applicant) that provides direct service to beneficiaries Basic construction materials Skilled labor for construction projects Stoves and refrigerators

Ineligible Costs Administration Costs: Administrative Assistant, Office Supplies, Rent, Utilities Complimentary / Non-Stationary Building Materials: Appliances, Furniture, Home Accessories, Landscaping, Driveways

NAP Tax Credit Process Donor and organization complete an NC-10 form Contributions are reported to IHCDA quarterly, then processed through the Indiana Department of Revenue (IDOR) Organizations have a quarterly spending rate.

NAP Tax Credit Process IDOR sends each donor an NC-20 form to use when filing taxes NAP tax credits are subtracted from the donor’s state income tax liability

NAP Program Trends Application Statistics $2,500,000 tax credits awarded annually 136 applications received 93 funded 100% funding rate 75% funding rate 50% funding rate 32.37% funding rate

Projects may encompass multiple activities. Therefore, the calculations shown above may count an organization more than one time. NAP Program Trends Activities Funded Activity and Number Funded

Application Process 1. Threshold and Completeness All required exhibits and attachments are submitted on time to IHCDA Meets list of items under Threshold Criteria If an application fails threshold, it will not be awarded NAP tax credits. 2. Allocation Applications that pass the completeness and threshold reviews are then allocated a tax credit amount according to IHCDA’s published allocation method.

Completeness Do not put your application in a binder. Use an appropriately sized binder clip. Please use tabs for all attachments. Applications must be received by 5 PM (Indianapolis time) on the published due date - NO EXCEPTIONS Postmarks are not accepted.

Completeness cont. Submit: 1 original w/ tabbed attachments 1 completed electronic copy of the final application forms via CD-ROM or diskette.

Threshold Criteria To be considered for a tax credit allocation award, an applicant must meet all of the criteria listed. Applications that fail to meet any of these criteria will not be considered for funding. All required supporting documentation must be included in the application. The applicant must be a 501 (c) 3 not-for- profit corporation.

Threshold Criteria cont. The proposed activity must meet all the requirements as instructed in the Neighborhood Assistance Program (NAP) Application.

Threshold Criteria cont. The applicant must provide community services in an economically disadvantaged area by meeting at least one (1) of the following four (4) conditions: Enterprise Zone Serves 100% beneficiaries at 50% or less AMI Meets 3 of 4 Economic Factors of Disadvantaged Area Activity is located in or improving conditions in Designated Area

Threshold Criteria cont. Applicants provide a budget outlining the uses of funds for the project. Applicants, who received a NAP tax credit allocation in the previous three years, must have utilized/allocated a percentage of their tax credit award to meet threshold.

Allocation Method Tax Credit Allocation based on four factors: Applicant’s receipt of NAP tax credits in the previous three years Applicants who pass threshold will receive a tax credit allocation. Total Amount of Tax Credits Requested from applications that meet threshold Total Amount of Tax Credits Available

Allocation Method The formula for calculating the award amount for each eligible applicant is as follows: Total Amount of Tax Credits Available divided by Total Amount of Eligible Tax Credits Requested, which provides the Tax Credit Allocation Percentage. The Tax Credit Allocation Percentage is multiplied by the Eligible Applicant’s Tax Credit Request.

NAP Timeline Application WorkshopsFebruary 2007 Application Due DateMarch 23, 2007 Application Receipt Confirmation Number March 30, 2007 Award AnnouncementsMay 24, 2007 Award WorkshopsJune 2007

Application Forms Application Information Economic Disadvantage Financing Organizational Capacity Primary Activity Terms, Obligations & Conditions Drug Free Workplace