NAC319.991. Calculation of reservation of tax credits; qualified census tracts; subsequent allocation rounds.

     1. Except as otherwise provided in NAC 319.992, the amount of tax credits to be reserved will be:

     (a) The amount of tax credits requested, as calculated pursuant to subsection 2; or

     (b) The annual amount of tax credits required for the project, as calculated pursuant to subsection 3,

Ê whichever is less.

     2. To determine the amount of tax credits requested pursuant to paragraph (a) of subsection 1, the Division will:

     (a) Calculate the total eligible basis for the project by subtracting the amount of any federal grants used to finance development, nonqualifying nonrecourse financing and the nonqualifying portion of the higher-quality unit costs from an amount that is equal to 70 percent of the total estimated costs of the project;

     (b) Calculate the total adjusted eligible basis for the project by multiplying the total eligible basis calculated pursuant to paragraph (a) by the applicable factor specified in the annual plan pursuant to subsection 4, if the project is located in a qualified census tract or an area that is difficult to develop;

     (c) Calculate the total qualified basis for the project by multiplying the total eligible basis for the project calculated pursuant to paragraph (b) by the ratio of units in the project for which rent is restricted to all units in the project or the ratio of the square footage of the units in the project for which rent is restricted to the square footage of all units in the project, whichever is less; and

     (d) Multiply the total qualified basis calculated pursuant to paragraph (c) by:

          (1) Except as otherwise provided in subparagraphs (2) and (3), 9 percent;

          (2) Except as otherwise provided in subparagraph (3), 4 percent, if the tax credits applied for are in connection with the financing of bonds; or

          (3) An amount specified in the annual plan.

     3. To determine the annual amount of tax credits required for the project pursuant to paragraph (b) of subsection 1, the Division will:

     (a) Calculate the adjusted costs of the project by subtracting the amount of any fees that exceed the maximum amount set forth in NAC 319.987 from the total amount of money used for the project, including the cost of any land for the project and any other costs that are not included in the eligible basis of the project;

     (b) Subtract the total amount of money for the project received from mortgages, grants, investments by project sponsors, developer notes and similar sources of money from the adjusted costs of the project calculated pursuant to paragraph (a);

     (c) Divide the amount determined pursuant to paragraph (b) by the amount of the syndicate pricing factor; and

     (d) Divide the amount determined pursuant to paragraph (c) by 10.

     4. If the project is located in an area that is difficult to develop as specified in the annual plan or in a qualified census tract, the Division may adjust the eligible basis of the project as provided in the annual plan. For the purposes of this subsection, the following areas are qualified census tracts:

Reno.................................. Tract 0001.00

                                           Tract 0009.00

                                           Tract 0018.00

Las Vegas.......................... Tract 0003.01

                                           Tract 0003.02

                                           Tract 0004.00

                                           Tract 0005.04

                                           Tract 0007.00

                                           Tract 0008.00

                                           Tract 0009.00

                                           Tract 0011.00

                                           Tract 0022.01

Las Vegas (cont.).............. Tract 0035.00

                                           Tract 0036.02

                                           Tract 0038.00

                                           Tract 0039.98

                                           Tract 0046.00

Elko County...................... Tract 9501.00

                                           Tract 9505.00

                                           Tract 9506.00

                                           Tract 9515.00

Humboldt County............. Tract 9603.00

Lyon County..................... Tract 9606.00

     5. If increases in the costs of the project occur after the Division makes a reservation of tax credits for the project, an applicant may submit an application during any subsequent allocation round for additional tax credits. The Division will consider an application submitted pursuant to this subsection as a new application. The application will be reviewed as provided in NAC 319.951 to 319.999, inclusive.

     (Added to NAC by Housing Div. by R057-97, eff. 1-15-98; A by R124-04, 10-4-2004)