NAC319.988. Eligibility of nonprofit organization for reservation of tax credits; priority ranking; requirements upon final award.

     1. Unless otherwise provided in the annual plan, the Division will reserve tax credits from amounts that are set aside for nonprofit organizations pursuant to NAC 319.972 if the nonprofit organization:

     (a) Has received a determination letter from the Internal Revenue Service indicating that the organization qualifies pursuant to section 501(c)(3) or 501(c)(4) of the Code and no changes in the organizational or operational characteristics of the organization have occurred after the issuance of the determination letter that affect the validity of the determination;

     (b) Owns an interest in the project directly or through liquidation or dissolution rights as stated in the organizational documents of the applicant;

     (c) Participates on a regular, continuous and substantial basis in the development and operation of the project as specified in sections 42(h)(5) and 469(h) of the Code during the compliance period;

     (d) Is not affiliated with or controlled by a for-profit organization as determined by the Division in accordance with section 42(h)(5)(c)(ii) of the Code;

     (e) Has adopted organizational documents, including articles of incorporation, a partnership agreement and other similar documents that include as one of its purposes the fostering of low-income housing; and

     (f) Otherwise complies with the provisions of section 42(h)(5) or any other applicable provision of the Code.

     2. If more than one project is eligible for the tax credits that are set aside for nonprofit organizations, the Division will rank the projects in order of priority in accordance with the provisions of NAC 319.989 and 319.990.

     3. If the Division makes a final award of tax credits to a nonprofit organization specified in subsection 1, the organization shall:

     (a) Continuously and substantially participate in the management and operation of the project during the compliance period; and

     (b) Submit annually to the Division a certified statement indicating that it is in compliance with the provisions of paragraph (a).

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