NAC319.993. Calculation of final award of tax credits.

     1. The amount of a final award of tax credits 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 of NAC 319.991,

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 nonqualifying portion of higher-quality unit costs from an amount that is equal to 70 percent of the total actual 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 of NAC 319.991, if the project is located in a qualified census tract or an area which 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 the applicable percentage of housing credits prescribed by the Secretary of the Treasury pursuant to section 42(b)(2) of the Code.

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