Affordable Housing Assistance Program (AHAP)

2. Affordable Housing Assistance Program (AHAP) • An incentive for eligible Missouri businesses and/or individuals with business interest to donate to non-profit or community based organizations with a mission to provide affordable housing to low income individuals and families.

3. Affordable Housing Assistance Program (AHAP) • Credit of up to 55% of the total value of an eligible donation • Transferable and can carry forward for 10 years • Used against Missouri tax liability for corporate, individual, franchise and other types of business taxes

4. Eligible Agency • 501(c)3, 501(c)4, or 501(c)6 and designated community development corporations • Fund raising capability • Ability to attract eligible donors • Have to provide housing

5. Eligible Donor • Corporations, s-corps, partnerships, limited liability companys, banks and foundations • Individuals with farm, or rental or royalty income • Must be subject to Missouri tax from business activities preformed in the state of Missouri.

6. AHAP Production Credits • $10,000,000 in credits available throughout fiscal year July 1 – June 30 • Used for acquisition, rehabilitation and new construction of affordable housing or rental assistance to income qualified residents of affordable housing developments. • Land Use Restriction Agreement (LURA) placed on property/10 year compliance

7. AHAP Operating Credits • $1,000,000 in credits available in two application rounds • Used by the agency for general operating expenses including mortgage/rent, salaries, office supplies/equipment, utilities, professional services and maintenance and repair • 2 years of compliance

8. Application Process • Notice of Funding Availability (NOFA) for application deadlines • Application is located at http://www.mhdc.com/rental_production/ahap/index.htm • Exhibit requirements depend on type of credits requested • 30 day waiting period for comments from mayor, state senator and state representative • Agency check (DOR, MO Secretary of State, IRS) • $100 application fee (non refundable)

9. Application Review • Primary Criteria • Eligibility of agency, donor and donation • Completeness of application • Income qualification of proposed households • Previous participation • Secondary Criteria • Agency Criteria • Past Performance • Ability to utilize reservation • Pledge list or plan to obtain donations • Financial stability

10. Application Review • Secondary Criteria for type of credit • Production Criteria • Feasibility • Need • Leverage • Reasonableness • Timing of application • AHAP unit set-aside • Operating Criteria • Need • Leverage • Reasonableness • Eligibility of proposed use of donated funds

11. Reservation Process • MHDC reserves the right to award credits in an amount less than the application request • Reservation letter detailing awarded amount, tax credit fee, and deadline to receive eligible donations • Donations must be received within the timeframe in the reservation letter • MHDC will recapture any unused credits • Progress report submission outlined in reservation letter

12. Donation Process • Agencies are responsible for ensuring all donors and donations are eligible • Employees of agency are not eligible to make donations • Donor and agency will complete the Tax Credit Certification form (AHAP-125) and submit with proper proof of donation

13. Donation Process • MHDC will prepare a Land Use Restriction Agreement (LURA) to be placed on the property to maintain affordability for 10 years • LURA must be placed on the property prior to issuance of any credits • LURA outlines income and rent restrictions, and number of AHAP units required for the development • LURA outlines compliance forms for type of development • LURA then sent to agency for signature

14. Allocation Process • Documentation check for completeness, accuracy and eligibility • Tax Credit certification must be completed for each donation • Must be completed by donor and agency • Must be notarized

15. Compliance • Production • Agencies may be audited to ensure compliance with MHDC guidelines. Compliance requirements extend both to documentation and receipt/use of donations and LURA restrictions • MHDC staff shall periodically visit property during 10-year compliance period and request certifications or documentation demonstrating compliance with terms of the LURA • Agencies must submit reporting forms for compliance as outlined in reservation letter and LURA that are specific to each development type

16. Compliance • Operating • Agencies may be audited to ensure compliance with MHDC guidelines. Compliance requirements extend both to documentation and receipt/use of donations • Agencies must submit reporting forms for compliance as outlined in the reservation letter • MHDC staff shall periodically visit agency and request reports of activities/population served or other documentation demonstrating compliance outlined in the reservation letter

17. Contact Info • Gus Metz – AHAP Administrator • 816.759.6878 or gmetz@mhdc.com • Pamela Sanders – AHAP Specialist • 816.759.6684 or psanders@mhdc.com • http://www.mhdc.com/rental_production/ahap/index.htm