Virginia Law

In the case of any buildings or development to be financed by certain tax-exempt bonds of the authority, or an issuer other than the authority, in such amount so as not to require under the IRC an allocation of credits hereunder, the owner of the buildings or development shall submit to the authority, prior to the issuance of the bonds, an application for allocation of credits and supporting information and documents as described in 13VAC10-180-70, and such other information and documents as the executive director may require (including a market study, in form and substance satisfactory to the authority, that shows adequate demand for the housing units to be produced by each applicant's proposed buildings or development). The executive director shall determine, in accordance with the IRC, whether such buildings or development satisfies the requirements for allocation of credits hereunder. For the purposes of such determination, buildings or a development shall be deemed to satisfy the requirements for allocation of credits hereunder if (i) the application submitted to the authority in connection therewith is assigned not fewer than the threshold number of points under the ranking system described in 13VAC10-180-60, (ii) the executive director shall determine that the buildings or development shall receive an amount of credits necessary for the financial feasibility of the development and its viability as a qualified low-income housing development throughout the credit period under the IRC, as more fully described in 13VAC10-180-70, and (iii) premature retirement of any of the tax-exempt bonds or principal portion thereof issued to finance the buildings or development (including any tax-exempt bonds issued solely for the purpose of satisfying the requirement in § 42(h)(4)(B) of the IRC) shall be neither required by the terms of the bonds nor anticipated by the applicant during the period commencing on the date of issuance of such bonds and ending on the date seven years thereafter. For the purpose of clause (iii) above, premature retirement shall be any total reduction in the principal amount of such bonds or portion thereof during such seven-year period in excess of 50% of the original principal amount of such bonds or portion thereof. The principal of any bonds that are defeased or for which funds (and any investments thereof) are otherwise determined by the authority to be available during such seven-year period for payment of principal thereof shall be deemed to be reduced by the principal amount so defeased or by the amount of such available funds during such seven-year period. Compliance with clause (iii) above shall be determined by the authority based upon the substance of the transactions and without regard to any artifice or device intended to evade the requirement prohibiting the premature retirement of bonds as described in clause (iii) above. Notwithstanding anything contained herein, the requirement in clause (iii) above shall not apply to tax-exempt bonds, not exceeding $3,000,000 in original principal amount, issued for the rehabilitation of any development secured by a Rural Development 515 loan, provided such tax-exempt bonds are issued with the intent to preserve the Rural Development 515 loan.

The owner of the buildings or development shall, as required by the executive director, pay such fees as described in 13VAC10-180-50, and such good faith deposits as described in 13VAC10-180-70. Furthermore, the owner of the buildings or development shall satisfy all other requirements for an allocation as required by the executive director, including execution, delivery and recordation of an extended low-income housing commitment as more fully described in 13VAC10-180-70 and all requirements for compliance monitoring as described in 13VAC10-180-90.