SECTION 330:36-4-2. Selection of Applications for award of TCAs

(a)   General. For the purpose of selecting Applications for awards of TCAs, OHFA shall develop Threshold and Selection Criteria that conform to the Code, the OAHTC Program purposes and these Chapter 36 Rules for inclusion in the next AP. The number, severity, or value of any one or more of the Threshold or Selection Criteria items may be increased by adoption of an AP for a given year that contains such increased Threshold or Selection Criteria items. However, each AP must contain for any AP, criteria to evaluate set-asides and all Threshold and Selection Criteria.

(b)   Minimum Threshold Criteria. Failure to meet all Threshold Requirements set forth in the AP upon initial submission of the Application may result in the Application being rejected without further review. The Threshold Criteria may include, but are not necessarily limited to the following:

(1)   Notice Requirements. The provisions of this subsection apply to all Applicants for a TCA, All notice requirements must be satisfied not less than thirty (30) and no more than ninety (90) calendar days prior to submission of an Application. Each Application requires notice. If the Application is considered at a different Trustees meeting than in the notice, this notification requirement is considered to be met. Notice of an Applicant's intent to file an Application shall also be published in the local newspaper of the area wherein the Development will be located. The requirements for the publication notice will be in the AP.

(2)   Market analysis. All Applicants must submit a third party, independent housing market analysis conforming to the Threshold Criteria set forth in the AP, demonstrating and documenting the status of the market demand for the type and number of Housing Units proposed to be developed.

(3)   Nonprofit Owners. Applicants proposing Developments under the Nonprofit set-aside must demonstrate and document that the Nonprofit Owner and/or Nonprofit ownership participant meet the definition of a Nonprofit Sponsored Development as defined in Section 42h(5)(C) of the Code and these Chapter 36 rules at 330:36-1-4. Applicants for Nonprofit set-aside TCAs must demonstrate that the Nonprofit participant:

(A)   demonstrates more than fifty percent (50%) Ownership in the general partner or managing member;

(B)   will materially participate, on a regular basis, in the planning and construction of the Development, and in the operation and management of the Development throughout the entire Compliance Period pursuant to 26 CFR § 1.469;

(C)   has a Board of Directors and Officers that are independent from any for-profit Development partner; and

(D)   is duly authorized to do business within the State; and

(E)   has at least one year of affordable housing experience.

(4)   Capacity and prior performance. Each Applicant must demonstrate and document the degree of expertise of Applicant and Owner, the Development Team, general partner, management, and principals thereof in the use of TCAs in the development, rehabilitation and/or conversion, management and operation of properties related to the type of the proposed Development. Instances of nonperformance include, but are not limited to:

(A)    having been involved in uncured financing defaults, foreclosures, or placement on HUD's list of debarred contractors;

(B)   events of material uncorrected noncompliance with any Federal or State assisted housing programs within the prior seven (7) years;

(C)   the appointment of a Receiver; conviction on a felony criminal charge; or bankruptcy within the prior seven (7) years;

(D)   removal as a general partner/managing member;

(E)   failure to meet and maintain any material aspect of a Development as represented in a Development Application;

(F)   failure to meet and maintain minimum property standards;

(G)   failure to bring any Development back into compliance after receiving written notice from OHFA's Compliance Staff.

(H)   failure to comply with OHFA's requests for information or documentation on any Development funded or administered by OHFA;

(I)   Extension requests depending on number and severity; and/or

(J)   excessive late or incomplete reports to OHFA.

(5)   Acquisition Credits. Applicants requesting acquisition Credits must provide an opinion of independent counsel, in a form satisfactory to OHFA, that the requirements of Code Section 42(d)(2)(B) have been met or a waiver obtained from the IRS.

(6)   Financial feasibility and viability. Applicants must demonstrate that there are Commitments to the Development's financial feasibility and viability as a qualified low-income housing Development. Applicants must demonstrate to OHFA's satisfaction that the Applicant has financing Commitments for one hundred percent (100%) of the project's total estimated construction and permanent financing. Items required to be included in financing Commitments will be established in the AP. Requirements set out in 36-4-2.1 (b)(c) and (d) are part of the analysis for financial feasibility.

(7)   Readiness to proceed. Applicants must demonstrate readiness to proceed in a timely manner should they be awarded a TCA. Factors that may be considered regarding Development readiness may include but not be limited to:

(A)   Site Control;

(B)   preliminary plans or specifications;

(C)   proper zoning for the proposed Development; and

(8)   Capital Needs Assessment. All Applications for rehabilitation will be accompanied by a Capital Needs Assessment as established in the AP.

(9)   Development amenities. Each Application will be analyzed and evaluated as to Commitments made therein for the provision of amenities. Amenities and documentation requirements will be established in the AP.

(c)   Selection Criteria. The Selection Criteria, documentation, and points shall be set forth in the AP. Selection may include, but not necessarily be limited to the following:

(1)   Income targeting. Each Application will be analyzed and evaluated as to the extent to which it is demonstrated therein a Commitment to target lower-income populations.

(2)   Term of affordability. Each Application will be analyzed on its ability and evaluated as to any Commitments made therein in regard to serving qualified tenants for a period of time longer than the minimum required by the Code.

(3)   Development location. Each Application will be analyzed and evaluated as to the location for the proposed Development.

(4)   Tenant/Targeted Populations. Each Application will be analyzed and evaluated as to the extent to which Commitments are made therein to serve such Targeted Populations as are designated in the AP.

(5)   Tenant Populations of Individuals with Children. Each Application will be analyzed and evaluated as to the extent to which it serves tenant populations with children.

(6)   Tenant ownership. Applicants proposing single family home ownership after the Compliance Period must submit a detailed plan which includes projections on maintenance, tenant reserve funds, etc., which will be evaluated for feasibility.

(7)   Preservation of affordable housing. Each Application will be analyzed and evaluated to how an Application is preserving affordable housing.

(8)   Energy Efficiency/Green Building of a Development. Applicants are encouraged to provide energy efficient Developments and to utilize green building. This may be a separate point category, or it may be combined within another Threshold or Selection category.

(9)   Historic Nature of a Development. This may be a separate point category, or it may be combined within another Threshold or Selection category.

(10)   Negative Points. OHFA Staff may deduct points for records of poor performance.

(11)   Tie-breaker. In case there are Applications with the same final score in any set-aside that will affect funding, the tie-breaker procedure will be established in the AP.

(d)   OHFA Trustee discretion. Notwithstanding the point ranking under the Selection Criteria set forth above under 330:36-4-2(c), the Trustees may in their sole discretion allocate Credits to a project irrespective of its point ranking, if Allocation is:

(1)   in compliance with Code Section 42;

(2)   in furtherance of the housing goals set forth herein, in the AP or any formally adopted Resolution of the Trustees; and

(3)   determined by the Trustees to be in the interests of the citizens of the State.

[Source: Added at 17 Ok Reg 1239, eff 10-1-00; Amended at 17 Ok Reg 3526, eff 8-31-00 (emergency); Amended at 18 Ok Reg 1003, eff 3-14-01 (emergency); Amended at 18 Ok Reg 3055, eff 7-12-01; Amended at 19 Ok Reg 643, eff 1-17-02 (emergency); Amended at 19 Ok Reg 1104, eff 7-11-02; Amended at 20 Ok Reg 2439, eff 1-1-04; Amended at 21 Ok Reg 2280, eff 1-2-05; Amended at 22 Ok Reg 2579, eff 1-2-06; Amended at 23 Ok Reg 2960, eff 1-2-07; Amended at 24 Ok Reg 2539, eff 1-1-08; Amended at 26 Ok Reg 303, eff 11-20-08 (emergency); Amended at 26 Ok Reg 1208, eff 7-1-09; Amended at 26 Ok Reg 2540, eff 1-1-10; Amended at 27 Ok Reg 1812, eff 7-1-10; Amended at 28 Ok Reg 1658, eff 1-1-12; Amended at 30 Ok Reg 1987, eff 1-1-14; Amended at 34 Ok Reg 1378, eff 1-1-18]