NAC319.986. Eligibility for reservation or award of tax credits; inspections by Division; additional conditions and requirements.

     1. The requirements for eligibility for a reservation or award of tax credits pursuant to NAC 319.951 to 319.999, inclusive, are as follows:

     (a) Each applicant and project sponsor must execute a letter of commitment in which the applicant and project sponsor agree to operate the project for not less than 30 years in accordance with the requirements set forth in those sections. The letter of commitment must be included with the application submitted by the applicant to the Division. If the Division makes a final award of tax credits for the project, the applicant and project sponsor must execute a declaration of restrictive covenants and conditions and record the declaration in the county in which the project is located.

     (b) The rent for the units in the project must be restricted and:

          (1) At least 20 percent of the units must be occupied by households with incomes that are 50 percent or less than the median income of the area in which the project is located, adjusted for family size pursuant to the Code; or

          (2) At least 40 percent of the units must be occupied by households with incomes that are 60 percent or less than the median income of the area in which the project is located, adjusted for family size pursuant to the Code.

Ê For the purposes of this subsection, the rent of a unit is restricted if the gross rents paid do not exceed 30 percent of the applicable limitations on income set forth in the Code.

     (c) The project must be financially feasible at the time the applicant submits his or her application to the Division and at the time the Division makes a final award of tax credits.

     (d) The reservation or award of tax credits for the project must be consistent with the fostering of decent, safe and sanitary housing for low-income persons as set forth in any applicable statutes and regulations and must comply with the requirements set forth in the Code or the qualified allocation plan. The Division may conduct an inspection of a project to ensure compliance with any applicable provisions of the Fair Housing Act of 1968, 42 U.S.C. §§ 3601 et seq., or the Americans with Disabilities Act of 1990, 42 U.S.C. §§ 12101 et seq., as amended, to ensure that any building or facility of the project is accessible to persons with disabilities. The Division:

          (1) May impose additional conditions on a proposed project to ensure that the project complies with the requirements of those acts; and

          (2) Will reject the application for that project if those conditions are not satisfied.

     (e) Each applicant must include with his or her application the report of a study conducted by a person other than the applicant or project sponsor. The report must be submitted on a form approved by the Division and:

          (1) Describe the project;

          (2) Provide evidence of the need for the project in the proposed location of the project; and

          (3) Specify the methods upon which any findings or conclusions included in the study are based.

     2. The Division may establish in the annual plan any additional requirements for eligibility for a reservation or award of tax credits pursuant to the provisions of NAC 319.951 to 319.999, inclusive.

     (Added to NAC by Housing Div. by R057-97, eff. 1-15-98)