CHFA Makes Closer Scrutiny of LIHTC Development Teams
Under its proposed changes to the 2011 Qualified Allocation Plan (QAP), the Colorado Housing and Finance Authority (CHFA) will be taking a harder look at low-income housing tax credit (LIHTC) projects’ development teams. The CHFA would require that the team, which includes the developer and/or sponsor, management agent, CPA, attorney, architect, and general contractor, have someone with LIHTC experience. “Development teams lacking LIHTC experience are encouraged to use an experienced LIHTC consultant,” according to the proposed revision.
The proposed revision also lists applicant experience and track record requirements. If an applicant can’t meet the requirements, it may partner with a developer or management agent that does. Among the requirements are:
- The ability to demonstrate sufficient capacity, financial stability, and liquidity to construct and operate the proposed project.
- The ability to demonstrate experience in developing and operating projects similar to the proposed project.
- Demonstration of a successful track record of completing affordable housing projects within the required timeframes and within the established budget.
- Demonstration of a successful track record by developers and management agents of marketing and leasing affordable housing units on a timely basis.
- The history of a “clean track record” regarding compliance with affordable housing programs and other programs administered by the CHFA. This includes submission of fees, reports, and required documents within set timeframes and timely response to outstanding compliance items from management reviews and inspections.