NAC319.989. Criteria for award of preference points.

     1. The Division will include in each annual plan the following criteria for awarding preference points:

     (a) The location of the project;

     (b) Housing needs;

     (c) The characteristics of the project and project sponsor;

     (d) Participation in the project by local tax-exempt organizations;

     (e) Populations of tenants who require special housing;

     (f) Waiting lists for public housing; and

     (g) Projects that serve tenants with the lowest incomes and that are required pursuant to the Code to serve qualified tenants for the longest period.

     2. The Division will, in each annual plan, include provisions to assess housing characteristics and requirements and establish specific criteria intended to satisfy the goals of the Administrator for the year for which the plan is adopted. The Administrator will consider the criteria specified in subsection 1 and may use any other criteria he or she establishes to carry out those goals. The criteria may be used to establish the requirements for a reservation or award of tax credits, requirements for setting aside tax credits and preference points or other systems of allocation. The provisions of this section provide guidelines and requirements for specific criteria if those criteria are used for awarding preference points in the annual plan. If a conflict occurs between a provision in the annual plan and any provision of NAC 319.951 to 319.999, inclusive, the provision in the annual plan must be applied for the plan year.

     3. The Division may award preference points for a project that is located in any area identified in the annual plan.

     4. The Division may award preference points for a project that is located in an area where rents are substantially higher than the proposed rents for the project as stated in the annual plan. To qualify for preference points pursuant to this subsection, an applicant must provide market surveys or any other reports satisfactory to the Division.

     5. The Division may award preference points to a project if the rent for not less than 20 percent of the units in the project is restricted and those units are occupied by tenants whose incomes are 50 percent or less than the median income of the area in which the project is located in accordance with section 42(g)(1) of the Code.

     6. The Division may award preference points to a project if the applicant chooses to rent units to persons whose incomes are lower than the requirements of paragraph (b) of subsection 1 of NAC 319.986. The declaration of restrictive covenants and conditions signed by an applicant who requests preference points pursuant to this subsection must state that the units in the project are restricted to lower levels of rent during the compliance period. There must be a pro rata mix of types of units.

     7. The Division may award preference points based on the percentage of units in the project for which rent is restricted as provided in the declaration of restrictive covenants and conditions recorded for the project.

     8. The Division may award preference points based on the number of units in the project with three or four bedrooms that are suitable for large families.

     9. The Division may, as provided in the annual plan, award preference points for amenities provided for a project.

     10. The Division may award preference points for projects for older persons. To qualify as a project for older persons, the project must comply with the requirements for housing older persons set forth in the Fair Housing Act of 1968, 42 U.S.C. §§ 3601 et seq., as amended, and any regulations adopted by the United States Department of Housing and Urban Development pursuant to that Act.

     11. The Division may award preference points to an applicant if:

     (a) The applicant, at the time he or she is considered for the award, signs an agreement on a form provided by the Division agreeing that:

          (1) The construction of the project will begin not later than 270 days after the date of any reservation of tax credits; and

          (2) If the construction does not begin during that period, any tax credits awarded to the applicant will be forfeited and the applicant may not apply for tax credits for the project during the allocation round, including any tax credits the project sponsor has forfeited; or

     (b) The title to the property for the project is vested in the name of the applicant at the time he or she submits the application and is free from any conditions, liens or encumbrances other than:

          (1) A condition that the property is used for low-income housing or that tax credits must be awarded for the project;

          (2) A monetary lien, including a judgment lien, deed of trust, mechanic’s lien or similar lien whose payment is specified in any document submitted pro forma for the project; or

          (3) Any other condition, lien or encumbrance approved by the Division.

     12. The Division may award preference points if the appropriate zoning authority submits a letter to the Division describing the project and indicating that the property for the project is zoned for the size and type of project described in the application.

     13. The Division may award preference points if a project sponsor agrees to extend the compliance period for more than 30 years and a letter is included in the application indicating the number of years that the sponsor agrees to extend the compliance period.

     14. The Division may award preference points to an applicant who is based in this State. An applicant shall be deemed to be based in this State if he or she:

     (a) Is a sole proprietor and is a resident of this State.

     (b) Is a business entity and:

          (1) Is organized as a corporation, partnership, limited-liability company or other similar entity pursuant to the laws of this State; and

          (2) Maintains an office in this State:

               (I) From which a general partner, managing member or principal officer of the applicant, including a president or chief financial or operating officer, conducts regular business; and

               (II) That is sufficiently identified and staffed to ensure that a member of the general public may visit the office to discuss matters relating to the project.

     15. The Division may award preference points to a corporation, partnership or limited-liability company whose general partner, managing member or principal officer, including a president or chief financial or operating officer, has not less than 5 years of experience in the construction of housing in this State. To qualify for preference points pursuant to this subsection, the application:

     (a) Must include documents that establish that the applicant has engaged in business in this State for at least 5 years within the previous 10 years;

     (b) May include documents that indicate any housing projects constructed by the applicant and supporting documents, including loan agreements, construction agreements, parcel or subdivision maps, certificates of occupancy, building permits or other similar documents; and

     (c) May include audited financial statements if the statements specify any income the applicant received for the construction of housing in this State.

     16. The Division may award preference points to an applicant, including a sole proprietor or general partner, managing member, president or chief operating or financial officer of an applicant, who has demonstrated experience in substantially participating in the development or construction of low-income housing projects. To qualify for preference points pursuant to this subsection, the application must:

     (a) Include the address of each of those projects; and

     (b) Identify each officer or employee of the applicant who substantially participated in the development or construction of the project and the nature and extent of that participation.

     17. The Division may award preference points based on the amount of participation in a project by a tax-exempt organization that is a public housing authority organized pursuant to the laws of this State or a nonprofit organization that:

     (a) Is organized pursuant to the laws of this State;

     (b) Is in good standing in this State; and

     (c) Complies with the requirements set forth in NAC 319.988.

     18. The Division may award preference points to a project based on the amount of capital invested by a tax-exempt organization specified in subsection 17, regardless of whether any other participant in the project resides or is based in this State.

     19. The Division may award preference points to a project for which units are reserved for persons who require special housing as provided in the annual plan. The reservation of those units must be for the compliance period and be described in the declaration of restrictive covenants and conditions recorded for the project.

     20. The Division may award preference points to a project for which units are reserved for handicapped persons as defined in the Fair Housing Act of 1968, 42 U.S.C. §§ 3601 et seq., and any regulations adopted pursuant to that Act by the United States Department of Housing and Urban Development. The annual plan will specify the requirements for the units that are so reserved. To qualify for preference points pursuant to this subsection, the applicant must designate the units that are reserved for handicapped persons with physical disabilities and the units that are reserved for handicapped persons with mental disabilities. Before any tax credits may be awarded for the project, if the unit is:

     (a) For a person with a physical disability, the unit must be:

          (1) Designed to meet the requirements set forth in the annual plan for buildings that provide accessibility for persons with disabilities. As a part of the application, the architect for the project must certify that the designated units meet or exceed those requirements and, before any final award of tax credits, the Division must receive a certificate or other evidence satisfactory to the Division that each of those units complies with those requirements.

          (2) Constructed with such additional amenities and equipment as are necessary to ensure that the units are usable for persons with disabilities as specified in the annual plan. The applicant must agree to provide the amenities and equipment as a condition of the application.

     (b) For a person with a mental disability, the applicant must enter into an agreement with a licensed public or private mental health organization to provide, on the site of the project, counseling and rehabilitative or other appropriate support services to a tenant in the unit. The agreement must specify the number of units for which those services must be available and the nature of services that may be provided by the organization for the tenants. The agreement must be included in the application and be satisfactory to the Division before preference points may be reserved and awarded.

Ê During the compliance period, the reserved unit may be substituted for another unit if the substituted unit is appropriately equipped to accommodate the tenant and if handicapped persons occupy the total percentage of units that qualified the project to receive preference points pursuant to this subsection.

     21. The Division may award preference points to a project for which units are reserved for households with single parents. The units must be specifically identified in the application. During the compliance period, any unit may be substituted for a unit specified in the application if the required percentage of total units are occupied by households with single parents.

     22. The Division may establish in each annual plan additional criteria for awarding preference points for the plan year.

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