Notice of Public Hearing

The Hawaii Housing Finance and Development Corporation (HHFDC), State of Hawaii, will hold a statewide public hearing to accept comments on the existing Qualified Allocation Plan (QAP) of the Low-Income Housing Tax Credit Program (LIHTC), and proposed amendments.

Date: Tuesday, November 18, 2008
Time: 1:00 p.m.
Place: Hawaii Housing Finance and
Development Corporation, Boardroom
677 Queen Street, Suite 300
Honolulu, Hawaii 96813

The proposed QAP is to be effective for two allocation years, 2009 and 2010.

Proposed amendments to the QAP include:

– Updating the following changes to implement the requirements of the Housing and Economic Recovery Act of 2008 (H.R. 3221):
1. Amend the Selection Criteria to include energy efficiency and historic nature of the project.
2. Ability of the State to designate certain buildings as eligible for the 130% basis boost.
3. Amend the minimum rehabilitation threshold.
4. Eliminates the annual income recertification requirement for 100% LIHTC projects after the first year anniversary of their initial tenancy.
5. Requires agencies to compile annual tenant data.
– Updating Compliance Monitoring Section to include additional reporting requirements.
– Addition of two (2) new sections explaining High Cost Area Designation/Minimum Rehabilitation Requirement and Qualified Contracts.
– Updating the Fees Section to amend the Good Faith Deposit and to add a Qualified Contract Processing Fee.

Proposed amendments to the existing Selection Criteria Point System of the QAP include:

– Amends the Minimum Threshold by adding the requirement for Capital Needs Assessment to identify any work that must be completed immediately to address health and safety issues, violation of Federal or State law, violation of local code or any work necessary to ensure that the building can continue to operate as affordable housing.
– Amends Criteria 1 by increasing the maximum points available to 10 points and awarding the maximum points to projects electing to commit to an extended use period (in addition to the 15 year LIHTC compliance period) for 46 years or more. Points will only be awarded to projects that elect to waive its right to exercise a request for a qualified contract pursuant to Section 42(h)(6)(E)(i)(II).
– Amends Criteria 2 by awarding points to projects electing to provide affordable units for tenants earning 50% and 60% of AMGI. Units at 50% of AMGI will receive more points than the 60% AMGI units.
– Amends Criteria 3 by increasing the maximum points available to 8 points and increasing the range of “Total Tax Credits Requested (Annual)/Total Number of Proposed Low Income Rental Units” to reflect the increase in development cost.
– Added Criteria 16 that rewards promotion of energy efficiency in development.
– Added Criteria 17 that rewards the historic nature of a project.

All interested persons are invited to attend the hearing and to state their views relative to the QAP, either orally or in writing. If written testimony is presented, two (2) copies of the testimony shall be made available to the presiding officer at the public hearing. Written testimony may also be submitted prior to the public hearing to the HHFDC at the address listed above.

Copies of the QAP with the proposed amendments are available at www.hawaii.gov.dbedt/hhfdc or may be obtained at no cost in advance of the hearing at 677 Queen Street, Room 300, between the hours of 7:45 a.m. and 4:30 p.m., Monday through Friday. If you need copies mailed or faxed, or if special accommodations are needed for the public hearing (i.e., large print, taped materials, sign language, interpreter, etc.), please notify Ms. Sherrie Kagawa by November 11, 2008 at: