Fillable 2009 QAP And Exhibits (Arizona)

Fill Online, Printable, Fillable, Blank 2009 QAP And Exhibits (Arizona) Form

Use Fill to complete blank online ARIZONA pdf forms for free. Once completed you can sign your fillable form or send for signing. All forms are printable and downloadable.

2009 QAP And Exhibits (Arizona)

On average this form takes 28 minutes to complete

The 2009 QAP And Exhibits (Arizona) form is 312 pages long and contains:

  • 0 signatures
  • 69 check-boxes
  • 79 other fields

Country of origin: US
File type: PDF

BROWSE ARIZONA FORMS

Related forms
Fill has a huge library of thousands of forms all set up to be filled in easily and signed.
Fill in your chosen form
Sign the form using our drawing tool
Send to someone else to fill in and sign.
find another form
 
Thisdocumentmaybemadeavailableinalternativeformatsuponrequest.
PleasecontactJoyJohnsonSpecialNeedsDivision,ArizonaDepartmentofHousing,
bytelephoneat(602)771‐1026orTTY(602)771‐1001,orbyemailat:joy.johson@azhousing.gov
.
LowIncomeHousingTaxCreditProgram
ContactInformation:
RandyG.Archuleta–RentalProgramAdministrator
ArizonaDepartmentofHousing
1110W.Washington,Ste.310
Phoenix,Arizona85007
Tel:(602)771‐1000Direct:(602)771‐1031
Email:randy.archuleta@azhousing.gov
i
STATEOFARIZONA
Low‐IncomeHousingTaxCreditProgram
2009
QUALIFIED
ALLOCATIONPLAN
TableofContents
1. INTRODUCTION
1.1 Background1
1.2 GeneralandSpecificGoals2
2. APPLICATIONSFORTAXCREDITS
2.1 AmountofState’sAnnualCredit Author ity5
2.2 MaximumTaxCreditReservation 5
2.3 MultipleProj ects 5
2.4 TimetableandApplicationSubmissionLocation6
2.5 ApplicationFormat6
2.6 ApplicationReviewProcessforProjectsthatarenotBondFinanced6
2.7 EligibilityRequirements9
2.8 2009Set‐Asides22
2.9 2009ProjectScoring23
2.10 Rents33
2.11 Tiebreaker34
2.12 AmountandAllocationofAnnualTaxCreditAuthority34
2.13 Reservations,CancellationofReservations34
2.14 AllocationofReturnedCredits35
2.15 CarryoverAllocation35
2.16 10%CostTestandOtherRequiredDocumentation35
2.17 ForwardCommitments37
2.18 DisclosureofLIHTCApplicationMaterials37
2.19 ExpirationofApplications37
2.20 FinalityofAllocationandReconsiderationDeterminationof
EligibilityandAdjustmentofAuditedScore38
ii
3. TAXCREDITSFORDEVELOPME NT SFINANCE DWITHSTATEVOLUMECAP
BONDAUTHORITY
3.1 DeterminationofTaxCreditsforTax‐ExemptBondProjects 39
4. GENERALREGULATIONS
4.1 FalseFiling42
4.2 SatisfactoryProgress42
4.3 ChangeofOwnership42
4.4 RevocationofaNoticeofEligibilityfor4%TaxExemptBondCredits,
ReservationorCarryoverAllocationfor 9%TaxCredits43
4.5 Disqualification43
4.6 ExtendedUsePeriod 44
4.7 MaterialChanges44
4.8 DistributionofUnits46
4.9 AmendmentstotheQAP46
4.10 DisclaimerandLimitationofLiability46
4.11 ReturnofTaxCredits46
5. FINALTAXCREDITALLOCATION
5.1 FinalTaxCreditAllocationandFirstYearCertificationbyADOH47
5.2 FirstYearCertificationandIssuanceofFinalAllocation(IRSForm8609) 47
5.3 FinalAllocationUnderwriting49
6. FEES
6.1 TaxCreditApplicationFee50
6.2 AdditionalApplicationFe esforProjectsProposing
FinancingthroughADOH50
6.3 SupplementalAllocationApplicationFee50
6.4 BuildingPermitExtensionFee50
6.5 ReservationFeeandFinalAllocationFee50
6.6 Applicant’sObligationforFeePayment51
6.7 TenantOwnershipFees51
6.8 CarryoverAllocationLateFees51
6.9 10%CostTestLateFees51
6.10 AdministrationFees52
6.11 ComplianceMonitoringFees52
6.12 FeesAreNotRefundable52
7. UNDERWRITING
7.1 GeneralRequirements53
7.2 UnderwritingProcess53
7.3 SpecificUnderwritingStandards54
7.3(A)ProjectFeasibility54
7.3(B)ProjectFinancialFeasibility55
7.3(C)ProjectViability62
7.4 RentalMarketConsiderations65
7.5 PostReservationConsider ations66
iii
8. PROJECTCOMPLIANCEMONITORING
8.1 ProjectComplianceMonitoring 67
8.2 ComplianceMonitoringProcedure67
9. DEFINITIONS71
EXHIBITS
ExhibitB SampleLetterofCommunityAssessment
ExhibitC Year2009DDAandQCT
ExhibitD Year2009MandatoryDesignGuidelines
ExhibitE SampleLegalOpinion
ExhibitE‐1 SampleCPAOpinion
ExhibitF Example10%CostTestLetter
ExhibitF‐1 ProjectCostForm
ExhibitG FinalCostCertificationLetter
ExhibitH ImputedIncomes/AllowableRents
ExhibitL MarketDemandStudyGuide
ExhibitN ServiceProviderQuestionnaire
ExhibitW‐1 Architect’sCertificate
ExhibitW‐2 Contractor’sCertificate
ExhibitX OperationalRiskManagementPractices
ExhibitY FairHousingActAccessibilityChecklist
QualifiedAllocationPlan 2009
1. INTRODUCTION
1.1 Background
1.1(A) Thefederallow‐incomehousingtaxcredit(“LIHTC”or“taxcredit”)
1
programwasestablishedby
theTaxReformActof1986,codifiedinSection42oftheInternalRevenueCodeof1986,asamended(“IRC
Section 42”) to encourage construction and rehabilitation of low‐income rental housing. The Arizona
Department ofHousing(“ADOH”)isthehousingcreditagencyresponsible forallocating tax creditsto
owners of qualifying residential rental projects.The Revenue Reconciliation Act of 1989 amended IRC
Section42byaddingSection42(m),whichrequiresallocatingagenciestoallocate low‐incomehousingtax
creditspursuanttoaQualifiedAlloca tionPlan(“QAP,”“Plan,”or“AllocationPlan”).
IRCSection42(m)(1)providesasfollows:
(B)QUALIFIEDALLOCATIONPLAN‐‐Forpurposesofthisparagraph,theterm
ʹQualifiedAllocationPlanʹmeansanyplan‐‐
(a) whichsetsforthselectioncriteriatobeusedtodeterminehousingpriorities
ofthehousingcreditagencywhichareappropriatetolocalconditions,
(b)whichalsogivespreferenceinallocatinghousingcreditdollaramounts
amongselectedprojectsto‐‐
(I) projectsservingthelowestincometenants,and
(II) projectsobligatedtoservequalifiedtenantsforthelo ngestperiods,
(III) projectswhicharelocatedinQualifiedCensusTracts(asdefinedin
subsection(d)(5)(c)andthedevelopmentofwhichcontributestoa
concertedcommunityrevitalizationplan
and
(c) whichprovidesaprocedurethattheagency(oran agentorotherprivate
contractorofsuchagency)willfollowinmonitoringfornoncompliance
withtheprovisionsofthissectionandinnotifyingtheInternalRevenue
Serviceofnoncompliancewiththeprovisionsofthissectionwhichsuch
agencybecomesawareofandinmonitoringfornoncompliancewithhabitability
standardsthroughregularsitevisits.
(C)CERTAINSELECTIONCRITERIAMUSTBEUSED‐‐Theselectioncriteriasetforthina
QualifiedAllocationPlanmustinclude‐‐
(a)projectlocation,
(b)housingneedscharacteristics,
(c)project characteristics including whether the project inclu des the use of existing
housingaspartofacommunityrevitalizationplan,
(d)sponsorcharacteristic s,
(e)tenantpopulationswithspecialhousingneeds,
(f)publichousingwaitinglists,
(g)tenantpopulationsforindividualswithchildren,and
1 The defined terms that are used in this Plan are in Section 9, Definitions. Terms that are defined in Section 9 are
capitalized with the exception of commonly used terms such as “applicant”and “project.”
1
QualifiedAllocationPlan 2009
(h)projectsintendedforeventualtenanthomeownership.
(D)APPLICATIONTOBONDFINANCEDPROJECTS‐‐Subsection(h)(4)shallnotapplyto
anyprojectunlesstheprojectsatisfiestherequirementsforAllocationofahousingcredit
dollaramountundertheQualifiedAllocationPlanapplicabletotheareainwhichtheproject
islocated.
1.1(B) TherearetwomethodsforobtainingataxcreditAllocation:(i)throughanapplicationsubmitted
pursuanttothisPlanand(ii)tax‐exemptbondfinancing.
1.1(C) ChangestothePlan
1.1(C)(1)AnnualPlans.DISCLAIMER:ADOHmaysubmitanewpropo se dplanwithsubstantial
changesforpublicreviewandcommentfromtimetotime.Personsintendingtosubmitanapplication
fortax creditsforacompetitiveroundshouldrecognizethatADOHmayadd,delete,orsubstantially
changeeligibilityrequirements,set‐asides,competitivepointcategories,andunderwritingrequirements
for anewplan.Applicants making business decisions regardingaprojectorpotential project in
anticipationoftheprovisionsofnewplandosoattheirownrisk.
1.1(C)(2)Changes to approved plans.As provided by I.R.C. § 42(m)(1)(A)(iv) ADOH may in its
discretion make significant changes to this Plan.Although ADOH will make every effort to avoid
substantialchangesto thePlan aftera competitiveroundhasbeenannouncedsuch changesmaybe
necessary from time to time to respond to changing market conditions, address critical needs, and
maximizetheallocationoftaxcredits.ADOHmayconductoneormorecompetitiveroun dsundera
planuponappropriatenoticetothepublic.
1.1(C)(3)Changes to this Plan or other tax credit program related proceduresdueto the American
RecoveryandReinvestmentActof2009,Pub.L.111‐5,(“theARRA”),incl udinggrantsoflow‐income
housing credit ceiling to state allocating agenc ies described in Section 1602 of the ARRA, and the
appropriation of funds for financing of certain LIHTC projects through the HOME Investment
PartnershipProgramdescribedun derTitle XIIoftheARRAshallbeannouncedbyADOHthrougha
publicnoticeatalaterdate.
1.2 GeneralandSpecificGoals
1.2(A)AnnualTaxCreditCeiling
.SincetheArizonaDepartmentofHousingwasestablishedin2002,the
departmenthasallocatedtaxcreditsvaluedatnearly$800milliontoprojectslocatedthroughoutArizon a.
TheLIHTCprogramhasresultedinthe productionofaffordablehousingforlow andmoderate‐income
householdsthroughoutArizona.
1.2(B)GeneralGoals
.Forprojectsthatarenotfinancedthroughtax‐exemptbondstheLIHTCprogramisa
competitiveprogram.SeeSection3fortheprocessandrequirementsfortaxcreditstoprojectsfinancedby
tax‐exemptbonds.ThefederalgovernmentestablishestheStateAnnualCreditAuthoritywhichlimitsthe
dollaramountoftaxcreditsthatADOHmayallocatetoqualifyingprojects,anddetailedeligibilitystandards
andpriorityusesforavailabletaxcredits.TheState’sAnnualTaxCreditAuthorityisinsufficienttofundall
applications.ThisPlanexplainsthecompetitiveproce ssthatADOHusestoallocateitsannualauthorityfor
9%taxcreditsin2009.Applicationsfortaxcreditsforprojectsthatarefinancedthroughtax‐exemptbonds
2
QualifiedAllocationPlan 2009
andthathave receivedco nfirmation ofprivateactivitybond volumecapshall be reviewedasprovide d
hereinonafirst‐co me,first‐servedbasis.SeeSection3.1.Infurtheranceofthestatutoryprovisionsaffecting
theprogram,ADOHhasestablishedthefollowinggene ralgoalsforallocatingtaxcreditsinArizona:
1.2(B)(1)To maximize the number of affordable rental housing units added to the existing
housingstock;
1.2(B)(2)Todevelopaffordablerentalhousingunitsinareaswiththehighestmarketdemand
whileavoidingconcentrationofaffordablepropertiesindistressedareas;
1.2(B)(3)Todevelopaffordablerentalhousingunitsnecessarytosatisfyacriticalneedinan
area;
1.2(B)(4)Toallocatetaxcreditstoprojectsthatprovidethegreatestoverallpublicbenefits;
1.2(B)(5)Toallocatealltaxcredits;
1.2(B)(6)Toencouragedevelopmentandpreservationofappropriat erentalhousingforpeop le
andfamiliesthatneedgovernmentalassistancetofindan dmaintainsuitable,habitable,and
affordablerentalhousingintheprivatemarketplace;
1.2(B)(7)Toenablesubstantialrehabilitationofexistingrentalhousinginordertopreventlosses
totheexistingsupplyofaffordableunits;
1.2(B)(8)Topreventthelossfromtheexistingstockoflow‐incomerentalhousingofthoseunits
under expiringcontracts with federal agenciesorsubject to prepayment which, without the
Allocationoftaxcredits,wouldbeconvertedtomarketrateunits;
1.2(B)(9)Tomaximizetheutilizationoftaxcredits;
1.2(B)(10)Toprovideanequitabledistributionoftaxcreditsacrossthestate;
1.2(B)(11)Toprovideopportunitiesforp articipationinthetaxcreditprogramtoallqualified
sponsorsoflow‐incomerentalhousing;and,
1.2(B)(12)Providelocalgovernmententitieswithnoticeandopportunitytoco mmentontax
creditdevelopmentproposedwithintheirjurisdictions.
1.2(C)SpecificGoals
.Inaddition,inallocatingtaxcredits,ADOHseekstoachievespecificgoals.Theseare:
1.2(C)(1)Tousetaxcreditsinconnectionwithrentalhousingʺprojectsservingthelowestincome
tenants,ʺseeI.R.C.§42(m)(1)(B)(ii)(I);
1.2(C)(2) To use tax credits in connection with rental housingʺprojects obligated to serve
qualifiedtenantsforthelongestperiods,ʺseeI.R.C.§42(m )(1)(B)(ii)(II);
1.2(C)(3)Tomaketaxcreditfundingavailabletoproposalstoservelow‐incomepopulations‐‐
includinglargefamilies,homelesspersons,personswithspecialneeds,andseniorcitizens;
1.2(C)(4) To hold competition among only those projects considered sound investments of
publicfunds;
1.2(C)(5)Toexpendtheminimumamountofpublicfundsnecessarytoaccomp lish pro gram
goals;
3
QualifiedAllocationPlan 2009
1.2(C)(6) To administer the LIHTC program in a manner that encourages timely project
completionandoccupancy;and,
1.2(C)(7)Toencouragethehighe stavailablequalityanddesignstandardsforprojectsfinancedwithtax
credits.
1.2(D)Fromyeartoyear,thestatemaysupplementthesegeneralgoalswithmorespecificgoalsinorder to
meetspecificaffordablehousingneeds.
4
QualifiedAllocationPlan 2009
2. APPLICATIONSFORTAXCREDITS
2.1 AmountoftheStateAnnualCreditAuthority
Forcalendaryear2009,theamountusedunderSection42(h)(3)(C)(ii)tocalculateanystateʹsLIHTCprogram
creditceilingamountisthegreaterof(i)$2.30multipliedbythestateʹspopulationor(ii)$2,275,000.These
figuresareadjustedannuallyforinflation.Arizona’sLIHTCpro gr amcreditceilingamountforthecalendar
year2009is$14,950,414.Theamountoftaxcreditsav ailablethroug hthisPlaninanyallocationroundisthe
annualtaxcreditceilingadjustedbytheamountoftaxcreditsalr eadyallocated,taxcreditsreturned,tax
creditscarriedoverfromthepreviousyear,andanynationalpooltaxcreditsthatthestatemayreceive.
2.2 MaximumTaxCreditReservation
Theamountofcreditsavailabletoaprojectsha llbelimitedtotheproject’squalifiedeligiblebasisandno
morethantwoprojectsmaybereservedtaxcreditsforanyoneOwner,Developer,Co‐Developeroraffiliate
oftheDeveloperorCo‐Developer.
IntheeventofacompetitiveroundunderthisPlanafterthe2009calendaryear,theDepartmentmaylimit
themaximumamountoftaxcreditsav ailableforareservationinaseparatenotice.
2.3 LimitationsonReservationofTaxCredits
2.3(A)MultipleProjects.IfADOHdeterminesthatmultipleapplicationsinthesameyearconstituteasingle
project,ADOHmaydenytheapplications,orcombinethemintoasingleapplication.Areservationoran
allocation,asdeterminedbyADOH,shallnotexceedthe amountADOHdeterminesisnecessaryforthe
financialfeasibilityoftheprojectanditsviabilityasaqualifiedlow‐incomehousingproject.ADOH,inits
discretion,maytrea tmultipleapplicationsfor projectslocatedwithinthesamedemographicormarketarea
withcommonownershiporDevelopmentTeammembersasasingleapplicationifitidentifiestwoormoreof
thefollowingfactorsinseparateapplications:an yMaximumTaxCreditReservation
asmaybeimposedby
the Department asdescribed in Section 2.2;projectsth at target similar populations; largeprojectsize in
relationtomarket,marketsaturation,co mmonalityofdesign;sharedamenities;commonalityofapplication
forfundingfromADOH,HU Dorotherhousingauthorities.
2.3(B)LimitationBasedonConcent
rationsofProjectsinCertainMarketAreas.Notwithstandingset‐aside
amountsorcompetitivescores,ADOHmayinitssolediscretion,limitthenumberofdevelopmentsina
specificmarketorgeographicalareaifADOHdeterminesthatthereisinsufficientdemandorthataparticular
projectwouldhaveadverseimpactonlowincomehousingdevelopmentsexistinginagivemarketarea.In
theeventthatmultipleapplicationsare submittedforagivenmarketareathat cannotsupportall ofthe
projects,ADOHmayselectoneormoreapplicationsthatwillbestservemarketdemandorhaslessofa
negative impact than the others. ADOHmay, in its discretion, refuseto reserve credits to any project if
ADOHdeterminesthatthegivenmarketareacannotsupporttheproject.Ifmultipleapplicationsarefiledfor
a given market area proposing to serve different populations (e.g., elderly, family or Special Needs
Populations), ADOH shall analyze the applications to ensure that no project willbe redundant or have
adverseimpactontheotherapplicationsorexistingprojectsinthegivenarea.
2.3(C)LimitationBasedonTypesofProjectsLocatedinSmallPopulationCenters
.ForCensusDesignated
Places with populations of 50,000 or less according to the 2000 U.S. census data, an ADOH may limit
5
QualifiedAllocationPlan 2009
ReservationorAllocationoftaxcreditstonomorethanonefamily,onesenior,andoneSpecialNeedsProject
inanyyear.
2.4 TimetableandApplicationSubmissionLocation
ADOHmayholdoneormoretaxcreditapplicationroundspursuanttothi sPlan.Applicants mustsubmit
toADOHoneoriginalandtwocompletecopiesofanappl icationandanon‐refundable applicationfeeof
$3,500foreachapplicationonorbefore4:00P.M.oftheapplicationsubmittaldateasannouncedbyADOHin
anInformationBulletinpublishedontheADOHwebsite.Ifthedeadlinedatefallsonaholidayorweekend,
applicationsshallbedueon the nextbusinessday.Applicationsmustbereceivedatthereceptiondeskofthe
ArizonaDepartmentofHousinglocatedat1110WestWashingtonStreet,Suite310,Phoenix,Arizona85007.
Facsimileande‐mailsubmissionsshallnotbeaccepted.
2.5 ApplicationFormat
Applicationmaterialsmustbein8‐1/2x11format,placedinoneormoreadequatesizedthreeringbinders,
indexedandtabbedasdescribedinthisPlan.Exceptions:(1)alldrawings/plansmaybeincludedunboundif
theydonotlendthemselvestothe8‐1/2x11formats.Allsuchplansshouldbeinthesmallestpractical
(readable)format.ThemaximumacceptabledrawingsizeisC‐size;and(2)itemsofsignificantvolume(such
as an Appraisal, Mar ket Demand Study, capital needs assessment or environmental reports) may be
submittedasseparatebounditems.EachapplicationmustcomplywiththeformatandcontentofthisPlan
andpresenttoADOHaclear,unambiguousandco mplete applicationbythedeadlinedate.ADOHmay
rejectanyapplicationthatdoesnotconformtotherequirementsofthisPlanorissubmittedafterthedeadline
date.
2.6 ApplicationReviewProcessforProjectsthatarenotBondFinanced
2.6(A) Overview
.For projects that are not financed with tax‐exempt bonds, ADOH shall evaluate all
applicationsinacompetitivereviewprocess.Generally,applicationsthatpassthethresholddetermination
shallbereviewedforeligibility.SeeSection2.7.Eligibleapplicationsshallbeassignedtotheappropriateset‐
aside,ifany,scored,andunderwritten.Taxcreditsshallbereservedtoeligibleapplicationsineachset‐aside,
preferencebeinggiventoapplicationswiththehighestcompetitivescoreuntiltheamountoftaxcredi ts
reservedequalstheamountoftaxcreditsavailablefortheround.Scoringmeansauditingtheapplicantself‐
scoresbyverifyingsupportforthepointsclaimed,anddeductingpointsaccor dingtothecriteriasetforthin
Section2.9.Underwritingincludesreviewoftheprojectdescribedintheapplicationforfeasibility,viability,
quality,marketdemand,compliancewithdesignstandards,andpublicbenefitutilizingthecriteriadescribed
inSection7.
2.6(B)ReviewProcess
.ADOHshalltakethefollowingstepsinprocessingapplicationsandreservingand
allocatingcredits:
2.6(B)(1)Thresholddeterminations.Applicationsthatfailtocomplywiththethresholdrequirements
setforthbelowsh allnotreceivefurtherreviewandar eineligibleforaReservationoftaxcredits.
2.6(B)(1)(a)Completeap plication. Theapplicationmustbecompleteandsubmittedaccordingto
form.The applicant must submit one original and two copies of a complete and accurate
applicationorganizedintheprescribedsequenceandformat,asrequiredbythisPlanandbythe
6
QualifiedAllocationPlan 2009
“Low‐IncomeHousingTaxCreditProgramApplicationFormsandInstructions,” togetherwiththe
non‐refundable application fee.All application forms must be completed and submitted as
requiredbythisPlan.ADOHshallnotacceptanyadditionalin formation,amendmentorchange
to the application after the deadline date.Notwithstanding the foregoing, ADOH may make
written inquiries to the applicant, architects, engineers, financial institutions and the local
governments in order to complete the eligibility documentation or to verify the information
submitted.ADOHshallconsidersuchsupplementaldocumentationforeligibilitypurposesonly,
andshallnotconsiderthesupplemen talinformationinscoringtheapplication.
2.6(B)(1)(b)DesignationofSet‐asideCategory.AnapplicationmaydesignateoneormoreSet‐
aside categories.Applications that fail to demonstrate the requisite applicant or project
characteristicsforadesignatedset‐asideshallnotreceiveareservationoftaxcreditsinthatset‐
aside.SeeForm1‐1,Set‐AsideElection.
2.6(B)(1)(c)Applicationfees.Applicationsmustbeaccompaniedbytheapplicat ionfeedescribed
inSections6.1and6.2.ADOHshalldeemanapplicationineligibleifanapplicationfeepayment
doesnotcleartoADOH’sdepositaccount.
2.6(B)(1)(d)Authorizedsignatures.Alldocumentsthatrequireasignaturemustbesignedbythe
applicant’sauthorizedrepresentative.Anapplicantmustbeanexistinglegalentityauthorizedto
conduct business in Arizona an d in good stand ing with the officeof the Secretary of State of
Arizona.SeeSection2.7(B)(12).ADOHshallnotconsiderformssignedonbehalfofanentitythat
isnotdulyfo rmedorbyarepresentativewithoutauthority.
2.6(B)(1)(e) Current Accounts.At the time of the ap plication is submitted, no member of the
DevelopmentTeammaybeindefaultonalow‐incomehousingfinancialobligationtoADOH,
HUD,ortoanylocalgovernmentbodyorhousingauthorityinArizona.
2.6(B)(1)(f) Local government acknowledgement and consent.The application must provide
evidenceoflocalgovernmentacknowledgementandconsentasrequiredbySections2.6(B)(7)and
2.7(B)(7).
2.6(B)(1)(g)Disqualification.Anapplicationmustnotbesubjecttodisqualificationasprovidedin
Section4.5.
2.6(B)(2)EligibilityDetermination.ADOHshallreviewtheapplicationandanyotherinformation
pertainingtotheapplicantandotherDevelopmentTeammemberstodetermineiftheeligibilitycriteria
in Section 2.7 have been met.ADOH shall deny an application for tax credits that fails to meet
eligibilityrequirementsregardlessofitsauditedscore.
2.6(B)(3)VerificationofInformation.ADOHmayverifyrepresentations,information,anddatainan
application with public information and information and statistics available through recognized
subscriptionservices.
2.6(B)(4)WaiverofRequirements.Applicantsmayre questthatADOHwaivespecificrequirementsof
thisPlan.Waiverrequestsshallbesupportedbyadetailednarrativeexplanationsufficienttopermit
ADOHto determine that: 1)waiver ofthe requirement isconsiste nt with Section 42of theInternal
Revenue Code and its implementing regulations, and IRS guidan ce, 2) waiver of the requirement
7
QualifiedAllocationPlan 2009
accomplishesthepurposesandobjectivesofthisPlan;and,3)the waivershallnotadverselyaffectthe
feasibilityoftheproject.
2.6(B)(5)Set‐As ides. Applicants may designate one or more set‐aside categories in which the
applicationshallcompete.Forset‐asideinformationseeSection2.8;
2.6(B)(6)CompetitiveScore.Eacheligibleprojectshallbereviewedandreceive pointsbasedonthe
scoring criteria set forth in Section 2.9 of this Plan.No application shall be scored higher than the
applicant’sselfscore.Anapplicationmustprovideafactualbasisanddocumentarysupportforpoints
claimed.ClaimsforpointsthatfailtomeetthecriteriainSection2.9orthatarenotsupportedbythe
applicationshallbedenied.Intheeventthatanapplicantclaimspointsinmutuallyexclusivepoin t
criteria,ADOHshalldeductthepointsth atareno tsupportedbytheapplication.Exceptasprovidedin
Section 2.6(B)(3), applications shall be scored based SOLELY on the information supplied in the
application.
2.6(B)(7)LetterofAcknowledgementandConsentfromLocalGovernment.ADOHshallnotifythe
local government entity where the project is located and request that the entity provide a letter of
acknowledgement andconsenttotheprojectintheformofExhibitB.Thenotificationshallbesent
directlyfromADOHfollowingthe EligibilityReview.Theletter shallbesignedbythe Cityor County
Managerorbeadoptedbyreso lutionofthegoverningbody.Anapplicationshallbedeemedinelig ibleinthe
eventthatthelocalgovernmententityeitherfailstoprovidetheletterorotherwiseindicatesthatthe
proposedaffordablehousingprojectisunfavorable.
2.6(B)(8)Underwriting.Eligibleprojectsshallbe underwrittenbeforeanyReservationofcreditsis
made.ADOH shall establish the Reservation amount following the procedures in Section 2.2,
“Maximum Tax Credit Reservation,” and underwrite the projects as provided in Section 7,
“Underwriting,”ofthisPlan.
2.6(B)(9)ReservationList.ADOH,baseduponevaluationofallapplicationsandinitssolediscretion,
shall establishand make available to the public a Reservation List describing projects receiving an
allocation.ThefinalallocationshallbedeterminedbyADOH,initssolediscretion,inaccordancewith
Section7ofthisPlan.
2.6(B)(10)TaxCreditReservation.ADOH,baseduponanevaluationofapplicationsandinitssole
discretion,shallreservetaxcreditsasfollows:
2.6(B)(10)(a)Firsttoprojectsineachset‐aside,preferencebeinggiventoprojectswiththehighest
competitive score that: 1) meet threshold and eligibility requirements; 2) demonstrate a strong
marketdemand; 3)havereceivedthewrittenconsentof thelocal government;and,4) andmeet
underwritingrequirements.
2.6(B)(10)(b)Secondtoproj ectsthathavenotdesignatedordonotqualifyforaset‐aside,preference
beinggiventoprojectswith thehighest competitive score that: 1)meetthresholdandeligibility
requirements;2)demonstrateastrongmarketdemand;3)havereceivedthewrittenconsentofthe
localgovernment;and,4)andmeetunderwritingrequirements.
2.6(B)(10)(c)ADOHshallreservetaxcreditstoaprojectthroughaletternotifyingtheapplicantofthe
taxcreditreservation,whichshallinclude:1)arequestforpayment ofthereservationfeedescribed
inSection6.5;2)instructionsforapplicationforaCarryoverAllocationdescribedinSection2.15;3)a
8
QualifiedAllocationPlan 2009
descriptionoftherequirementsformeetingthe10%CostTestaccordingtoSection2.16;and,4)other
conditionsthatmustbesatisfied.
2.6(B)(11)CorrectionandClarificationofApplications.Itisthedutyoftheapplicanttosubmitan
applicationthatiscompleteandaccurate.Afteranapplicationhasbeensubmitted,ADOHmaynot
allowanapplicanttosupplementanap plicationwithadditionalinformation.Incompleteorcarelessly
assembledapplicationsmaynotqualifyforareservationoftaxcredits.ADOHinitsdiscretionmay
allowanapplicanttocorrectaclericalerror.Ifinformationcontainedinanapplicationiscontradictory
orconfusing,ADOHmayrequesttheapplicanttoclarifytheapplication.Applicantsmustrespondtoa
requestforclarificationortocorrectaclericalerrorbynoles sthanfivebusinessdaysafterreceiptofa
writtenrequestbyADOH.
2.7 EligibilityRequirements
2.7(A)GeneralRequirements
.
2.7(A)(1)TheprojectandDevelopmentTeamasappro priate mustm eettheeligibilityrequirementsset
forthinthisSection.
2.7(A)(2)InformationcontainedintheapplicationshallbesufficienttopermitADOHtoconcludethat
theprojectcomplieswiththerequirementsofI.R.C.§42,A.R.S.§35‐728(E),andthisPlan.The materials
described in this section are minimum requirements, additional informat ion and materials shall be
submitted as maybe necessary topermitADOH toevaluatethe feasibility,financialfeasibility,and
viabilityoftheproposeddevelopment.
2.7(B)Eligibility
.Applicationsmustmeeteachofthefollowingeligibilityrequirements.ADOHshallreject
theapplicationiftheserequirementsarenotmet.
2.7(B)(1)PaymentofADOHFees.Theapplicationfeeisduewiththeapplication.ADOHshallreject
anyapplication thatisnotaccompaniedbytheapplicationfee.
2.7(B)(2)CoverLetter.Acompleteapplicationmustcontainacoverletterthatdescribestheproject,the
targetAMIandrentstructure,publicbenefitofthe project,anyspecialcharacteristicsoftheproject,and
any other information deemed pertinent to the project. Include the cover letter at the front of the
applicationbeforethenumberedtabs.
2.7(B)(3)RealPropertyAcquisitionandControl
2.7(B)(3)(a) Acquisition of Real Property including existing buildin gs.ADOH shall deny any
applicationfortaxcreditsifitconcludesthat theapplicationfailstodisclosethetrue costtothe
projectofacquisitionofprojectrealproperty.Whentheprojectrealpropertyisacquiredfroma
party that has an identity of interest with or is an affiliate of a Development Team member or
otherwisethroughotherthananarm’slengthtran saction,theapplicationmustbesupportedbythe
followingadditionalmaterials:
(i) Adetailedexplanationofhowthepropertywasacquiredandheldbytherelatedpartyand
thedate,andconsiderationforthetran sferbetweentherelatedpartyandtheproj ectownerand
anyotherpertinentinform ationmaterialtothedeterm inationofthecostofacquiringproject
property;
9
QualifiedAllocationPlan 2009
(ii) AnAppraisal.
2.7(B)(3)(b)Controlofallrealpropertydesignatedforthe projectmustbeevidencedbyawritten,
enforceablecommitmenttotransferthelandtotheprojectowner,arecordeddeedorlongtermlease
intheprojectowner’sname,aleaseoptionorbyafullyexecutedpurchasecontractorpurchase
optiontotheprojectowner.Ifapurchasecontractorpurchaseoptionissubmitted,theagreement
mustprovidefor,respectively,eitheraclosingdateoraninitialtermlastinguntiltheperiodending
nolessthan180daysafterthedeadlinedateforsubmittaloftheapplication. Theapplicantmust
submitthefollowingtoADOH(encloseallrequireddocumentsatTab9):
(i)A“Status(Condition)ofTitleReport”forthepropertydatedwithin60calendardaysofthe
dateoftheapplicationbyatitleinsurerlicensedinArizona.Thetitlereportmustnotinclude
any conditions or requirements materially and substantiallyadverse to the feasibilityof the
project.
(ii)IftheprojectoraDevelopmentTeammemberholdsfeetitletotheproperty,thenprovidea
copyofHUD1SettlementStatementorothersettlementstatementpreparedforthebuyerand
sellerattheclosing.
(iii)Withthe exceptionofprojectsthatarelocatedongovernmentalorTriballand,theapplicant
mustestablishthattheprojecthaslegalcontrolofthepropertybysubmittingarecordeddeed,
purchaseagreement,purchaseorleaseoption,leaseagreement(foratermatleastequaltothe
durationofthe ExtendedUseAgreement),oraresolutionbyagovernmentalagencythatowns
theproperty.
(iv)ForprojectsthatarelocatedongovernmentorTriballands,theapplicantmustestablish
legalcontrolofthepropertybysubmitting:(1)anagreementbetweentheprojectownerandthe
Tribeorothergovernmenttoenterintoaleaseofspecificrealpropertyforatermatleastequal
to the duration of the Extended Use Agreement, and (2) a resolution of a Tribe or other
governmentagencyauthorizingtheTribeorgovernmententi tytoenterintotheagreement.For
Triballeasesonly,ADOHmayconsiderthelengthoftheleasetobetheoriginaltermofthelease
plusthetermofan yoptiontorenew,providedthattheoptiontorenewisheldsolelybythe
applicant.
(v)Incasesrequiringuseofpowersofeminentdomainbythelocalgovernment,theapplicant
mustencloseevidencethatacondemnationlawsuithasbeenfiledforthespecificparcelsofreal
propertyuponwhichtheprojectmaybesituatedtogetherwiththecourt’sorderofpossession.
(vi)Iftheapplicantissubmittingapurchaseagreement,option,orleaseagreementtoacquire
therealproperty,thepurchaseagreement,purchase orleaseoptio n, orleaseagreementmust
specifypurchasepr ice orrentalamount.Thetermofanyleaseagreementmustbeaminimumof
30years.
(vii)Anyoption,withavailableextensions,shouldbeofsufficientdurationthattheprojectcan
closeonthelandpriortotheendoftheyear,subjecttotheissuanceoftheReservation.
2.7(B)(4)SatisfactoryProgressandCompliance.ADOHmayrejectapplicationsforprojectshaving
DevelopmentTeammembersthatdonotmeettherequirementsofSection4.2(SatisfactoryProgress)of
this Plan or have failed to comply with the tax credit requirements and conditions in previous
applicationsordevelopmentsincluding,butnotlimitedto,paymentsdueonADOHloans,paymentof
anyotherfeesasdescribedunderSection2.76(B)(1)andSection6ofthisPlan, orifDevelopmentTeam
10
QualifiedAllocationPlan 2009
membershaveoutstanding compliance issues with anyother subsidized pro gram s as described in
Section2.9(F)(5).
2.7(B)(5)QualifiedProject.Theprojectmustbeaqualifiedresidentialrentalproject,whichmeetsthe
requirementsofIRCSection42.SeeSampleLegalOpinion,ExhibitE.
2.7(B)(6)PlacedinService.TheprojectmustnothavebeenPlacedinServicepriortothedatethe
applicantfiledtheapplication.SeeSampleLegalOpinion,ExhibitE.
2.7(B)(7)LocalGovernmentAcknowledgementandConsent.SubmitaletterattachedatTab2,signed
bythechiefexecutiveofthelocalgovernmentjurisdictionwheretheprojectislocatedacknowledging
thatthe governingjurisdictionhas noticeofandconsents tothe projectand thatprovidesthe chief
executive or the governmental bo dy of the jurisdiction an opportunity to comment on the project.
Negativecom mentsbythechiefexecutiveorgoverningbodyofthelocalgovernm e ntjurisdictionshall
be groun ds for rejection of the application.Please be advised that local governments may have
independentrequirementsforobtainingtheletter.ADOHstronglyrecommendsthatapplicantscontact
localgovernmentsearly.
2.7(B)(8)Form3andApplicant’sCertifications.Form3mustbecompleteandaccurate,andsignedby
the appropriate party.The applicant is required to certify as provided in the applicant Affidavit,
Release,andOath(includedinForm3,“Low‐IncomeHousin gTaxCreditApplication”)includinga
certification that ADOH’s Mandatory Design Guidelines (Exhibit D) shall be complied with in the
constructionofthe projectandthat,iftheyarenot,anacknowledgementthatallcreditsawardedtothe
projectmaybesurrenderedtoADOH.EncloseatTab3,Form3andtheApplicantAffidavit,Release
andOath.
2.7(B)(9)IRSForm8821.Applicantsarerequiredtosubmitcom pleteandexecutedcopiesofIRSForm
8821,“TaxInformationAuthorization,”fortheapplicantandeachDevelopmentTeammemberwhohas
afinancialinterestintheproject,authorizingADOHas“Appointee”toreceivefromtheIRSavailable
informationregardingany“FinancialBeneficiary’s”conductof itsbusinesswiththeInternalRevenue
Service(“IRS”)relatingtotheLow‐IncomeHousin gTaxCreditProgram.Suchinformationreceived
from the Internal Reven ue Service may be used by ADOH in its sole discretion to disqualify an
applicationpursuanttoSection4ofthisPlan.EncloseIRSForm8821atTab3,behindtheApplicant
Affidavit,Release,andOath.
2.7(B)(10)LegalOpinion.Theapplicationmustincludeanopinionofcounselopiningthattheproject
meetstherequirementsofI.R.C.§42.Theapplicationmustbeprovidedbyanattorneyinaccordance
withArizonaSupremeCourtRules31and33onprofessionalletterheadandshouldataminimum
addresstheissuessuggestedinExhibitE“SampleLegalOpinion.”Theopinionshouldbeasdetailedas
possible describing all the unique characteristics of the development and how those characteristics
qualifyforthetaxcreditprogram.Thelegalopinionmustclearlyaddressthe10‐YearRuleregarding
the eligibility for acquisition tax credits.If the legal opinion submitted in the application is
unsatisfactory,ADOHmayrequiretheapplicanttoupdatethelegalopinionorrequireanadditional
opinionfromanotherattor neyatthesoleexpenseoftheapplicant.EncloselegalopinionatTab4.
2.7(B)(11)CPAOpinion.Atthetimeof applicationoratthetimethattheap plicantsubmits10%Cost
TestmaterialsrequiredbySection 2.16,theapplicantmustprovideanopinionofaCertifiedPublic
Accountant,licensedorotherwiseauthorizedtoprovidesuchan opinionthattheprojectmeetsthe
requirementsofI.R.C. §42.Theopinionmustbeonprofessionalletterheadandinsubstantiallysimilar
formtoExhibitE‐1“SampleCPAOpinion.”
11
QualifiedAllocationPlan 2009
2.7(B)(12)Legal Formation, Licensing, and Business Registration.The application must include
evidencethattheapplicant,Deve loper, andeverymemberofthe DevelopmentTeamthatholdsan
interest in the project are duly formed legal entities author ized to transact business in the State of
ArizonaandingoodstandingwiththeArizonaCorporationCommissionortheOfficeoftheSecretary
ofStateofArizona.EncloseatTab6oftheapplicationtheCertificatesofGoodStandingorExistence,as
appropriate,andallotherdocumentationrequiredun derthisSection.
2.7(B)(12)(a) Corpo
rations.Iftheap plicantorDeveloperisincorpor atedinArizona,thenprovidea
CertificateofGoodStanding,issuedbytheArizonaCorporationCommissionanddatednotearlier
than 30 days prior to the deadline date, should be submitted.Applicants and developers
incorporated in another state and doing business in Arizona should submit the following: a
CertificateofGoodStandingoritsequivalentfromthestateofincorporationdatednotearlierthan30
daysprior tothedeadlinedateandaCertificateofAuthoritytoTransactBusinessinArizonaora
Certificate of Good Standing for such foreign corporation, issued by the Arizona Corporation
Commissionanddatednotearlier than30dayspriortothedeadlinedate.
2.7(B)(12)(b) LimitedPartnerships.
IftheapplicantorDeveloperisalimitedpartnershipor ganized
underthelawsofArizona,thentheapplicantmust provideaCertificateofExistence,issuedbythe
ArizonaSecretaryofStateanddatednotearlierthan30dayspriortothedeadlinedate.Applicants
anddevelopersorganized underthelawsofanotherstateanddoingbusinessinArizonashould
submitthefollowing:aCertificateofExistenceoritsequivalentfromthestateoforganization,dated
notearlierthan30dayspriortothedeadlinedate, andanArizonaCertificateofForeignLimited
PartnershipfromtheArizonaSecretaryofStateoraCertificateofExistencedatednotearlierthan30
dayspriortothedeadlinedate.
2.7(B)(12)(c) Limited Liability Companies
.If the applicant or Developer is a limited liability
companyorganizedunderthelawsofArizona,thenprovideaCertificateofGoodStanding,issued
bytheArizonaCorporationCommission,datednotearlierthan30dayspriortothedeadlinedate,
shouldbesubmitted.Applicantsanddevelopersorganizedunderthelawsofanotherstateand
doing business in Arizona should submit the following: a Certificate of Good Standing or its
equivalentfromthestateoforganizationdatednotearlierthan30dayspriortothedeadlinedateand
an Arizona Certificate of Authority to Transac t Business in Arizona issued by the Arizona
CorporationCommissionanddatedintheyearofapplicationoraCertificateofGoodStandingfor
suchforeignlimitedliabilitycompanydatednotearlierthan30dayspriortothedeadlinedate.
2.7(B)(13)Non‐ProfitInformation.ProjectsseekingconsiderationasNon‐ProfitProjectsshallprovide
theinformat ionandmaterialsdescribedinthisparagraph.UnderTab7,theapplicantmustsubmit
evidencethattheapplicantisacurrent501(c)(3)or(4)entity.Inaddition,theapplicantmustexecute
andencloseatTab7Form7,a“CertificateofNon‐ProfitParticipation,”andallotherevidencerequired.
Inthecasewhereagovernmentalortribalagencyisapplyingfornon‐profitconsideration,itmust
providetheappropriate501(c)(3)or(4)documentation,aletterfromtheexecutiveofficerofthelocal
governmental or tribal agency.“Non ‐profit Projects” are projects in which a qualified no n‐profit
organization(i.e.,anIRCSection501(c)(3)or(4)organization)ownsaninterest(directlyorthrough a
partnership)andmateriallyparticipateswithinthemeaningofIRCSection469(h)(i)inthedevelopment
andoperationoftheprojectthrou ghoutthecomplianceperiod.Thenon‐profitorganizationmaynot
itselfbeanAffiliateoforcontrolledbyafor‐profitorganization.Materialparticipationisdefinedat
IRC Section 469(h)(i) as involvement “in the operations of the activity on a basis that is regular,
continuous and substantial.”The ADOH defines “substantial” ashaving the authority or right to,
12
QualifiedAllocationPlan 2009
among other things, participate in the decision‐makingprocessfor design, location, materials, and
managementoftheproject.Inaddition,ADOHrequiresthatthenon‐profitorganizationprovide:(1)
IRSdocumentationofstatus501(c)(3)or501(c)(4);(2)adescriptionofthenonprofitorganizationandits
activities,toincludethepromotionofaffordablehousinginitsarticles;(3)evidencethatitoritsofficers
ormembershaveexperienceindevelopingoroperatinglow‐incomehousing;(4)evidence(intheletter
ofintentreceivedfromtheinvestmentsyndicator)thatitholdstherightoffirstrefusaltoacquirethe
projectfollowingthefifteen‐yearcomplianceperiod;(5)evidencethatithasdevelopedanoperating
planfortheprojectcoveringitsroleindevelopingandmanagingthe project,includingitsparticipation
in the Deve loper fee; its control of project reserves; its plan for maintenance, replacement, and
renovation;anditsoversightofmarketingandofcompliancewithIRC Section42;(6)thenamesof
boardmembersofthenonprofitorganization;(7)thenamesandresumesofallpaidfull‐timestaff;(8)
thesourcesoffundsforannual operatingexpensesand currentprograms;(9)evidence offinancial
capacityintheformofFinancialStatementsforthepasttwoyears;and(10)Form7,“CertificateofNon‐
Profit Participation,” certifying that the nonprofit organization will materially participate in the
developmentandoperationsoftheprojectonabasiswhichisregular,continuous,andsubstantial.
2.7(B)(14) Development Team.The application must demonstrate that the Development Team
possessesthecapacityandexperiencenecessar ytoundertakeandcompletetheproject.
2.7(B)(14)(a)TheDevelopermustdemonstratethatitandCo‐developerpossesstheexperienceand
theorganizationalandfinancialcapacitynecessarytosuccessfullycompletetheproposedprojectand
anyotherprojectsunder construction,orhavedevelopedprojectsofcomparable sizeandfinancing
complexity.
2.7(B)(14)(b)Theapplicantmustdesignateageneralcontractorinthetaxcreditapplicationorasa
conditionofacarryoverallocation,seeSections2.15,2.16,thatmeetsthefollowingrequirements:
(i)Exceptforprojectslocatedontribaltrustland,thedesignationofageneralcontractormust
includeevidencethatthegeneralcontractorislicensed,andauthorizedtotransactbusinessin
Arizona.
(ii) Designation of a general contractor under this subparagraph must also includecurrent
FinancialStatementsofthe generalcontractorforthepriortwoyears.. 
(iii)Performanceandpaymentbonds.Thedesignationofthegeneralcontractorshallalsoinclude
evidenceofperformanceandpaymentbondsuptothetotalamountoftheconstructioncontr act
thatarepayablethroughplacedinservice.
(iv) Substitutionof letter of credit for bonds.ADOH willwaive the requirement for a bond
describedinsubparagraph(iii),above,ifthethreefollowingconditionsaremet:(1)thegeneral
contractorclosedoutconstructioncontractsonatleastfive(5)LIHTCprojectsplacedinservicein
Arizonaorat leastten(10)LIHTCprojectsplacedinservice inArizonaoranyotherallocating
jurisdictions;(2)waiverbyconstructionlenderofitsrighttorequirethegeneralcontractorto
obtainaperformanceandapaymentbond;and,(3)issuanceofaletterofcreditwithaAAA‐rated
lendinginstitutionnamingADOHasathird‐partybeneficiaryintheamountofnolessthan25%
ofthetotalamountoftheconstructioncontractthatisavailabletotheprojectthroughplacedin
service.
13
QualifiedAllocationPlan 2009
2.7(B)(14)(c)Thepropertymanagementcompanymustdemonstratethatitpossessestheexperience
andcapacitytomanagetheprojectasrequiredbyI.R.C.§42,therequirementsofotherapplicable
federal an d state programs, and this Plan.In determining whether the property management
companyidentifiedintheapplicationhastherequisiteexperienceandcapacity,ADOHmayconsider
thefollowing:
(i)whetherthepropertymanagementcompanywillmakestaffavailabletotheprojectthathas
managedtaxcreditpropertiesforaperiodoffiveyearsormore;
(ii)whetherthepropertymanagementcompanywillmakestaffavailabletotheprojectthathave
industry‐standardtrainingandarecertifiedtomanagetaxcreditproperties;
(iii)whetherthepropertymanagementcompanyhasunresolvedcomplianceissuesattwoor
more properties within the period beginning two years before the date of the deadline for
submittal of theapplication. SeeSection 2.9(F)(5)(B)(i)(1)for points deducted fromdeveloper
experiencepointsforfailuretoresolvecomplianceissues.
2.7(B)(14)(d)TheapplicantmustencloseatTab8,Form8,anidentificationofdevelopmentparties
andFinancialStatementsoftheDeveloperorCo‐Developer,whichmustbeinfullandfinalform.
2.7(B)(14)(e)ADOHmaycheckthereferencesandcreditoftheapplicantandotherDevelopment
Teammembersasitdeemsnecessarytodeterminecapacityunderthisparagraph.
2.7(B)(14)(f) ADOH requires that deve lopers execute and submit Form 8‐2 (Authorization for
ReleaseofInformation)allowingADOHtogatherinformationfromotherstateallocatingagencies.
2.7(B)(15)AdditionalRequirementsforIdentitiesofInterestAmongDevelopmentTeamMembers.
Thereexistsan“identityofinterest”betweentheDeveloper,thepropertymanagementcompanyor
architectandanyotherDevelopmentTeammemberorprospectivememberifthereisanyfinancialor
ownershipinterest,directorindirect,betweentheDeveloperandtheotherperson.ADOHmayreview
otheridentitiesofinterestamongmembersoftheDevelopmentTeamandmayreducefeestobepaidby
theDevelopertoanotherDevelopmentTeammember.
2.7(B)(15)(a) If there is an identity of interest betwee n the Developer and the Builder, the total
Developer, Consultant, and Builder fees shall be limited to the Developer fee plus the Builder’s
overheadandgeneralrequirements.SeeSection7.3(B)(2)(g)(iii).
2.7(B)(15)(b)Projectsproposingfinancingfrompermanentlenderswithanidentityofinterestinthe
applicant,orinanydevelopmentteammemberthatholdsaninterestintheproject,mustprovidethe
mostrecentcompleteFinancialStatementsandauditedFinancialStatementsforthepriorthreeyears
fortherelatedpermanentlender.
2.7(B)(15)(c)Intheevent thataprojectproposessyndicationorequityinves tmentthroughanentit y
withanidentityofinterest inorthatisotherwisecontrolledbyadevelopmentteammemberthat
holdsaninterestintheproject,ADOHmaydenyareservationoftaxcredits,orinthealternativeif
ADOHconcludesthatsufficientthird‐partycontrolexits,ADOHmayconditionareservationoftax
credits upon financial or performance gu arantees or other commitments as ADOH may deem
necessary.
14
QualifiedAllocationPlan 2009
2.7(B)(15)(d)ADOHmaydenyanapplicationthatproposesapropertymanagementcompanythat
hasanidentityofin terestwiththeDeveloperorCo‐developer,ifactionsoromissionstheDeveloper,
Co‐developer, or Property Management Company meet the requirements for two five‐point
deductionsofDeveloperExperiencepointsdescribedinSection2.9(F)(5)(b)(i).Inthealternative,for
thepurposesofthisparagraph,ADOHmayconditionareservationoftaxcreditsupondesignation
ofaPropertyManagementCompanythatdoesnothaveanidentityofinterestwiththeDeveloperor
Co‐developer.
2.7(B)(15)(e)EncloseatTab8oftheapplicationacompletedForm8,disclosinginSection13every
OwneroftheDeveloper,theBuilder,andtheConsultant.
2.7(B)(16)CompliancewithLandUseandZoningRegulations.Theapplicationmustdemonstrate
thattheapplicablelanduseandzoningrestrictionspermittheproposedprojectuseuntiltheendofthe
ExtendedUsePeriod.
2.7(B)(16)(a)Theapplicationmustcontaindocumentationthattheproposedprojectmeetsallland
userequirementsandrestrictionsapplicabletothepr ojectlocation.Inadditiontoacertificationbya
localgovernmentofficial(seeForm10)thattheproposedprojectcomplieswithlanduserestrictions
fortheareainwhichitislocated,theapplicationshallincludeamapclearlyindicatingthezoning
classification of the area and a copy of the applicable land use regulation describing the uses
permittedundertheapplicablezoningdesignation.IncludeatTab10oftheapplicationADOH
Form10,“ProjectZoningCertification,”andotherdocumentation requiredunderthisSection.
2.7(B)(16)(b)ADOHmaydenyapplicationsforprojectsthatareconditionallyzonedifanycondition
raises a substantial question about the feasibility of the project.The zoningconditions must be
satisfiedbeforeADOHmayallocateanytaxcreditsreceivedorasotherwiserequiredbyADOH
when the reservation is made. Projects with conditional zoning shall be ineligible for Project
ReadinessPointsunderSection2.7(F)(14).
2.7(B)(16)(c)Intheeventthatzoningrestrictionsdonotapplytotheprojectproperty,theapplication
mustincludedocumentationfromtheappropriategovernmentalentityconfirmingthatnozoning
restrictionsapply.
2.7(B)(16)(d)For projects located on tri bal lands, ADOH may consider a tribal resolution as a
substituteforazoningcertification.Thetribalresolutionshouldstatethattheprojectshallbelocated
inanareawherethezoningrequirementsestablishedbythetribalgovernmentpermittheprojector,
iftherearenospecificzoningrequirements,inanareainwhichthetribalgovernmentauthorizesthe
projecttobeconstructedandoperated.
2.7(B)(17)FinancialAbilitytoProceed.TheapplicationmustdemonstratethattheDevelopmentTeam
has secured funding sources necessary to undertake and complete the project.As evidence of
commitments for funding sources the applicant must enclose at Tab 11 the following required
documents:
2.7(B)(17)(a)Aletter ofinterestfrom ataxcreditsyn dicatorproposingthetermsandpricing of
purchaseoftaxcreditsallocatedtotheproject.
15
QualifiedAllocationPlan 2009
2.7(B)(17)(b)Copiesoflettersofinterestfromallsourcesofdebtfinancingincl udingconstruction
andpermanentlendersthatincludeacompleteanddetaileddescriptionofthetermsofanyproposed
loan such as (i) a term sheet (ii) amount of the loan, (iii) interest rate, including all points, (iv)
amortizationperiod, ifapplicable,(v)termoftheloan,(vi)loan‐to‐valuefactor,(vii)maximumand
minimum debt service coverage allowable (not required if the permanent lending source is a
governmentalortribalentity),(viii)allc o mmitment and/ororiginationfees,(ix)andadescriptionof
allotherfeesdirectlyattributedtothefundingoftheloan.
2.7(B)(17)(c)CopiesoflettersofinterestfromallgovernmentsourcesotherthanADOHthatprovide
a complete and detailed description of the terms of any proposed loan or funding agreement.
However,applicantsseekingfundingfromagovernmentalorquasi‐governmentalfundingsource,
otherthanGapFinancingthroughADOH,thathasnotissuedafundingdecisionpriortoADOH’s
applicationdeadline,mustsubmitaLetterofInterestorIntentfromthefundingsourcewiththe
application.
2.7(B)(17)(d)Forprojectsproposinga developer’sloanor“deferreddeveloper’sfee”orsellercarry‐
back financing, insert the sched ule for repayment of any such fee or charge deferred in the
permanent financing tables (Form 3, items 20 and 21) of the application and the pro forma.In
additionincludeat Tab11 copiesofpromissory notesor otherloan documentsmemorializing a
developer’s loan.Deviation from the terms and term of any deferral under this paragraph are
materialchangesrequiringpriorwrittenapprovalbyADOH.
2.7(B)(17)(e)Ifapplicable,includeacommitmentfromtheentityfacilitatinganyoperat ingdeficit
reserve/escrowfunds.SeeSection2.7(B)(24).
2.7(B)(17)(f)Guarantees.Theapplicationmustincludefullyexecutedagreementsforanysponsoror
investorguaranteeorcom mitment toequityfundingorguaranteetocoveroperatingdeficitsforthe
project.Anysuchguaranteemustextendforthedurationofthecomplianceperiod.Iftheproject
proposesathird‐partyguarantor,thethird‐partyguarantorisrequiredtosubmitthefollowing:
(i) Evidencethatthethird ‐partyguarantorisanexisting legalentity,ingoodstanding,and
authorizedtodobusinessinArizona;and,
(ii) Third‐partyguarantorʹsFinancialStatem entsandannualreportsforthelastthreeyearsand
mostrecentquarterlystatement;
2.7(B)(17)(g)Indeterminingwhe theraprojecthasdemonstratedfinancialabilitytoproceed,ADOH
mayconsiderwhethertheLetterofInterestorIntent,AwardLetters,orCommitmentLettersmeet
the requirements of this paragraph; the enforceability of the commitment; whether a lender or
investorposs essesthefinancialcapacitytomakeaspecificloanorinvestment;andwhetherlenders
arelicensedtoconductbusinessinthestate.Achangeinthefinancingsourceorfinancingterms
afterReservationofcreditsmayresultinallorapartofthecreditsbeingrecapturedorreducedby,
orreturnedtoADOH.SeeSection7.3(C)(1)(d)and(e)foradditionalinformationaboutunderwriting
fordebt‐servicecoverage.
2.7(B)(18)MarketDemand.Theapplicationmustdemonstratemarketdemandfortheprojectthrough
aMarket DemandStudythatmeetstherequirementsofSection7.4andtheMarketStudyGuide;see
ExhibitLtothisPlan.ThemarketstudymustbeincludedatTab12.ADOHmaydeterminetheMarket
16
QualifiedAllocationPlan 2009
Demand Study supplied with the application to be unsatisfactory and may require additional
informationatthesoleexpenseoftheapplicant.AlsoseeSection2.5,“ApplicationFormat.”ADOH
mayverifyinformationandconclusionsintheMarketDemandStudythroughalternativesources.
2.7(B)(19) Special Needs Populations.Applicants proposing projects that serve special needs
populationsandseniorswhoare62yearsoldoroldermustidentifySpecialNee dsPopulationstobe
servedbytheprojectandthesupportiveservicestobeprovidedbycompletingandexecutingForm13
andform13‐1.Theapplicationmustincludecopiesofanyserviceplansoragreements.EncloseForm
13‐1,andalldocumentationrequiredbyForm13‐1atTab13asdetailedinSection2.9(F)(10).Ifthe
supportiveservicesincludearentsubsidy,ADOHmayrequireapp licantstosubmitproofofasubsidy
sourcetohelppaytherentfortheseunitsforthe15‐yearcomplianceperiodandshowalineitemonthe
operatingbudgetpayingfortheservicesprovided.SeeForm3,Item18.
2.7(B)(20)PriorityMarketNeed.TheapplicantmustcompleteForm16andencloseitatTab16.Tab
16mustbeaccurateandmatchItem15ofForm3.Taxcreditunitincomeandre ntthresholdscannot
exceedthemaximum establishedbyIRCSection42(60%AMGIwhenusingthe40/60conventionor
50%AMGIwhenusingthe20/50convention).Themaximumrentthresholdisbasedontheincome
levelselectedonForm16.
Example:If the 40%AMGIrent level is selected onForm16,then the rents maynot exceedthemaximum
allowablerentperIRCSectio n42.However,theincomeofaqualifiedtenantmayexceedthe40%AMGIlevelby
amaximumvarianceof5%unlessIRCSection42orotherfederalrequirementsprohibitsuchavariance.
2.7(B)(21)TenantLeasePurchase.ProjectsclaimingpointsforTen antLeasePurchasemustincludeat
Tab17oftheapplicationalltheinformationrequiredunderSection2.9(F)(4).
2.7(B)(22)Preservation.ProjectsclaimingpointsunderSection2.9(F)(1)“HistoricPreservation,Section
2.9(F)(2)“Acquisition/Rehabilitation”orSection2.9(F)(3)“PreservationofExistingSubsidizedHousing”
mustencloseatTab18alldocumentationrequiredunderthosesections.
2.7(B)(23)MonitoringCompliance.TheapplicantmustincludeatTab19aplanthatdescribeshowthe
projectwillmeettherequirementsofI.R.C.§42,therequirementsofotherapplicablehousingprograms,
andstateandlocalrequirements.The applicantmustalsodemonstratethattheentitiesresponsiblefor
operationandmanagementofthepropertypossessthetrainingandeducationnecessarytocomplywith
allapplicable program requirements.SeeSection 8 ofthis Planfor specific compliance monitoring
requirements.
2.7(B)(24)MarketingPlan.TheapplicantmustincludeatTab20anaffirma tivemarketingplanin
accordance with fair housing requirements that demonstrates how the project will meet lease up
requirements consistent with I.R.C. § 42 and the any requirements of the equity investors and
permanentlenderstotheproject.Themarketingplanshallspecificallyaddressanypotentiallyadverse
demographic, rent‐up or capture rate information in the appl ication for the primary market area
identifiedintheMarketDemandStudy.IfapplicanthasdesignatedcertainunitsforaSpecialNeeds
Population,themarketingplanmustindicatehowthepopulationwillbetargeted.
2.7(B)(25)DevelopmentBudget.Theapplicantmustdemonstrateprojectfinancialfeasibility,inpart,
byincludingadevelopmentbudgetinaformsatisfactorytoADOH,seeForm3,item24.See,Specific
UnderwritingStandards,Section7.3(B)(2).
17
QualifiedAllocationPlan 2009
2.7(B)(26)ProFormaandOperatingExpenses.TheapplicantmustincludeatTab21a15‐yearpro
formaandoperatingexpensedata.
(i) The 15‐year pro forma must be signed by the senior lender (or the syndicator/investor if the
projectisfunded100%byequity)thatexclusivelyreflectsthefollowinglanguageverbatim:“We
acknowledgethatthisproformasubstantiallymatche sthe assumptionsusedinourunderwriting
andduediligenceofthemortgage(orequityinvestment).”
(ii)Theproform amustpreciselyreflecttherentstructureintheapplication,alllenders’assumptions
suchasprincipalandinterestpayments,cashflowobligations,non‐rentalincome,detailedoperating
expenses, re quired reser ves, annual fees, debt service coverage ratio etc., as well as other
characteristicsthatimpactthefinancialfeasibility(forexample,costofSupportiveServices).The15‐
year pro forma must mirror the operating assumptions and rent structure as shown in the
application.
(iii)Iftheproforma reflectsnegativecashflowinanyyear,theapplicationshalldemonstratethe
fundingandutilizationofanoperatingdeficitescrowaccountordescribethesourceoftheoperating
deficitfunds.Acommitmentfromtheentityfacilitatingtheoperatingdeficitreserve/escrowfunds
needstobeincludedatTab11withtheotherfundingsourcedocuments.
(iv)The15‐yearproformamayre flectrentalassistanceonlyifsuchassistanceisevidencedatTab11
withtheothe rfundingsourcedocuments.
(v) Applicantsshallsubmitatleasttwoformsofdatasupportingtheoperatingexpensesstatedin
the pro forma (for example, database information from similar projects, comparable project
informationasillustratedinaMarketDemandStu dy,IREMinformationorNationalApartment
Associationinformation).ADOHmayrequiresubmissionoftheauditedFinancialStatementsfor
comparableprojectsownedbytheapplicant.Rehabilitationprojectsmaysubmit3yearsofhistorical
informationasevidenceofoperatingexpenseassumptions.
2.7(B)(27)ProjectLocation.TheapplicantmustincludeatTab22oftheapplication:(1)an8x10mapor
fold‐upmapclearlyind icatingtheprojectlocation;(2)detaileddirectionstothesitefromthenearest
major intersection; (3) an additional 8x10 or fold‐up map indicating the following facilities located
within2milesoftheproposeddevelopment:
2.7(B)(27)(a)ExistingLIHTCoranyothergovernmentalsubsidizedhousingdevelopments
2.7(B)(27)(b)Retailcenters
2.7(B)(27)(c)Medicalcomplexes
2.7(B)(27)(d)RecreationalFacilities
2.7(B)(27)(e)EducationalFacilities
2.7(B)(27)(f)Largescaleemploymentcenters
2.7(B)(27)(g)Publictransportation
2.7(B)(28)CommunityRevitalization.Forapplicantsclaimingpointsforprojectslocatedincommunity
revitalizationareas,theapplicantmustencloseatTab23theinformationandmaterialsdescribedin
18
QualifiedAllocationPlan 2009
Section2.9(F)(7)andForm23,signedbyanauthorizedrepresentativeofthemunicipalityorcounty,
statingthattheprojectiswithintheboundariesofthedesignatedhousingpriorityarea. SeeSection
2.9(F)(7)forexplanationofpointsavailabletoprojectslocatedinre vitalizationareas.
2.7(B)(29)UtilityAllowanceSchedule.TheapplicantmustincludeatTab24oftheapplic ation:(1)
“willserve”lettersfromthelocalutilityprovidersindicatingwater,se wer,andelectricalutilitiesare
availabletothesite;and(2)acopyofthemostrecentandcurrentutilityallowanceschedulefromthe
localPublicHousingAuthority,utilitycompanyorothersourceasprovidedbyTreasuryRegulation
1.42‐10andADOHInformationBulletin02‐09.Thecurrentutilityallowancescheduleisthebasisforthe
utilityallowancesenteredonpage6oftheapplication.Theutilityallowanceschedule,publishedbythe
localPublicHousing Authority, utilitycompanymustbe accompanie d byale tterfrom theissuing
authoritydatednosoonerthan30dayspriortothedateofapplicationsubmission.Theletterfromthe
issuing authority must state that the utility allowance schedule submitted is the current schedule.
Applicants proposing a utility allowance schedule based on the Energy Consumption Model must
demonstratethattheschedulewaspreparedbyaRESNETCertif iedRaterMemberinaccordancewith
therequirementsdescribedinADOHInformat ion Bulletin02‐09,January20,2009.
2.7(B)(30)DrawingsandPlans.TheapplicantmustincludeatTab25thepreliminarydrawingsand
renderingsofthedevelopmentincluding:
2.7(B)(30)(a)Asiteplanshowingthe sitetopography,generaldevelopmentofthesite,thebuilding
andparkinglocation,andproposedlandscaping;
2.7(B)(30)(b)ThefacilitybuildinglayoutandnetfloorareaforprojectsproposingaCommunity
FacilityorCommunityServicesFacility;
2.7(B)(30)(c)Plansandelevationsforeachproposedbuildingandclubhouse.
2.7(B)(31)WaterConservation.Allnewlyconstructedandrehabilitatedpropertiesmustincorporate
reasonableWaterConservationmeasuresincludingbutnotlimitedtoalternativeandlow‐flowtoilets,
low‐volumeshowerheads,aeratororflowrestrictordevicesinthefaucets,front‐loadingorhorizontal‐
axiswashers,andXeriscape Landscaping.DocumentationofprojectdesignconsiderationsforWater
ConservationshouldbeincludedinTab25.
2.7(B)(32) PropertyDesignStandards.Theapplicationforallnewlyconstructedandrehabilitated
propertiesmustdemonstrate compliancewiththecurr entUniformBuildingCode,UniformMechanical
Code,theUniformPlumbingCode(1994Editions),theNationalElectricCode(1993Edition),the2006
InternationalEnergyCo de,theInternationalBuildingCodeandtheFederalFairHousingAct(42U.S.C.
§§3601, etseq.and24 C.F.R.,Part100, SubpartD),theArizonaFairHous ing Act(A.R.S.§§ 41‐1491
through41‐1491.37),andHUDFairHousingRegulations(24C.F. R.Part100,subpartD),theUniform
FederalAccessibilityStandards (Section504 of the1973Rehabilitation Act) and the Americanswith
DisabilitiesAct(42U.S.C.§§12101through12213).TheapplicantmustincludeatTab26,acompleted
Exhibit Y, signed by the Architect for the project certifying that the project meets the above design
standards.ExhibitsW1andW2aretobesubmittedwiththe8609package.
2.7(B)(33)Lead‐basedPaint.IftheprojectincludesabuildingorstructurethatwasbuiltbeforeJanuary
1,1978,theapplicantmusthavealead‐basedpaintinspectioncompletedbyacertifiedlead‐basedpaint
inspector.ThatinspectormustprepareandtheapplicantmustincludeinitsapplicationatTab26a
completecopyofthatreport.Ifthereportindicatesthepresenceof lead‐based paint, theapplicantmust
19
QualifiedAllocationPlan 2009
includeatTab26:(1)awrittenameliorationplanfortheeliminationanddisposalorencapsulationofthe
lead‐basedpaint,and(2)awrittenon‐goingmaintenanceplantomanagethelead‐basedpaint.
2.7(B)(34)ProjectSchedule.TheapplicantmustcompleteandexecuteForm27andinsertitatTab27.
2.7(B)(35)CapitalNeedsAssessment.ApplicantsarerequiredtoprovidetoADOHacapitalneeds
assessment(“CNA”)forallrehabilitationandcombinedacquisitionandrehabilitationprojects.Insertat
Tab28aCNAthatmeetstherequirementsoutlinedbelow.ADOHmaydeterminetheCNAreportis
unsatisfactoryandmayrequireadditionalinformationatthesoleexpense oftheapplicant.
2.7(B)(35)(a)Applicantsmustincludeastatementfromthearchitectorengineerthatthereportwas
preparedaccordingtoADOH’sCNAGuidelinesandthattheinformationincludedisaccurateand
that the report can be relied upon by ADOH to present a true assessment of the proposed
rehabilitationbudgetandimmediaterepairsrequiredattheproperty.
2.7(B)(35)(b)TheCNAshallexamineandana lyzethefollowingbuildingcomponents:
(i) Site, including topography, drainage, pavement, curbing, sidewalks, parking,
landscaping,amenities,water,stormdrainage,gasandelectricutilitiesandlines;
(ii)Structuralsystems,bothsubstructureandsuperstructure,includingexteriorwallsand
balconies,exteriordoorsandwindows,roofingsystem,anddrainage;
(iii)Interiors,includingUnitandcommonareafinishes(carpeting,vinylt ile,plasterwalls,
paintcon dition, etc.),Unit kitchenfinishes andappliances,Unitbathroom finishesand
fixtures,andcommonarealobbiesandcorridors;
(iv)Mechanicalsystems,includingplumbinganddomestichotwater,HVAC,electrical,
andfireprotection;and
(v)Elevators.
2.7(B)(35)(c)TheCNAreportshallincludethefollowingmajorparts:
(i)CriticalRepairItems.
Allhealthandsafetydeficienciesorviolationsofhousingquality
standards,requiringimmediateremediation.Ifthe projecthastenants,theserepairsareto
bemadeafirstpriority.
(ii)Two‐YearPhysicalNeeds.Repairs,replacements,andsignificantdeferredandother
maintenance itemstha t need tobeaddressed within 24monthsof thedateof the CNA.
Includeanynecessaryredesignoftheprojectandmarketamenitiesneededtorestorethe
propertytothestandardoutlinedinthisPlan,ExhibitD.Theserepairsaretobeincludedin
thedevelopmentbudgetandfundedbyconstruction‐periodsourcesoffunds.
(iii)Long‐TermPhysicalNeeds.Repairsandreplacementsbeyondthefirsttwoyearsthat
arerequiredtomaintaintheproject’sphysicalintegrityoverthenexttwenty(20)years,such
asmajorstructuralsystemsthatwillneedreplacementduringtheperiod.Theserepairsare
tobefundedfromthe reservesforreplacementaccount.
(iv)AnalysisofReservesforReplacement.Anestimateoftheinitialandmonthlydepositto
thereservesforreplacementaccountneededtofundlong‐termphysicalneeds,accounting
20
QualifiedAllocationPlan 2009
forinflation,theexistingreservesforreplacementbalance,andtheexpectedusefullifeof
majorbuildingsystem s.Thisanalysisshouldnotincludethecostofthecriticalrepairitems,
thetwo‐yearphysicalneeds,oranyworkitemsthatwouldbetreatedasoperatingexpenses.
(v)PhaseIEnvironmentalReport.AllapplicantsmustsubmitaPhaseIEnvir onmental
Report.
2.7(B)(35)(d)TheprofessionalpreparingCNAreportmust:
(i) Beanarchitec tormechanical/structuralengineerlicensedbythestate.
(ii) Conductsiteinspectionsofaminimumof35percentofallunits.Unitsshallberandomly
sampledwhiletakingintoconsiderationtheUnitsizemix,e.g.,one‐bedroom,two‐bedroom,etc.
All
vacantunitsmustbeinspected.
(iii)Identifyany physical deficienciesasa resultof (i)visualsurvey,(ii)revie w ofpertinent
documentation, and (iii) interviews with the property owner, management staff, tenants,
communitygroups,andgovernmentofficials.
(iv)Identifyphysicaldeficiencies,includingcriticalrepairitems,two‐yearphysicalneeds,and
long‐termphysicalneeds.Theseshouldinclu derepairitemsthatrepresentanimmediatethreat
tohealthandsafetyandallothersignificantdefects,deficiencies,itemsofdeferredmaintenance,
and material building code violations that would limit the expected useful life of major
componentsorsystems.
(v) Explain ho w the project will meet the requirements for accessibility to persons with
disabilities.Identify the physical obstacles and describe methods to make the project more
accessible,andlistneededrepairitemsintherehabilitationplan.
(vi)Preparearehabilitationplan, addressingseparatelyalltwo‐yearandlong‐term physical
needs.
(vii)Prepare areplacementreserveschedule,includin g anestimateoftheinitial andannual
deposits,acco untingforinflationandbasedona20‐yearterm.
(viii)Conductacost/benefitanalysisofeachsignificantworkitemintherehabilitationplan
(itemsgreaterthan$5,000)thatrepresentsanimprovementorupgradethatwillresult inreduced
operatingexpenses(e.g.,individualutilitymetering,extrainsulation,thermo‐panewindows,
setback thermostats).Compare the cost of the item with the long‐term impact on rent and
expenses,takingintoaccounttheremainingusefullifeofbuildingsystems.
2.7(B)(36)InternetAccess.Allunitsshallbewiredwiththreenetwor ksbacktoacentrallocation:1)a
networkforphoneusingCAT‐5wire;2)anetworkfortelevisionusingCOAXcable,and3)ane twork
fordatausingCAT‐5wire.
2.7(B)(37)RegistrationwithSocialServe.ApplicantswhoreceiveanAllocationmustagreetoregister
theunitswithsocialserve.comandmaintainsuchregistrationwithsocialserve.comforthedurationof
theCompliancePeriod.
2.7(B)(38)ADOHSignage.Applicantswhoreceiveanawardoftaxcreditsmusterectasignatthe
constructionsiteindicatingthattheprojectisfundedthrough theADOHandlistingthe sourcesof
21
QualifiedAllocationPlan 2009
funds.Thesignmustbea minimumsizeof24incheshighby36incheswide,includeaminimum5‐inch
highADOHlogoandtextprintedataminimum72‐pointfont.AnindividualADOHsigndoesnot
have to be provided if incorporated into a larger group sign.Applicants must submit an 8x10
photographofthesignagetoADOHevidencingthattherequirementhasbeenmet.
2.7(B)(39)SpecialProvisionsforProjectsSeekingStimulusPackageFunding.Allprovisionsofthis
paragraph shall be construed in conjunction to federal guidance and regulations implementing the
provisionsoftheARRArelatingtotheLIHTCprogram.
2.8 2009Set‐Asides
2.8(A)Set‐AsideCategories
:Annualtaxcreditceilingamountsshallbeset‐asideforoneseniorproject,two
tribalprojects,andatleastoneprojectwithsubstantialparticipationbyanonprofit.Inacompetitiveround
underthisPlanafterthe2009calendaryear,theDepartmentmaydesignateadditionalset‐asidecategories
throughnoticeasprovidedbySection 1.1(C)(2).
SENIOR
OneSeniorprojectallocating100%oftheirunitstoSeniors(62or
olderorhandicapped)withSupportiveServices.Projects
competingunderthisset‐asidemustcomplywithSection
2.9(F)(11)(b).
TRIBAL
TwoprojectslocatedonTribalLands
NONPROFIT
20%ofthestate’sannualcreditauthority isset‐asidefor“non‐
profitprojects,”asdefinedinSection2.7(B)(13)ofthisPlan.Only
nonprofitprojectsthatmeetalloftheeligibilityrequirements
shallbeeligibleforanallocationofnonprofitset‐asidecredits.
Theallocationofnon‐profitset‐asidecreditsshallbebasedonthe
rankingsofnon‐profitprojectsunderthescoringsystem.
2.8(B) Set‐Asides and Reservation of Tax Credits
.In the event that there is more than one qualified
application in a set‐aside category, then ADOH shall allocate tax credits first to the highest‐scoring
applications meeting all eligibility requirements and underwriting criteria in the set‐aside categories.
Unallocatedbalancesinoneormoreset‐asidecategoriesshallbeallocatedtotheeligibleandfeasibleproject
thatmaybefullyfunded.Iftheunallocatedbalanceissufficienttofundmorethanoneapplication,then
reservationshallbemadetotheeligibleandfeasibleprojectwiththehighestauditedscoreunlessADOH
determinedthatanothereligibleprojectbestservesmarketdemand,thepolicyobjectivesofthisPlan,andthe
publicinterest.
2.8(C)SupplementalAllocationSetAside
.$900,000.00ofthestate’sannuallow‐incomehousingtaxcredit
authorityisreservedby for projectsthatneed additionalcredits becauseof materialerrorsofADOH or
projectswithseverehardships.Theamountthatmaybereservedorallocatedunderthissubparagraphmay
alsobesupplementedbytheamountofcreditsreturnedthatwereoriginallyreservedinpriorAllocation
Years.
2.8(C)(1)SevereHardship.Requestsbasedonsevere hardshipsmaybesubmittedfromJanuary1
st
through June 1
st
of the Allocation Year, or until funds are exhausted, along with an additional
applicationfeeof$2,500.HardshiprequestsmustbedocumentedtothesatisfactionofADOHandmust
demonstrateanincreaseinhardcostsdirectlycausedbyanunforeseeablecircumstanceoutsidethe
22
QualifiedAllocationPlan 2009
Developer’scontrolthatjeopardizescompletion oftheprojectandthatmaybemitigatedthroughan
awardofadditionaltaxcredits.Applicationsforhardship creditsshallincludethefollowingmaterials:
(i)Anarrativeexplanationjustifyingtheamountofadditionaltaxcredits requestedconsistentwith
thisparagraph;
(ii)ArevisedandupdatedDevelopmentBudget,Form3,item24;
(iii)Thecontractor’sestimateoftheadditionalhardcosts;and,
(iv)AnopinionofaCPAdemonstratingthattheincreasedcostsmaybecharacterizedasqualified
eligiblebasisforthepurposesofI.R.C.§42.

2.8(C)(2)MaximumCreditAllocation.ADOHmaydenyanapplicationfora supplementalallocation
oftaxcreditstoprojectssalreadyallocatedthemaxim umcreditallocationallowedbyeligiblebasis
limitsintheyearthattheapplicationforsupplementalallocationismade.Indeterminingwhethera
supplementalallocation maybereservedtoaproject,ADOHmayalsoconsidertheamountofgap
financingintendedorpledgedtotheproject.
2.8(C)(3)UnreservedSupplementalAllocationAmounts.Supplementalallocationset‐asideamounts
notreservedtospecificprojectsbyAugust15
th
,orsuchearlierdatethatmaybeselectedbytheDirector,
maybereservedforanyprojectthatreceivedapartialAllocationofcredits,oraprojecteligiblefor
returnedcredits.
2.8(D)Thoseprojectsmeetingtheeligibilityrequirements,butnotrankinghighenoughtoreceivetaxcredits
duringtheAllocationYearapplicationround,maybeeligibletoreceivereturnedtaxcredits.Depending
upon availability, returned tax credits may be allo cated to the next highest scoring projects that meet
thresholdcriteria,eligibilityrequirements,andunderwritingrevie wasdescribedabove.
2.9 ProjectScoring
2.9(A)ADOHshallawardpointsbasedsolelyontheinformationsubmittedintheappl ication.ADOHmay
verifyinformationsubmittedintheapplicationwithpubliclyavailable informationandinformationavailable
fromsubscriptionservices.SeeSection2.6(B)(3).

2.9(B)Aself‐scoringsheetshallbeprovidedwiththeapplicationandshallrequiretheapplicant’ssignature.
ItistobesubmittedbehindthecoverletteratTab1.
2.9(C)Noapplicationshallbescoredhigherthantheapplicant’sselfscore.Anapplicationmustprovidea
factualbasisanddocumentarysupportforpointsclaimed.ADOHmaydenyaclaimforpointsifthecorrect
formsorrequiredinformat ionarenotsubmitted,orarenotsubmittedatthecorrecttab,orifinformation
available to ADOHne gates a claim for points.In theeventthat an applicant claims pointsinmutually
exclusivepointcriteria,ADOHmaydeductthepointsthatarenotsupportedbytheapplication.
2.9(D)ADOHmaycountEmployeeUnitsas60%Low‐IncomeUnitsinmakingscoringcalculations.
23
QualifiedAllocationPlan 2009
2.9(E)Theapplicant’scommitmenttoservespecificpopulationsasset‐asidesshallbebindingfortheduration
oftheExte ndedUsePeriodandshallbeincludedinthe recordedExtendedUseAgreement.ADOHshall
monitorresidentfilestodeterminethattheset‐asidesarebeinghonored.
2.9(F)ADOHshallscoreprojectsinthe following16categories:
2.9(F)(1)HistoricPreservation:upto40points
15po ints–Fifteenpointsareavailable
forthefollowingprojects:(i)consistingofoneormor estruc tures
individuallylistedintheNationalRegisterofHistoricPlacesasevidencedbyaletterfromtheNationalParks
Service,StateHistoricPreservationOffice(SHPO),ortribalequivalentthereof,or(ii)consistin gofoneor
more structures certified by the National Parks Service, SHPO Office or certified local government as
contributingtoaRegisterDistrict(aRegisterDistrictisadesignatedarealistedintheNationalRegister,or
listedunderstatestatuteorlocalordinanceassubstantiallymeetingtherequirementsforlistingofdistrictsin
theNational Register), or(iii) aproject locatedwithinanareathat hasbeen zonedasanhistoricareaas
evidencedbyacopyofthemunicipalzoningordinancethatwasadoptedonorbeforethedeadlinedateand
aletterfrom thelocalmunicipalityindicatingthatthedesignwillmeettherequirementsoutlinedin the
zoningordinance.Applicationsforhistoricpreservationofexistingrentalhousingshallbesupportedbya
relocationplan.(AtTab18,submittheappropriateevidenceasidentifiedabove.)
25 points
– Twenty‐five pointsare available for projectsthat havereceiveda certification signed by the
NationalParkServiceforHistorictaxcredits.Applicationsforhistoricpreservationofexistingrentalhousing
shallbesupportedbyarelocationplan.(AtTab18,submitthecertificationsignedbytheNationalPark
Service).
2.9(F)(2)Acquisition/Rehabilitation:upto30points
2.9(F)(2)(a)Thirtypointsareavailabletoprojectsproposingacquisitionofanexistingbuilding.The
pointsavailabledepe ndsontheproratarehabilitationhardcostsperunitlesspropertyacquisitioncosts
(seeForm3,item24,sectionI)andsitedemolitionandpreparationcosts(seeFor m3,item24,sectionII)
asdescribedinthetable,below:
HardCostofRehabilitationperUnit PointsAwarde d
$20,000+ 30
$15,000‐19,999 10

2.9(F)(2)(b)Projectscontainingacquisition/rehabilitationandnewconstructioncomponentsshallqualify
forpointsinthiscategoryonlyiftherehabilitation unitstotal50%ormoreofthetotalprojectandthe
acquisition/rehabilitationis100%oftheacquiredunits.
2.9(F)(2)(c) ADOHshalldenyaclaimforacquisition/rehabilitationpointsifitconcludesthatthescopeof
demolitionoftheexistingbuildingrequirestheprojecttobeproperlycharacterizedasnewconstruction.
2.9(F)(2)(d)Applicantsshouldidentifytheprojectasarehabilitationoracquisition/rehabilitationproject
and fully explain the acquisition and scope of rehabilitation work in the cov e r letter.The type of
rehabilitationimprovementsandtheamountofrehabilitationcostsshallbeappropriatefortheproject
andproportionatetothebenefitasdeterminedbyADOHbasedonthe applicationandaCapitalNeeds
Assessment,seeSection2.7(B)(35).ADOHmayutilizetheservicesofanin dependentcostestimatorin
24
QualifiedAllocationPlan 2009
determiningwhethertherehabilitationcostsarereasonable.Theapplicantshallberesponsibleforthe
costsofthecostestimator.CostofrehabilitationperUnitisdeterminedbyaddingdirectconstruction
costsandappliances,thendividingthatsumbythenumberofqualifiedrehabilitationunits.
2.9(F)(2)(e) Applicationsforacquisition/rehabilitationofexistingrentalhousingshallbesupportedbya
relocationplan.TherelocationplanshallcomplywiththeUniformRelocationAssistanceAct,42U.S.C.§
4621,etseq.
2.9(F)(3) PreservationofExistingSubsidizedHousing:upto40points
Upto40Points
areavailabletoprojectsthatpreserveexistingprogramorproject‐basedrentalassistance,
suchasproject‐basedSection8,RDorotherprogram‐basedrentalassistancethatwouldotherwisebelost.
ThenumberofpointsavailableforPreservationofExistingSubsidizedHousingshallnotexceedtheproduct,
roundeddowntothenextwholenumber,offortytimestheratioofthenumberofSection 8orRDrental
assistanceunitstothetotalnumberofunits.Applicationsforpreservationofexistingsubsidizedhousing
shallbesupportedbyarelocationplan.
Example:A100‐unitprojectinwhich27project‐basedrentalassistanceunitswillberehabilitated
willreceive40X27÷100=10.8,whichroundsdownto10points.
Note:points shall only be given in one area of Preservation, not all three (Historic Preservation,
Acquisition/Rehabilitation,SubsidizedHousing).
2.9(F)(4)TenantLeasePurchase:3points
3points
‐shallbeawardedif100%oftheprojectisdesignedfortenanthomeownershipopportunitiesafter
the15‐yearcomplianceperiod.
2.9(F)(4)(a) EligibilityRequirements.
(i) TenantLeasePurchasepointsarelimitedtosinglefamily,duplexorfour‐plexprojectsofno
morethan60units.
(ii) The project design must incorporate units, amenities, and open common areas that are
consistentwithcommonexpectationsformultifamilyhousing.
(iii) ADOHmayrefusetoconsideraclaimfortenantleasepurchasepointsforprojectsproposingto
servetenantswithincomeslessthan60%AMI.
2.9(F)(4)(b)Submittalrequirements.AtTab17,provide:
(i)Aletterofintentfromaqualifiednon‐profitorganizationtopurchasetheunits,includinghowthe
purchasepricemaybecalculated attheendofthe15‐yearcomplianceperiodshouldnoqualified
tenantsbeidentifiedwhoarewillingtooperatetheprojectasarentalprojectfortheremainingterm
oftheLURA;
(ii)Adetaileddescriptionoftheownershipproposaltoinclude:
(1)astrategythatincorporatesanexitstrategy;
25
QualifiedAllocationPlan 2009
(2)home‐ownershipfinancialcounselingservices;
(3)howtheeligibletenantswillbe identifiedandofferedarightoffirstrefusal;
(4)howtheunitswillbepricedinaccordancewithIRCSection42(i)(7);
(5)themanne rinwhichhomebuyerassistancewillbegeneratedfromtheprojectandprovided
tothehomebuyer;and
(6)proposedsaleagreement.
2.9(F)(4)(c) Postallocationrequirements.Projectsawardedpointsunderthisparagraphshallberequired
toexecuteandrecordanExtendedUseAgreementthatindicatestheprovisionssetforthaboveforthe
remainingcomplianceperiod.Also,thereareadditionalfeesassociatedwiththesepoints.(SeeSection6,
Fees.)
2.9(F)(5)DeveloperExperiencePointsforNewConstructionorRehabilitation:Maximumof15points
awardedforDeveloperexperiencecategory.
2.9(F)(5)(a)PointsAvailable.
(i) Upto15points
areawardedforprojectsproposingsignificantparticipationbyaDeveloper(s)or
Co‐developerwithademonstratedtrackrecordinthetimelycompletionofnewconstructionor
rehabilitationoftaxcredithousingasdescribedinthefollowingtable.
NumberofProjects PointsAwarded
5+ 15
3‐4 12
(ii)Inscoringthiscategory,ADOHshallcoun tthenumberofresidentialtaxcreditprojectsPlaced
inServicebytheDeveloper,anyCo‐Developer,andanypersonwhoholdsatleastanequityinterest
ineithertheDeveloperorCo‐Developer.Thesepointsarenotavailablebasedontheexperienceof
Consultants or other Development Team professionals.If a project relies on a Co‐Developer’s
experience,theapplicantmustsubmittoADOH,aspartofTab8, awrittenagreementbetweenthe
Developer and the Co‐Developer that explainsthe length of time that the Co‐Developer will be
associatedwiththedevelopmentoftheprojectandthescope oftheCo‐Developer’sparticipationin
thedevelopmentoftheproject.
(iii)In order to claim points for developer experience, the following developers must submit
referencelettersdemonstratingsuccessfulcompletionoftherequisitenumberofresidentialrental
projectsusingtheLIHTCprogramfromallocatingagenciesinstatesoutsideArizona:
(1) DeveloperswhohavenotpreviouslyreceivedanReservationoftaxcreditsinArizona;and,
(2) Developersthatareorganizedunder thelawsofastateotherthantheStateofArizona;and,
(3) DeveloperswhodonotmaintainanofficewithastreetaddressinArizona;and,
26
QualifiedAllocationPlan 2009
(4) DeveloperswhohavenotpaidArizonapayrolltaxesforaleasttwoemployeesforthethree‐
monthperiodprecedingtheMarch15
th
ofthecurrentAllocationYe ar.
(iv)Attach at Tab 8 Form 8‐1 and any additional lists of residential rental housing projects
developed by the Developer, any Co‐Developer and any person who owns part of either the
DeveloperortheCo‐Developer,referenceletters,andbusinessinformationnecessarytosupporta
claimforpointsunderthisparagraph.(IncludethenameoftheDeveloperorotherPerson,nameof
theproject,addressoftheproject,city,state,numberofResidentialRentalUnits,andtherolethe
Developerplayedindeve lopmentoftheproject.)
(v)ADOHrequirestha t developersexecuteandsubmitForm 8‐2(AuthorizationforReleaseof
Information)allowingADOHtocontactotherstateallocatingagenciesincludingADOH.Attachat
Tab8Form8‐2.
2.9(F)(5)(b)PointsDeducted:
(i)ADOH may deduct five (5) points from the amount of claimed and confirmed developer
experiencepointsforeachandeveryinstancewithinfiveyearspriortothedateofapplicationthat:
(1)aDeveloper,Co‐Developer,orpropertymanagerfailedtoresolvecomplianceissueswiththe
DepartmentconsistentwithSection8.2(F),orwithanyotherstateallocatingagencywithinsix
monthsofnotificationofnon‐compliance;
(2)aDeveloperorCo‐Developerfailedtocompleteaprojectwithfeaturesoramenitiesforwhich
competitivepointswerereceivedwithouttheexpresswrittenconsentofADOH;
(3)aDeveloperorCo‐DeveloperfailedtonotifyADOHofMaterialChangestoanapplicationas
requiredbySection4.7;
(4)aDeveloperorCo‐DeveloperfailedtomakesatisfactoryprogressconsistentwithSections
2.7(B)(4)and4.2;
(5)aprojectfailstorequestanIRSForm8609within120calendardaysthatthepr ojectisPlaced
inService;
6)aprojectfailstoprovideaprojectscheduleonForm27.
2.9(F)(6)RentRestrictedUnitsSet‐As idefor50%and40%AMGITenants:Amaximumof35pointsfor
anycombinationofset‐asidesofLow‐IncomeUnitsat50or40AMGI(15poin tsfor50 %AMGIand20points
for40%AMGI).SeeSection2.7(B)(20)PriorityMarketNeedforguidancere gardingtheincomeandrent
restrictionsre gardingthesepoints.AttachatTab16oftheapplicationForm16,“CommitmenttoLower‐
IncomeSet‐Aside.”
*(NOTE:ThiscalculationisbasedontotalnumberofLow‐IncomeUnitsintheproject.AMIisequaltoor
lessthan40or50%AMGI).
2.9(F)(6)(a)Pointsavailableforunitsdesignatedfor50%AMGITenants.
27
QualifiedAllocationPlan 2009
50%AMGIRuralPoints 50%AMGIUrbanPoints
45%+=15 45%+=15
21‐44%=10 21‐44%=10
10‐20%=5 10‐20%=5
2.9(F)(6)(b)Pointsavailableforunitsdesignatedfor40%AMGITenants.
Upto20points
areawardedforrentrestrictingapercentageoftotalunitsforpopulationsat40%AMGI.
RentsshallberestrictedfortheLow‐IncomeUnitstoensurethathouseholdspaynomorethan30%of
theapplicableincomelimitduringtheExtendedUsePeriod.
40%AMGIRuralPoints 40%AMGIUrbanPoints
35%+=20 35%+=20
16‐34%=15 16‐34%=15
5‐15%=10 5‐15%=10
2.9(F)(6)(c)Pointsavailableunderparagraph(a)an d(b)arecumulative.
2.9(F)(7)DevelopmentLocation‐CommunityRevitalizationProjects:15points
Fifteenpointsareavailableforprojectslocatedinthefollowingareas:
2.9(F)(7)(a)Priorityhousingareasdesignatedbythelocalgo vernmentasevidencedbythefollowing
documents:
(i)Alocalgoverningbodyresolutionorordinanceorplanningdocumentdatedatleast9months
priortheapplicationdeadlinethatdesignatesapriorityhousingareathatexceedstheareaofthe
proposeddevelopmentbyatleastafactoroften;and,
(ii)CertificationonForm23bythe localgoverningbodyoritschiefoperatingofficerthattheproject
iswhollylocatedinthepriorityhousingarea;andthatthepriorityhousingareameetsatleastoneof
thefollowingcriteria:
(1)an area that the local government entity has designated as a redevelopment project,
conservationproject,orrehabilitat iondistrict,orasblighted,deteriorated,deterioratingorifnot
rehabilitated,likelytodeterioratebyreasonthatthebuildings,improvementsorotherfacilities
insuchareaaresubjecttooneormoreofthefollowingconditions:dilapidation,obsolescence,
overcrowding,inadequateventilation,lightorsanitation,excessivelandcoverage,deleterious
landuse,orfaultyotherwiseinadequatedesign,qualityorconditions;
(2) an area designated as lacking the housing needed to induce manufacturing, industrial,
commercial,governmental,educational,entertainment,communitydevelopment,healthcareor
non‐profitenterpriseorundertakingtolocateorremaininsucharea;
(3)anareadesignatedasanareawheregovernmentassistanceisnecessar ytoinduceprivate
enterpriseandinvestmenttoconstructorrehabilitatedecent,safeandsanitaryhousingand
supportingfacilitiesthatwillmeettheneedsoflowandmoderateincomepersonsandfamilies;
and,
(iii)Acomprehensiveplandoesnotqualifyasacertificationofarevitalizationarea.
28
QualifiedAllocationPlan 2009
2.9(F)(7)(b)Thepointswillalsobeawardedifthepropertyislocatedwithinoneofthefollowinghousing
priorityareas:
(i)FederalEmpowermentZonesorFederalEnterpriseCommunities
(ii)EstablishedHUDNe ighborhoodRevitalizationStrategyAreas
(iii)EstablishedColoniasasdesignatedbytheUnitedStatesDepartmentofAgricultureorHUD
(iv)Geographicareasorparcelsofpropertythatareestablishedbythelocalgovernmentaspartofa
comprehensiveaffordablehousingplan.
2.9(F)(7)(c) IncludeatTab23forprojectsclaimingpointsunderparagraph2.7(F)(7)(a):
(i)Localgovernmentordinanceorresolution,planningdocumentexcerpts;
(ii)Mapsshowingboundariesofthehousingpriorityareaandthelocationoftheprojectwithinthat
area.Themapmustclearlyshowthenamesoftheroads,streetsorotherboundariesofthehousing
priorityareaandalsoclearlyreflectthelocationoftheprojectonsuchroadsorstreets;
(iii)Form23,Certificationbylocalgove rnmentbodyorchiefoperatingofficer;
2.9(F)(7)(d) IncludeatTab23forproje c tsclaimingpointsunderparagraph2.7(F)(7)(b):
(i)Mapsshowingboundariesofthehousingpriorityareaandthelocationoftheprojectwithinthat
area.Themapmustclearlyshowthenamesoftheroads,streetsorotherboundariesofthehousing
priorityareaandalsoclearlyreflectthelocationoftheprojectonsuchroadsorstreets;
(ii)Certificationbyloca lgovernmentbodyorchiefop eratingofficerthattheprojectislocatedinone
ofthehousingpriorityareasdescribedin2.7(F)(7)(b).
2.9(F)(8)DevelopmentLocation—ProjectsinaQCT,DDAoroutsideanMSA:10pointsare availableto
projectslocatedwithinaQualifiedCensusTract(QCT)orDifficultDevelopmentArea(DDA),oroutsideofa
MetropolitanStatisticalArea(MSA)asdesignatedbyHUD(SeeExhibitC).Projectslocatedincertainhigh
costareastha tareeligibleforthe increaseintaxcreditamount, seeI.R.C.§42(d)(5)(C),includingbuildings
designatedforincreasedtaxcreditbyADOHpursuanttoI.R.C.§42(d)(5)(C)(v)alsoqualifyfortenpoints
underthisparagraph.ADOHmaydenyaclaimforpointsunderthisparagraphifADOHconcludesthatthe
projectislocatedinanareawhereaffordableunitscomprise25%ormoreoftotalrentalunitsforproperties
containing15rentalunitsormore.
2.9(F)(9)FamilyProject: 10points
10points
maybe awarded for projects in which at least 20%ofthe Low‐Income Units are three orfour
bedroomsandhaveamini mum oftwobathrooms.
2.9(F)(10)ProjectsServingSpecialNeedsPopulations:10points
10points
maybeawardedtoprojectsofwhichatleast5%oftheprojectisreservedfortenantswithspecial
needs.ADOHmaydenyanapplicationfortaxcreditstoaprojectthatisrequiredtoprovidesupportive
services to tenants including Special Needs Populations, if the application fails include the information
29
QualifiedAllocationPlan 2009
requiredbythissection.ADOHmaycancelareservation,orrevokeanallocationoftaxcreditsforaproject
thatreceivedpointsunderthissectionor areservationoftaxcreditsiftheprojectfailstoprovidesupportive
servicesdescribedintheapplicationorasrequiredbytheExtendedUseAgreementorasupportiveservices
agreementthathasbeenapprovedbyADOH.
2.9(F)(10)(a)Supportiveservicesagreement.Applicantsmustprovideevidenceofcoordinationwith
agenciesspecializinginservicestotenantswithspec ialhousingneeds,ac lientsource(e.g.lettersfroma
referringagency,etc.)andserviceagreementforeachpopulationserved,which alsomustbeinsertedat
Tab13.Thisagreementmustbeontheserviceentity’sletterhead,signedanddatedbybothparties.
2.9(F)(10)(b)Preapprovalofsupportiveserviceprovider.Theapplicantmustobtainwrittenpreapproval
byADOHofthesupportiveserviceprovider.Theapplicantmustsubmitpreapprovaldocumentation
underTab13foreachentitythatwillbeprovidingservices,includingForms13and13‐1.ADOHshall
respondwithanevaluationletterapprovingorobjectingtotheproposedsupportiveservicesproviderby
nolaterthanfifteendaysbeforethedeadlinedateforapplicationforacompetitiveround.Applications
thatarenotpre‐approvedbyADOHordonotdemonstratesatisfactoryexperienceservingSpecialNeeds
Populationsshallnotbeeligibleforthesepoints.
2.9(F)(10)(c)Applicantsclaimingpointsunderthissectionmustprovideevidenceoffundingsourceto
be used by service agency. Sufficient evidence consists of grant agreements for Shelter Plus Care,
SupportiveHousingFunds,Project‐BasedSection8,andcontractswithBehavioralHealthOrganizations.
Applicantmustprovidealineitemintheoperatingbudgetforthecostofagencyservices.
2.9(F)(10)(d)Postreservationrequirements.ADOHmayrequirethatthesupportiveservicedescribedin
theapplicationbeincludedintheExtendedUseAgreementbeforeissuingafinalAllocat ionandmay
monitorper fo rmanceoftheseset‐asidesthroughoutthecomplianceperiod.SeeSection7.3(C)(2)(a)(iii)
fortreatmentofthecostsofsupportiveservices.
2.9(F)(11)SeniorProjects

2.9(F)(11)(a) 10points
are availableforprojectsserving80%ormoreelderlyindividuals.Unitsserve
elderlyindividualsifatleastoneindividualinthehouseholdis55yearsofageorover.
2.9(F)(11)(b)15points
are availableforprojectsservingindividualswhoare62+yearsofageorwho are
PhysicallyDisabledthatofferSupportiveServices).
(i)Projects serving persons 62 years old or older shall not propose units with more than two
bedrooms.
(ii)Theapplicationmustincludethesamesupportingdocumentationasprojectsservingspecial
needspopulations,seeSection2.9(F)(10).Supportiveservicesforseniors62yearsoldoroldershall
promotes the resident’s quality of life and independence while providing efficient deliver y of
SupportiveServicestotheresidents.
(iii)Postreservationrequirements.Thetenantfilemustincl udeproofofdateofbirthorproofofthe
qualifyingdisability.
30
QualifiedAllocationPlan 2009
2.9(F)(11)(c)ApplicantsshouldindicatethisintentiononForm3oftheapplicationandencloseatTab15
Form 15, “Commitment to Set‐Aside Units for Senior Population,” along with the supporting
documentationrequiredbythatform,andExhibitN.
2.9(F)(12)MixedIncome:10points
10pointsareavailableforprojectsservingmixedincomepopulations.Pointsshallbeawardedbasedonthe
percentageofmarketrateunitsintheproject(totalmarketrate unitsdividedbytotalunitsintheproject).
%MarketRateUnits Points
50% 10
40‐49% 8
30‐39% 6
20‐29% 4
10‐19% 2
2.9(F)(13)RuralAreaDevelopment:maximum15points
ProjectslocatedinRuralAreasmayclaim15pointsforRuralAreaDevelopment.
FifteenpointsforRuralAreaDevelopmentarealso
availableforprojectsthatarereceivingnewfundingfrom
theUnitedStatesDepartmentofAgriculture(USDA)fornewconstruction,acquisition/rehabilitation,and
preservationprojectsthroughtheSection515/514/516andSection538programs.Letter ofintentfromthe
USDARuralDevelopmentAuthorityshouldbeprovidedatTab11.
2.9(F)(14)ProjectReadiness:10points
10points
areavailableforprojectsthatdemonstratereadinesstocommenceconstruction.ProjectReadiness
pointsareintendedtorewardprojectsthatarereadytocommenceconstructioninthenearterm.Generally,
toqualifyforProjectRea dinesspointstheprojectshouldbereadytosubmitforbuildingpermitapproval.
Conditionallyzonedprojects,seeSection2.7(B)(16)(b),donotqualifyfor projectreadinesspoints.ADOH
mayconsideraprojectreadyforconstructioniftheapplicantdemonstrateseachofthefollowingatthetime
ofapplication:
2.9(F)(14)(a)Current,exclusive,andunconditionalc ontrolofthe projectpropertythroughdeedorlease
foratermofnolessthan30yearsinthenameoftheownershipentity.
(i)Controlcannotbeconditionedthroughanymechanismsuchasanoptiontoreconveythedeedin
theeventthattheprojectdoesnotreceive anAllocation.
(ii)Applicantsmustsubmitacopyofrealestatepurchasesettlementstatementsshowingtheland
hasbeentransferredtotheownershipentity(thatwillownthe development).
2.9(F)(14)(b)Aclearanceletterfromthestateortribalhistoricalpreservationorganizations;
2.9(F)(14)(c) A certification letter from the state or tribal historical preservation organizations for
applicantsclaimingpointsforhistoricalpreservationundersection2.9(F)(1);
31
QualifiedAllocationPlan 2009
2.9(F)(14)(d)Pre‐approvalofprojectdesignbythelocalgovernmentbodyorotherdemonstrationthat
theapplicantisreadytosubmitforbuildingpermitapprovalatthetimetheapplicationisfiled;
2.9(F)(14)(e)Anexecutedconstruc tioncontractwithacontractorlicensedandauthorizedtodobusiness
intheState ofArizona;and
2.9(F)(14)(f)Theconstructionlender’stermsheetstatingtermsandconditionsof theconstructionloan
thatisexecutedandsignedbybo thparties.
2.9(F)(14)(g)Phase I Environmental Report.The applicant must provide a copy of the Phase I
EnvironmentalReportand,intheeventthattheprojectcontemplatesfinancingthroughanyprogram
administeredbyHUD,thenanEnvironmentalReviewRecordshallberequiredinaccordancewithHUD
regulations,see24C.F.R.Pt.58.
2.9(F)(14)(j)Alldocumentationlistedabovemustbesubmittedtosupportaclaimforprojectreadiness
pointsandshouldbeattachedatTab29.
2.9(F)(14)(k)Postreservationrequirements.ProjectsreceivingProjectReadiness Pointsmustprovide
ADOH copies of the final plans and specifications that were submitted to the local government for
approvalatthetimeofcarryover.Failuretocomplywiththerequirementsofthissubparagraphmay
resultincancellationofare servation oftaxcredits,seeSection2.16.
DISCLAIMER:Thecompetitivescoringcategoryforprojectreadinessinnotintendednorshallitbe
construed as an incentive to purchase project property in advance of a reservation of tax credits. 
Development team members make all business decisions including disbursement of funds or
incurring any liability for a project or project property at their own risk.See also, Section 4.10
DisclaimerandLimitatio nofLiability.
2.9(F)(15)SustainableDevelopment/TransitOrientedDevelopment:upto15points
2.9(F)(15)(a) 10 points
are available for projects loca ted within the Phoenix or Tucson Metropolitan
StatisticalAreasthatdemonstrateatleastthreeofthefollowingindicatorsofsustainabledevelopment:
(i) Project located within a three‐mile radius of a major employment center, concentration of
employmentcenters,orcommunityamenities,suchasmedicalfacilities,educational institutions,and
shopping;
(ii)Projectlocatedonemileorlessfromamasstransitrouteorlightrailline;
(iii) Project located within a three ‐mile radius of city center or some other readily identifiable
concentrationoflocalgovernmentoffices;
(iv)Projectservedbyexistingroads, utilities,andcommunicationsinfrastruct ure.
2.9(F)(15)(b)10 points
are available for projects located in areas other than the Phoenix or Tucson
MetropolitanStatisticalAreasthatarewithinone‐halfmileofaUnitedStates,state,orcountyhighwayor
otherarterialandnomorethan5milesfromamajoremploymentcenter,concentrationofemployment
centers,citycenter,orotherreadilyidentifiableconcentrationoflocalgovernmentoffices.
32
QualifiedAllocationPlan 2009
2.9(F)(15)(c)Anadditional5pointsareavailabletoprojectsdemonstratingfourofthefollowingtransit
orienteddesigncharacteristicssetforthbelow.Aclaimforpointsunderthissubparagraphmustbe
supportedbyanappropriatemap.
(i)Projectlocatedwithinaonehalf‐mileradiusofamajoremploymentcenter;
(ii)Projectlocatedwithinaonehalf‐mileradiusofpost‐secondar yeducationalinstitutions;
(iii)Projectlocatedwithinaonehalf‐mileradiusofanidentifiableconcentrationofretailcommercial
enterprises;
(iv) Project located within a one half‐mile radius of a readily identifiable concentration of local
governmentoffices;
(v) Projectlocatedonehalf‐mileorlessfromamasstransitrouteorlightrailline;
2.9(F)(15)(d)AlldocumentationsupportingaclaimforSustainableDesignshouldbeattachedatTab30.
2.9(F)(15)(e)No morethan15pointsareavailableunderthissubsection.
2.9(F)(16)Cities,Townsand/orCountiesNotReceivinganAllocationintheLastThree(3)Years:10
points
10points
maybeawardedtoprojectsthatarelocatedwithinacity,townorcountyofthestatethathasnot
hadaTaxCreditAllocationwithinitsgeographicallimitswithinthe pastthree(3)years.Inordertoqualify
forpointsunderthisparagraph,thelastprojectinthecity,townorcountymusthavereceivedtaxcredits
priortoJanuary1,2006, havebeenPlacedinServicenolaterthanDecember31,2007,andmusthavebeen
continuouslyoperatingthroughanduptothedatethattaxcreditsareallocatedinthe 2009allocationround.
NOTE:TheMarketDemandStudymustalsosupporttheneedforaffordablehousinglocatedwithinthe
geographicallimits.
2.10 Rents
Theproject’s LIHTC rent shallbe 10%belowmarketrentsinthearea theprojectis goingtobebuilt, as
evidencedbytheMarketDemandStudy.Rentsinareasforwhich50%ormoreofthemarketdemandis
attributable to tenants exiting substandard, or overcrowded housing or housing lacking complete
plumbing,themaximum allowable rent shallbe20% below marketrents, see Section 7.3(C)(3)(b)(ii).
Pleasenotethatthecalculationofrentmustincludeanyutilityallowancesandanyrenttaximposedbythe
municipalityinwhichtheprojectislocated.Thebudgetshouldshowalineitemforthetax.
2.11 Tiebreaker
Intheeventtwoprojectsinthequeuehavethesameadjustedcompetitivescore,ADOHshallreservetax
creditstotheprojectreceivingthemostpointsaccordingtothefollowingtiebreakercriteria:

33
QualifiedAllocationPlan 2009
TiebreakerCriteria(pos siblepoints=12)
1. Efficientuseofcreditspertaxcreditunit:1point(calculationshallbemade
beforeQCTandDDAadjustments)
2. Rehabilitationprojects:4points
3. Ruralareadevelopment:1point
4. Solenon‐profit:1point
5. Efficientuseoftaxcreditsperoccupant:upto2points
6. HardCostperbedroom:upto3points
7.IntheeventthattwoprojectsbothlocatedineitherthePhoenixorTucsonmetropolitanareas
havethesameauditedscore,thentotheapplicationwithevidenceofintentforfundingwith
thegreatestamountoffundsprovidedbythecity:1point.

These are not bonus points and are not added to the project’s total score.This scoring system only
determinestherankingofprojectswiththesamefinalscoreundertheProgram’scompetitivescoringprocess.
2.12 AmountandAllocationofAnnualTaxCreditAuthority
AllofArizona’savailableAllocationYeartaxcreditceiling,andpreviousyears’taxcreditsreturnedafter
January1oftheAllocationYearortaxcreditsmadeavailablefromtheNationalPool,shallbeavailablefor
Reservation in the Allocation Year, except that portion of the tax credit authority already reserved or
designated to the supplemental allocation set‐aside.This section may be revised as necessary to
accommodatechangesandprovisionsoftheAmericanRecoveryandReinvestmentActof2 009.
ReturnedtaxcreditsthatwerenotreservedinthecurrentAllocationYearmay1)beaddedtotheannualtax
creditauthorityaspermittedbyIRCSection42,or2)be addedtothesupplementalallocationset‐aside.
2.13 ReservationsCancellationofReservations
2.13(A)TaxCreditsshallfirstbereservedforthehighestscoringprojectsineachofthe“set‐aside”categories
describedinSection2.8thatmeeteligibilityandun derwritin grequirements.ADOHshalldeterminethe
actualReservationbasedupontheprojectapplication.AlthoughtheReservationmaynotnecessarilyequal
the amount requested, the Reservation shall not exceed the amount requested. Projects receiving a
Reservationoftaxcreditsshallbedisclosedtothepubliconalistofprojectsinorderofapplicationnumber,
alongwiththenameoftheproject,projectlocation,set‐asidecategory,andannualtaxcreditamount.
2.13(B)ADOHshallnotifysuccessfulapplicantsthattaxcreditshavebeenreservedtoaprojectthrougha
reservationletter.Thelettermayconditionthereservationuponsatisfactionofspecificrequirements.Failure
tosatisfytheconditionsexplainedinthe lettermayresultincancellationofthereservation.
2.13(C)Intheeventtha tADOHconcludesthatithasreservedorallocatedtaxcreditsinexcessoftheannual
taxcreditceiling,ADOHmaycancelataxcreditreservationorrevokeanallocationoftaxcreditsasmaybe
necessary consistentwiththerequirementsofI.R.C. § 42(h)(7)(B) and this Plan.ADOHmay,in itssole
discretion,electtofundtheamountoftaxcreditsexceedin gtheannualtaxcreditceilingfromtheamountof
taxcreditsallocatedtoADOHinthefollowingtaxcredityear.
34
QualifiedAllocationPlan 2009
2.14 AllocationofReturnedCredits
ADOHshallallocatetaxcreditsthathavebeenreturnedandthoseithasreceivedfromtheNationalPoolto
projectsthatwerenotfullyfundedduringtheallocationroundandtothe supplementalallocationset‐aside
asneeded.ADOHmaycarryforwardremainingtaxcreditstothenextcalendaryearaspermittedunderIRC
Section42.Anyapplicant notreceivingtaxcreditsinthecurrentAllocationYearmustsubmitanapplication
inordertocompete for taxcreditsinsubsequentyears.ADOHreservestherightnottoreserveorallocatetax
creditsforanyprojectregardlessofrankingundertheprojectscoringcriteria,ifitdetermines,initssole
discretion,thatanAllocati onforsuchprojectdoesnotfurtherthepurposeandgoalssetforthinIRCSection
42orinthePlan,orotherwiseattemptstocircumventthe goalsandrequirementsofthePlanorADOH.
2.15 CarryoverAllocation
2.15(A)CarryoverAllocation
.ProjectsthatwillplacebuildingsinserviceafterDecember31,2009oras
otherwiseindicatedinthereservationletter,mayreceiveaCarryoverAllocation.Exceptasmaybeotherwise
specifiedinareservationletter,ADOHallowsaCarryoverAllocationoftaxcreditsforprojectsthathave
expended,withinsix(6)monthsoftheAllocationofcredits,morethan10%(includinglandcosts)ofthe
reasonablyexpectedbasisintheprojectbythecloseofthesecondcalendaryear.
2.15(B)ConditionsforCarryoverAllocation
.ADOHmayconditionacarryoverallocationasnecessaryto
ensurethetimelyand substantial progress oftheprojectincluding butnot limited tothe 10%Cost Test
requirementsdescribedinSection2.16.
2.15(C)CarryoverAllocationAgreement
.ACarryoverAllocationAgreementdocumentshallbesenttothe
applicantforsignaturefollowingtheReservat ion ofcredits,afterwhichaletteroutliningtherequirementsto
meetthe10%CostTestshallbemailed.ThefinalizedCarryoverAllocationAgreementshallbecompletedat
thetimethatthe10%CostTestrequirementsaremetasoutlinedinSection2.16 .
2.16 10%CostTestandOtherRequiredDocumentation
ApplicantswithanexecutedCarryoverAllocationshallmeetthe10%CostTestbynolaterthan12months
aftertheAllo cationismadeorasmayotherwisebe requiredbyIRCSection42(h)(1)(E)(ii).Todetermineifa
projectwithaCarryoverAllocationisorhasprogressedinasatisfactorymanner,theIRSrequiresatestof
whethertheamountofqualifiedcosts whichhavebeenaccruedorexpensedwithinthesixmonthsdescribed
aboveisgreaterthan 10%ofthereasonablyexpecte d basis(eligiblebasisplusland).Failuretosubmita
completeapplicationfortheCarryoverAllocationincludingallthematerialsdescribedinthisparagraphmay
resultincancellationofthereservationoftaxcredits.Satisfactionofthe10%CostTestshallbecertifiedbyan
independentauditor’sreportandsubmittedtoADOHin8‐1/2x11format,placedinanadequatelysized
threeringbinderonorbeforethedatedesignatedinthereservationletter,andshallincludethefollowing:
2.16(A)Anupdatedapplication(ADOHForm3);
2.16(B)PerbuildingEligibleBasisinformationrequiredonTableA(ADOH suppliedform).
2.16(C)A10%CostTeststrategicplan,whichincludesthefollowingitems:
2.16(C)(1) ACPAortaxattorney’sopinionwhich atteststothebasisintheland,eligiblebasis,and
amountoftaxcreditsreservedfor theprojectandtheamountofcosttobe incurredtosatisfythe10%
35
QualifiedAllocationPlan 2009
CostTest,asreferencedinSection2.16ofthisPlan(theformofthisopinionmaybesimilartoExhibitE‐1
“SampleCPAOpinion”);and
2.16(C)(2)ACertification intheformofanIndependentAuditor’sReport(ExhibitF)and“ProjectCost
Form”(ExhibitF‐1)completedbyanindependentthird‐partycertifiedpublicaccountantortaxattorney,
onfirmletterhead,that10%ormoreofthereasonablyexpectedbasisintheProjecthasbeenincurredby
thedatesetforthinthereservationletter.Ifthedeveloperfeeisincludedinthe10%CostTestbasisit
mustbereasonable(shouldnotbegreaterthan20%ofthetotaldeveloperfeeandshouldnotincludefees
thatwillbedeferred).Acertificationthatisequaltoorlessthan10 %mayresultinADOHrevokingthe
CarryoverAllocationduetounsati sfactoryprogress.
2.16(D) Evidence, from the appropriate state agencies or commissions, that the entity that will own the
project is an existing legal entity authorized to transact business in the state and the ownership entity’s
taxpayeridentificationnumber.Iftheapplicantdoesnothaveafullyformedqualifiedlegalentitythatwill
ownthepropertytowhichADOHcanassignthe Allocationoftaxcredits,thenSatisfactoryProg ress2.16(as
describedinSections2.7(B)(4)and4.2.)hasnotbeenmetandADOHmayreje cttheapplication,andthe
Allocationoftaxcreditsshallbeforfeited.
2.16(E)Adeedinthe nam e oftheownershipentityandanAppraisalofthe landoracquiredproject.On
governmentortriballands,evidenceofafullyexecuted,irrevocableleasebetweentheDeveloper/Ownerand
thetribalorothergovernmentforaspecificrentalamountandatermequaltoorlongerthantheExtended
UsePeriodand,fortriballands,evidencethatallnecessaryapprovalshavebeensecuredfromthetribe,the
BIAandothergovernmentalagencies. 
2.16(F)PhaseIEnvironmentalRepor t.TheapplicantmustprovideacopyofthePhaseIEn vironmental
Reportand,intheeventthattheprojectcontemplatesfinancingthroughanyprogramadministeredbyHUD,
thenanEnvironmentalRev iewRecordshallberequiredinaccordancewithHUDregulations,see24C. F.R.
Pt.58.
2.16(G)Evidence of a binding commitment to the ownershipentity for allconstruction and permanent
financingandfortheequityplacement.
2.16(H)Constructionlender’sappraisal,ifavailable.
2.16(I) Acopyofthesyndicationorinvestmentagreementfortheequitycapital.
2.16(K) InaccordancewithIRCSection42(m)(2)(B)(i)andSection2.7(B)(16)herein,allupdated,draftand
firm financing documents in existence including, but not limited to, the equity syndication prospectus
(offeringmemorandumorequityletter),limitedpartnershipagreement,operatingagreementorjointventure
agreement,partnershipadministrationservicesagreement,developmentagreement,anyamendmentstothe
aforementioneddocuments,andanyrelevantagreementbetweenandamon gtherelevantpartiessetting
forththetermsofthefinancialarrangements,finalCommitmen t Lettersandmortgagedocuments.
2.16(L) DesignationofageneralcontractorasrequiredbySection2.7(B)(14)(b)alongwithcompletecopiesof
all applicable construction contracts for the project.For applications that did not previously identify a
contractor,provideanupdatedForm8,seeSection 2.7(B)(14).
36
QualifiedAllocationPlan 2009
2.16(M)AletterfromtheStateHistoricPreservationOffice(SHPO)identifyingthestructureasindividually
listedintheNationalRegisterofHistoricPlacesorlocationofaprojectwithinanareathathasbeenzonedan
historicareaortribalequivalent.
2.16(N) ProjectsnotpreviouslyPlacedinServicemustprovideevidencethattheprojectcomplieswithall
applicable zoning, set‐back, and other site‐specific land use regulations and requirements.Projects that
receivedReadinessPoints,seeSec tion 2.9(F)(13),mustsubmitcopiesofbuildingpermits.SeeSection6.3for
separatedeadlinesrelatingtobuildingpermits.
2.16(O) Copyoftheplansandspecifications fortheproject(submitcopytoADOHandArizonaEnergy
Office)
2.16(P) UpdatedForm27–ProjectSchedule,seeSection2.7(B)(34).
2.16(Q) Payment ofallapplicablefeestoADOH.
2.16(R)AnyadditionalinformationrequestedbyADOH.
2.17 ForwardCommitments
ADOHmayconsidercommitmentsoftaxcreditsfromthefollowingyear’sannualtaxcreditceilingamount
forprojectsthatreceivedapartialallocationorqualifyforreturnedorsupplementaltaxcredits.Intheevent
thatADOHreservesreturnedorsupplementalcreditstoaprojectsuchthattheprojectispartiallyfunded,
thenADOHmayreservetotheprojectcreditsfromthefollowingyear’sannualtaxcreditceilingamount.In
anyevent,theamountoftaxcreditsreservedtoprojectinthesubsequentallocationroundmaybenomore
thantheamountneededtofullyfundtheprojectbasedonreviewandunderwritingatthetimethatthe
forwardcommitment credits arereserved.Forwardcommitments maybe grantedby ADOHin its sole
discretionforthepurposeofmaximizingtheallocationoftaxcreditamountsavailableinthecurrenttax
credityear.SeeSection2.20(C)forforwardcommitmentsasaremedyformaterialerror.
2.18 DisclosureofLIHTCApplicationMaterials
PublicdisclosureofLIHTCapplicationsshallbeasprovidedbyTitle39,Chapter1Article2oftheArizona
RevisedStatutes.ADOHmayredactinformationorwithholdrecordsthatareprotectedfromdisclosure
pursuanttoArizonalaw.ADOHmaywithholdmarketdemandstudiesfromdisclosureintheabsenceofan
expresswrittenwaiverofproprietaryrightorconfidentialityfromanauthororapplicantwhohasdeclareda
proprietaryrightorconfidentialityofamarketdemandstudysubmittedtoADOH.
2.19 ExpirationofApplications
ApplicationsthatwereneitherReservednordeniedtaxcreditsbyshall nolongerbeeligibleforReservation
oftax creditsas ofthe dateofannouncementof asubsequent allocation.Projectsth at aredeniedmay
reapplyandcompeteinsubsequentyearstobeconsideredfortaxcredits.AllfeespaidtoADOHarenon‐
refundable.
37
QualifiedAllocationPlan 2009
2.20 FinalityofAllocationandReconsiderationDeterminationofEligibilityand
AdjustmentofAuditedScore
2.20(A)Reservationsoftaxcredits,CarryoverAllocations,andissuanceofIRSForm86 09byADOHare
final.
2.20(B)AfterADOHannouncesReservationsoftaxcredits,unsuccessfulapplicantsmayrequestameeting
with program staff to discuss the application.ADOH may also accept written questions concerning its
scoring of items in an applicant’s application.Ques tions must be based solely on facts provided in the
applicant’soriginalapplication.Afinaldecisiondenyinganapplicationfortaxcreditsshallprovidenoticeof
therighttoadministrativeappealpursuanttoArizonaRevisedTitle41,Chapter6,Article10.
2.20(C)IntheeventthatADOHdeterminesthatamaterialerrorpreventedanotherwisequalifyingproject
from receiving a Reservation or an Allocation, the project may be eligible for returned of tax credits as
providedbySection2.14.InextraordinarysituationsADOHmay,initssolediscretion,electtoforward
committaxcreditsfromasubsequentannualtaxcreditceilingamountonlyasmaybenecessarytocorrecta
materialerrorandavoid prejudice to other projects that receivedaReservationoranAllocation.If the
otherwisequalifyingprojectdoesnotreceiveaReservationofreturnedcreditsbytheendoftheapplication
year,thenADOHmayrefundtheapplicationfee,orattheelectionoftheapplican twaivetheapplicationfee
forsubmissionoftheapplicationforthesubsequentapplicationround.
2.20(D)The financial and other risks associated with holding or carrying property for LIHTC program
developmentissolelytheresponsibilityoftheapplicantandtheDevelopmentTeam.SeeSection4.10.
38
QualifiedAllocationPlan 2009
3. TAXCREDITSFORDEVELOPMENTSFINANCEDWITHSTATEVOLUME
CAPBONDAUTHORITY
3.1 DeterminationoftaxcreditsforTax‐ExemptBondProjects
3.1(A)IRCSection42(h)(4)allowslow‐incomehousingprojectsfinancedwithtax‐exemptbondstobeeligible
for4%taxcreditsiftheymeettheminimumrequirementsofthePlan.Applicationsforprojectsfinancedwith
tax‐exemptbondsmaybesubmittedtoADOHassoonasapplicantsreceiveconfirmationofvolumecap
allocationfromtheFinanceDivisionoftheArizonaDepartmentofCommerce(phone:602‐771‐1112,fax:602‐
771‐1208).At the time of final Allocation, applicant s sponsoring tax‐exempt bond financed Tax Credit
projects shall be required to pass all eligibility requirements (see Section 2.7), adhere to all General
RegulationssetforthinthisPlan,andcomplywithallapplicablerequirementsunderSection5,“FinalTax
CreditAllocation.”Applicantsshouldconsultwiththeirlegaladvisorstodetermineaproject’seligibility.
Applications for eligibletax‐exempt bond projects maybe submitted and ADOHmayallocate such tax
credits outside the normal application round.The review of an application for a Determination of
QualificationunderIRCSection42(m)(1)(D)mayoccurinconjunctionwiththetax‐exemptbondhearingthat
isrequiredunderA.R.S.Section35‐726(E).
3.1(B)Tax‐exemptbondfinancedprojectsmayreceivetaxcreditsonthefullamountoftheireligiblebasis
onlyifatleast50%oftheproject’s“aggregatebasis”ofanybuildingandlanduponwhichthebuildingis
locatedisfinancedwithtax‐exemptbonds.Tax‐exemptbondprojectswithfundinggaps,requestingGap
FinancingthroughADOHtofillthosefundinggaps,mustsubmitanapplicationatthesametimethatthe
applicant submits its tax creditapplication.See Sections Section 7.3(B)(3)(d) and 6.2 for Gap Financing
requirements.TheproceduresfollowedbyADOHinprocessing applicationsforbond‐financedprojectsare
setforthbelow.
3.1(C)Uponapplication
:
3.1(C)(1) ADOHmayreviewtaxcreditapplicationsatanytimeoftheyearaftertheapplicanthas
receivedafinalresolutionfromthebondissuingauthority.Anapplicantmustsubmitacompletetax
creditapplication,atleast30calendardayspriortothehearingrequiredbySection35‐726(E)ofthe
ArizonaRevi sed Statutes(“Section35‐726(E)hearing”).Theapplicantmustusethec urrentyeartax
creditapplicationforms.Theapplicatio nmustbeaccompaniedbytheappropriateapplicationfee.
3.1(C)(2) Tofullyutilize4%taxcreditsfortax‐exemptbondprojects,theapplicantmustincludea
letterfromacertifiedpublicaccountantortaxattorneyatTab1thatatteststhat50%ormoreofthe
project’saggregatebasisofanybuildingandlanduponwhichthebuildingistobelocatedis“financed”
bythetax‐exemptobligation.

3.1(C)(3) ADOHshalldetermine whetherthe applicantandthe projectcomply withalleligibility
requirementsofthePlan.

3.1(C)(4) The applican t must submit a certification that principal payments on the bonds will be
appliedwithinareasonableperiodoftimetoredeembondsthatfundedthefinancingfortheproject.
3.1(C)(5) ADOHshallperformthefirstoftwofeasibilityanalysestodeterminetheamountofcredits
necessaryfortheviabilityoftheproject.Forprojectssubjecttother equirementsofA.R.S.§350726(E),,
39
QualifiedAllocationPlan 2009
ADOHshallcompleteunderwritingandcomparisonoftheapplicationsubmittedforthe Section35‐
726(E)hearingbeforemakingaDeterminationofQualificationoftaxcredits.ADOHfeasibilityanalysis
willincludeanunderwritingofthe projectinaccordancewithADOH’scurrentstandardsassetforthin
thisPlan.
3.1(C)(6) TheapplicantmustpayallrequiredfeestoADOHwhendue.
3.1(D)AfterVolumeCapallocationforthebonds
:
3.1(D)(1)ADOHmayissue a Determination of Qualification letter after both the Section 35‐726 (E)
hearingandafterADOHissuesanapprovalletter.
3.1(D)(2)TheapplicantshallsubmittoADOHawrittenelectionstatement,referencingIRCSection
42(b)(2)(A)(ii)(II).This election statement shall certify that the applicant has chosen to lock in the
applicablepercentageasofthePlaced‐in‐Servicedateorasofthemonththatthetax‐exemptbondsare
issued.Ifthelatteriselected:
3.1(D)(2)(a) Thecertificationmustspecifythepercentageoftheaggregatebasisofthe building
andthelandonwhichthebuildingislo catedthatisfinancedwithbondproceeds;
3.1(D)(2)(b) Thecertificationmuststatethemonthinwhichthebondsareissued;
3.1(D)(2)(c) Thecertification must statethatthemonth in which the bonds are issued is the
monthelectedfortheapplicablepercentagetobeusedinthebuilding;
3.1(D)(2)(d) Thecertificationmustbesignedbytheapplicant;
3.1(D)(2)(e) The applicant must provide the original notarized election statement to ADOH
beforethecloseofthe5
th
calendardayfollowingtheendofthemonthinwhichthebondsareissued.
Ifthiscertificationisnotre ceivedbytha tdate,thenADOHmustusethepercentagebasedonthe
PlacedinSer v icedate;and
3.1(D)(2)(f) TheapplicantmustprovideADOHwithasignedstatementfromthegovernmental
unitthatissuedthebondsthatcertifies: (1)thepercentageoftheaggregatebasisofthebuildingand
thelandonwhichthebuildingislocatedthatisfinancedwithbondproceedsand(2)themonthin
whichthebondswereissued.
3.1(D)(3)Atthe Placed‐in‐Service date,theapplicant shallsubmittoADOH:(a)acompleted cost
certification,and(b)an opinionoftheapplicant’scertifiedpublicaccountantthat50%ormoreofthe
aggregate basisforanybuildingincludedwithintheprojectandthelandonwhichthebuildingislocated
arefinance d with tax‐exemptbonds, and(c)an opinionof theapplicant’scounselthat the projectis
eligibletoreceivetaxcreditsunderIRCSection42(h)(4).AtthispointADOHmayperformthefina l
feasibilityanalysisofthepr oject.Projectsthatfailtosubmitthematerialsdescribedinthisparagraphto
ADOHonorbeforetheperiodendingtwoyearsafterthedateoftheDeterminationofQualification
letterdescribedinpar agraph(B)(1)ofthissectionaresubjecttoadditionalfeesasprovidedinSection
6.5(D)ofthisPlan.
40
QualifiedAllocationPlan 2009
3.1(D)(4)The applicant shall su bmit to ADOH the recorded Extended Land Use Agreement and
ConsentandSubordinationAgreementforthe projectalongwithcertificationsthat:
3.1(D)(
4)(a)Thebondsissuedtofinancealloraportionoftheprojecthavereceivedanallocationof
thestate’sprivateactivitybondvolumecappursuantto26U.S.C.§146;
3.1(D)(
4)(b)Thatprincipalpaymentsonthebondsshallbeappliedwithinareasonableperiodof
timetoredeembondstheproceedsofwhichwereusedtoprovidefinancingfortheproject; and
3.1(D)(
4)(c)Thatthegovernmentalunitwhichissuedthebondsmadeadeterminationunderrules
similartothosesetforthinIRCSec tion42(m)(2)(A)and(B)thatthehousingcreditdollaramount
fortheprojectdoesnotexceedtheamountnecessaryforthefinancialfeasibilityoftheprojectandits
viabilityasaqualifiedlow‐incomehousingprojectthroughoutthecreditperiod.
3.1(D)(5)IftherequirementsofIRCSection42andthisPlanaresatisfied,ADOHmayissueIRCForm
8609 for the project at the applicable credit percentage under IRC Section 42(B)(2) and may file the
originaloftheelectionstatementwiththeoriginaloftheForm8609withtheappropriate IRSForm8610.
41
QualifiedAllocationPlan 2009
4. GENERALREQUIREMENTS
4.1 FalseFiling
Anapplication,includingallexhibits,appendicesandattachmentsthereto,madetoADOHforanawardof
low‐incomehousingtaxcre dits,includinganymaterialsfiledatalatertimewithADOHinconnectionwith
anapplication,isconsideredtobean“instrument”forthepurposesofA.R.S.Section39‐161.Accordingto
thatstatute,knowinglyincludinganyfalseinformationinorwiththeapplicationisaclass6 felony.Suchan
actmayalsoresultinbarringtheapplicantandDeve lopmentTeammembersfromfutureawardsoflow‐
incomehousingtaxcredits.Inaddition, falsefilingmaybesubjecttotheprovisionsofA.R.S.Section13‐2311
(designating as a class 5 felony the conduct of business with any department or agency of this state by
knowinglyusinganyfalsewritingordocument).
4.2 SatisfactoryProgress
4.2(A)ApplicantswhohavepreviouslyreceivedaDeterminationofQualification,ReservationorAllocation
inArizonaoranyotherstatemustmakeSatisfactoryProgressandbeinsubstantialcompliancewiththe
requirementsoffederallawwithrespecttoallpriorprojectsbeforeADOHmayconsideranewapplication.
Iftheapplicantfailstodemonstratesatisfactoryprogress,ADOHmayrecapturetheReservationorAllocation
oftaxcreditsandrejectanynewapplicationfromthesameapplicant,DevelopmentTeam,andanyperson
withano wnershipinterestintheapplicant,oramemberormembersoftheapplicantorDevelopmentTeam.

4.2(B)ApplicantsthathavereceivedpreviousAllocationsmust demonstrateSatisfactoryProgresstowards
any project Placed in Service.Applicants that have not closed on construction loans or utilized bond
proceedsforconstructionwithin240daysofAllocationarenoteligibleforfutureawardswithoutawritten
waiverreque stexplainingthecircumstancescausingandjustifyingthedelay.Waiversforanydelayshallbe
grantedor denied byADOHinits solediscretion.Allapplicants thathaverece ived aDeterminationof
Qualification or Reservation, Carryover Alloca tion or Allocation may be required to report on project
progress,usingthe“Bi‐MonthlyPerformanceReport”,accompaniedbyabriefnarrative,every60calendar
daysafterreceiptofthedeterminat ion,Reservation,CarryoverAllocationorAllocation.Applicantswith
projectsthatincludetaxcreditsthathavenotreceivedafinalAllocationmustmakeawrittenrequestforan
approvalofthedeviationfromtheapprovedprojectschedulesubmittedwiththeapplication.Projectsthat
arenotprecedingaccordingtotheoriginalprojectschedulesubmitted,andappro vedamendments,maybe
subjecttorevocationduetolackofsatisfactoryprogress.
4.2(C)ADOHmaymonitorboththeprogressandqualityofconstruction.Ifprogressorqualityhasnotbeen
satisfactory,ADOHmayreportsignificantdeficienciestoanyfundingsource,toothermembersoftheproject
team,andtotheapplicant.
4.3 ChangeofOwnership
ADOH’spriorwrittenapprovalisrequiredforanykindofchangeofownershipoftheapplicant.Oncea
determination, Reservation, CarryoverAllocationor Allocation hasbeenissuedfor a project,transfer of
ownershipofthatproject(saleofownershipofanykind)mayconstituteanautomaticeventofrevocationby
ADOH.ADOHmayrevokeorreverseadetermin ation,Reservation,CarryoverAllocationorAllocationor
reducetheamountoftaxcreditsatanytime.
42
QualifiedAllocationPlan 2009
4.4 RevocationofaNoticeofEligibilityfor4%Tax‐ExemptBondCredits,orReservation
orCarryoverAllocationfor9%TaxCredits.

ADOHmaydenyorrevokeanoticeofeligibilityfor4%tax‐exemptbondcredits,ReservationorCarryover
Allocationfor9%taxcreditsforanyproject.DenialorrevocationmayoccuratADOH’ssolediscretion,due
toactionstaken bytheapplicant,AffiliateorprojectownerfromtimeoftheuptothePlacedinServicedate,
foranyofthefollowingreasons:
4.4(A) SubsequentregulationsissuedbytheDepartmentofTreasuryortheInternalRevenueServic e.
4.4(B) Informat ion submittedtoADOHisdeterminedtobefraudulent.
4.4(C) FailuretopayfeesincludinglatefeesdescribedinSection6.5(D).
4.4(D) Failuretomeeteligibilityrequirements,asoutlinedabove,orotherrequirementsofthisPlan.
4.4(E) Siteevaluationandsuitabilitybasedonthemarketimpactonotheraffordablehousingdevelopments
withintheprimarymarketarea,theproximitytorailroadtracks,freeways,excessivenoiselevelsandgeneral
sitesuitabilityandotherconditionsregardingclean title,easements,floodplainsorwetlandissues.
4.4(F) FailuretomakeSatisfactoryPro gressasdefinedinSection4.2ofthisPlan.
4.4(G) Instancesofcurableorincurablenoncomplianceexistingatanytimeduringthecomplianceperiod
foranyfederalorstatesubsidizedprojectlocatedinanystate.
4.4(H) FailurebyanApplicantorOwnertopromptlynotifyADOHofanymaterialoradversechangesfrom
theoriginalapplication.
4.4(I) MaterialChangeswithoutwrittenapprovalofADOH.
4.4(J) Change in the unit design, square footage, unit mix, number of units, and number of buildings
describedinanapplicationfortaxcreditswithoutthewrittenapprovalofADOH.
4.4(K) Debarment by HUDorotherfederalandstate programs, bankruptcy, criminal indictments and
convictions.
4.4(L) Failuretocomplywithfederalorstatefairhousinglaws.
4.4(M) Othercause demonstrating the failure ofthe applicant orthe project tobequalified ormeetthe
requirementsoffederalorstatelawortherequirementsoftheapplicabletaxcreditprogram.
4.5 Disqualification
ADOHmayrejectanapplicationiftheapplicant,includinganypersonwithaControllingInterestinthe
applicantorothermembersoftheDevelopmentTeamhave:(a)failedtomakeSatisfactoryProgressinthe
constructionorrehabilitationofanyproject;(b)notcorrectedcomplianceproblemsinothertaxcreditprojects
asprovidedinSection8.2(F);(c)notpaid,whendue,ADOH’scompliancemonitoringfeesoranyotherfees
43
QualifiedAllocationPlan 2009
required by ADOH; (d) filed with ADOH any materials containing false information, documents, or
instruments,whetherintheAllocationYearorpriorprogramyears;(e)failedtobuildapreviously‐approved
projectinconformitywiththeterms,provisions,andagreementscontainedintheapplicationsubmittedto
ADOH, in the applicable year’s Allocation Plan, and in the Extended Use Agreement for the project,
including but not limited to, the terms, provisions and agreements to conform to the minimum design
standards,installequipment,amenities,ordesignfeaturestoserveaspecifictargetpopulation,toprovidea
specificmixofUnitsizes,toserveSpecialNeedsPopulations,ortosetasideacertainnumberofunitsfor
personsatorbelo waspecificpercentAMGI;(f)developedorpartiallydevelopedpriorprojectsthatare
poorlyconstructed,evidencesubstandardworkmanship,ordonotcomplywithADOH’sminimumdesign
standards; or, (g) been convicted, are currently under indictment or complaint, been found liable or is
currentlyaccusedof fraudinthisstateoranyotherstate,ormisrepresentationrelatingto:(1)theissuanceof
securities,(2)thedevelopment,construction,operation,ormanagementofanytaxcreditorothergovernment
subsidizedhousingprogram,(3)theconductofthebusinessoftheapplicableparty,inanycrimina l,civil,
administrativeorotherproceeding,or(4)anyfilingwiththeInternalRevenueServiceinanystate;(h)have
beensuspendedordebarredbyHUD.ADOHmayrejectanapplicationifitconcludesthataDevelopment
Teammemberdoesnothavetheexpertiseandtheorganizationalandfinancialcapacitytoundertakethe
projectdescribedintheapplication.
4.6 ExtendedUsePeriod
PursuanttoIRCSection42,thestaterequiresthatallrecipientsoftaxcreditsenterintoaninitial15‐year
compliancerequirementandanadditionalextendeduserestrictionforatleastanadditional15yearsafterthe
initial compliancerequirement,extending thetotalcommitment toaminimum of30years.Prior to the
issuanceofForm8609(s),theOwneroftheprojectshallexecuteandrecordwiththecountyrecorderwhere
theprojectislocated,suchanExtendedUseAgreement,whichshallconstitutearestrictivecovenantrunning
withtheprop ertyuponwhichtheprojectislocated.Theagreementshallbeintheformprovidedbythestate
andisavailablefromADOHuponrequest.SeeSection5.2(10).
4.7 MaterialChanges
DevelopmentTeammembersholdinganinterestintheprojectmustdeliveraprojectasdescribedinthe
applicationfortaxcredits.ADOHmustapproveinwritinganymaterialchangedeviationfromtheproject
describedintheapplication.
4.7(A)Submittalandconsiderationofarequestfor amaterialchange.InordertoobtainADOHapprovalof
aMaterialChange,theapplicantmustsubmitawrittenrequesttoADOHexplainingthech angeandthe
reasonsjustifyingthechange.A$1,000administrati onfeemustaccompanythewrittenrequest.ADOHmay
notconsidertherequestunlessthefeeisincluded.BecauseofADOH’sstatutorymandatetoawardtax
creditsonlytotheextenttheyarenecessaryforprojectfeasibility,theapplicantmustcommunicateinwriting
anyproposedMaterialChangeintheprojectimmediatelytoADOHforanassessmentoftheimpactonfinal
underwritingandAllocation.Thewrittenrequestmustincludetheapplicant’sreasonsunderIRCSection42
orinthisAllocationPlanforbelievingthatthechangeispermissible.ProjectsapplyingforaMaterialChange
shallbeun derwrittentothestandardsintheAllocationPlanoftheyear thattaxcreditswereawarded.The
applicantmustsubmittoADOHwrittenapprovalsoftheMaterialChangefromthelocalgovernment,the
lender,andthesyndicatorasdiscussedbelow.
44
QualifiedAllocationPlan 2009
4.7(B)SpecificMaterialChanges:
4.7(B)(1)ChangeofLocationandUse.ADOHshallnotallowanapplicanttochangethelocationofa
projectoncetheapplicationhasbeensubmitted.Notwithstandingtheforegoing,ADOH,mayallowa
projectrelocationpriortothecarryoverallocationoftaxcreditsifthenewsitefortheprojectiswithinthe
census tract specified in the application, ADOH receives the written approval of the unit of local
government,andtheneedforrelocationwasunforeseeableandbeyondtheDeveloper’scontrolatthe
timeofapplication.Ifanapplicantchangesthelocat ionofaprojectwithoutthewrittenapprovalof
ADOH,ADOHmayrevokethetaxcreditsdeterminedfortheproject.Achangeintheuseofaproject
(e.g.,elderly,family)aftertheapplicationhasbeensubmittedmaynotbeallowedexceptwiththewritten
approvalofboththeunitoflocalgo vernmentandADOH.Seealsobelow“ComplexMaterialChanges”
ifthechangeinlocationinvolvesanincreaseinprojectcosts.
4.7(B)(2)Changes to Principals.Substitution of a general or limited partner, or a syndicator or
permanentlendermayconstituteaMaterialChange,andtherefore,mustbereviewedbyADOH.If
ADOH determines there is no negative effect on the project’s feasibility, the change may not be
consideredmaterialandnofeeisdue.
4.7(B)(3)ComplexMaterialChanges.ComplexMaterialChanges,(e.g.restructuringsthatinvolvea
changeinthenumberofunitsorintheamountofborrowedfunds,orinthesourcesoffunds),shallbe
reviewedfollowingtheguidelinesbelow:
4.7(B)(3)(a)Unforeseeablecircumstancesortheimpositionofextraordinarygovernmentalrulesand
regulations, if fully documented and justified, may be viewed as reasons to approve a Material
Change.
4.7(B)(3)(b)WhenaprojectisunderwrittenastheresultofaMaterialChange,anydecreaseinthe
scoringorrankingoftheprojectmaynotbeallowed.
4.7(B)(3)(c)RequestsforaMaterialChangenecessary topreventsubstantialhardshiptotheproject
oritsfeasibilitymaybeconsideredforapprovalbyADOHonacase‐by‐casebasis.
4.7(B)(3)(d)If,withoutapprovalofawaiveratthetimeofapplication,costcapsarelaterexceeded
andcreateaneedforadditionalfunding,ADOHresourcesshallnotbeasourceoftheadditional
funding.Inaddition,ADOHmayconsiderthepresenceofnewlyfoundsourcesofgovernmentalor
non‐governmentalfundsinaprojectasevidencethatADOHhousingfundsarenotneededinthe
project.Ifthatoccurs,ADOHmayreduceoreliminateitscontributiontotheproject.
4.7(B)(3)(e)WhentheMaterialChangeinvolvesarestructuring,allcommitments(e.g.,set‐asides,
amenities)mustbepropor tionatelythesameasattimeofapplication.
4.7(B)(3)(f)Changes to the amount and term of any source of funds including acceleration of
repayment of deferredfees or seller carry‐backcharges from theassumptions in the Permanent
FinancingTableandtheProformaarematerialchangesthatrequirethepriorwrittenapprovalof
ADOH.
4.7(C)FailuretoobtainADOHapproval.IftheprojectfailstoobtainADOH’spriorwrittenapprovaltoa
MaterialChange,ADOHmayrecaptureorreduceallorpartofthetaxcreditsdeterminedorreservedforthe
project.
45
QualifiedAllocationPlan 2009
4.8 DistributionofUnits
Projectsshallallocatethelowandmoderate‐incomeunitsamongthedifferentsizedunitstoreflectthesame
percentage distribution as the number of different size units to the total number of units.A greater
percentage of the low and moderate income units may, however, be allocated to the larger units.
Additionally,lowandmoderate‐incomeunitsshallbedistributedthroughouttheprojectsothattenantsof
thoseunitsmayhaveequalaccesstoandenjoymentofallcommonfacilitiesoftheproject.
4.9 AmendmentstotheQAP
ADOHmaymodifythisPlan,includingitscomplianceandmonitoringprovisio ns,fromtimetotime,orfor
anyotherreasonsasdeterminedbyADOH:(i)toreflectanychanges,additions,deletions,interpretations,or
other matters necessary to comply with IRC Section 42 or regulations promulgated there‐under; (ii) to
respondtochangesinthe marketforaffordab lehousing;(iii)toinsertsuchprovisionsclarifyingmattersor
questionsarisingunderthisPlanasare necessaryordesirableandthatarecontraryorareinconsistentwith
thisPlan orIRCSection42;or (iv)to cureanyambiguity,supplyanyomissionor correctanydefector
inconsistentprovisionwiththisPlanorIRCSection42.
4.10 DisclaimerandLimitationofLiability
4.10(A) ADOHmakesnorepresentationstotheapplicant, Developer,Owner,orsyndicatorortoanyother
personasto project eligibility orcompliancewith the Code,TreasuryRegulations, or anyotherlawsor
regulationsgoverningtheLow‐IncomeHousingTaxCreditprogram.
4.10(B)Applicants,developmentteammembers,andinves torsparticipateinthetaxcreditprogramattheir
ownrisk.Nomember,offi cer, agentoremployeeofADOHortheStateofArizonashallbeliableforany
claimarisingoutof,orinrelationto, anyprojectorthetaxcreditprogram,includingclaimsforrepaymentof
construction,financing,carryingcosts,anylossresultingfromadecisionofthe InternalRevenueServ ice,or
consequentialdamageor lossofany kindincurredbyanapplicant,Developer,Owner,lender,investor,
syndicatororanyotherperson.Applicants sh allberequiredtoexecuteareleaseandindemnificationof
ADOHandrelatedpartiesaspartoftheapplicationoftaxcreditsandasaconditionoffinalAllocationoftax
credits.
4.11 ReturnofTaxCredits
IfatanytimeADOHconcludesthataprojectnolongermeetstherequirementsofI.R.C.§42orthisPlan,
ADOHmaycancelaReservationorrecapturetaxcreditsallocatedthroughaCarryoverAllocationoraLetter
ofQualification(forTax‐ExemptFinanc edDevelopments).Recapturedtaxcreditsthatwerereservedor
allocatedinacompetitiveroundshallbeconsideredreturnedtoADOH.IntheeventthatADOHrequiresa
returnofataxcreditsReservation,ADOHshallgivenoticetotheapplicant.Returnedtaxcreditsshallbe
madetoothereligibleprojectsasprovidedinthi sPlan.
46
QualifiedAllocationPlan 2009
5. FINALTAXCREDITALLOCATION
5.1 FinalTaxCreditAllocationandFirstYearCertificationbyADOH
ADOHmakesafinaldeterminationoftheamountoftaxcreditsatthetimetheprojectisPlacedinServicein
accordancewiththerequirementsofI.R.C.§42.Forthefinalallocationoftaxcredits,theprojectmustsubmit
FinalAllocationmaterialstoADOHasrequiredbyI.R.C.§42andSection5.2ofthisPlan.ADOHevaluates
theprojectʹsfinalcostsandtheamountofrevenuesfromthesaleofthetaxcredits.ADOH’sfinalevaluation
mayrequirereviewofdocumentarysupportfor developmentcostsincludingbutnotlimitedtoinvoices,
canceled checks and contracts. Accordingly, ADOH encourages developers to keep detailed records of
constructioncosts.ADOH,initssolediscretion,mayreducecreditsbasedonitsfinalevaluationandrequire
areturnoftaxcreditstoADOH.Theapplicantmustsubmitan8609packagewithin120calendardaysofthe
lastbuildingbeingPlacedinService.Form8609submittalsreceivedbyADOHafterthe120‐daydeadline
mustbeaccompaniedbypaymentofthelatefeedescribedinSection6.5(D)ofthisplan.Alongwiththe8609
package,theapplicantmustalsosubmitacompletecopyofanAppraisaloftheprojectandtheproperty
preparedbyan Arizonacertifiedgeneralrealestateappraiserindicatingthevalueoflandandbuildings
separately.AtthetimeofafinalAllocation,ADOHandtheapplicantshallexecuteandrecordanExtended
UseAgreement.EvidenceofthatrecordingmustbepresentedtoADOHbeforetheissuanceofIRSForm
8609(s).ApplicantsshallreceiveafinalAllocationoftaxcreditsasdescribedbelow.
5.2 FirstYearCertificationandIssuanceofFinalAllocation(IRSForm8609)
ForbuildingsthatarePlacedinService aspartofaqualifiedproject(by December31
st
following the24
monthsofclosingofthebondsorfromissuanceofaCarryoverAllocation),anduponcompliancewithall
requirementsoftheCodeandADOH,ADOHshallissueanIRSForm8609foreachbuildingasofthetime
thebuildingisPlacedinService.ADOHshallissuetheForm8609aftertheapplicantfullypaysallfees,and
submitstheitemsdescribedbelowin8.5x11format,boundinathree‐ringbinder,andtabbedaccordingly:
(1)ProjectInformationUpdate;
(2)Anupdatedapplication(ADOHForm3);
(3)A15yearproforma,intheformstatedinSection2.7(B)(26)ofthisAllocationPlan,startingwiththe
Placed‐in‐Servicedate;
(4)Apermanentlender’sfinalappraisaloftheproject;
(5)Allcertificatesofoccupancy, issuedbythe appropriate governmentalauthorities,for qualifying
buildingsthatmustindicatethedatesthebuildingswerePlacedinServiceandtheaddressesofthose
buildings;
(6)AFinalCostCertificationintheformofanindependentauditor’sreportpreparedbyaCertified
PublicAccountantcertifyingthefinalcostaccordingtoGenerallyAcceptedAccountingPrinciplesfor
projectswithmorethan10unit sasrequiredbyIRSRegulation1.42‐17;asfollows:
47
QualifiedAllocationPlan 2009
(a)TheauditormustcertifytoADOHthefullextentofallsourcesoffundsandalldevelopment
costsfortheprojectincludinganyfederal,state,andlocalsubsidiesthatapply(orthattheapplicant
expectstoapply)totheproject.
(b)Theauditormustpreparetherequir edscheduleofdevelopmentcostsbasedonthe methodof
accountingusedbytheapplicantforfederalincometaxpurposes,anditmustdetailtheproject’s
totalcostsaswellasthosecoststhatmayqualifyforinclusionineligiblebasisunderIRCSection42.
(c)TheapplicantmustmaketherequiredcertificationsontheCertificateofActualCostsForm
satisfactorytoADOH.SeeExhibitG.IRSRegulation1.42‐17alsorequiresthatprojectswithgreater
than10unitssubmitaCertifiedPublicAccountant’sauditreportonthescheduleofprojectcosts.
(7)Theapplicant’sbuilding‐by‐buildingtaxcreditcomputation(on ADOHformTableA);
(8)Aletterfromthepermanentlendersummarizingthetermsandcondition softhepermanentloan.
Uponclosingofthepermanentloan,theapplicantmustsubmitcopiesoftheexecutedpromissor ynote
anddeedoftrusttoADOH;
(9) A promissory note from the project’sownership entity payable to the Developer in an amount
sufficienttocoveranyDeferredDeveloperFee.Otherformsofobligationtopaymaybesubstitutedif
allowedunderthedefinitionofDeferredDeveloperFeeandiftheyincludethefollowing:(a)theinterest
rate;(b)thetermofrepayment;(c)thesourceofrepaymentandproofthatthesourceofrepaymentis
supportedbycashflowprojectionsorabindingcommitmentfromapartycap ableofrepayment;and
(d)ifthereisalien,languagestatingthatthelienissubordinatetootherliensrelatingtoperm anent
financing;
(10) AnExtendedUseAgreementandConsentandSubordinationAgreementsignedbytheapplicant
(formprovidedbyADOH).
(a) TheExtendedUseAgreementforcompliancewithI.R.C.§42(h)(6)inaformofadeclarationof
covenants,conditions,andrestrictionseffectiveforaperiodofatleast30yearssatisfactoryto
ADOHshallbeexecutedandrecordedatthetimeofthefinalAllocation.TheExtendedUse
Agreementshallspecifytheunitsset‐asideforlowerincometenants,thepercentageofmedian
incometenantsserved,asotherwise appropriate for the project describedin the application
including, special needs characteristics of tenants, tenant ownership, amenities, Supportive
Servicesandothercommitmentsorrequirements.
(b) AllagreementstobesignedandrecordedbyDecember31stmustbesubmittedtoADOHnot
laterthanDecember1stofthatsameyear;
(c) ApplicantswhohavereceivedaDeterminationofQualificationorReservationandCarryover
Allocation of tax credits and desire to have the Extended Use Agreement complete d and
recordedbytheendoftheyearmustrequestitbynolaterthanNovember1.Anyrequests
submittedaftertheNovember1stdeadlinemaynotbecompletedbytheendoftheyear.
(11)One8‐x10‐inchcolorphotographofatleastoneoftheproject’sbuildingswithsignage;
(12)Acompletedformstatingtheproject’sfirstcredityear(ADOHprovidedform);
48
QualifiedAllocationPlan 2009
(13)Fullyexecutedpartnership,operating,orjointventureagreementsan dotheragreementsbetween
theprojectandtheequityinvestor;
(14)Aninves torcertificationletter(ADOHsampleformprovided);
(15)CompletedFairHou s ingChecklistsignedbytheprojectarchitect.SeeExhibitY;
(16)Exceptasprovidedbyitem19below,writtencertificationfromthearchitectthattheprojec tmeets
theDesignStandardsdescribedinSection2.7(B)(32)ofthisPlan.SeeExhibitY;
(17)Completedandsignedcertificationfromthecontractorthattheprojectwasbuiltincompliancewith
theplansandspecsprovidedbythearchitect.SeeExhibitW2;
(18) Completed and signed Placed‐In‐Service Acknowledgement (ADOH provided form) for each
buildingintheproject;
(19) Certification fromtheArizonaEnergyOfficethattheprojectcomplieswiththe2006International
EnergyConservationCode(IECC)(contactKenPencostoftheEnergyOfficeattheArizonaDepartment
ofCommerce:(602)771‐1149));
(20) CompletedExhibitX–OperationalRiskManagement(ADOHprovidedform);
(21) Proofoffloodinsurance,asapplicable;
(22) AnyadditionalinformationrequestedbyADOH;
(23) FinalAllocationfee,ifapplicable;
5.3 FinalAllocationUnderwriting
PriortotheissuanceofIRSForm8609(s),ADOHunderwritestheprojectusingtheinformationprovidedin
Section5.2.ADOHshallalsoperformaFundingGapanalysis.Unreasonablecosts,changesinfinancing
sources,fundingamounts,orexcessequitymayreduc e thefinalam ountoftaxcredits.ADOHreservesthe
right to adjust the high cost provision of Section 42(d)(5)(c) or the applicable credit percentage at final
underwriting.
49
QualifiedAllocationPlan 2009
6. FEES
6.1 TaxCreditApplicationFee
Anapplicatio nfeeof$3,500 isdueADOHatthetimeofsubmissionoftheapplication.Applicationsshallbe
rejectedunlessaccompaniedbythisfee.Undernocircumstancesshalltheapplicationfeeberefundedby
ADOH.
NOTE: PleasenotethatinaccordancewiththerecentRev.Ruling.2004‐82,applicationfeesfor applying
forLIHTCarenolongerallowedinbasis.
6.2 AdditionalApplicationFeesforProjectsProposingFinancingthroughADOH
ApplicantsrequestingGapFinancingthroughfromADOHforaLIHTCprojectshallsubmitanApplication
forGapFinancingtoADOHasrequir edbySection7.3(B)(3)(d)alongwiththeirapplicationfortaxcredits
andshallincludepaymentofthe GapFinancingapplicationfeeintheamountof$3,500.0 0
.
6.3 SupplementalAllocationApplicationFee
ApplicantsexperiencingseverehardshipseeSection2.8(C)(1)mustsubmitanadditionalapplicationfeeof
$2,500toADOH.HardshiprequestsmustbedocumentedtothesatisfactionofADOHandmustdemonstrate
the existence of an unforeseen emergency situation where the completion of the project is jeopardized
withoutanawardofadditionaltaxcredits.
6.4 BuildingPermitExtensionFee
Within275calendar daysafterexecutionoftheCarryoverAllocationAgreement,theDevelopermustsubmit
ADOHevidenceofappropriate building permits allowing for construction of the project, issued by the
appropriatelocalgovernmententity.IftheDeveloperrequiresadditionaltime,ADOHmaygranta30‐day
extensionuponpaymentofa$3,500extensionfeetogetherwithawrittenrequestfortheextension,which
mustexplainthereasonsfortheextensionrequest.Aftertwoextensions,however,ADOHmayrevokean
Allocation, if it determines that the applicant has notachievedSatisfactory Progress in accordance with
Section2.7(B)(4)andSection4.2.
6.5 ReservationFeeandFinalAllocationFee
ADOHassessesaReserva tionFeeandaFinalAllocationFeeon9‐percentand4‐percenttaxcreditprojectsas
provided in the table below.ADOH calculates the total Reservation Fee as a percentage of tax credits
requestedbytheapplicantandtheFinalAllocationFeeasapercentoftheamoun toftaxcreditsallocated.
The fees are payable as
follows:
% of Tax Credits Allocated payable
at
Eligibility or Reservation
% of Tax Credits
Allocated payable at
Final Allocation
For Profit Applicants 8% 2%
Non-Profit Sponsored
Applicants
6% 2%
50
QualifiedAllocationPlan 2009
(A)TheReservationFeeispayableafterdeterminationthatanapp licationrepresentsafeasibleand
viabletaxcreditprojectwithalikelihoodofcompletion.TheapplicantmustpaytheReservationFeeto
ADOHpriortoissuanceof aReservationoftaxcredits. 
(B)TheFinalAllocationFeeof2%ispayableupontheissuanceofanAllocationofcreditasevidenced
bythe IRSForm 8609.TheapplicantmustsubmittheFinalAllocationFeetogetherwiththefinal
allocationinformationsubmittedinaccordancewithSection5ofthisPlanandpriortoissuanceofthe
IRSForm8609(s).TheFinalAllocationFeeis2%ofthefinaltaxcreditsallocated.
(C)FeesAssessedonAdditionalCredits.ReservationandFinalAllocationFeesshallbeassessedon
theamountofanyadditionalcreditsallocatedforeither4%or9%credits. 
(D)MiscellaneousLateFees.MaterialssubmittedtoADOHinsupportofacarryoverallocationora
finalalloca tionoftaxcreditsafteranydeadlinesetforthinthisPlanorestablishedbyADOHthrough
publicnoticemustincludealatefeeintheamountof$1,000.00.Failuretosubmitthelatefeedescribed
bythisparagraphmayresultindelayinreviewofthesubmittedmaterialsandpossiblecancellationof
areservationorrevocationofanallocationoftaxcredits.
6.6 Applicant’sObligationforFeePayment
ADOHassessesthenon‐refundableapplication, reservationfee,andFinalAllocat ionFeeforthepurposeof
coveringthecostsandexpensesofprocessinganapplicationtothepointwher etheapplicantmayreceivea
finalAllocation.Ifanapplication,Reservation,orCarryoverAllocationisdeniedduetoactionorinactionby
theapplicant,thefeesarenonethelessdueandpayabletoADOHupondemand.NotwithstandingADOH’s
determinationoftheamountofthe finalallocationoftaxcredits,noReservationfeeandFinalAllocationFee
shallberefundablebyADOH.
6.7 TenantOwnershipFees
Applicantswithapplicationsthatincludetenantownershipshallpayanadditional$4,000legalreviewfeeat
thesametimethattheypaythedeterminationorReservationFee.
6.8 CarryoverAllocationLateFees
ADOH charges a Carryover Allocation late fee of $250 per day for any part of a Carryover Allocation
submittalreceived after the deadline date specified by ADOH in the reservation letter. Carryover
informationnotreceivedbythecloseofbusinessofthedeadlineestablishedbyADOHmayresultinthe
projectnotreceivingaCarryoverAllocation.Inextremecircumstances,suchasalateReservationoftax
credits,ADOHmaywaivetheCarryoverAllocationlatefees.
6.9 10%CostTestLateFees
IftheDeveloperrequiresadditionaltimetosubmittheinformationrequiredunderSection2.16,ADOHmay
grantextensionsof30calendardaysuponpaymentofthe$3,500extensionfee.AfterthreeextensionsADOH
mayrefusetograntanyfurtherextensionsandmaycancela reservationoftaxcreditsforfailuretomake
SatisfactoryProgressinaccordancewithSections2.7(B)(4)and4.2.ADOHmayimposea$500perdayfeefor
documentationregardingitemsinSection2.16ofthePlansubmittedaftertheannounceddeadlinedates.No
51
QualifiedAllocationPlan 2009
documentation maybeacc e ptedaftercloseofbusinessonthe announceddates.ADOHmaycancelthe
reservationandnotifytheapplicantifdocumentationissubmittedlaterthanthedeadline.
6.10 AdministrationFees
Applicantsmustsubmitafeeof$1,000toADOHbeforeanyinterimunderwritingrequestedbytheapplicant
oradditionalunderwritingrequiredbyADOHduetoaMaterialChangeisperformed.Ifthe applicantfails
topaytheAdministrationFee,ADOHmayrecapturealltaxcreditsallocatedtotheproject.
6.11 ComplianceMonitoringFees
Every applicant for a project that receives an Allocation must pay to ADOH an annual, non‐refundable
monitoring fee.The monitoring fee is $65 per Low‐Income Unit, and is due annually whether or not a
physicalinspectioniscond ucted ontheproperty.ThemonitoringfeeisdueonorbeforeMarch15
th
ofeach
yearalongwiththesubmissionoftheannualreport.
ADOHassessesa$100latefeeforevery30daysthattheapplicant isdelinquentinpayingthemonitoringfee
afterMarch15
th
.
6.12 FeesAreNotRefundable
AllfeessetforthinthisSection6arenonrefundable.
52
QualifiedAllocationPlan 2009
7. UNDERWRITING
7.1 GeneralRequirements
ADOH’sunderwritingreview ofapplicationsfortax creditsfocuses onthe feasibilityand the long‐term
viability oftheproject asaffordablehousing,compliance ofthe proposedprojectwithLIHTCand other
applicable program requirements, project affordability, andprovision for required design features an d
amenities.ADOHseekstobalancethecostofdevelopmentagainstthelongtermviabilityofaprojectwhile
preservingaffordabilityrequirementsforlow‐incomeresidents.ADOHalsoevaluateswhethertheaddition
ofaffordablemult ifamilyrentalstockintheprojectlocationjustifiestheriskoflossoftaxpa yerfundsand
howaffordabilitymaybepreservedthroughlong‐term projectviability.
7.1(A) MinimumAllocationNecessary.ADOHreservesandallocatestaxcreditsattheminimumlevel
neededtorealizethefinancialfeasibilityandviabilityofaprojectconsistentwiththerequirementofI.R.C.§
42andthisPlanthroughouttheendoftheExtendedUsePeriod.
7.1(B) Applicationsmustdescribeprojectsthatarefeasibleandviable.
7.1(B)(1) The application must demonstrate that all requirements, conditions, and constraints for
developmentandplacementinservicehavebeenorshallbemet.
7.1(B)(2)Aproposedprojectmustbefinanciallyfeasible.
7.1(B)(2)(a) ADOHdetermineswhetherthesourcesoffundsaresufficienttodeveloptheproject
describedintheapplication.
7.1(B)(2)(b) ADOHconsiderswhetherpublicfundsandinvestorfundssupportedbytaxcreditsare
appropriatelyleveraged.
7.1(B)(2)(c) ADOH determines whether all costs described in the development budget are
appropriate,necessary,andreasonable.
7.1(B)(3)A proposed project must be financially viable consistent with affordability requirements
throughthetaxcreditperiod,thecomplianceperiod,andtheextendeduseperiod.
7.2(B)(3)(a) Aproposedprojectshalldemonstratemarketdemandfortargetedtenantsnecessaryto
generaterevenuessufficienttomaintainprojectviabilityfromthecommencementofthetaxcredit
periodthroughthecomplianceperiod.
7.2(B)(3)(b) Aproposedprojectshallgeneratesufficientincometofundprojectreservesandcover
operatingexpensesanddebtserviceoftheproject.
7.2 UnderwritingProcess
7.2(A) Aprojectshallbereviewedforfeasibilityandviabilityatleastthreetimes:(1)beforeaReservationof
taxcredits;(2)aspartofthe10%CostTestreview;and(3)whenaprojectisPlacedinService.ADOH,inits
solediscretion,mayrequestanupdatetoanyinformationcontainedintheapplicationorthereafterprovided
toADOHasmaybenecessary todetermineprojectfeasibilityandviability.Forprojectsproposin gfunding
53
QualifiedAllocationPlan 2009
withGapFinancingthroughADOH,ADOHmayunderwriteaprojectatthetimeofconstructionloanclosing
forprojectspartiallyfundedbyADOH.
7.2(B) DeterminationofProjectCostReasonableness
.Eachtimethatitreviewsaprojectforfeasibilityand
viability,ADOHreviewsthereasonablenessofallprojectcostsinordertocalculatethe amountofeligible
basisfortheproject.Failuretodemonstratecostreasonablenessmaybethebasisforthedenial,reduction,or
returnofareservationorallocationofcr edits.
7.2(C) ADOHanalyzes and, ifnecessary,adjuststhe project costinaccordance withthisPlan.ADOH
analyzesandadjuststheproposedincome,operatingexpenses,andnetoperatingexpensesasnecessaryas
hereafterdescribed.ADOHanalyzesandadjustsdevelopmentcosts,permanentfinancingamounts,public
funding amounts, developer fees, anticipated rents, operating costs, vacancy rates, and other financial
considerationsofaprojectasnecessaryinaccordancewiththisPlan.
7.2(D) RequestsforInformation
.ADOHmayrequestthattheapplicantprovideinformationnecessaryto
clarifyorsettleaquestionraisedbyana pplication.Theapplicantmustdelivertherequestedinformationor
anexplanationofwhytheinformationrequestedisunavailablebynolaterthan10businessdaysfromthe
date of receipt of the request from ADOH.Failure to timely reply to a request for information may be
groundsfordenialofanapplication.
7.2(E) Errors
.ADOH may deny reservations to applications that contain material errors including
contradictoryinformation,incorrectnumbers,andmathematicalerrors.
7.2(F) Interpretation of underwriting requirements
.The underwriting requirements set forth in this
sectionshallbeconstrue dasawholewiththeintentofmaximizingtheaffordablehousingstockinArizona
byfacilitatingdevelopmentoffeasiblemultifamilyrentalhousingthatwillbeviablethroughtheendofthe
extendeduseperiodandthatfullylevera geavailablepublicfundingincludingtaxcredits.
7.2(G) Waiverrequests
.Generally,ADOHmaygrantawaiveroragreetorelaxanunderwritingstandard
uponaspecificrequestsubmittedwiththeapplica tionthatissupportedbytheappropriate explanationand
documentation.Standardsforwhichwaiversarenotconsideredarespecificallynotedbelow.
7.3 SpecificUnderwritingStandards
7.3(A)Project Feasibility.ADOH may deny an application or revokean allocation for tax credits if it
concludesthataproposedprojectisnotfeasible.ADOHmaycon ditionareservation oftaxcreditsupon
demonstrationofcomplian ce withanycriteriathatADOHdeemsnecessarytoensureprojectfeasibility.In
determiningthataprojectisfeasible,ADOHcon sidersallfactorspertainingtodevelopmentandcompletion
oftheprojectdescribedintheapplicationtoADOHincludingbutnotlimitedto:
7.3(A)(1) WhethertheprojectisconsistentwiththerequirementsofI.R.C.§42,A.R.S.§35‐728(C),and
otherapplicablefederalandstateprogramrequirements;
7.3(A)(2) Whetherthesiteiscompatiblewithdevelopment,completion,andsuccessfuloperationof
theproject;
7.3(A)(3) Whether the development team has the expertise and the organizational and financial
capacityandcapabilitytodelivertheprojectdescribedintheapplicationwithinthetimeconstraintsof
54
QualifiedAllocationPlan 2009
I.R.C. § 42 and this Plan.In determining whether the development team has the expertise and the
organizationalandfinancialcapacitytoundertaketheprojectADOHmayconsiderinformationincluded
intheapplicationand allmaterialsandinformationavailabletoADOHincludin gbutnotlimitedtothe
following:
7.3(A)(3)(a) The history of satisfactory progress on affordable housing projects, and program
compliancehistoryoftheDevelopmentTeam.
7.3(A)(3)(b)The financial capacity and credit worthiness of the Development Team, permanent
lenders,andinvestors.
7.3(A)(3)(c) Therelevantexperienceofpropertyandassetmanagementstaffasnecessary.
7.3(A)(4) Any evidence that the project is not compatible with local land‐use requirements and
buildingcodes;
7.3(A)(5) Theavailabilityofnecessaryutilities;
7.3(A)(6) Whethertheprojectcomplieswithdesignstandardsandproposesnecessaryandreasonable
amenitiesandcommunityfacilities;and,
7.3(A)(7) Whetherallground‐floorunitsareadaptableforthephysicallydisabledandcomplywiththe
relevantprovisionsoftheFederalFairHousingAct(42U.S.C.§§3601,etseq.and24C.F.R., Part100,
SubpartD),theArizonaFairHousingAct(A.R.S.§§41‐1491through41‐1491.37),andHUDFairHousing
Regulations(24C.F.R.Part100,subpartD),theUniformFederalAccessibilityStandards(Section504of
the1973RehabilitationAct)andtheAmericanswithDisabilitiesAct(42U.S.C.§§12101through12213).;
7.3(B) ProjectFinancialFeasibility
.ADOHmaydenyanapplicationorrevokeanallocationfortaxcredits
ifitconcludestha taproposedprojectisnotfinanciallyfeasible.Consistentwithallocationoftaxcredits
throughacompetitiveprocessasde scribedinthisPlan, ADOHmayconditionareservationoftaxcredits
upondemonstrationofcompliancewithanycriteriathatADOHdeemsnecessarytoensureprojectfinancial
feasibility.Indeterminingthataprojectisfinanciallyfeasible,ADOHconsidersallfactorspertainingto
developmentandcompletionoftheprojectdescribedintheapplica tiontoADOHincludingbutnotlimited
to:.
7.3(B)(1)Applicationsshall disclose allsourcesof fundingrequestedorreceivedfor aprojectinthe
applicationandthesourcesoffundsshallmeettheusesoffunds.
7.3(B)(1)(a) Equityan dDebtFinancin g.
7.3(B)(1)(a)(i) ADOHmaydenyanapplicationthatisnotsupportedbyafirmcommitment
fromsourcesofequityanddebtfinancing.SeeSection 2.7(B)(17)FinancialAbilitytoProceed.
(ii) ADOH may cancel a reservation or revoke an alloca tion of tax credits in the event of a
changeinasourceorthetermsofequityordebtfinancingcallsintoquestiontofeasibilityor
viabilityofaproject.
7.3(B)(2)DevelopmentCosts.Applicationsshalldiscloseallusesoffunds.
55
QualifiedAllocationPlan 2009
7.3(B)(2)(a)Theapplicationmustbesupportedbyacompleteestimatedprojectdevelopmentbudget
inaformsatisfactorytoADOH.SeeSection2.7(B)(25).
7.3(B)(2)(b) ADOHmaydenyanapplicationthatfailstoincludeaprojectdevelopmentbudgetthat
addressesallsalientprojectfeaturesinaformsatisfactorytoADOHincludingbutnotlimitedto:
common area facilities, community facilities, elevators, interior hallways, laundry facilities,
maintenancefacilities,managementoffices,offices,storagefacilities,swimmingpools,amenitiesfor
projectsservingtenantswithspecialneeds,and otherfeaturesthatmayberequiredbyanapplicable
federalorstateprogram.
7.3(B)(2)(c) ADOHmaydenyanapplicationthatfailstoincludeaprojectdevelopmentbudgetthat
addressesallsalientunitappliancesinaformsatisfactorytoADOHincludingbutnotlimitedto:
disposals,dishwashers,oranysimilarfeaturethatmayberequiredbyanapplicablefedera lorstate
program.
7.3(B)(2)(d) ADOHmaydenyanapplicationifthecostssetforthinthedevelopmentbudgetarenot
complete,reasonable,andnecessary.ADOHmayevaluatedevelopmentbudgetcostsbasedonthe
costsofprojectsofcomparablesizeandtype,tenantmix,unitmix,locationandamenities.ADOH
maydrawcomparablecostsfromindustrystandardsources,frominformationcollectedbyADOH
frommultifamilyprojectsinthestate,andinconsultationwithconstructioncostexperts.
7.3(B)(2)(e) Per unit development cost limits.Applications for projects proposing residential
developmentcostsinexcessof$175,000perunitmustdemonstratethattheper‐unitcostisjustified
bylocalconditionsorisnecessarytoahistoricpreservationproject.Theper‐unitcostiscalculatedby
dividingthetotalprojectcostsbythetotalnumberofresidentialunits.Considerationsthatmay
justifydevelopmentcostsexceedingthelimitsdescribedinthisparagraphincludebutarenotlimited
to,small‐sizeprojects, projectslocatedinQCT’s,orDDA’s,inafederallydesignatedempowerment
zone,orafederalenterprisecommunity,projectswithdeeprenttargeting,projectssponsoredby
localnonprofitorganizations,ordifficultsubstantialrehabilitationprojects.
7.3(B)(2)(f) Developmentcostthresholdforacquisition/rehabilitationprojects.ADOHmayrefuseto
reserveorallocatetaxcreditsforrehabilitationexpendituresth atarelessthangreaterof:
(i) Twentypercent(20%)oftheadjustedbasisofthebuilding;or
(ii) $15,000 hard costs for each Low‐Income Unit in the building not to include property
acquisitionandsitedemolitionan dpreparationcosts.
(iii)Forthepurposesofthissubparagraph,onlyrehabilitationexpendituresfortheLow‐Income
Units or for common areas that substantially benefit the Low‐Income Units are counted.
Rehabilitationexpendituresforunitsotherthan Low‐IncomeUnit scannotbeusedtomeetthis
requirement.Inmixedincomepropertiesboththelow‐incomeandthemarketrateunitsmustbe
rehabilitatedtothesamestandard(atleast$15,000perUnit).ADOHdoesnotconsiderrequests
forwaiverofthe provisionsofthissubparagraph.
7.3(B)(2)(g)Treatmentofspecificdevelopmentcosts.
(i) AcquisitionCostLimits.
56
QualifiedAllocationPlan 2009
(1) ADOHmayreject land and building acquisition costs in excess of appraised value.
LandandbuildingacquisitioncostsmustbesupportedbyanAppraisalthatconfirms
claimedrealpropertyacquisitionscostsaspartofcarryoverdocumentation,or,ifthe
projectdoesnotrequirecarryover,atfinalAllocation(seeSection5.3).
(2) Ifthecostofacquisitionofrealpropertyformulti‐storymultifamilyprojectsthatexceed
thelimitssetforthinthetablebelow,thentheapplicationmustsubmitaplatorsiteplan
onwhichallundevelopedlandhasbeenclearlyidentified.
Bedrooms NetAreaPerUnit(Sq.Ft.)
0‐Bedroom 1,700
1‐Bedroom 2,200
2‐Bedroom 3,500
3‐Bedroom 4,200
4‐Bedroom 4,800
(ii) Construction financecosts.
(1)Thedevelopmentbudgetmustincludeacompletebreakdownofallconstructionfinance
costs.ADOH may verify construction finance costs against the information in the
commitmentletterfromtheconstructionlender.
(2) ADOHmayusealowerconstructionfinancecostifitconcludesthatthecostsdescribed
intheapplicationareunreasonable.
(3) Sub sequent modification or change in construction finance costs may result in a
cancellationofareservationorrevocationofanallocationoftaxcredits.
(4) Unreasonableconstruction financecostsinclude butarenotlimitedto: interestcosts
substantiallyabovemarketrates,andloanoriginationandotherfeesthatexcee d2%ofthe
principleamountoftheconstructionloan.
(5)Theconstructionfinancecostsincludableineligiblebasisforcalculationoftaxcredits
maynotexceedthereasonablefinancecostsincurredduringthefirsttwentyfourmonthsof
theconstructionloan.
(iii)Developer Fee, Overhead, and Consultant Fee Limits.The total amount includable in
eligiblebasisforthedeveloperfee,overhead,andcon s ultantfeesshallbelimitedasprovidedin
thetablebelow:
(1)NewConstruction—NoIdentitiesofInterest

DeveloperFee,Overhead,andConsultantFeeLimits
AsAPercentOfTotalEligibleBasisIn
CostCategoriesI‐VoftheDevelopmentBudget
57
QualifiedAllocationPlan 2009
IfDeveloperhasanidentityofinterestwiththeBuilder,Builder’sProfit
willbeexcludedfromEligibleBasisforthepurposesofthiscalculation.
NumberofUnits PercentAllowed
1‐15
16‐30
31‐45
46‐60
61+
18%
17%
16%
15%
14%
(2) Acqu isition Rehabilitation—No Identities of Intere st.For acquisition/rehabilitation
projects,thetotalamountfordeveloperfees,overhead,andconsultantfeesshallnotexceed
theamountst atedinthetablesetforthaboveplus14%oftheacquisitioncostthatmaybe
includedineligiblebasisforexistingbuildingsasdescribedinI.R.C.§42(d)(2).
(3)Forthepurposesofparagraph7.3(B)(2)(g)(iii),ADOHmayreducethepercentagesset
forth in the above table, as necessary to minimize the use of tax credits or publicfunds
throughasubsidylayeringanalysisandasmaybenecessaryintheeventthatthere isan
identityofinterestbetweentheDeveloperandtheContractor/Builde r.
(4)Forthepurposeofparagraph7.3(B)(2)(g)(iii),consultantfeesshallnotincludefeesfor
consultants normally used in the development process, such as market analysts,
environmental consultan ts, and fees for a construction manager/consultant deemed by
ADOHtoduplicatecostsintheconstructioncontract.
(iv) Construction Contractor/Builder Profit, Overhead, and General Requirements Limits.
ADOHshallnotallowbuildersprofit,overhead,andgeneralrequirementscostsasapercentage
oftotalprojectcostthatexceedthepercentagessetforthinthetablebelow.Thelimits shall
applytotheaggregateofthe“Total:SiteandDemolition,”the “Subtotal:DirectConstruction,”
andthelineitem“CommunityBuildings,”ontheDevelopmentBudget,Form3Item24,Sections
II and III, of the application.Please note that if an Identity of Interest exists between the
DeveloperandtheBuilder,thentheBuilder’sprofitshallbelimitedto2%oftotaldevelopment
costs.
Builder’sProfit,Over head*andGenera l
Re
q
uirements**
PercentofCosts
Projectsizeinunits 1‐15 16‐3031‐45 46‐6061+
Builder’sProfit(withIdentityofInterest),or 2 2 2 2 2
Builder’sProfit
Builder’sOverhead
GeneralRequirements
6
3
6
5.75
2.75
5.75
5.5
2.5
5.5
5.25
2.25
5.25
5
2
5
TotalMaximumPercentage 15 14.25 13.5 12.75 12
Forthepurposesof7.3(B)(2)(g)(iv):
(1)Builder’soverheadmayincludeapercentageformainofficeexpensesforthejob.
58
QualifiedAllocationPlan 2009
(2)Generalrequirementsmayincludeproject‐relatedsitecostssuchastemporary
fencing,providingutilitiestothesiteduringconstruc tion,jobsitesupervisor,jobsite
officeandsimilarcosts.
(3)ADOHmayrejectcontingencycoststhatincludeBuilder’sProfit,Overhead,and
GeneralRequirements.
(v)Reserves.The development cost budget shall include amounts for project reserves as
follows:
(1) Rent‐upReserve.Thedeve lopmentbudgetshallincludeanamountnotlessthansix‐
monthsofdebtserv iceduringthelease‐upperiodorstabilizationofthedevelopment.The
rent‐upreservecanonlybeusedtopayfirstdebtpaymentsduringthistimeperiod.After
thelease‐uporstabilizationperiodhasendedtheprojectowner mayreleasetherent‐up
reserve.
(2)OperatingReserve.Thedevelopmentbudgetshallincludeasumofnotlessthantosix
monthsofoperatingexpenses.
(3) ReplacementReserve.Thedevelopmentbudgetshallincludeasix‐monthreplacement
reserveat$250perunitfornewconstructionand$350perunitforacquisition/rehabilitation
projects.
(4)ADOHdoesnotconsideranywaiverrequestsforthereserveamountssetforthinthis
paragraph.
(vi)TreatmentofAboveStandardQualityMarketRateUnits.PursuanttoI.R.C.§42(d)(3)(B)
the adj usted basis of a building must be reduced by an amount equal to the portion of the
adjustedbasisofthebuildingattributabletothecostofabove‐averagequalitymarket‐rateunits.
Formarketrateunitsthatonlyexceedtheaverage costpersquarefootoftheunithadtheunit
beenbuiltasalow‐incomeunitby15%orless,anapplicantmayelecttodeducttheexcesscostof
themarket‐rateunitsfromtheeligiblebasisofabuilding.
7.3(B)(3)Applicationsdescribingfundinggapsmaybedenied.ADOHmay,butisnotrequiredto,give
writtennoticethatanapplicationcontainsfundinggaps,whetherdiscoveredasoriginallyproposedor
throughtheunderwritingreviewprocess,andmayrequiretheapplicanttoexplainthegaporidentify
additionalfundingwithinfive(10)businessdaysafterthedateofthewrittennoticefromADOH.If,after
noticefromADOH,theapplicantfailstosubmitproofofadditionalfunding,satisfactorytoADOH,the
applicationmaybedeniedortheallocationrevoked.
7.3(B)(3)(a) Determinationofafundinggap.Aprojecthasafundinggapifthesourcesoffundsare
less than the uses of funds.ADOH multiplies the proposed tax credit equity amount by the
syndicationrate(thepricetheequityinvestorcommitstopayfor thetaxcredits)todeterminethe
amountofequityfinancing.Theamountofequityfinancingplusallothersourcesoffundsmust
meettheproposedusesoffunds.ADOHshallannounceanassumedpricefortaxcreditsatthetime
anallocationroundisannounced.Applicantsproposingataxcreditpriceexceedingtheassumed
price must demonstrate a firm, enforceable commitment from an equity investor that has no
identitiesofinterestwiththedeveloperandtheentitythatwillownandcontroltheproject.
59
QualifiedAllocationPlan 2009
7.3(B)(3)(b) ChangestothisPlanduetotheAmericanRecoveryandReinvestmentActof2009(“the
ARRA”),includinggrantsoflow‐incomehousingcreditceilingtostateallocatingagenciesdescribed
inSection1602oftheARRA;andtheappropriation offundsforfinancingofcertainLIHTCprojects
throughtheHOMEInvestmentPartnershipProgram describedunderTitleXIIoftheARRAshallbe
announcedbyADOHthroughapublicnoticeatalaterdate.
7.3(B)(3)(c) FundingGapAnalysis—LayeringAnalysis.ADOHmaydenyanapplication,cancela
reservationoftaxcredits,orcausereturnoftaxcreditsallocatedtoaprojectifitconcludesatanytime
priortoissuanceofI.R.S.Forms8609fortheprojectthatthetaxcreditsandpublicsourcesoffunding
areexcessive.
(i) Applications maybedeniedthat donotmaximizeavailable debtfinancingfromprivate
sources.ADOH may adjust the amount of tax credits reserved or allocated to a project to
maximizetheamountofavailabledebtfinancing.ADOHmayconsiderinformationgathered
fromexpertsorthirdpartiestodeterminewhethertheapplicanthascommittedthemaximum
amountofprivatesourcesoffundsavailabletotheproject.
(ii)IndeterminingwhethertaxcreditsorpublicfundsareexcessiveADOHconsiderswhether
therelativeamountoftaxcreditsorfederalsubsidyresultsinaproportionalincreasethenumber
ofaffordableunitsoreligibleprogrambeneficiariesassisted;
(iii)Todeterminethemaximumallowablepublicfundsavailabletoaproject,ADOHrequires
that the comm ercial debt service ratio (the quotient obtained by dividing the net annual
operatingincomebythetotalcommercialannualloanpaymentamount)benogreaterthan1.30
(130%).Forthepurpose ofthisparagraph,ADOHconsidersthedebtservicecoverageandloan
tovalueratiosestablishedbythelenderinitscommitmentletterasrequiredbySection2.7(B)(17)
FinancialAbilitytoProceed.Forminimumdebtservicerequirements,seeSection7.3(C)(1)(f).
7.3(B)(3)(c)(iv) ADOHmayadjusttaxcreditsasnecessarytomaximizeloanpayments.ADOH
may conside r loan terms (e.g., intere st rate and amortization period) from the lender’s
commitmentletter.
(v) For projects in which the land was acquired in other than an arm’s length transaction
betweenunrelatedparties,ADOHmayreducetheamountADOHgapfinancingbytheamount
thatthefairmarketvalue ofthepropertyexceedstheactualacquisitioncost.
(vi)Forprojects proposing100%equityfundingADOHmaycalculatethecostoffinancing of
any gap at the prevailing interestrate and term for senior or primary debt, using standard
underwritingcriteria.
7.3(B)(3)(d) GapfinancingthroughADOH.ApplicationsproposingGapFinancingthroughADOH
may be denied, or a reservation for tax credits may be cancelled, or an allocation of tax credits
revokedifanapplicationfailstocomplywithanyofthefollowingrequirements:
(i) Applications proposing financing with Gap Financing through ADOH shall include a
completeapplicationforGapFinancingincludingtheGapFinancingapplicationfeedescribedin
Section 6.2,however,ADOHmay consider applications for GapFinancing for projects with
reservationsorallocation softaxcreditsifADOHdeterminesinitssolediscretionthattheneed
foradditionalfundswasnotforeseeableatthetimeofapplication.
60
QualifiedAllocationPlan 2009
(ii)Theapplicationsha ll demonstratecompliancewiththerequirementsofthetaxcreditand
anyothersourceprogramincludingtheAmericanswithDisabilitiesAct(42U.S.C.§12101et
seq.) Section 504 of the Rehabilitation Act of 1973 (29 U.S.C. § 794), the eligibility and
underwritingrequirementsofthisPlan,andanyrequirementsorconditionsdescribe d inan
applicablenoticeoffundingavailability.
(iii)ADOHGapFinancingshallnotsupplantfundingavailablefromothersources,seeSection
7.3(B)(3)(c)FundingGapAnalysis‐LayeringAnalysis:
(1) Applicationsmustdemonstratethatalternativefundingisnotavailable.
(2) ADOHmayreduceorrevokeacommitmenttoGapFinancingifitdeterminesthatthe
fundsarenolongernecessarytotheproject.
(3) Forprojectsinwhichthelandwasacquiredinotherthananarm’slengthtransaction
betweenunrelatedparties,ADOH mayreducetheamount ADOHgapfinancing bythe
amountthatthefairmarketvalueofthepropertyexceedstheactualacquisitioncost.
(iv)Theapplicationshallprovidecontingenciesin theeventthatGapFinancingmoniesare
unavailable.IntheeventthatGapFinancingfundsbecomeunavailabletoaprojectADOHshall
affordtheapplicantareasonableperiod oftimetosecureanalterna te sourceoffunding;
(v)Todeterminewhether aprojectiseligibletoreceiveGapFinancingthroughADOH,ADOH
considersthefollowinginadditiontotheconsiderationsofthisse ction:
(1)WhetherGapFinancingwillmaximizetheallocationoftaxcredits;
(2)Theconditionofthemarket;
(3)Whethertheproposedprojectsatisfiesacriticalneed;
(3)Thesourcesandpossiblesourcesofalternativefundingfortheproject;
(4)Minimizing the risk of loss of taxpayer funds including consideration of the
organizational and financial capacity and the program compliance history of the
DevelopmentTeam;and,
(5)Anyidentitiesofinterest amongtheprojectowner, developer,andsources ofequity
capitalanddebtfinancing.
(vi)SecurityforADOHGapFinancing.ProjectsseekinggapfinancingthroughADOHshall
executetheappropriateloandocument sinformssatisfactorytoADOH.Alldebtservicethatis
seniortotheannualpaymenttoADOHshallbepaidasdescribedaccordingtothe15‐yearpro
formaapprovedbyADOH.ADOHshallnotbeboundbyseparatepaymenttermscontainedin
anypartnershipagreement,operatingagreement, oranyothercontrolagreementbindingthe
projectanditsinvestors.
7.3(B)(3)(e)Limitationsontheamountoftaxcreditsreservedorallocated.
61
QualifiedAllocationPlan 2009
(i) Theamountoftaxcreditsavailabletoaprojectislimitedtothemaximumamountdescribed
inSection2.2and7.3(B)(3)(c).
(ii) Qualif iedEligibleBasis.Theamountoftaxcreditsreservedorallocatedtoaprojectmaynot
exceed the qualified eligible basis of the project pursuant to I.R.C. § 42 and this Plan.The
qualifiedeligiblebasisshallbereducedbytheamountofcertainsourcesoffundsasprovidedby
I.R.C. § 42 consistent with the ARRA. The qualified eligible basis may be adjusted by the
effectiveapplicablepercentageasrequiredbyI.R.C.§42.
(iii)Increaseincreditforprojectslocate dincertainhighcostareas.AsprovidedbyI.R.C.§
42(d)(5)(C),anincreaseintaxcreditsupto130%ofeligiblebasisisavailabletoprojectslocatedin
Qualified Census Tracts, Difficult to Develop Areas, and for certain projects designated by
ADOHforeligibilityfortheincreaseincreditpursuanttoI.R.C.§42(d)(5)(C)(v).
(iv)UnlessADOHdec laresotherwiseinaseparatenotice,increasedtaxcreditspursuantto
I.R.C. § 42(d)(5)(C)(v) are available anywhere in the state for applications submitted in a
competitiveroundunderthe2009QAP.
7.3(C) Project Viability
.ADOH may deny an application or revoke an allocation for tax credits if it
concludesthat aproposedprojectisnotviable.ADOHmayconditionareservationoftax creditsupon
demonstrationofcomplian ce withanycriteriathatADOHdeemsnecessarytoensureprojectviability.In
determiningprojectviabilityADOHconsiderswhetherestimatedprojectrevenuesaresufficienttocover
operatingcoststhroughtheendofthe15‐yearcomplianceperiod.
7.3(C)(1)TreatmentPermanentFinancingCosts.
7.3(C)(1)(a)ADOHevaluatespermanentfinancingcostsbasedontheinformationprovidedinthe
commitmentlettersandlettersofintentsubmit tedintheapplication.
7.3(C)(1)(b)ADOHmaydenyanapplicationiftheassumptionsinthe15‐yearproformarequiredby
Section2.7(B)(26)ofthisPlanareinconsistentwiththetermsofthecommitmentletterorletterof
intent.
7.3(C)(1)(c)ADOH may consider int e rnal economic and financial market assessments and
informationwhenitevaluatesthefinancialviabilityoftheprojectbasedon.
7.3(C)(1)(d)Deferreddeveloperfees.Thedeveloperfeemaynotexceed40%ofthetotaldeveloper
feeandmaynotbedeferredforatermofgreatertha n 13years.
7.3(C)(1)(e)Attheendofthetermofanypermanentloanoratthecloseofthecomplianceperiod,
which ever is later, the project owner’s net equity in the project shall be sufficient to cover the
outstandingbalanceofanyloanincludinganyballoonpayment.
7.3(C)(1)(f)Debtservicerequirementsforprimarydebt.
(i) Forthetermofanyperman entloanorthedurationofthecomplianceperiod,whicheveris
longer, the quotient (the debt service coverage ratio) obtained by dividing the net annual
operatingincomebythetotalannualdebtservicepaymentsforallloansshallbenolessthan1.20
(120%)foreachyearofoperation.ADOH may consideraminimumdebtserviceratioof1.15for
62
QualifiedAllocationPlan 2009
projectswithcommitmentsforloanguaranteesorrentassistancethroughHUDortheUnited
StatesDepartmentofAgricultureRuralDevelopmentAuthority.
(ii) Forthetermofanypermanentloanorthedurationofthecomplianceperiod,whicheveris
longer,thetotalannualdebtservicepaymentsforallpermanentloans,includingloansorloans
thatarepayablefromavailablecashflow,shallnotbelessthanthetotalnetannualoperating
incomefortheprojectineachyearofoperation.
7.3(C)(1)(g) Debt service requirements for subordinate debt.ADOH may reserve tax credits to
projectsproposingsubordinatede btstructuresthatmeetthefollowingrequirements:
(i) Theseniordebtmeetsthemaximumguidelinesdescribedinparagraph7.3(B)(3)(c)(iii).
(ii)Thequotient(thedebtcoverageserviceratio)obtainedbydiv id ingthenetannualoperating
incomebythecashflowafterdebtserviceshallbegreaterthanorequal1.00foranyyearinthe
complianceperiod
7.3(C)(2)OperatingCosts.
7.3(C)(2)(a)ADOH may deny an application that does not propose reasonable and necessary
operatingcosts.
(i) ADOHassumesoperatingcostsfornewconstructionat$4,200perunitperyearandfor
acquisition/rehabilitation$4,500perunitperyear.ADOHmayconsiderloweroperatingcosts
supportedbycredibleandverifiableevidenceofoperatingcostsforLIHTCprojectsoperatedby
theDevelopmentTeam.ADOHmayestablish fromtimetotimeestimatesofoperatingcosts
basedoninformationgatheredbyADOHfromrental propertiesinthestateandinconsultation
withpropertymanagersandotherexperts.ADOHmayunderwritetohigheroperatingcostsfor
projects proposing specialized or unique characteristics such as re habilitation of buildings
locatedinhistoricareas.
(ii)Theoperatingcostlimitsdescribedinsubparagraph(i),above,shallincludeanamountfor
propertymanagementexpensesthatshallnotexceed7%ofeffectivegrossincome(“EGI”),for
projectsof30unitsormore,and9%forprojectsoflessthan30units.ADOHmaydenyaclaim
forpropertymanagementexpenseslessthantheamountspecifiedinthissubparagraphupon
failuretoprovidedocumentationsufficienttoallowADOHtoverifytheamountclaimed.
(ii) Operatingco stspropo sedforapropertymustbereasonable,necessary,andcustomarywith
respect to projects of comparable size and type, mix, location and amenit ies.ADOH may
excludeproposedoperatingcostsarisingfromoutsidetheprojectproperty.
(iii)Treatme ntofthecostofsupportiveservices.Indeterminingprojectviability,ADOHmay
excludecostsrelatedtosupportiveservicesdescribedintheapplication.Thecostofsupportive
servicesmustbesetforthinaseparatebudget.ADOHmaydenyanapplicationfortaxcredits
oraclaimforcompetitivepointsiftheapplicationfailstodemonstrate sufficient fundingto
sustain supportive services during the compliance and extended use periods.See Sections
2.9(F)(10)and4.4forrequirementsforprojectsproposingSupportiveServicesfortenants.
63
QualifiedAllocationPlan 2009
(iv)Applicantsrelyingonoperatingcostsforprojectsloca tedoutsideofArizonamustsubmit
information sufficient to permit ADOH to determine, with reasonable certainty, that the
proposed operating costs are valid for the market in which the proposed project is located.
ADOH may refuse to consider out ‐of‐state cost information that is for projects tha t are not
controlled by the applicant or that are not supported by the information required by thi s
subparagraph.ThefactorsADOHmayconsiderindeterminingwhetherproposedout‐of‐state
operatingcostsarevalidincludebutarenotlimitedto:thecharacteristicsofrentalfacilitiesfrom
whichtheproposedcostdataaredrawnincludingthe rentstructure;andthe ageoftheproject;
theratioofpropertymanagementstafftothenumberofrentalunits;and,relativeareamedian
incomes,populationdens ities,fairmarketrents,andutilityallowances.
7.3(C)(2)(b)IndeterminingprojectviabilityADOHestimatesfundingofprojectoperatingreserves
fornewconstructionattherate$250perunitperyear,andforAcquisition/Rehabilitationprojectsat
$350perunitperyear.
7.3(C)(2)(c)Aspartofthe application,theapplicantmustsubmitawrittencertification fromthe
treasurer’sorassessor’sofficeofthelocalgovernmentandanygovernmentalentitythathastaxing
authorityovertherealpropertyuponwhichtheprojectislocatedthattheprojectisexemptfromreal
propertytaxes(e.g.,hasanon‐profitexemption).Ifthe applicantfailstosubmitcertificationofthe
propertytaxexemptiontheapplicantmustincludethepropertytaxesintheoperatingexpenses.
Applicantsproposinghousingforprioritypopulation s mustpre senttwooperatingbudgetsintheir
applications:
(i)Forthecostsofoperatingtheproject,lessthoseincreasedcostsattributabletoservingthe
prioritypopulations;and
(ii)IndicatingtheincreasedOperatingCostsattributabletoservingprioritypopulations.
7.3(C)(3)OperatingRevenuesandLosses.
7.3(C)(3)(a)SourcesofRevenue.ADOHrecognizesincomefromapartmentrents(asrestricted)and
otherproject‐relatedancillarysourcesincludingbutnotlimitedtorevenuesfromlaundryandother
vendingfacilitiesandparking/garagerentals.
7.3(C)(3)(b)Rents.Forthepurposeofdeterminingprojectviabilityrentalrevenuesshallbebasedon
theminimumavailablerentasfollows:
(i)MaximumallowablerentspermittedunderofI.R.C.§42.
(ii)Rentsnomorethan10%lessthanthecompetitivemarketrentsbeingchargedforthesame
typeunitsintheprimarymarketareaidentifiedinthemarketstudy,however,rentsinareasfor
which50%ormoreoftheNetNewHouseholdmarketdemandisattributabletotenantsexiting
substandard,orovercrowdedhousingorhousinglackingcompleteplumbing,themaximum
allowablerentshallbe20%belowmarketrents;
(iii)Rentsthatdonotexceedtheamountaffordabletothetargetpopulation; 
7.3(C)(3)(c)AncillaryRevenues.ForthepurposesofdeterminingtheviabilityofaprojectADOH
assumesancillaryincomeatnomorethan$20/Unit/month.ADOHmayconsiderahigheramountof
64
QualifiedAllocationPlan 2009
ancillaryincomebasedonatleastthree(3)yearsofau ditedoperatingstatements(includingincome
andexpensestatements)forsimilarsituatedproperties.
7.3(C)(3)(d) Losses.
(i)ADOHmayadjustproposedoperatingrevenuestoreflectprojectedvacancyratesdescribed
intheMarketDemandStudyorinothermarketinformationavailabletoADOH.Absentcredible
andconvincingevidenceofalowervacancyratefortheprimarymarketarea,ADOHassumesa
vacancyrateof8%.
(ii)ADOHmayadjustproposedoperatingrevenuestoreflectprojectedcreditlossesdescribedin
theMarketDemandStudyormarketinformationotherwiseavailabletoADOH.
7.4 RentalMarketConsiderations
7.4(A) ADOHmaydenyanapplicationthatisnotsupportedbyamarketstudythatcomplieswithQAP
Section2.7(B)(18),theADOHMarketStudyGuide,seeExhibitL,andtherequirementsofthisSectionusing
themostcurrentdataavailableasofsixmonthspriortothedeadlineforsubmittalofapp licationorinthe
eventthatthereisnodeadline,thedateoftheapplication.
7.4(B) ADOHmaydenyanapplicationthatfailstodemonstrate strongnewmarketdemandforthetypeof
low‐incomehousingproposed.ADOHmayconsideranyinformationincludedinthemarketstudy.
7.4(C) ADOHmaydenyanapplicationthat containsamarketstudythatfailstoaddressallsalientfeatures
ofaprojectincludingbutnotlimitedtomarketrateunits,multiple‐useprojects,commercial/retailorother
non‐affordablecomponents,andlocatio ninahighcrimearea.
7.4(D) ADOH may deny an application supported by a market study that fails to clearly describe the
effectivedateofthestudyconsistentwiththerequirementsofparagraph7.4(A)orfailstospecificallyidentify
theageofalldataandthird‐partyinformationincludingbutnotlimitedtodemographicinformationand
ratesofpopulationchange,rentalmarket,andvacancydata,andthedatesofanyinterviews.Thedateofa
submittalletterforamark etstudymaynotbeconsideredasevidenceoftheeffectivedateofthemarket
studyunlesstheletterexpresslyincludestheinformationdescribedintheprevioussentence.
7.4(E) ADOHmaydenyanapplicationifitconcludesthatthenumberofunitsproposedintheapplication
mayadverselyaffectthefinancialviabilityofexistinghousingstockintheprim arymarketarea.
7.4(F) ADOHmaydenyanapplicationcontainingamarketstudytha tfailstoobjectivelyand explicitly
justifythelimitsoftheprimarymarketareaconsistentwiththere quirementsoftheADOHMarketStudy
Guide.
7.4(G) ADOHmaydenyanapplicationthatissupportedbyamarketstudythatfailstodescribereasonable
andappropriateamelioratingconsiderationsfornegativemarketinformationincludingbutnotlimitedto:
vacancyratesthatexceedunderwritingstandards,highpropertyorviolentcrimerates,andexcessivegross
ornetcapturerates.
65
QualifiedAllocationPlan 2009
7.5 PostReservationConsiderations
Determination of Cost Reasonableness.At the time a project submits documents for 10% Cost Test
complianceorforissuanceofI.R.S.Forms8609,theprojectmustsubmitadetailedas‐builtdevelopment
budgetinaform satisfactorytoADOHalongwithotherdocumentsnecessarytopermitADOHtoverifythe
reasonablenessofthecostsoftheproject.Uponcompletionoftheprojecttheapplicantshallsubmitacopyof
thepermanentlender’sappraisal(or,ifthereisnopermanentlender,anAppraisalsatisfactorytoADOH).
Asapartoftheunderwritingforafinalallocation,ADOHrequiresthatthetota lofallpermanentsourcesof
fundsnotexceed130%ofthemarketvalueofaprojectlocatedinanestablishedmarket.
66
QualifiedAllocationPlan 2009
8. COMPLIANCEMONITORING
8.1 ProjectComplianceMonitoring
8.1(A) ADOHisrequiredtomonitorandinspectprojectsforcompliancewithIRCSection42,Treasury
Regulation 1.42‐5, the requirements (set‐asides, income restrictions, rent skewing, affordability period,
amenitiesandservices,etc.)electedinthe applicationandagreeduponintheExtendedUseAgreement,and
uponwhichADOHbaseditsawardoftaxcredits.
8.1(B) The IRC also requires that ADOH publish and institute monitoring procedures as part of the
approved QAP.This compliance monitoring procedure applies to all projects for which tax credits are
allowable.Accordingly,ADOHmustmonitorallprojectsallocated taxcreditssinceJanuary1,1987.
8.1(C) ADOH has prepared a Low‐Income Housing Tax Credit Program Compliance Manual for all
Program participants.The manual outlines ADOH’s compliance monitoring procedures and reporting
requirements.Themanualincludessamplesofallannualreports,certifications,etc.Twice‐annualtrainingis
offeredbyADOHontheComplianceManualandowners’/managers’complianceresponsibilities.
8.1(D) The Code also allows ADOH to collect fees from owners to cover the cost of administering the
compliance‐monitoringprogram.MonitoringfeesaresetforthinSection6.10above.
8.2 ComplianceMonitoringProcedure
TheOwnerofaqualifiedLIHTCprojectforwhichtaxcreditsareallowableisrequiredtocomplywiththe
following:
8.2(A) RecordKeeping
.TheOwnermustmaintainaccuraterecordsforeachbuildinginthe low‐inc ome
housingproject.Theserecordsmustinclude:
8.2(A)(1)ThetotalnumberofResidentialRentalUnitsinthebuilding,includingthenumberofbedrooms
andthesquarefootageofeachResidentialRentalUnit.
8.2(A)(2)ThetotalnumberofLow‐IncomeUnit sinthebuilding.
8.2(A)(3)ThetotalnumberofoccupantsineachLow‐IncomeUnit.
8.2(A)(4) The rent charged on each Residential Rental Unit in the building, including any utility
allowance.
8.2(A)(5)TheLow‐Inco meUnitvacanciesinthebuilding.
8.2(A)(6)Thenumberandhouseholdeligibilitycriteriaforallspecialset‐asideunitsinthebuilding.
8.2(A)(7)Therentalsofthenextavailableunitsineachbuildingincludingwhenandtowhomrented.
8.2(A)(8)Thecharacteranduseofthenon‐residentialportionofthe buildingthatwasincl udedinthe
building’s eligiblebasisundertheCode(i.e.,faciliti es thatare availableon aco mparablebasis toall
67
QualifiedAllocationPlan 2009
residentsandforwhichnoseparatefeeischargedforuseofthefacilities,orfacilitiesreasonablyrequired
bytheproject).
8.2(A)(9)Documentationregardingtheeligibleandqualifiedbasisofeachbuildingasoftheendofthe
firstyearofthetaxcreditperiod.
8.2(A)(10)Foreachlow‐incomehousehold:
(i)Completedrentalapplication,includingthe tenants’certificationofassets.
(ii)Tenantincomecertificationform,includingallrequiredsignatures.
(iii)Documentationsupportingeachhousehold’sincomecertification(third‐partyverifications,asset
certification,assetdoc umentationandverificationifmorethan$5,000invalue).
(iv)Documen tat ionofstudentstatus.
8.2(A)(11)Current‐yearutilityallowanceschedule.
8.2(A)(12)DocumentationfromamedicaldoctorlicensedinArizonaorpreparedbyarecognizedsoc ial
serviceorhealthserviceagencythatqualifyatenantforlow‐incomeunitsset‐asidefortheSpecialNeeds
Population and any documentation th at identifiesany special accommodations that the tenant may
require.
8.2(B)RecordRetention
.Ownersarerequiredtokeepallrecordsforeachbuildingfor aminimumofsix
yearsaftertheduedate(withextensions)forfilingthefederalincometaxreturnforthatyear.TheOwner
mustretaintherecordsforthefirstyearofthecreditperiodforatleastsixyearsbeyondtheduedate(with
extensions)forfilingthefederalincometaxreturnfor thelastyearofthecomplianceperiodofthebuilding.
8.2(C)Certification
.The Owner must certify the following, under penalty of perjury, at least annually
throughtheendofthecomplianceperiod:
8.2(C)(1) That the project complied with the requirements for special set‐asides on which the
Allocationwasbased(e.g.,20%,30%,40%,50%AMGI),asapplicable.
8.2(C)(2)Atleast20%oftheResidentialRentalUnitsintheprojectarebothrentrestrictedandoccupied
byindividualswhoseinco meis50percentorlessoftheAMGI.
8.2(C)(3)Atleast40%oftheResidentialRentalUnitsintheprojectarebothrentrestrictedandoccupied
byindividualswhoseinco meis60percentorlessoftheAMGI.
8.2(C)(4)Thatthe Owner/agenthasreceivedanannualTenantIncomeCertification(commonlycalled
the “TIC”) form from each low‐income resident and verifying documentation to support that
certification.
8.2(C)(5)Thattheentireproject/building wasoccupiedbyLIHTCresidentsand theInternalRevenue
Servicehasorhasnotprovidedawaiverfortheannualrecertificationofresiden tincome.
68
QualifiedAllocationPlan 2009
8.2(C)(6)ThateachLow‐IncomeUnitwasrentrestrictedasdefinedintheCode.
8.2(C)(7)Thatallunitsintheprojectareforuseby thegeneralpublicandarenotusedontransientbasis.
8.2(C)(8)Thateachbuildingintheprojectisindecent,safe,andsanitaryconditionandingoodrepair
taking into account local health, safety, building codes, and HUD’s Uniform Physical Condition
Standards,see24CFR5.703.
8.2(C)(9) That allresidentfacilities included in the eligible basis of an y building in theprojectwere
providedonacomparablebasiswithoutaseparatefeetoallresidentsintheproject.
8.2(C)(10)Thattherewasnochangeintheapplicablefractionofanybuildingintheproject(or,ifthere
wasachange,adescriptionofthechange).(Applicablefractionisdefinedasthepercentageofqualifieds
inabuildingorthepercentage oftaxcreditfloorspacetorentablefloorspaceinabuilding, whicheveris
less.)
8.2(C)(11)Thattherehasbeennochangeinanybuilding’seligiblebasisundertheCode(orthattherehas
beenachange,withanexplanationofthechange).
8.2(C)(12) That a Declaration of Affirmative Land Use and Restrictive Covenants Agreement as
describedintheCodeisineffectforprojectsreceivingAllocationsonorafter January1,1990.
8.2(C)(13)Thattheprojectcompliedwiththerequirementsofallfe deralorstatehousingprograms(e.g.,
RDassistance, HOME,Section8,tax‐exemptfinancing),asapplicable.
8.2(C)(14)That,iftheOwnerreceiveditsAllocationset‐asideforprojectsinvolving“qualifiednon‐profit
organizations,”thenon‐profitentitymateriallyparticipatedintheoperationofthedevelopmentwithin
themeaningofIRCSection469(h).
8.2(C)(15)ThatifaLow‐IncomeUnitintheprojectbecomesvacantduringthe year,reasonableattempts
aremadetorentthatUnitorthenextavailableUnitofcomparableorsmallersizetoresidentshavinga
qualifyingincomebeforeanyunitintheprojectisrentedtoaresidentnothavingaqualifyingincome.
8.2(C)(16)Th atifthe incomeoftheresidentsofaLow‐IncomeUnitincreasesabove140%ofthelimit
allowedintheCode,thenextavailableUnitofcomparableorsmallersizeshallbe rentedtoresidents
havingaqualifyingincome.
8.2(C)(17)Forbuildingswithfourunitsorless,whetheranyoftheunitsinthebuildingwereoccupiedby
theOwneroraPersonrelatedtotheOwnerfortheprecedingyear.
8.2(C)(18) Whether, for the preceding year, the project was the recipientof a federal grant or other
FederalSubsidythatwouldcauseareductionineligiblebasis.
8.2(C)(19)Thatthestateorlocalgovern mentunitresponsibleformakingbuildingcodeinspectionsdid
notissueareportofaviolationfortheprojectforthepreceding12monthperiod.
8.2(C)(20)ThattheOwnerhasnotrefusedtoleaseaUnittoanapplicantduetotheapplicantholdinga
HUDSection8voucherorcertificate.
69
QualifiedAllocationPlan 2009
8.2(C)(21)Thatthe projecthasreceivednofind ingofdiscriminationunderTheFairHousingAct(an
adversefinaldecisionbyHUD,anadversefinaldecisionbyasubstantiallyequivalentstateorlocalfair
housingagency,oranadversejudgmentfromaFederalcourt).
8.2(C)(22)ThattheOwnerhasnotevictedorterminatedthetenancyofanyexistingtenan tofanyUnit
(otherthanforgoodcause)orincreasedthegrossrentwithrespecttoaUnitnototherwisepermittedby
Section42,applicablethroughoutthe entirecomplianceperiod.
8.2(D)ReviewsandInspections
.BeforeADOHissuestheIRSForm8609ortheendofthesecondcalendar
yearfollowingtheyearthelastbuildinginaproject isPlacedinService,whicheverisfirst,ADOHconduc ts
on‐siteinspectionsofallnewbuildingsintheprojectand,foratleast20%oftheproject’sLow‐IncomeUnits,
ADOH inspects the units and reviews the low‐income certifications, the documentation supporting the
certifications,andtherentrecordsforthetenantsinthoseunits.
8.2(D)(1) ADOHconductson‐siteinspectionsofallbuildingsineachlow‐incomehousingprojectat
leastonceeverythreeyears,beginningafterthePlaced‐in‐Servicedate.Foratleast20%oftheproject’s
Low‐IncomeUnitsselectedbyADOH,ADOHinspectstheunits(includingallvacantunits)andreview
thelow‐incomecertifications,thedocumentationsupportingsuchcertifications,andtherentrecord.
8.2(D)(2) ADOHfollows HUD’sinspectionprotocolunder 24CFR§ 5.703inconductingphysical
inspections.ADOHselectsunitsforphysicalinspectionandreviewfilesonlyatthetimeoftheon‐site
visit.
8.2(E)Liability
.The Owner is responsible for compliance.ADOH is not liable for an Owner’s
noncompliance.
8.2(F)CorrectionofNon‐ComplianceCondition
.
8.2(F)(1)ADOHshallprovidewrittennoticeofnoncompliancetotheOwnerif:
(i)ADOHhasnotreceivedtheAnnualCertificationReportwithattachmentsbytheduedate.
(ii)ADOHfindsthattheprojectisoutofcompliancewithanyoftheprovisionsofIRCSection42.
8.2(F)(2)TheOwnershallhave30calendardaysfromthedateofnoticeofnoncompliancetoprovideany
missinginformationfortheAnnualCertificationReport.TheOwnershallhave60calendardaysfrom
the date of notice of nonc ompliance to correct issues.ADOH may grant an extension of up to 120
calendardaysiftheOwnerdemonstratesgoodcausefortheextensiontothesatisfactionofADOH.
8.2(F)(3)ADOHisrequire dtofileIRSForm8823,“Low‐IncomeHousingCreditAgenciesReportof
Noncompliance,”withtheIRSwithin45calendardaysoftheendoftheallowablecorrectionperiod.
ADOHmustreportallnoncomplianceissueswhethercorrectedornot.ADOHmayexplainthenatureof
thenoncomplianceorfailuretocertifyandstatewhetherthenoncompliancehasbeencorrected.TheIRS,
notADOH,shallmakeanydeterminationsastotheapplicabilityofrecapturepenalties.
8.2(F)(4)ADOH must perform inspections of the project and perform on‐site audits ofthe resident
certificationformsandsupportingdocumentationthroughoutthefirst15yearsofthecomplianceperiod
andanyagreed‐uponextendedcompliance period.ADOHsha ll notifytheOwner inwritingofthe
schedulingofanysuchinspectionoraudit.
70
QualifiedAllocationPlan 2009
9. DEFINITIONS
ThefollowingdefinitionsshallapplytoboththeQAPandQAPapplicationfortheyear2009Program
“10%CostTest
”referstotherequirementofIRCSection42(h)(1)(E)(ii)that10%ofthereasonablyexpected
basisintheproject(asofthecloseofthesecondcalendaryear)havebeenincurredbeforetheendoftheyear
inwhichtheAllocat ionismadeandtheprojectmustbePlacedinServicenolaterthanthesecondcalendar
yearfollowingtheyearoftheAllocation.
“10%CostTestLateFee
”meansthe feedueintheamountof$3,500ifaDeveloperrequestsanextensionto
submitrequireddoc ume ntstoreceiveaCarryoverAllocationinaccordancewithSection2.12.
“ADOH
”meanstheArizona Department of Housing,which isthehousingcreditagencyauthorizedto
allocatefederallow‐incomehousingtaxcreditsintheStateofArizonapursuanttoA.R.S.Section35‐728(B).
“Administ
rationFee”means$1,000feeduefromtheapplicantintheeventtheapplicantrequestsaninterim
underwritingorADOHrequiresanadditionalunderwritingdueto,amongotherthings,aMaterialChange.
“Affiliate
”meansanyPerson,whodirectlyorindirectly,ownsorcontrolsanotherpersonbyhavingany
familyrelationship,ownershipinterestoraControllingInterestinthatperson.
“Allocation
”meanstheawardoftaxcreditsbyADOHtotheOwnerofanLIHTCproject.TheAllocationis
setforthinabindingagree mentbetweenADOHandtheOwner.
“Allocation Year
”meansthe calendar year for the currentannual allocation authority for which LIHTC
applicationsaresubmitted.
“AmericanRecoveryandReinvestmentActof2009
”or“ARRA”or“StimulusBill”meansPublicLaw111‐5
enactedFebruary17,2009.
“Applicant
”meansanexistinglegalentitysubmittinganapplicationforLIHTCforaprojectpursuanttothe
AllocationPlan.
“Appraisal
”whenreferringtoasubmittalrequiredbythisPlanmeans:(1)anestimateofthevalueofproject
realpropertybebasedonmarketinformation includingcomparablepropertiesthatiscurrentthroughthe
periodendingnoearlierthansixmonthsbeforethedeadlineforsubmittaloftheapplicationthatis(2)be
preparedinaccordancewiththeUniformStandardsofAppraisalPracticebyananalystwhoisnotassociated
withthedeve lopmentteam,bond issueror userofbond proceedsand whoisauthorizedto renderthe
appraisalinArizona.Anappraisalthatdeviatesfromtherequirementsofthisparagraphmustprovidea
detailedexplanation ofwhythedeviationcannotbeavoided.
“Areamediangrossincome
”or“AMGI”meansthemeasureofhouseholdincome,adjustedforfamilysize,
usedbytheIRSasareferenceinestablishingincom e levelsfor theLIHTC Program (e.g.,“60 percentof
AMGI,”“50percent ofAMGI”) andas thebaseincalculationsthatyieldmaximum rents bynumber of
bedrooms.Seethe“ImputedIncomes/A llowableRents” tablesappendedtothisPlanatExhibitH.
“A.R.S.
”meanstheArizonaRevisedStatutes,asamendedfromtimetotime.
71
QualifiedAllocationPlan 2009
“AwardLetter”meansaletterfromagovernmentalorquasi‐governmentalagency,e.g., theFederalHome
LoanBank,stating thatfundsin a specific amountare awarded oraretobe awardedtotheprojectin a
specifictimeframe.
“Builder
”meansthegeneralcontractorthatisamem beroftheproject’sDevelopmentTeam.
“CapitalNeedsAssessment(“CNA”)
meanstheassessmentassetforthinSection2.7(B)(35).
“CarryoverAllocation
”meansanAllocationmadetotheprojectiftheprojectwillnotbePlacedinServiceby
closeofthecalendaryearoftheAllocation.
“CarryoverAllocationFee
”meansanadditionalfeeof$250perdayiftheinformationrequiredunderSection
2.12ofthisPlanissubmittedafterDecember1oftheAllocationye ar.
“CensusDesignatedPlace(CDP)
”meansastatisticalentity,definedforeachdecennialcensusaccordingto
CensusBureauguidelines,comprisingadenselysettledconcentrationofpopulationthatisnotwithinan
incorporatedplace,butislocallyidentifiedbyaname.CDPsaredelineatedcooperativelybystateandlocal
officialsandtheCensusBureau,followingCensusBureauguidelines.BeginningwithCensus2000thereare
nosizelimits.
“Co‐Developer
”meansoneoftwoormoredevelopersofthesameproject.
“Code
”and“IRC”meantheInternalRevenueCode.
”Common Area Facilities
” means on‐site laundry facilities, site office, maintenance and storage areas,
communityrooms,communityservicefacilitiesasdescribedinExhibitD.
“CommitmentLetter
”meansawrittencommitmentfrom alen derorotherprovideroffunds,representinga
commitmenttoprovide financingandstatingtheamount,interestrate,fees,termoftheloan,debtservice
coverage,security,andrepaymentterms,subjectonlytoreasonable,commercially‐acceptablecontingencies.
“Community‐BasedNon‐Profit
”meansanorganizationqualifie dunderIRCSection501(c)(3)or(4),thathas
asoneofitsapprovedexemptpurposestheprovisionofaffordablehousing,anditsmembershipisdrawn
fromandrepresentativeofthecommunityitserves.
“CommunityFacility
”meanscommunityroom,clubhouse,recreationcenterorthelike.Lobbiesandlaundry
facilitiessha llnotbeconsideredwithinthescopeofthisdefinition.
“Community Services Facility
” means a facilities building as described in IRC Section 42(d)(4)(C)(ii).
“CompliancePeriod”mean sthecomplianceperiodforabuildingbeginswiththefirstyearofthebuilding’s
Credit period, the first taxable year in which the Owner claims tax credits for the project of which the
buildingisapart,andlastsfor15consecutivetaxableyears.
“Consultant
”meansanadvisortotheDevelopmentTeamortoanymemberoftheDevelopmentTeam.
“Controlling Interest
” means the possession, directly or indirectly, of the power to direct or cause the
directionofthemanagementandpoliciesofaperson,whetherthroughthemeansofowner s hip, position,
contract,orotherwise.
72
QualifiedAllocationPlan 2009
“CouncilofGovernmentsRegions”meansoneofthefourruralCouncilsofGovernmentsinArizonaserving
regionalplanningdistricts.Thefourruralcouncilsandthedistrictstheyserveare:NorthernArizonaCouncil
of Governments (NACOG), serving the Region 3 Counties of Apache, Coconino, Navajo and Yavapai
Counties;WesternArizona CouncilofGovernments(WACOG),servingtheCountiesofLaPaz,Mohaveand
YumainRegion4;CentralArizonaAssociationofGovernments(CAAG),servingRegion5:theCountiesof
Gila and Pinal; and South Eastern Arizona Governments Organization (SEAGO), serving Region 6, the
countiesofCochise,Graham,GreenleeandSantaCruz.
“DeadlineDate
”meansonorbefore4:00p.m.MountainStandardTimeofthedaydesignatedbyADOHas
thelastdaytosubmitanapplicationforacompetitiveallocationround.
“Deferred Developer Fee
” means a certain sum of money owed to the Developer and evidenced by a
promissorynote,partnershipagreement,orotherwrittenagreementacceptabletoADOH,suchfeetobe
repaidsubjecttotheapplicableproject’scashflowafterpaymentofoperatingexpensesoftheprojectand
afterpaymentofdebtservi ceforallsuperiorliens.
“DeterminationofQualification
”meansaletterissuedbyADOHinaccordancewithIRCSection42(m),that
indicatesthattheproject,whichhasutilizedtax‐exemptfinancing,qualifiesforanamountoftaxcreditsand
isincomplianceatthetimeoftheletterwithallrulesestablishedbythisPlan.
“DeterminationofQualificationFee
”meansthefeepayableafterADOHdeterminationthatanapplication
representsafeasibleandviableprojectwithalikelihoodofcompletionanditispayablepriortotheissuance
ofaDeterminationofQualificationorReservation.(SeeSection6.4)
“Developer
” means any legal entity or person, which provides or arranges for design, financing, or
constructionservicesinconnectionwithaProject.
“DevelopmentTeam
”meanstheentitiesandprofessionalsassembledtodevelopandmanagetheproject,
typically comprising the Developer(s), general partner, contractor, property management company, tax
attorney,certifiedpublicaccountant,andallotherprojectConsultants.
“EmployeeUnit
”meansaUnitsetasidebyprojectmanagementasaResidentialRentalUnitforamanager,
oramaintenanceperson,and/orasecurityofficer(seeArizonaDepartmentofHousingLIHTCCompliance
Manual,Section3.2.1.).ADOHconsidersResidentialRentalUnitsasLow‐IncomeUnits.Industrystandards
indicatethatonemanager’sUnitandonemaintenanceperson’sUnitareneededperonehundredunits.One
securityofficer’sUnitperprojectisallowedifmanagementcanshowthattheUnitisreasonablyrequired.
Projectmanagement,initsdiscretion,maydesignatesuchunitsforemployeesorreturnthemtoserviceas
Low‐IncomeUnitsascircumstancesdictate.InaccordancewithIRSRevenueRuling92‐61,whiletheseunits
areemployeeunitstheysha llbeincludedintheeligiblebasisofthebuildingbutshallbeexcludedfromboth
thenumeratorandthedenominatoroftheapplicablefraction.Inmixed‐incomeproperties,ADOHassumes
thatanyemployeeunitsaretakenfromthelow‐incomeratherthanthemarket‐rateside.
“ExtendedUseAgreement
”meansacovenantthatrunswiththelandonwhichtheprojectisdeveloped,
restrictingtheuse oflandbytheOwneranditss uccessorsto thetermsandconditionsoftheproject, as
approvedbyADOH.
“ExtendedUsePeriod
”meansthetotalminimumcommitmentof30yearsbytheOwnerundertheExtended
UseAgreement.
73
QualifiedAllocationPlan 2009
“ExtendedWarranty”meansanyconstructionwarrantywithaninitialtermoftwoyearsormore.
“FederalSubsidy
”forthepurposesoftaxcredits,FederalSubsidiesincludefederalgrantsandbelowmarket
ratefederalloansthroughprogramssuchasthoseadministeredbyHUD(withsomeexceptionsforCDBG
andHOME)andRuralDevelopment,tax‐exemptfinancingandotherlocallyadministeredlow‐interestloans
orgrantsfromfederalsources.Useofthesefinancingsourcesmayrequirereductionsineligiblebasisor
reductionsinaproject’smaximumApplicableCreditPercentage(seeIRCSection42(d)(5)(A)and42(i)).
“Final Allocation Fee
” means the fee payable upon the issuance of IRS Form 8609 equal to 2% of the
Allocation.
“FinancialStatements
”meansacompleteandaccurateincomestatement,cash‐flowstatement,balancesheets
andaccompanyingnotespreparedaccordingtoGenerallyAcceptedAccountingPrinciples.
“Financial Beneficiary
” means a Person who is to receive a financial benefit of: a) 3% or more of total
estimatedprojectcostiftotalestimatedprojectcostis$5millionorless,andb)3%ofthefirst$5millionand
1%ofanycostsover$5millioniftotalestimatedprojectcostisgreat e rthan$5million.Th isdefinitiondoes
notincludetheOwnerofthetaxcreditprojectunlesstheOwnerisalsothe DeveloperortheBuilderand
meetstheabovefinancialr equirements. 
“FundingGap
”meanstheamountbywhichprojecte ddevelopmentfundsexceedprojectedavailablefunds.
“Gap Financing” means funding through one or more programs administered by ADOH that may be
availabletoaprojecttofillanEquityGap.
“Hard Costs
” refers to project developmen t costs described by Form 3, Item 24, Sect ions II and III, Site
DemolitionandPreparationandDirectConstructionCosts.Hardcostsdonotincludeoffsitecostsunless
suchcostsarechargeabletotheprojectinaccordancewithI.R.C. §42.
”HERA
”referstotheHousingandEconomicRecoveryActof20 08,Pub.L.11 0‐289,anditschangestotheLow
IncomeHousingTaxCreditprogram.
“HistoricPreservationProject
”means:(i)astructureindividuallylistedintheNationalRegisterofHistoric
Places,or;(ii)astructurecertifiedbytheNationalParksServiceascontributingtoaRegisterDistrict.A
RegisterDistrictisa designated arealistedin theNational Register,orlistedunderstatestatuteor local
ordinanceassubstantiallymeetingtherequirementsforlistingofdistrictsintheNationalRegister.
“HUD
”meanstheUnitedStatesDepartmentofHousingandUrb anDevelopment.
“IdentifyofInterest
”meansanyfinancialorownershipinterest,directorindirect,betweenDeveloperand
anotherPerson.
“LandControl
”meansapp licant’sevidenceofownershiporcontroloverthelandrequiredfortheprojectin
theformof:(i)abindingCommitmentLetterfromagovernmentalentitytotransferlandtoapplicant;(ii)a
recordeddeedwithapplicantasgrantee,(iii)alongtermlea sewithapplicantasgranteeor(iv)aleaseoption
or fully executed purchase option agreement betwe en applicant and Owner of property as recorded in
jurisdictionofproperty.
“LIHTC
”meanstheLow‐IncomeHousingTaxCreditprogram,aprogramoftheInternalRevenueService
thatprovidesfederalincometaxcreditstoownersofqualifyingresidentialrentalprojects.
74
QualifiedAllocationPlan 2009
“LetterofInterestorInten t”meansthedocumentationaddressedtotheapplicant/Developerofaninterestor
intent to provide funding, setting forth the writer’s intention to negotiate the financing an d stating the
amount,interestrate,security,repaymenttermsandincludingtheminimumdebtservicecoverageratioand
loan‐to‐valueratiousedbythelendertosizethefinancing,asapplicable.IfthesoleDeveloperoftheproject
isanon‐profitorganization,theLetterofInterestorIntentfromtheinvestmentsyndicatormuststatethatthe
non‐profitholdstherightoffirstrefusaltoacquiretheprojectfollowingthefifteen‐yearcom plianceperiod.
Such letters or documents may be su bject to reasonable, commercially acceptable contingencies, as
determinedbyADOHinitssolediscretion.
“Local Government
” means the govern ing body of the city, town, county or tribal government having
jurisdictionovertherealpropertyuponwhich theprojectwillbelocated.
“Low‐IncomeUnit
”meansanyUnitinaprojectiftheUnitisrentrestricted(asdefinedinIRCSect ion42
(g)(2))andtheindividualsoccupyingsuchUnitmeettheincomelimitationapplicableunderIRCSection42
(g)(2)fortheproject.
“MajorLifeActivities
”forthepurposeoftheAmericanDisabilitiesActmeans“functionssuchascaringfor
oneself,performingmanualtasks,walking,seeing,hearing,speaking,breathing,learning,andworking.”See
45CFR§84.3(j)(2)(ii).
“MarketDemandStudy
”meansathirdpartyreportthatoutlinestheoverallmarketdemandforaproject
within a de fined market area and identifies, with significant detail, the current supply of similar units,
demographics,andecono micscontainedwithinthemarketarea.
“MaterialChanges
”areasdescribedinSection4.7.
“MaximumTaxCreditReservation
”meansamaximumReservationforanysingleprojectorScatteredSite
project.OneOwner,Developer,Co‐DeveloperorAffiliateoftheDeveloperorCo‐Developerwithmultiple
projectscannotexceedatotalof$2.7milliondollarsinanyAllocationyear.
“Metropolitan Statistical Area
”isusedinthisPlan asdefinedby theOfficeofManagementandBudget
(OMB)“StandardsforDefiningMetropolitanandMicropolitanStatisticalAreas”publishedonDecember27,
2000,intheFederalRegister(65FR82228‐82238).
“OperatingCosts
”meansthefixedandvariableexpensesofoperatingtheproject, includingbutnotlimited
totaxes,insurance,utilities,management,andreplacementreserves,butexcludingdebtservice.
“Owner
”meansthelegalentitythatultimatelyownstheprojectandtowhichtaxcreditswillbeallocated.
“Person
”meansanindividual,partnership,corporation, trustorotherentity.
“PhysicallyDisabledPersons”
meanspeoplewhohavephysicalimpairmentsthatsubstantiallylimitoneor
moremajorlifeactivitiesasdefinedin45CFR§84.3(j)(2)(ii)orhavearecordofsuchimpairment.
“PlacedinService
”means:(i)foraneworexistingbuildingusedasresidentialrentalproperty,thedateon
whichthebuildingisreadyandavailableforitsspecificallyassignedfunction,i.e.,thedateonwhichthefirst
Unitinthebuildingiscertifiedasbeingsuitableforoccupancyinaccordancewithstateorloca llaw;and(ii)
rehabilitationexpendituresthataretreatedasaseparatenewbuildingareplacedinserviceatthecloseofany
24‐monthperiodoverwhichtheexpendituresareaggregated.
75
QualifiedAllocationPlan 2009
76
“PrimaryPermanentFunding”meanstheloansecuredbythe firstlienontheprojectplusanyadditional
notessecured bysubordinate liensonthe project, which represent additionaldebtservicerequirements
intendedtobepaidfromsaleproceedsoroperatingincomegeneratedbytheproject.
“Project
” me ans any project for residential rental property if the project meets the requirement of
subparagraph(A)or(B)whicheveriselectedbythetaxpayer:
(A)20‐50Test‐Theprojectmeetstherequirementsofthissubparagraphif20percentormoreof
theresidentialunitsinsuchprojectarebothrent‐restrictedandoccupiedbyindividualswhose
incomeis50percentorlessofareamediangrossincome.
(B) 40‐60Test‐Theprojectmeetstherequirementsofthissubparagraphif40percentormoreof
theresidentialunitsinsuchprojectarebothrent‐restrictedandoccupiedbyindividualswhose
incomeis60percentorlessofareamediangrossincome.
Anyelectionunder thisparagraph,once made,isirre vocable.Forpurpose softhisparagraph , anyproperty
shallnotbetreatedasfailingtoberesidentialrentalpropertymerelybecausepartofthebuildinginwhich
suchpropertyislocatedisusedforpurposesotherthanresidentialrentalpurposes.ScatteredSitesmaybe
consideredtobeone projectiftheScatteredSites meetthe abovedefinitionandtherequirements inthe
“scatteredsites”definitioninthisSection.
“Property Manager
” or “Property Management Co mpany ” means the entity responsible for marketing,
maintenance,andtenantrelationsforabuildingfinancedwithtaxcreditsunderthisPlan.
“Redevelopment Area
” means an area determined by official action of the governing body of the
municipalityorcountytobeeither:
(a) An area in which a majority of the struct ures are residential or an area in which there is a
predominanceofbuildingsorimprovements,whetherresidential,andwhich,byreasonofdilapidation,
deterioration,ageorobsolescence,inadequateprovisionforventilation,light,air,sanitation,openspaces,
highdensity ofpopulationandovercrowdingor theexistenceofconditionswhichendangerslifeor
property by fire and other causes, or any comb ination of these factors, is conducive to ill health,
transmissionofdisease,inf antmortality,juveniledelinquencyorcrime,andisdetrimentaltothepublic
health,safety,moralsorwelfare;or,
(b)Anareathatbecauseofthepredominanceofdefectiveorinadequatestreetlayoutinrelationtosize,
adequacy,accessibilityorusefulness,unsanitaryorunsafeconditions,deteriorationofthesiteorother
improvements,diversityofownership,taxorspecialassessmentdelinquencyexceedingthefairvalueof
the land, defective or unusual conditions of title, improper subdivision or obsolete platting or the
existenceofconditionswhichendangerlifeorpropertybyfireandothercauses,oranycombinationof
thesefactors,substantiallyimpairsorarreststhesoundgrowthofthemunicipality,retardstheprovision
ofhousingaccommodationsorconstitutesaneconomicorsocialliabilityandisamenacetothepublic,
health,safety,moralsorwelfareinitspresentconditionanduse.
77
“Reservation
”meansanon‐binding,writtenstatementissuedbyADOHtotheapplicantaftertheapplication
roundindicatingthatADOHhasreservedfortheprojectaspecificamountoftax creditswhichshallreceive
anAllocationupontheproject’ssatisfactionofcertainconditions.
“ReservationFee
”meansthefeetoprocessanapplicationtothepointofaDeterminationwhichisequalto
8%oftaxcreditsrequested,forfor ‐profitand6%fornon‐profitdevelopers.
“ResidentialRentalUnit
”meansanarealegallylicensedorpermittedforuseasalivingspacecontaininga
sleeping area, bathing and sanitation facilities, and cooking facilities equipped with a cooking range,
refrigerator,andsink,allofwhichareseparateanddistinctfromotherresidentialrentalunits.FederalTax
Regulations(FTR)1.103‐8(a)8(i).
“RuralArea
”meansa“ruralarea”asdefinedin7C.F.R§3550.10andalllocationsoutsideofMaricopaand
PimaCounties.
“SatisfactoryProgress
”me ansthattheapplicant,includinganypersonwithanownershipinterestinthe
applicantorDevelopmentTeammember,haspresentedevidence,satisfactorytoADOH,thateachProjectfor
whichtheapplicanthasreceivedaDeterminationofQualification,Reservation,orAllocationinArizonaor
anyotherstate,hasbeenPlacedinServiceontimeorotherwiseisprogressingwithoutunreasonabledelay
thoughthevariousphasesofdevelopment,i.e., financing,permitting,construction,certificateofoccupancy,
andrehabilitation.
“ScatteredSites
”meansprojectsthatmeetthefollowingcriteria:
1. consistofnomorethansix(6)non‐cont iguousparcelswithina15‐mileradiusofeachother;
2. consistofnomorethan200units;
3. allbuildingsintheprojectmustbeundertheownershipofoneentity;
4. allunitsinthescatteredsiteapplicationmustbemanagedbyoneentity;
5. allbuildingsintheprojectmustbedevelopedunderonecommonplanoffinancingandconsidered
asasingleprojectbyallfundingsources;
6. toreceivethe130%increaseinbasisallowedunder IRCSection42,allparcelsmakin guptheproject
mustbelocatedwithinaQCTorDDA;
7. thescatteredsitesmustbeappraisedasasingleproposeddevelopment;and
8. eachparcelwithintheproposedprojectmustmeetallapplicablethresholdandscoringcriteria.
“SeniorProject
”mean s“housingforolderpersons”asdefinedinSection807(b)(2)ofTheFairHousingAct,
42U.S.C.§3607,asitmaybeamendedfromtimetotime.
“SpecialNeedsPopulations
”ADOHincludesthehomeless,theseriouslymentallyill,thephysicallydisabled,
individualsinfectedwiththehumanimmune‐deficiencyvirusorotherpopulationswithspecializedhousing
needs.Otherpopulationswithspecial izedhousingneedsmayinclude:
• HomelessIndividual(s)
:aperson(s)whohaslived:a)inplacesnotmeantforhumanhabitationsuch
ascars,parks,sidewalks,abandone dbuildings,etc.;b)inanemergencyorshelterfacility;c)ina
transitionalhousingfacility(notpermanenthousing).
• SeriouslyEmotionallyDisturbed
,i.e.,personsbetweenbirthandage18whocurrentlyoratanytime
duringthepastyearhavehadadiagnosablemental,behavioral,oremotionaldisorderthatresulted
78
in a functional impairment which substantially interferes with or limits the person’s role or
functioninginfamily,school,orcommunityactivities.Seriouslyemotionallydisturbedpersonsare
tobecertifiedbyareferralagencyrecognizedbyADOH.
• Developmentally Disabled Persons
suffering from a severe, chronic condition attributable to a
physical or mental impairment manifesting itself before the age of 22 and likely to continue
indefinitely.Developmentallydisabledpersonsaretobecertifiedbyareferralagencyrecognizedby
ADOH.
• VictimsofDomesticViolence
ascertifiedbyreferralagencyrecognizedbyADOH.
• IndividualsSufferingfromChronicSubstanceAbuse
,ascertifiedbyareferralagencyrecognizedby
ADOH.
“StateAnnualCreditAuthority
”meansthetotalamountoftaxcreditsallocatedtothestatebytheIRSeach
yearbasedonthepopulationofthestateandmultipliedbyadollaramountperresidentthatisadjusted
annuallyforinflation.
“Supportive Housing
” means affordable permanent independent rental housing for perso n s who are
homelessorhavedisabilities.Thesepopulationsarelimited,however,tothefollow inggroups:Homeless
Individuals; seriouslymentallyill;SeriouslyEmotionallyDisturbed;physicallydisabled;Developmentally
Disabled Persons; victims of AIDS/HIV; Victims of Domestic Violence; and Individuals Suffering from
Chronic Substance Abuse.See definition of “Special Need s Populations”, above for more complete
definitionsofthesegroups.Supportiveservicesareprovidedto residentsofsupportivehousingonanas‐
neededbasisforaslongastheyareneeded,withthepurposeofhelpingresidentsachievemaximumpossible
self‐sufficiencyandmaintaintheirpermanenthousing.Supportiveservicesmaybeprovideddirectlybythe
Ownerorthroughcoordinationwithexistingserviceagenciesandmaybedeliveredthroughacombination
ofbothon‐andoff‐siteservicedeliverymechanisms,withtheprovisionthatanon‐siteservice coordination
capacitymustbemaintained.
“SupportiveServices
”meansservicessuchasattendants,housekeeping,assistancewithactivitiesofdaily
living, transportation,and trainingprov idedbythe Ownertohelpresidentsmaintaintheir lifestyle and
achieveself‐sufficienc y.
“SyndicationRate
”meansaratiothatreflectsthepricetotheprojectfor$1.00oftaxcreditsawarded.
“Ten‐YearRule
”,meansthefollowing:
(A)Inorderforanexistingbuildingtoqualifyaspartofataxcreditproject,theapplicantmustacquire
thebuildingfromanunrelatedpersonwho:
(1) Hasheldthebuildingforatleasttenyearsattimeoftheapplication,and
(2) Did not make substant ial improvements during that period that are subject to 60‐month
amortizationunderIRCSection197(k)ortheTaxReformActof1986.
(B) The Ten‐Year Rule maybe waived by the United StatesSecretary of the Treasury in the case of
distressedsalesofcertainfederally‐assistedprojects,prepaymentofmortgagesthatresultinbuildings
beingconvertedtomarketuse,buildingsacquiredfromfaileddepositoryins titutions,andsinglefamily
residencesusedfornootherpurposethanaprincipalresidence bytheOwner.
(C)Thelegal opinionprovided bycounsel for the applicantmustprovide a detailedanalysis of the
PlacedinServicedatesandacquisitiondatesforProjectssubmittinganapplicationinconjunctionwith
the10‐YearAcquisitionCredits.
79
(D)Anappraisalthatseparatestheappraisedvalueofthelandfromtheappraisedvalueofthebuilding
mustbesubmittedwiththeapplicationwhen10‐yearacquisitioncreditswillbeclaimed.
“Unit
”meansanyaccommodationcontainingseparateandcompletefacilitiesforliving,sleeping,eating,
cooking,andsanitation(e.g.aresidentialdwelling,consistingofoneapartment,onesinglefamilyhome,one
half of a duplex, etc.). Such accommodations may be served by centrally located equipmen t such asair
conditioningorheating.
“WaterConservation
”meansthepreservationandcarefulmanagementofwaterresources.
“XeriscapeLandscaping
”,bydefinition,islandscapingdesignedspecificallyforareasthataresusceptibleto
drought,orforpropertieswhere WaterConservationispracticed.
80
ExhibitB
SampleLetterofAcknowledgement
StateofArizonaLowIncomeHousingTaxCreditProgram
ThisformissenttolocaljurisdictionsbytheArizonaDepartmentofHousing
Date
Contact
Municipality
Address
City
RE:ProjectName
DearCity/TownManager:
TheStateofArizonahasreceivedanapplicationforareservationoftaxcreditswithinthecorporate limitsof
the(Municipality).Adescriptionoftheprojectisenclosed.Asyoumayknow,theLowIncomeHousingTax
Credit(LIHTC)programoffersadeveloperfederaltaxcreditstopromotethedevelopmentofaffordable
rentalhousingforfamiliesearningnomorethan60%oftheareamedianincome.Theprojectdeveloperis,
(DeveloperName),thecontactpersonforthisproject(Name),maybe reachedat(PhoneNumber).Please
complete the enclosed letterandreturn it to the ArizonaDepartment of Housing (addressnoted on the
enclosedletter)by(Date)at5:00P.M.ThiswillenabletheArizonaDepartmentofHousingtoincorporate
yourcommentsinourassessmentoftheproject.Inaddition,pleaseattachaletterofcommentontheproject’s
marketstudyandanydisagreementsthatyoumayhavewiththemarketstudy.Acopyofthemarketstudyis
availablefromthe developer.
ShouldtheArizonaDepartmentof Housingnot receivetheenclosedletterbythe stipulateddate,itshall deemthe
communitytobenotins upp ortoftheprojectandrejecttheapplication.
YourreviewshouldoccurconsistentwithapplicableFairHousinglawsinArizona.Pleaseconsultcompetent
legal advice and/or the Attorney General Fair Housing Division at (602) 542‐5025 should you require
assistanceinthisregard.WhiletheStatedoesnotrequireformalactionbythelocalgoverningbody,youmay
wishtoconsiderthisfortheproject. 
Thankyouforyourassistanceandcooperationonthismatter.Pleasecontactmeat(602)771‐1031forany
furtherinformationyoumayrequire.Pleaserememberthattimeisoftheessenceconcerningthisissue.
Sincerely,
RandyArchuleta
RentalProgramAdministrator
Enclosure
81
COMMUNITYLETTEROFACKNOWLEDGEMENT
ExhibitB
ThisformissenttolocaljurisdictionsbytheArizonaDepartmentofHousing
Date:
ArizonaDepartmentofHousing
Attn:RentalProgramAdministrator
1110W.Washington,Suite310
Phoenix,Arizona85007
DearManager:
The
ofhasreceivedyourletternotifyingusthattheproposeddevelopment
___________
isunderconsiderationbytheArizonaDepartmentofHousingforanallocationofLowIncome
HousingTaxCredits.
I.Wehavereviewedtheaforementionedprojectandfindthat:
The proposed acquisition and development of the above referenced project will provide safe and
affordablehousingthatwillcomplywithFairHousingLawsinArizona.Itisbelievedthattheproposed
projectisalsoconsistentwiththehousingpolicies,strategies,prioritiesandproceduresofthismunicipality.
Accordingly,theappl icationproposedforthisdevelopmentissupportedbythismunicipality.
The proposed acquisition and development of the above referenced project does not appear to be
consistentwiththehousingpolicies,strategies,prioritiesandproceduresofthismunicipality.Therefore,this
municipalitydoesnot
supporttheproposeddevelopment.
II.Marketdemandstudy:
Wehavereviewedthemarketdemandstudyand/orappraisalsfortheproposedproject,dated,andhave
attachedanycommentsregar dingthisstudy.
Wehavenotreviewedthemarketdemandstudyand/orappraisal.
Theundersignedhastheauthoritytobindthe_____
withrespecttothematterssetforthinthisletter.
Pleasecontactmeat_______________________foranyfurtherinformationyoumayneedonthismatter.
Sincerely,
(Name)
(Title)
(City/Town/County)
82
ExhibitC
Year2009DifficultDevelopmentAreasandQualifiedCensusTracts
Thefollowinglocationsareconsidered“MetropolitanDifficultDevelopmentAreas”inArizona
(SubjecttoannualrevisionbytheADOHasupdatedbytheHousingandUrban Development(HUD):
MetropolitanAreas
:
CoconinoCounty(Flagstaff,AZMSA),YavapaiCounty(Prescott,AZMSA),YumaCounty(Yuma,AZMSA)
MetropolitanQualifiedCensusTracts:
CoconinoCounty: 8.00 10.00 18.00  9411.00 9422.00 9445.00
MohaveCounty: 9404.0 0
MaricopaCounty: Phoenix‐Mesa‐Scottsdale,AZMSA
202.02 506.03 608.00 614.00 716.00 822.02 926.00 927.04 927.05
927.11 928.00 929.00 931.04 1033.04 1033.05 1033.06 1045.01 1046.00
1071.02 1072.01 1086.01 1090.00 1091.00 1092.00 1096.04 1098.01 1101.00
1102.00 1103.00 1107.01 1112.02 1112.03 1114.01 1115.01 1116.02 1121.00
1122.01 1122.02 1123.02 1125.07 1126.01 1126.02 1127.00 1128.00 1129.00
1131.00 1132.01 1132.02 1132.03 1133.00 1134.00 1135.00 1136.01 1136.02
1137.00 1138.00 1139.00 1140.00 1141.00 1142.00 1143.01 1143.02 1144.01
1144.02 1145.00 1146.00 1147.01 1147.02 1147.03 1148.00 1149.00 1150.00
1151.00 1152.00 1153.00 1154.00 1155.00 1156.00 1158.01 1158.02 1159.00
1160.00 1161.00 1162.03 1166.02 3187.00 3191.01 3191.02 3192.00 3200.02
4213.02 4214.00 4216.02 4220.01 9407.00 9410.00 9411.00
PimaCounty: Tucson,AZMSA
1.00 3.00 4.00 5.00 9.00 10.00 13.01 13.02 14.00
15.00 21.00 22.00 23.00 24.00 25.03 26.01 27.01 28.01
28.02 31.01 37.02 38.01 38.02 39.02 41.04 41.11 43.20
45.09 51.00 9406.00 9407.00 9408.00
PinalCounty:
4.0010.00 12.00 15.00 19.00 20.00  9406.00 9410.00 9411.0 0
9412.00
YumaCounty: Yuma,AZMSA
1.003.02 4.01 106.00 114.01 115.01 116.00
NonmetropolitanQualifiedCensusTracts:
ApacheCounty: 9401.00 9426.00 9427.00 9440.00 9441.00 9442.00 9443.00
9449.00 9451.00
CochiseCounty: 6.00 8.00 9.00
GilaCounty: 9402.00 9404.00
GrahamCounty: 9405.00
NavajoCounty: 9401.00 9403.00 9410.00  9411.00 9423.00 9424.00 9444.0 0
9445.00 9447.00 9448.00
SantaCruzCounty: 9964.02
NonmetropolitanDifficultDevelopmentAreas:
ApacheCounty CochiseCounty GilaCounty GrahamCounty LaPazCounty
NavajoCounty SantaCruzCounty
83
ExhibitD
ArizonaDepartmentofHousing(ADOH)Year2009
MandatoryDesignGuidelinesforMultifamilyRentalHousing
ThefollowingDesignGuidelineshavebeendevelopedtoassist architectsanddevelope rstounderstandthe
factorsconsideredbytheArizonaDepartmentofHousing(the“ADOH”)intheevaluationofmultifamily
rentalhousing.TheADOHgenerallyyieldstothelocaljurisdictioninallmatterspertainingtodevelopment
andconstructionstandards.Therefore,ifalocaljurisdictionhaspublishedmorerestrictivestandardsthan
thosestatedbelow;thestandardsofthelocaljurisdictionwillapply.TheADOHwillexpectthe finished
producttobesubstantiallysimilartowhatwasrepresentedintheApplication.Thisrepresentationpertains
tobuildingmaterials,amenities,andequipment.TheADOHmustapproveanyMaterialChangeoritmay
resultinareductionorrecaptureoftaxcredits.
TheADOHvaluesexcellenceindesignbecausewell‐designedhousingmeetstheneedsoftenants,attracts
marketrentersandpromotescommunityacceptanceofhousingfinancedbytheADOH.Allprojectsmust
meetorexceedeachofthesestandards,aswellastheminimumrequirementsofallapplicablebuildingcodes
andregulations.Inaddition,projectsmustmeetADAandFairHousingRequirements.
WheretheADOH’sminimumstandardsareinconflictwithHUDorStateHousingFundrequirementsfor
thedesignandconstructionofmanufacturedhousing,theHUDorStateHousingFundrequirementswill
prevail.ForitemsnotcoveredbytheHUDorStateHousingFundrequirements,e.g.,sitedrainageandsite
lighting,theADOH’sminimumstandardswillprevail.
GENERALDESIGN
Provisionsmustbemadeforhandicappedaccessinconformancewiththerequirementsoffederalandstate
lawincludingtheFairHousingActandtheAmericanswithDisabilitiesAct.
Thebuildingdesignshouldbeappropriateandintegratedintothetopographyandneighborhood.
Thedensitych aracteristicsandbuildingdesignshouldconformtothoseofthesurroundingarea.
Amenitiesshouldreflectthedesiresofthetargetmarket.Amenitiesshouldbeshownclearl yontheplans
andshouldbefullydescribedwithinthenarrative portionoftheapplicationpackage.Laundryfacilitiesand
communityroomsshouldbeproportionedtothetotalnumberofunits.
BUILDINGCODESTANDARDS
1. Allprojectsfinancedandbuiltundertheprogramaretomeetorexceedthefollowingdevelopment
standards:
• UniformBuildingCo de, UniformMechanicalCode,UniformPlumbingCode(1994Editions),
InternationalBuildingCode
• NationalElectricalCode(1993Edition)
• 2006InternationalEnergyConservationCode(IECC)
• FederalFairHousingAct(42U.S.C.§3601etseq.),ArizonaFairHousingAct(A.R.S.§41‐1491to
41‐1491.37),andtheHUDFairHousingRegulations(24C.F.R. Part100,SubpartD)
• UniformFederalAccessibilityStandards(Section504ofthe1973RehabilitationAct) andthe
AmericanswithDisabilitiesAct,asapplicable.
84
INTERIORDESIGN
Allresidentialdwellingunitsmustmeetminimumunitsizerequirements. Thesquarefootagemeasurements
belowwillbeforheatedsquarefeetonly.Theyaremeasuredfinishedinteriorwalltofinishedinteriorwall,
anddonotincludeexteriorwallsquarefootage.Unhe atedareassuchaspatios,decks,porches,stoops,or
storageroomscannotbeincluded.
Efficiency 450netsquarefeet
1bedroom 650netsquarefeet
2bedroom 800netsquarefeet
3bedroom 1,050netsquarefeet
4bedroom 1,200netsquarefeet
1. Theminimumbedroomsizeis12 0netsquarefeet.
2. Kitchensmustbeequippedwithpantriesorbroomclosets.
3. Otherfeatureswhichmustbe providedinclude:
• Linenclosetsoutsidebathrooms
• Bulk storageforitemslike snowtires, suitcasesand sportequipment.(Thismaybe located
outsideeachunit.)
LARGEUNITDESIGN(applicabletounitshavingthreeormorebedrooms)
Thecommonspacesofunitsshouldbeproportionatelylargerasthenumberofbedroomsincreases.
Three‐bedroomunitsmusthaveatleast1.75bathsandfour‐bedroomunitsmusthave2fullbaths.
EXTERIORDESIGN
Lowmaintenanceexteriorsshouldbeplanned.
Acompletelandscapeplan,whichmaximizesexistingnaturalfeaturesorotherwiseenhancesopenspace,is
required.Wherever possible, native plants should be used.Maintenance systems (e.g. sprinkler and
irrigationsystems)mustbeinstalledtomaintainlandscaping.
“XeriscapeLandscaping”,bydefinition,islandscapingdesignedspecificallyforareasthataresusceptibleto
drought,orforpropertieswherewaterconservationispracticed.
Trashremovalareasmustbescreened.
Buildingsanddwellingunitsmustbeindividuallymarkedwithvisible,contrastingi dentifyingde vicesto
minimizetheresponsetimeforreceivingaidbypoliceand/oremergencypersonnel.Thebuildingidentifying
devicesmustbe welllightedfromdusktilldawn.
Singleleverdeadboltsandeyeviewersarerequiredonallentrydoorstoresidentialunits.
ON‐SITEPLAYGROUNDAREAS
Recreationalfacilitiesmustbeprovidedfordifferentagegroups.(Forexample,sandboxeswithinsightof
unitsforchildrenunder5,“totlots”forages5to12,andabasketballcourtforages12andolder.)
85
Playareasandplaygroundsforchildrenshouldbelocatedawayfromhighautomobiletrafficpattern s,and
situatedsothattheplayareaisvisiblefromthemaximumnumberofdwellingunitspossibleforsafety.
Designatedplayareasandplaygroundsareconsidered“commonareas”,andmustbeonanaccessibleroute
peraccessibilitycodes.
Abenchmustbe providedatplaygroundstoallowachild’ssupervisortositandrestcomfortably.The
benchmustbeanchoredpermanently,mustbeonanaccessibleroute,andmustbeweatherresistant.All
benchesmusthaveaback.
A“warning”signmustbepostedtoadvisingresidentsandgueststhatusingtheplaygroundisattheirown
risk.Thesignmustbe postedatavisib lelocation,andusecontrastingcolorsforbetteridentification.
HOUSINGFORSENIORS
Projectsthatareintendedtoserve80%ormoreelderlyindividuals(personsthatare 55yearsofageorolder)
mustconsistofsinglestorybuildingsormulti‐levelbuildingswithelevatorsservingalllevelsofthebuilding.
REHABILITATIONPROJECTS
Applicationsmustproposeascopeofworkappropriatetothebuilding(s),asreflectedinthePhysicalNeeds
Assessment,butshouldnotinvolveunnecessarywork.Proposalsmustaddressthefollowingelements:
AllAdditions,AlterationsorRenovationsshallcomplywithIECC2006[EB]101.2.2.2
HVACreplacementsandnewinstallationsshallinclude:
• Sealallaccessibleductconnectionsincludingthedrywalltobootconnectionswithductmasticor
approvedequivalent.
• InstallationofnewductsystemsshallcomplywiththenewconstructionEnergyConservationAir
DistributionSystemsstandard.
• RoomPressuresshallcomplywiththenewconstructionEnergyConservationsstandard.
Insulation
• Insulationmustbeinstalledsuchthattherearenogaps,voids,compressionorwindintrusionofthe
insulation.Theinsulationandairbarrier(e.g.sheetrock)mustbecontinuousandalignedinallcases.

Making“com monareas”handicappedaccessible.
Improvingsiteandexteriordwellinglighting,landscaping/fencing,andinstallingfinishmaterialthatwill
withstandextendedweather ingintheproject’slocation.
Addingporchesorotheraestheticfeaturestoenhancetheexteriorqualityandinterestoftheproject.
Useenergy‐efficientrelatedproductstoreplaceinferiorones,includinginsulatedwindowsanddoors,an d
addingadditionalinsulation.
Improvingheatingandcoolingunits,plumbingfixtures,waterheaters,toilets,sinks,faucetsandtub/shower
units,especiallywithuseofwaterconservingequipmentandsystems.
Improvingqualityofinteriorconditionsandfixtures,includingcarpet,vinyl,interiordoors,painting,drywall
repairs,cabinets,appliances,lightfixturesandmini‐blinds.
Wherepossible,upgradingbathroomsandkitchens.
86
COMMONAREAFACILITIES
On‐SiteLaundryFacilities
Laundryfacilitiesarerequiredatalldevelopmentswithtwentyormoreresidentialdwellingunits.
Theremustbeaminimumofonewasherandonedryerpertwelvedwellingunitsifwasher/dryerhookups
arenotavailable in each dwellingunit.If hookups are available in eachdwellingunit, there must be a
minimumofonewasherandonedryerpertwentydwellingunits.
A“folding”tableorcountertopmustbeinstalled.
Thelaundryroommusthaveawindowandadequateentrancelighting,whichmustbeonfromduskto
dawntoassistingreatersecurityduringeveninghours.
Community/OfficeSpace
Allspecialneedsandelderlydevelopmentsmusthaveacommunityroomonsiteorimmediateaccesstosuch
spaceonanadjacentproperty.
Alldevelopm entsconsistingoftwenty(20)residentialdwellin gunitsormoremusthaveasiteofficeofat
least200squarefeet(inclusiveofhandicappedtoi letfacility)andamaintenanceroomofatleast100square
feet.
CommunityServiceFacility
ACommunityServiceFacilitymustbedesignedtoserveprimarilyindividualswhoseincomeis60percentor
lessofAMGI,underSection42(d)(4)(c)(iii).Thisrequirementwillbesatisfiedifthefollowingconditionsare
met:
First, the facility must be used to provide services that will improve the quality of life for community
residents.Second, the taxpayer must demonstrate that the services provided at the facility will be
appropriateandhelpfultoindividualsintheareaoftheprojectwhoseincomeis60percentorlessofAMGI.
This may, for example, be demonstrated in the market study required to be conducted under section
42(m)(1)(A)(iii),oranothersimilarstudy.Third,thefacilitymustbelocatedonthesametractoflandasone
ofthe buildingsthatcom p risethequalifiedlow‐income housingproject.Finally, if feesarecharge d for
servicesprovided,theymustbeaffordabletoindividualswhoseincomeis60percentorlessofareamedian
income.
TheprojectmustbelocatedineitheraQCTorDDAarea,andservicesmustbeprovidedthroughoutthe
complianceperiod.
SpecificConstructionFeatures
Thefollowingrepresentminimum
designstandardstobemetbyeachtaxcreditproject.Thesemin imum
requirements(oralternativesofequalorgreaterqualityanddurability)willbeimposedoneveryApplicant,
regardless of project size, amenities, or geographic location, unless the standards required by a local
jurisdictionexceedthoseestablishedbytheADOH.
TheApplicantwillberequiredtocertifyinthe ApplicantAffidavit,ReleaseandOath(seeForm3,“Low‐
IncomeHous ingTaxCreditApplication”)thattheseminimumdesignfeat ureswillbecompliedwithinthe
constructionoftheprojectandthat,iftheyarenot, creditswillbesurrenderedtotheADOH.TheApplicant
willalsoberequiredtocertifyfullcompliancewiththesestandard spriortoissuanceofIRSForms8609.
87
AllconstructionfeaturesintheLIHTCprojectshouldconformtogoalsofattractiveness,utility,efficiency,
andlong‐termdurability.Allfeaturesshouldbedesignedforlong‐termextendeduse(50‐yearminimum).A
specificgoaloftheprogramistomin imizemonthlytenantOperatingCosts.
Theprojectarchitectshouldprovidereliefonallsurfacesbydesigningvar iedbuildingheightsandrooflines
andd istinctivewindowandentrydoordetail.Thearchitectshouldvarybuildingorientationsalongthe
streetaswellasbuildingmasses,clusters,andcolors.
1. SiteWork
• Termitetreatmentisrequiredaspartofsitework.

• Siteplanningfordrainage.Minimumslopesrequiredforproperdrainageare:
• Slopesawayfromfoundations:5%first10feet(6inchesinfirst10feet)
• Slopesonpavedareas:canbeaminimumof0.7%forasphalt,0.5%ifaconcretevalley
gutterisinstalled;1%(1/8inchperfoot)
• Exteriorgradeshouldbe shownaminimumof 6‐8 inchesbelowthetop of slabs on
grade.
2. FoundationandSlabs
• SoilsreportrequiredbyanArizonaRegisteredEngineer
• Castinplaceconcretefoundationssuitedtospeci ficlocations(designforlocalfrostdepth
whereapplicable),designedbyaregisteredprofessio n al.
• Four‐inchminimumconcr e teslabonfourinchesofABCaggregate,orasdesignedbyan
ArizonaRegisteredStructuralEngineer.Concreteslabs,includingcarportsanddriveways,
should be re inforced if directed by the soils report using the following methods or
equivalent:
• 6x610/10WWFwiremesh,centeredintheslabvertically,OR
• Polypropylene fibers in the concrete mix for slabs (Fibermesh is a typical
manufacturer).Application of the product should be in the proportions and
accordingtotherecommendationsofthemanufacturer.
• Post‐tensionedtendonsasdesignedbyanArizonaRe gisteredStructuralEngineer
following the additional recommendations of a Geotechnical Report of the soil
conditionsbyanArizonaRegisteredGeotechnicalEngineer.
Note:All slabs and foundations must be designed by an Arizona Registered Structural
Engineer.
3. FrameandStuccoConstruction
• Stucco:three coatcementstuccowithmetalexpansionjointsor3/8”fiber‐reinforcedstucco
onwirelathe,onone‐inchfoaminsulationboard.
88
• Frame:2x4or2x6woodormetalstudsinexteriorandpartywalls,2x4inotherwalls.The
choiceof2x4or2x6willbe dictatedbythemethodsselectedtomeetInternat ionalEnergy
ConservationCoderequirements,soundbarrierrequirements,andengineer’sspecifications.
ExteriorwallsshouldbedesignedtoachieveaU‐valueof.056.Woodfloorframingwith
3/4”or5/8”plywoodsheathingandlightweightconcreteorequivalentgypsumtopping.
4. Roof
• Concretetilerooforarchitecturalgradeshingleswithaminimumlifeof40yea r sonone
layer 40 lb. felt with wood truss framing, minimum slope 3:12.Flat roofs must have a
minimum3/8”/1’slope.
• Inrehabworkwhereexistingflatroofsarepresentproperlydrained,built‐uproofsshould
beconstructedwithaminimumof72#fiberglasscapsheetwithmineralsurfaceoverthree
layersofatleast30#feltwiththebaselayernailedtotheplywooddecking.
• AnArizonaRegisteredStructuralEngineermustdesignrooftrusses.
• RoofSheathingshouldbecalledoutontheRoofFramingPlan.Required: minimum½inch
exteriorgradeplywoodor½inchexteriorgradeOSB(orientedstrandboard).Allsheathing
mustbegapped1/8inchontheedgesandendswithmetalclipsappropriatelyinstalledon
thetrusses.
5. Electrical
• Allstandardbasicservice andlighting mustconform toNational Electric Code(1993or
later)andlocalcodes.Smokedetector smustbehard‐wired.
6. Plumbing
• Copper, CPVC or PEX for domestic water, PVC outside and for sanitary (polybutylene
pipingisprohibited).
• Durablefixtures.Allbathroomsinksandtoiletstobeporcelain.Ename lfinishsteeltub
withPVCtileorculturedmarblesurrounds,prefinishedwallpanelsoraone‐pieceepoxy
resintub/showerunitorfour‐pieceacrylictub/surroundorshower/surround
• Durabletoiletaccessories;medicinecabinetwithmirror.
• WaterConservationdevices,e.g.,alternativeandlow‐flowtoilets,low‐volumeshowerheads,
aeratororflowrestrictordevicesinthefaucets,andfront‐loadingorhorizontalaxiswashers
7. EnergyConservation
Projectmustcomplywiththe2006InternationalEnergyconservationCode(IECC).Compliancewith
this code shall be determined in accordance with Sections 101.3.1 and 101.3.2 of the IECC.
ConstructiondocumentationshallbesubmittedforreviewinaccordancewithSection104ofthe
IECC.
• Insulation:
• Insulation must be installed such that there are no gaps, voids, wind intrusion or
89
compressionoftheinsulation.Theinsulationandtheairbarrier(e.g.sheetrock)mustbe
continuousandalignedinallcases.Soundinsulationisrequiredinpartywalls.
• MinimumHVACefficiencies
• AC:13SEER
• HeatPump:13SEERand7HSPF
• Combustionfurnace:80%AFUE
Note:ElectricresistanceheatingcanbeusedonlyiftheOwnerdocuments,utilizingtheIECC
SystemsAnalysis(Chapter4)approachthattheutilitycostsforthestructureareequaltoorless
than the IECC standards design of like architectural characteristics.The analysis will be
completedutilizingacombustionfurnaceforthestandarddesignwithanefficien cyvalueof80%
AFUE.
• AirDistributionSystems:
• All joints in the air distribution system shall be sealed with duct mastic or approved
equivalent.
• For duct systems located outside the conditioned space, total duct leakage in CFM,
measured at 25Pascals pressure, shall belessthan orequalto 3% ofthe square footage
servedbythesystem(e.g.,1,000sq.ft.unitx3%+30CFMallowableleakage).
• Airflowtoeachroomwillmatchdesignairflowcalculationstowithin+/‐10%.
• RoomPressure
Under normal operating conditions, an air handler cannot create room pressures with a
magnitudegreaterthat+/‐3.0Pascals,withreferencetooutside,anywhereintheUnit.
• IndoorAirQuality
• Exhausthoodsabovegasrangesmustbeventedtotheoutside.
• Unventedcombustionappliances(fireplaces,heatersorgaslogs)arenotallowed.
• Acarbonmonoxide detector, hardwired, shall be installed in allUnitswithanattached
garageorwithanycombustionappliancelocatedintheconditionedspace.
InspectionsofEnergyConservationFeatures‐

ContactArizonaEnergyOfficeat(602)771‐1149
InspectionsofenergyfeaturesaretobecarriedoutbyAEOorap provedagent.Theinitialinspectionwillbe
onthebuildingplans approvedbythe local governing body and then will be carriedout randomly, on
approximately10%oftheUnits.TheDevelopermustnotifyAEOoftheconstructionscheduletofacilitate
90
inspectionsthatneedtobecompletedatvariousphasesofconstruction.AEOwilldocumentallitemsthat
passinspectionandwillconsultwiththeConstructionSuperintendentonitemsthatdonotpass.
Inspectionswillinclude:
• Buildingplanreview:afterthelocalgovernmentbodyhasapprovedthebuildingplans,onesetof
constructionplansmustbesubmittedtotheAEOpriortothebeginningofcon s truction.
• Insulation inspection (pre‐sheetrock) to verify R‐value and that there are no gaps, voids or
compressionoftheinsulation.
• VerificationofHVACequipmentefficiency.
• Ducttestingofcompletedsystem(pre‐sheetrock)toverifyleakageamountsandductR‐values.
• RoomairflowoncompletedUnits.
• RoompressuresoncompletedUnits.
• WindowInspection
• Verificationofcarbonmonoxidedetectorinstallationwhererequired.
8. Doors
• Solidwood,hollowwoodwhen usedwithexterior‐ratedglue,fiberglassorinsulatedmetal outside
doorswithwoodormetalframe.Paintgradepre‐hunghollow‐coreinteriordoorswith residential
gradefinishhardware.
9. Floors
• Carpet,VCTandsheetvinyl.
• Baseofpaintedwood,vinyl,rubberorMDFcompressedwood.
10. Walls&Ceilings
• Painted ½” gypboard, moisture resistant at wet areas, type ‘X’ at areas required by prevailing
buildingcode.
11. Appliances
• Range/oven,exhausthoodaboverange,refrigerator,disposal,dishwasher.
12. Cabinets
• Solidwoodorparticleboardwithdurablelaminate;durablelaminatecountertops.
13. ExteriorStairs,EntranceLandings,andBalconie s
• Should be constructed of precast concrete treads on painted steel framing with painted steel
handrailsoraccordingtoasystemofequivalentorgreaterdurabilityandquality.
91
14. ExteriorFencing.
• Fencetheproperty(masonrypreferred)tolimitaccessofnon‐residents,asappropriateanddesired
bytheaffectedjurisdiction.Gatesarenotrequiredunlessspecifiedbythelocaljurisdiction.
15. ExteriorFinish
• Selectafinishmaterialthatwillwithstandextendedweatheringintheprojectlocation.
• Desertandmountainlocalities:three‐coatcementstuccowith metalexpansionjoints,or3/8inch,
fiber‐reinforcedstuccoonwirelath,on1‐inchfoaminsulation.
• Mountainlocalitiesathigherelevations;varioussidingproducts(fiberboard,mineralboardorvinyl)
maybesubstitutedforstuccoifwarrantedbythemanufacturerforaminimumof40years.
16. SiteLights
• Forsecuritypurposes,provideadequatesitelighting,especiallyattherearofthebuildingsandfor
walkways,parking,corridorsandstairways.
92
ExhibitE
SampleLegalOpinion
Date:
RentalProgramsAdministrator
ArizonaDepartmentofHousing
1110WestWashin gton,Suite310
Phoenix,Arizona85007
DearAdministrator:
Thisopinionletterisrenderedonbehalfof
inconnectionwiththeapplicationof

(theʺApplicantʺ) for an allocation of low‐income housing credits pursuant to
Section42oftheInternalRevenueCodeof1986asamended(theʺCodeʺ),bytheArizonaDepartmentof
Housing(theʺADOHʺ).
Wehavereviewedthefollowing:
1. Organizationaldocuments(asapplicable,thearticlesofincorporation,bylaws,operatingagreement
orpartnershipagreement)oftheApplicant;
2. Proposedoractualorganizationaldocuments(asapplica ble,thearticlesofincorporation,bylaws,
operatingagr eementorpartnershipagreement)ifavailable,ofthe proposedownerandoperator
(ʺOwnerʺ)oftheprojectlocatedat
(theʺProjectʺ).
3. TheADOHʹs2009QualifiedAllocationPlan(theʺQAPʺ)andtherequiredformoftheDeclarationof
AffirmativeLandUseandRestrictiveCovenantsAgreement(theʺLURAʺ)whichisanextendedlow‐
incomehousingcommitmentagreementwiththeADOHwhich,whenrecorded,willcontaincertain
restrictivecovenantsrunningwiththeProjectasspecifiedinSection42(h)(6)oftheCode:and
4. Suchotherdocumentsasnecessarytorendertheopinionssetforthbelow.
As to questio n s offactmaterial to our opinion, we have relied upon, andassumed due and continuing
compliance with the provisions of the documents, and have relied on certifications, covenants and
presentations by the Applicant or Owner furnished to us without undertaking to verify these items by
independentinvestigation.Wearenotawareofanyfactsthatare inconsistentwiththeseassumptions.
Atthetimeofallocationforlow‐incomehousingcredits,theOwnerisrequiredtoenterinto theLURA.For
thepurposeofthisopinionwehaveassumedtheexecution,delivery,andtherecordingoftheLURAand
continuingcompliancewiththetermsoftheLURA.
Basedupontheforegoing,weareoftheopinion,asofthisdate,that:
1. TheApplicant,andOwnerifcurrentlyorganized,aredulyorganized,validlyexistingandingood
standingunderthe lawsoftheStateofArizona.Additionally,theApplicantandtheOwnerhavethe
powerunderitsrespectiveorganizationaldocumentstoconstruct,rehabilitateorotherwiseacquire
andoperatetheProject,tosubmitanapplicationtotheADOHfortaxcredits, tocomplywiththe
termsoftheLURAandtoperformsuchotheractionsasarenecessarytocomplywiththeAllocation
PlanandSect ion42oftheCode.
2. TypeofProject.
a. NewConstructionProject.TheProjectwillbeconstructedbytheApplicantandwillconstitute
newbuildingswhoseoriginalusewillcommencewiththeApplicant;or
93
b. Acquisition/RehabilitationProject.
(1) BasedonrepresentationsoftheApplicant,theProjecttobepurchase dbythe Applicant
orOwnerwillbeconstructedbytheApplicantorOwnerandcontainsexistingbuildings
thattheApplicanthasorwillsubstantiallyrehabilitate(astha ttermisde finedinthe
Code)and,asrequiredbySection42(d)(2)(b);
(2) TheBuildingwasnotpreviouslyplacedinservicebytheApplicantortheOwnerorany
personwhowasarelatedperson,withrespecttotheApplicantorOwneratthetimeit
waspreviouslyplacedinservice;and;
(3) ExceptasprovidedinSection42(f)(5),acreditisallowableunderSection42(a)byreason
ofSection42(e)withrespecttothe building.
3.
percent( )ormoreoftheresidentialunitsintheprojectwillberentrestrictedwithin
themeaningofSection42(g)(2)oftheCodeandwillbeoccupiedbyindividualswhoseincomeis

percent( %)orlessoftheareamediangrossincome.
4.AllresidentialunitsoftheProjectwillbesuitableforoccupancyandwillbeusedonanon‐transient
basisasthattermisdefinedbySection42(i)(3)oftheCode.
5.Thegrossrent(asdefinedinSection42(g)(2)(B)oftheCode)paidbyindividualsinresidentialunits
includedinthecalculationforqualificationasalow‐incomehousingprojectdoesnotexceedthirty
percent(30%)oftheincomelimit ationsassetforthintheCode.
6. ExceptasprovidedintheCode,nootherpersonrelatedtotheApplicantorOwnerasapartner(as
definedbySection42(d)(2)(D)(iii)oftheCode)willoc cupyaresidentialunit.
7.AnybuildingsintheProjectwillmeettheabovecriteriawithintwelve(12)monthsaftersuchbuilding
is placed in service and all buildings in the project previously placed in service will meet these
criteriaatthetimeanylaterbuildingintheProjectisplacedinservice.
8.TheApplicantortheOwnerwillcomplywithth eserepresentationsforatleastfifteen(15)yearsto
includeanyextendeduseperiodasspecifiedinSection42(h)(6)oftheCode.
9.TheProject willbeeligibleforanallocationoflow‐incomehousingtaxcreditsundersection42ofthe
Code.
Sincerely,
Signature
TypeorPrintName
THISEXHIBITISTOBECOMPLETE DANDEXECUTEDONFIRMLETTERHEAD
94
ExhibitE‐1
SampleCPAOpinion
Date
RentalProgramsAdministrator
ArizonaDepartmentofHousing
1110W.Washington,Suite310
Phoenix,AZ85007
RE: Projec tName
DearAdministrator:
WehavereviewedthedetailedbreakdownofcostsfortheprojectknownasProjectNamelocatedinCity,
Arizona.
Basedon theabovedocuments,thequalifiedbasisoftheprojecteligibleforanallocation oflow‐income
housingcreditpursuanttoSection 42oftheInternalRevenueCodeof1986,asamended,isdeterminedas
follows:
Acquisition&LandCosts $
ProfessionalFees $
ConstructionCosts $
ConstructionLoanCosts $
PermanentLoanFinancingCosts $
SyndicationCosts $
MiscellaneousSoftCosts $
Developer’sOverhead&Fees $
ProjectReserves $
OtherCosts $
TotalEstimatedProjectCosts
$
LessLandCost $
LessOtherNon‐EligibleCosts $
EligibleBasis $
ApplicableFraction(Lesseroflowincomeunits
orfloorspace
$
QualifiedBasis $
AllowanceforDDAorQCT $
AdjustedBasis $
ApplicablePercent $
CalculatedAnnualTaxCredit $
TheReservedCreditAllocationisallocatedtothebuildingsonthebasisof______%qualifyingforthelow‐
incomehousingcredit.Asreflectedabove,thequalifiedbasisoftheprojectwouldbeeligibleforataxcredit
of____%(adjustedforinterestrateasdeterminedmonthlybytheInternalRevenueService)iftheproject
meetstherequirementsofInternalRevenueCodeSec tion 42.
95
Specifically, Section 42(g)(1) defines the term “qualified low income housing project” as any project for
residentialrentalpropertyiftheprojectmeetstherequirementsofsubp aragraph(A)or(B)whicheveris
electedbythetaxpayer:
(A) 20–50Test:Theprojectmeetstherequirementsofthesubparagraphif20%ormoreorthe
residentialunitsinsuchprojectarebothrent‐restricte dandoccupiedbyindividualswho se
incomeis50%orlessofareamediangrossincome.
(B) 40‐60Test:Theprojectmeetstherequir ements ofthi ssubparagraphif40%ormoreofthe
residentialunitsinsuchprojectarebothrent‐restrictedandoccup iedbyindividualswhose
incomeis60%orlessofareamediangrossincome.
AnyelectionunderSection42(g)(1),oncemade,shallbeirrevocable.ForpurposesofSection42(g)(1),any
propertyshallnotbetreatedasfailingtoberesidentialrentalpropertymerelybecausepartofthebuildingin
whichsuchpropertyislocatedisusedforpurposesotherthanresidentialrentalpurposes.
To avoid recapture of the tax credit, the project must remain a qualified low‐income housing project
throughoutthecomplianceperiod.Ifattheclo se ofanytaxableyearinthecomplianceperiod,theamountof
qualifiedbasisofthebuildingwithrespecttothetaxpayerislessthantheamountofsuchbasisasoftheclose
oftheprecedingyear,thetaxpayerwillbesubjecttotherecaptureprovisions.
Theestimatedbasisiscalc ulated inaccordancewiththeprovisionsofIRCSection42and,basedsolelyonthe
line item descriptions provided and the stated tax creditrate, the applicant is eligible for $_________ in
annuallow‐incomehousingtaxcredits.
Finally,itisouropinionthattheprojectisnotsubjecttoareductiononbasisduetotheapplicationofthe“at
risk”rulesunderSection42(a)(1)andthefive(5)TechnicalAssistanceMemorandums,or“TAMS”,issuedby
theInternalRevenueService.
Sincerely,
THISEXHIBITISTOBECOMPLETE DANDEXECUTEDONFIRMLETTERHEAD
96
ExhibitF
Example10%CostTestLetter
IndependentAuditor’sReport
Date:
To: ArizonaDepartmentofHousing
RentalProgramsAdministrator
1110W.Washington,Suite310
Phoenix,AZ85007
and
(the“Owner”)
Street
City,StateZipCode
Re: ProjectName
We have audited the accompanying Certification of Costs Incurred (Exhibit F‐1) of the Owner for
___________(the “Project”) as of (Date).Exhibit F‐1 is the responsibilityofthe Owner and the Owner’s
management.OurresponsibilityistoexpressanopiniononExhibi tFbasedonouraudit.
Weconductedourauditinaccordancewithgeneral lyacceptedauditingstandards.Thosestandardsrequire
that we plan and perform the audit to obtain reasonable assurance about whether Exhibit F‐1 is free of
materialmisstatement.Anauditincludesexamining,onatestbasis,evidencesupportingtheamountsand
disclosuresinExhibitF‐1.Anauditalsoincludesassessingtheaccountingprinciplesusedandsignificant
estimatesmadebymanagement,aswellasevaluatingtheoverallpresentationofExhibitF‐1.Webelievethat
ourauditprovidesareasonablebasisforouropinion.
TheaccompanyingExhibitF‐1waspreparedinconformitywiththeaccountingpracticesprescribedbythe
InternalRevenueService(IRS)undertheaccrualmethodofaccountingandbytheArizonaDepartmentof
Housing (the “ADOH”), which is a comprehensive basis of accounting other than generally accepted
accountingprinciples.
Inourop inion,ExhibitF‐1referredtoabovepresentsfairly,inallmaterialrespects,costsincurredforthe
Projectasof(Date)onthebasisofaccountingdescribedabove.
InadditiontoauditingExhibitF‐1wehave,atyourrequest,performedcertainagreed‐uponprocedures,as
enumeratedbelow,withrespecttotheProject.Theseprocedures,whichwereagreedtobytheOwnerand
the ADOH, were performed to assist you in determining whether the Project has met the 10% test in
accordancewithInternalRevenueCodeSection42(h)(1)(E)andTreasuryRegulationSection1.42‐6.These
agreed‐uponprocedureswereperformedinaccordancewithstandardsestablishedbytheAmericanInstitute
of Certified Public Accountants.The sufficiency of these procedures is solely the responsibility of the
specifiedusersofthereport.Consequently,wemakenorepresentationsregardingthesufficiencyofthe
proceduresbeloweitherforthepurposeforwhichthisreporthasbeenrequestedorforanyotherpurpose.
97
Weperformedthefollowingprocedures:
• Wecalculated,basedonestimatesoftotaldevelopmentcostsprovidedbytheOwner,theProject’stotal
reasonablyexpectedbasis,asdefinedinTreasuryRegulation1.42‐6,tobe(Amount)asof(Date).
• Wecalculatedthereasonablyexpectedbasisinc urredbytheOwnerasof(Date),tobe(Amount).
• WecalculatedthepercentageofthedevelopmentfeeincurredbytheOwnerasof(Date),tobe(Percent)
ofthetotaldevelopmentfee.
• Wecomparedthereasonablyexpectedbasisincurredasof(Date),tothetotalreaso n ablyexpectedbasis
oftheProject,andcalculatedthat(Percent)hadbeenincurredasof(Date).
• We determined that the Owner uses the accrual method of accounting, and has not included any
constructioncostsincarryoverAllocationbasisthathavenotbeenproperlyaccrued.
• Basedontheamountoftotalreasonablyexpectedbasislistedabove, fortheOwnertomeetthe10%test
inaccordancewithInternalRevenueCodeSection42(h)(1)(E)andTreasuryRegulationSection1.42‐6,we
calculatedthattheProjectneededtoincuratleast(Amount)ofcostspriorto(Date).Asof(Date),costs
of at least (Amount) had been incurred, which is approximately (Percent) of the total reasonably
expectedbasisoftheProject.
Wewerenotengagedto,anddidnot,performanauditoftheOwner’sfinancialstatementsoroftheProject’s
total reasonably expected basis.Accordingly, we do not express such an opinion.Had we performed
additionalprocedures,othermattersmighthavecometoourattentionthatwouldhavebeenreportedtoyou.
ThisreportisintendedsolelyfortheinformationanduseofthemanagementoftheOwnerandforfilingwith
theADOHandshouldnotbeusedbythosewhohavenotagreedtotheproceduresandtakenresponsibility
forthesufficiencyoftheproceduresfortheirpurposes.

City,State
(Date)
THISEXHIBITISTOBECOMPLETE DANDEXECUTEDONFIRMLETTERHEAD
98
ExhibitF‐1
ProjectCostForm
COSTITEMS
ESTIMATED
/ACTUAL
PROJECT
COST
REASONABLY
EXPECTED
BASIS
Amountpaidoraccruedasof
___________
ACQUISITIONCOSTS

Land
Building(s)
ClosingCost
LegalFees 
CONSTRUCTION

Off‐SiteImprovements
SiteWork
Landscaping&Fencing
Demolition
DirectConstructionCosts
PersonalProperty
Other:
FEESANDPERMITS

GovernmentalFees
GeneralRequirements
Builder’sOverhead 
Builder’sProfit
ConstructionContingency
DavisBaconRequirementCosts
PROFESSIONALFEES

Architectfee‐design
Architectfee‐supervision
Engineeringfee
SoilsReport,Environmental
LegalFees 
Other:
CONSTRUCTION(INTERIM)
LOANCOST

ConstructionLoanfees
Constructioninterest
Insurance
LoanCreditEnhancement
Taxes‐constructionperiodonly 
CreditReport
TitleandReco rding
Other(explain):
99
COSTITEMS
ESTIMATED
/ACTUAL
PROJECT
COST
REASONABLY
EXPECTEDBASIS
Amountpaidor
accruedasof
___________
PERMANENTLOANCOSTS

LoanOriginationFee
LoanCreditEnhancement
CostofIssue
UnderwritingDiscount
BondPremium
LegalFees 
TitleandReco rding
Other(explain):
SYNDICATIONCOSTS

Organizational(Partnership)
Legal&AccountingFees
BridgeLoanfeesandexpe nses 
Other(explain):
MISCELLANEOUSSOFTCOSTS

Appraisal
MarketStudy
TaxCreditFees
Consultantsorprocessingagents
Marketing 
Other(explain):
DEVELOPER OVERHEAD&FEES

Developeroverhead
Developerfee
Consultantfee
SUBTOTALDEVEL OPERFEES

PROJECTRESERVES

Stabilization(Rent‐up)Reserves
OperatingReserves
Other(explain):

TOTALDEVELOPME NTCOST

PERCENTOFREASONABLY
EXPECTEDBASIS
EXPENSED/ACCRUED

100
ExhibitG
FinalCostCertificationLetter
IndependentAuditor’sReport
Date:
To: ArizonaDepartmentofHousing
RentalProgramsAdministrator
1110W.Washington,Suite310
Phoenix,AZ85007
and
(the“Owner”)
Street
City,StateZipCode
Re: ProjectName
We have audited the costs included in the accompanying Arizona Department of Housing Final Cost
Certification(the“Fina lCostCertification”)ofName(the“Owner”)forName(the“Project”)asof(Date).
The Final Cost Certification is the responsibility of the Owner and the Owner’s management.Our
responsibilityistoexpressanopinionontheFinalCostCertificationbasedonouraudit.
Weconductedour auditinaccordancewithgenerallyacceptedauditingstandards.Thosestandards
requirethatweplanandperformtheaudittoobtainreasonableassuranceaboutwhethertheFinalCost
Certificationisfreeofmaterialmisstatement.Anauditincludesexamining,onatestbasis,evidence
supportingtheamountsanddisclosuresintheFinalCostCertification.Anauditalsoincludesassessing
theaccountingprinciplesusedandsignificantestimatesmadebymanagement,aswellasevaluatingthe
overallFinalCostCertificationpresentation.Webelieve thatourauditprovidesareasonablebasisfor
ouropinion.
TheaccompanyingFinalCostCertificationwaspreparedinconfor mitywiththeaccountingpractices
prescribedbytheInternalRevenueServiceundertheaccrualmethodofaccountingandinconformity
withtheform atandqualifiedAllocationplanrulessetbytheArizonaDepartmentofHousing(the
“ADOH”),whichisacomprehensivebasisofaccountingotherthangenerallyacceptedaccounting
principles.
In our op inion, the Final Cost Certification presents fairly, in all material respects, the actual costs of
(Amount)andeligiblebasisof(Amount)oftheOwnerfortheProjectasof(Date),onthebasisofaccounting
described above and as demonstrated in the attached Final Cost Certification Application Development
Budget.
ThisreportisintendedsolelyfortheinformationanduseoftheownerandthemanagementoftheOwner
andforfilingwiththeArizonaDepartmentofHousingandshouldnotbeusedforanyotherpurpose.We
havenofinancialinterestintheProjectotherthaninthepracticeofourprofession.
City,State
(Date)
THISEXHIBITISTOBECOMPLETE DANDEXECUTEDONFIRMLETTERHEAD
101
ExhibitH
CERTIFICATIONOFQUALIFIEDNON‐PR OFITORGANIZATION
ForpurposesofIR C Section42, withrespecttotheapplicationforanallocat ionofLowIncomeHousingTax
Creditsforthe
project(the“Project”),the,anArizonanon‐profit
organization (the “Company”), makes the following representations and certifications under penalty of
perjury:
1. TheCompanyisexemptfromfederaltaxationunderIRCSection501(a)asanorganization
describedinIRCSection501(c)(3).
2. OneofthepurposesoftheCompanystatedinitsArticlesofIncorporationisthefosteringof
lowincomehousing.
3. TheCompanyownsaninterestintheProject(directly orthroughapartnershiporlimited
liabilitycomp any).
4. TheCompanywillmateriallyparticipate(withinthemeaningofIRCSection469(h))inthe
developmentandoperationofthe ProjectthroughouttheProjectcomplianceperiod.
5. TheCompanyisnotaffiliatedwith,orcontrolledby,afor‐profitorganization.
6. TheCompanymainta insabusinessofficeintheStateofArizonastaffedbyatleastonefull‐
timeemployee.
Datedthis
dayof,20__.
Company:


By:
Its:
Stateof
)
Countyof
)
The foregoing instrument was acknowledged before me this _______ day of ______________, 200__, by
_____________________________, the ________________ ____ of ____________________________, an
_________________________________________, onbehalfofthe__________________.
(SealandExpirationDate)

NotaryPublic
ExhibitL
MARKETSTUDYGUIDE
GeneralRequirementsforaMarketStudy:
Arizona Department of Housing (ADOH) requires an independent, comprehensive, current, and
professional Market Study for each proposed development.The Market Study must be prepared no
morethansixmonthsbeforetheApplicationissubmittedtoADOH.AMarketAnalyst,unaffiliatedwith
the Applicant, Developer, Lender, and/or Syndicator and experienced in multi‐family rental housing,
must prepare the study.The Market Study must be prepared using the market study requirements in
ADOH’sMarketStudyGuide.Marketstudiesthatdonotconformtotherequirementswillbesubmitto
furtherreviewandpossiblynotaccepteduntilaconformingstudyissubmitted.
ADOHmayrejectanapplicationifitdetermines,initssolediscretion,thattheMarketStudy:
(1) Isnotinfinalform;
(2) Hasnotbeenexecutedbytheanalyst;
(3) DeviatesfromtherequirementsofthisGuide;or,
(4) Failstoincludeananalyst’scertificationthatsubstantiallycomplieswithAddendum1to
thisGuide.
ADOH will consider all facts and circumstances in making this determination, including the possible
disruption caused by unneeded units entering the market at low rents.As a protection against the
saturationoflow‐incomeunitsandtoensureabsorptionofnewunits,ADOHwillapprovenomorethan
one family, one elderly, and one special needs category project (one project for each special needs
category)perTaxCreditroundinacommunitywithapopulationof50,000orless.
ADOH receives a large number of market studies as part of the application process for financing and
requestsforrentalhousingTaxCredits.Byrequiringspecificinformationinallmarket studies,ADOH
will be able to assess housing needs in competing communities through a comparison of similar
characteristics.By requiring that all market studies be prepared in accordance with a specific outline,
ADOH will be able to perform a more comprehensive and expeditious review.The objective of the
MarketStudymustdemonstratetheexistenceofsufficientdemandfortheproposeddevelopmentinthe
market area.ADOH also wants to ensure the proposed development will not cause undue economic
harmontheexistingrentalstockinthemarketarea.
In its review of supply and demand, the Market Study must focus on the type of low‐income housing
developmentbeingproposed(i.e.,elderly,largefamily,populationswithspecialhousingneeds)aswell
as the income and rent levels proposed for the project.The Market Study must demonstrate strong
demand for the type of low‐income housing project proposed, as evidenced by growth of income
qualifiedrenterhouseholdsinthemarketarea,relativelylowvacancyrates,comparablerentlevels,and
strongabsorptionrates atcomparableproperties inthemarketarea.The Market Analystis required to
solicit the opinion of those knowledgeable of the housing submarket in the community where the
proposed development is located.These experts include, but not limited to appropriate government
officials(housing,planning,oreconomicdevelopment), localexperts(i.e.brokers,developers,chambers
ofcommerce),andcollegesoruniversities.TheopinionsoftheseexpertsmustberecordedintheMarket
Study.TheApplicantmustprovide theseofficialsacopy ofthe MarketStudyassoonasitisavailable.
The table below provides contact information for housing departments for Arizona communities of
populationof100,000ormore:
ExhibitL 2009MarketStudyGuide
CityofPhoenix (602)262‐6291
CityofTucson (520)791‐4171
CityofMesa (480)644‐2168
CityofGlendale (623)930‐3671
CityofScottsdale(480)312‐4304
CityofTempe (480)350‐2912
CityofChandler (480)782‐3200
TownofGilbert (480)503‐6893
TownofPeoria (623)773‐7167

In addition, the local government entity must submit a letter commenting on the conclusions of the
MarketStudyandissueanydisagreementsitmayhavewiththeMarketStudy.ADOHissuesaletterto
theappropriategovernmententityrequestingtheirresponsetotheMarketStudy.ADOHshallnotifythe
ApplicantofanysuchdisagreementsothattheMarketAnalystcanissuearesponse.
All assumptions and sources of data used within the Market Study must be cl early documented.All
demographictablesmustincludebothabsolutenumbersandcorrespondingpercentages(%growthor%
of total).All data and information that applies to a specific area such as a primary market area,
competitive market area, difficult to develop area, or a particular qualified census tract, the data and
informationshallclearlyidentifythespecificareatowhichitapplies.
Following its review of the Market Study, ADOH, in its sole discretion, may request additional market
informationfromtheApplicant,theApplicant’sMarketAnalyst,oranotherMarketAnalyst.Additional
commentfromthelocalgovernmentbeforereservingTaxCreditsmayberequired.
ThefollowingMarketStudyOutlineestablishestheminimumrequirements
ofADOH.MarketAnalysts
areexpectedtoincludeanyadditionalinformationthatmayberelevantandnecessarytotheanalysis.
MarketStudyOutline:
TheMarketStudymustbepreparedbasedonthefollowingoutline.Theorderandnamesofeachsection
detailedinthisoutlinemustbeused.
ExhibitL 2009MarketStudyGuide
TableofContents

I. Introduction

A. ObjectivesoftheMarketStudy
B. QualificationsoftheAnalyst
C. CertificationLetter



II. ExecutiveSummary



III. ProposedProjectSummary

A. ProjectDescription

B. ProposedUnitandProjectAmenities


IV. ProposedSiteAnalysis

A. SiteDescription

B. SiteAccessandVisibility
C. ProximitytoCommunityServices
D. SitePhotographs



V. MarketAreaAnalysis

A. MarketAreaDescription
B. MarketAreaMap



VI. DemographicandEconomicAnalysis
A. PopulationandHouseholds
B. HouseholdIncome

C. Employment

D. Housing

E RequirementsforProjectsProposingNonaffordaleComponents

F. CrimeAnalysisandMaps



VII. SupplyAnalysis

A. RentalHousingOverview
B. ComparableProperties


VIII.CaptureRateAnalysis



IX. Conclusions



Addendums

ExhibitL 2009MarketStudyGuide
I. Introduction
A.ObjectivesoftheMarketStudy
Thissectionprovidesabriefoverviewoftheprojectincluding,butnotlimitedto,the
followingitems:
1. ProjectName
2. Location(address/intersectionandCity/Town,longitude,latitude)
3. Typeofproject(newconstructionorrehab)
4. Marketsegmentserved(family,elderly,specialneeds)
5. Incometargeting(60%,50%,40%,30%AMI;publichousing;marketrate)
6. Numberofunits
Also,theentitythatcommissionedtheMarketStudymustbeidentifiedincludingentity
name, contact name, address, and phone number.This section must also explain any
assumptionsandlimitingconditionsthattheMarketStudyissubjectto.
B.QualificationsoftheAnalyst
This section of the study must include a one to two page summary of the analyst’s
qualifications and experience in conducting market studies for income‐restricted rental
housingproperties.
C.CertificationLetter
TheMarketAnalystmustincludetheCertificationLetterprovidedasADDENDUM1.
II. ExecutiveSummary
TheExecutiveSummarymustoutlinethe most pertinentfindingsof each section ofthe
MarketStudy.The Executive Summary should notexceedfivepages.It mustprovide
briefsummariesoftheproposeddevelopment,siteevaluation,marketarea,demographic
and economic trends, rental housing market, comparable market rents, capture rate
analysis, and conclusions.A table detailing the characteristics of the proposed
developmentandconclusionsofthemarketstudymustbeprovided.Thefollowingtable
includes the minimum information and format required.Other information may be
added.
Location Description
Project Name: Project Type: New Construction or Rehab
City/Town: Total Units:
County: Low Income Units:
Address/Intersection: Market Rate Units:
Census Tract: Unit Types:
Income Set Asides:
Target Population: Family, elderly, or special needs
Demand, Absorption, and Occupancy
Target Vacancy Rate:
Projected Absorption Rate:
Projected Lease-Up Period:
New Households Capture Rate
(Project Total):
Quick Project Details
ExhibitL 2009MarketStudyGuide
III. ProposedProjectSummary
A. ProjectDescription
The Market Analyst must incorporate the Project Summary Table provided as
ADDENDUM 2 to describe the proposed unit mix, unit size, gross rents, utility
allowances, and collected rents.In addition, the analyst must specify utility
responsibility and the anticipated date of opening.A description of the number of
proposed buildings, their appearance (e.g., 40% brick/60% stucco with tiled roof),
number of stories, and construction type (i.e., walk‐up, townhouse, high‐rise with
elevator)mustbeprovidedaswell.
For rehabilitation projects, current rents, current and historical vacancy rates, and
waiting lists must be described.A current rent roll and waitlist is required.Also, an
analysis of the number of existing units occupied by residents who are expected to be
income‐eligiblefortheproposeddevelopmentisrequired.
If the property is mixed to include retail, office or other commercial uses, describe the
expected synergies and potential conflicts between and among each use. The analyst
mustanalyzeanddiscusspossibleconflictsarisingfromtheseparateusesincludingbut
nolimitedtotheseparateparkingrequirementsforeach.
B.ProposedUnitandProjectAmenities
The MarketAnalyst must incorporate the AmenitiesTable provided as ADDENDUM 3
to describe the unit and project amenities being proposed.The number and type of
parkingspacesproposed mustbedescribed, as isthenet(heated) square footageofthe
community building (if proposed).The proposed rent for any optional amenities must
bedescribed.
For rehabilitation projects, a detailed list of the proposed improvements must be
includedaswell.(ThiscanbeprovidedbythedeveloperandincludedasanAddendum
tothestudy.)
IV.ProposedSiteAnalysis
A.SiteDescription
The Market Analyst must personally visit the proposed site.The site location must be
describedusingthe nearestroadways(streets and/orhighways).The physicalfeaturesof
theproposedsitemustbedescribed(i.e.flat,undeveloped,agricultural,rocky,etc).Other
information to be documented includes the size of the proposed site (in acres) and the
censustractthesite islocated.Thecensustractof the proposedsite isavailablefrom the
CensusBureauatthefollowinglink.
http://factfinder.census.gov/servlet/AGSGeoAddressServlet?_programYear=50&_treeId=420&_lang=en&_sse=on
Theprojectlocationmustbedescribedintermsofcharacteristicsoftheneighborhoodand
sub‐market with respect to schools, transportation, employment centers, shopping,
communityservices,and publicfacilities,just to nameafew.A discussionof the current
land uses of property adjacent to the proposed development must be included.The
condition of surrounding land uses must be described.The positive and negative
ExhibitL 2009MarketStudyGuide
attributes of the proposed site and surrounding neighborhood must be discussed.Also,
theimpactofthesiteandneighborhoodonprojectmarketabilitymustbeexamined.
Describesiteselectionprocessandexplainwhythissitewasselected.
Include a map showing the site andimportant neighborhood facilitiesand amenities.Be
suretoincludeadistancescaleonthemap(i.e.1”=2miles).
 B.SiteAccessandVisibility
Theroadway(s)providingaccesstotheproposeddevelopmentmustbedescribedandthe
latestavailabletrafficcountsmustbedescribed.Trafficcountsurveysaregenerallyreadily
available from a community orcounty.To the extent that a trafficcountsurveyis either
unavailable or does not cover the roadways adjacent to the proposed site, a statement to
thateffectmustbemade.TheMarketAnalystmustdescribetheproposedsite’sroadway
frontage(infeet)andevaluatetheproposedsiteintermsofitsvisibilityfromtheadjacent
roadways.Ifthesiteis located along a secondaryroadway, itsproximity to the nearest
majorroadwaymustbedescribed.Theanalystmustdiscussanydifficultieswithvisibility
and access including (but not limited to) highways, power lines, railroad tracks, or
landfills.Theimpactthatthesedifficultiesandanyotherlocationconsiderationrelevantto
themarketandmarketabilityoftheproposedsitemustbeevaluated.
C.ProximitytoCommunityServices
The Market Analyst must incorporate the Proximity to Community Services Table
providedasADDENDUM4.Distance(inmiles)mustbedescribedastraveldistance(i.e.,
calculated along dedicated roadways), not as direct distance or “as the crow flies.”
However, direct distance must be describedforthenearest site detractions (i.e.,excessive
noisegeneratorsandhealthhazards,etc.)whereappropriate.Includeamapdetailingthe
locationsofthe community services inrelation to the proposed site.Be sure to includea
distancescaleonthemap(i.e.1”=2miles).
D.
SitePhotographs
Color photographs of the subject site from various vantage points must beincluded.
Also,color photographsofadjacentproperties andstreetscapesmustbe includedaswell.
All photographs must be described (e.g., view of the site, looking northeast from Main
Street/viewfromthesite,lookingwesttowardtheadjacentsinglefamilyhome).
V.MarketAreaAnalysis
A.MarketAreaDescription
The Market Area is the geographic area in which the subject development will compete
withsimilarpropertiesforresidents.Itistheareainwhichpropertiesofthesameuseare
affected by the same economic, demographic, and supply and demand factors.It is also
the smallest geographic area from which the subject development will draw most of its
residents.PrimaryMarket Areamustbe acontiguousfunctionalregionwithsimilaruses
anddemographictrends.
The Market Area must be justified. The Analyst must provide a narrative describing the
methodologyandrationaleusedtodeterminethemarketarea.Thenarrativemustinclude
the names and telephone numbers of the local officials, experts, or other persons with
submarket knowledge interviewed and the summaries of the salient points of those
interviews of local officials who assisted in the determination of the market area.Local
officialsandexpertsincludebutarenotlimitedtocityorcountyadministrators,economic
ExhibitL 2009MarketStudyGuide
development officials, postmasters, law enforcement officials, school administrators,
apartmentmanagerswithexperienceintheareawheretheprojectislocated,seniorcenter
operators, and hospital administrators.If the Market Analyst chooses to define a
secondarymarketarea,adescriptionandjustificationmustbeprovided.Theanalystmust
explainthepercentageofestimateddemandtobederivedfromtheprimaryandsecondary
marketareas.
Thesquaremileageofthemarketareamustbedescribed.Marketareasshallbelimitedby
natural (e.g., rivers and mountains) or man‐made (e.g., political and socio‐economic)
boundaries.Market areas shall not be not radial, nor shall they be based on concentric
circle approach.Market areas may follow Census‐defined boundaries including census
tracts, block groups or blocks where appropriate.The market analyst has substantial
latitudeindeterminingtheshapeofaMarketAreapolygon,aslongasitdoesnotexhibit
the characteristics of a “red flag” market area described by NCAHMA including: radi‐
concentriccircle,county‐widemarketareasandgerrymanderedmarketareas.
TheprojectsiteshouldbelocatedatornearthecentroidofthePMA.ADOHmayrejecta
market study if the project site is located outside of the PMA or if the site appears to be
onlymarginallycorrelatedtothecentroidofthePMA.
CensustractmapsareavailablefromtheU.S.CensusBureauatthefollowinglink.
http://factfinder.census.gov/servlet/ReferenceMapFramesetServlet?_bm=y&‐_lang=en
B.MarketAreaMap
AmapclearlyillustratingtheMarketAreaisrequired.Thismapmustdescribethe
proposedsitelocation.Themapmustbescaledfordistance.
VI. Demographic and Economic Analysis
A.PopulationandHouseholds
Population and household trends within the market area must be described in table
format.Thetablemustincludepopulationandhouseholds’datafromthe,2000Census,
current year,year of project opening, and five‐year projection(5years from the current
year).Populationandhouseholdgrowthmustbe describedinabsoluteandpercentage
terms.Percentage growth must be listed as compound annual rates.Nationally
recognized demographic providers (Claritas, ESRI, AGS, for example) are suggested
sources for estimates and projections.Other commercial or government sources of
population and household projections may be considered.If the Market Analyst
determines that the growth rates projected by Claritas, ESRI, or other sources are not
realistic, the Market Analyst may adjust the projected growth rates only with proper
justification included in the narrative analysis.In this case, the Market Analyst is
requiredtoshowtheprojectedgrowthratesfromClaritas,ESRI,orothersourcesaswell
astheadjustedgrowthrates.
Datafromthe2000CensusareprovidedbytheU.S.CensusBureauatthefollowinglink.
http://factfinder.census.gov/servlet/DatasetMainPageServlet?_program=DEC&_lang=en&_ts=113321071080
Additional demographic data based on the 2000 Census is required.The type of
demographicdata,tablenumberfromthe2000Census,andyearoftherequireddataare
detailed below.This data must be reported for the market area defined in the Market
Study.Thisdatamustbereportedintableformatincludingpercentagedistributions.
ExhibitL 2009MarketStudyGuide
• PopulationbyRace–2000Census(SF1–TableP4)
• PopulationbyAge–2000Census,CurrentYear,5‐yearprojection(SF1–Table
P12)
• HouseholdsbyTenure(i.e.rentersvs.owners)–2000Census(SF1–TableH4)
• HouseholdsbyAgeofHouseholder–2000Census,CurrentYear,5‐year
projection(SF1–TableP21)
• RenterHouseholdsbyAgeofHouseholder–2000Census(SF1–TableH16)
• RenterHouseholdsbyHouseholdSize–2000Census(SF1–TableH15)
The2000Censusdatacanbefoundusingthefollowinglink.
http://factfinder.census.gov/servlet/DatasetMainPageServlet?_program=DEC&_lang=en&_ts=113323938939
Market studies addressing a proposed development serving persons with disabilities
must include the 2000 distribution of Noninstitutionalized Population with Disabilities
byTypeofDisability.ThisdataisavailablefromtheCensus2000SummaryFile3(SF3),
TableP41.
In addition to reporting the requested data in table format, the Market Analyst is
expectedtoprovideanarrativeanalysisofthedataprovidedanditspotentialimpacton
demandfortheproposeddevelopment.
B.HouseholdIncome
Distributions of Household Income within the Market Area must be provided in table
format for 2000 the current year, and 5‐year projection.The 2000 current estimated
median household income among all households, owner households, and renter
householdsmustbedescribed.
DistributionsofIncomeamongRenterHouseholdsmustbeprovidedintableformatfor
2000currentyearandtheanticipatedyearofprojectopening.TheMarketAnalystshall
project the DistributionofIncome among Renter Households to the anticipatedyear
ofprojectopening.
Marketstudiesaddressingaproposeddevelopmentservinganage‐restrictedpopulation
must include Distributions of Income among Owner Households by Age, as well as
DistributionsofIncomeamongRenterHouseholdsbyAge.Agecohortsof10yearsmust
beused,whenapplicableandwhereavailable.Thedistributionscanbelimitedtothose
agecohortsapplicabletotheproposeddevelopment(i.e.,age55+orage62+).
Foralltables,incomecohortsofnomorethan$5,000mustbeused,whenapplicableand
where available.Households with income over $50,000 can be condensed into a single
cohort.
Alltablesmustincludeboththenumbersandcorrelatingpercentages
C.Employment
The potential demand for the proposed development is a function of the local and
regionaleconomy.TheMarketAnalysisisrequiredtoprovideananalysisofcurrentand
forecastedeconomicconditionsandhowtheyrelatetodemandforadditionalnewrental
housing.
The economy of the market area and the region surrounding the market area must be
addressedwithaminimumofthefollowinginformation.
ExhibitL 2009MarketStudyGuide
•Employmentbyindustry–currentyearandforecastperiod(5yearprojection)
•Totalemploymentgrowth–Currentyearthroughforecastperiod(5year
projection).
•Unemploymentrate–Currentyearthroughforecastperiod(5yearprojection).
•Majorcurrentemployersandestimatedemploymentwithin20minutedrive
time(urbanprojects)and45minutedrivetime(ruralprojects).
•Averageannualwagesbyindustry–Currentyearthroughforecastperiod(5
yearprojection).
•Anticipatedexpansions,closures,andanynewemploymentplannedwithin
drivetimesdescribedabove
•Proposedtransportationimprovementsanddetrimentalchanges.
TheMarket Analystmust providethe aboveinformationfor therelevantmarket areaif
available.Otherwise, metro area or countywide figures are suggested.In the case of
employment by industry, total employment and percent of total employment must be
reported.Fortotalemploymentgrowth,totalemploymentandpercentagegrowthmust
beprovided.
Employment and wage data can be found from a number of sources including the
Arizona DepartmentofEconomicSecurity and the U.S. Bureau of Labor Statistics.Use
thefollowinglinksforfurtherinformation.
http://www.workforce.az.gov/
orhttp://www.bls.gov/
D.Housing
Inordertocharacterizetheexistinghousingstockinthemarketarea,anumberofdata
tablesfromthe2000Censusarerequired.Ataminimum,thefollowingdatashouldbe
reportedintableformatusingbothabsolutenumbersandpercentoftotal.Nocurrent
yearestimatesorprojectionsarerequired.The2000Censustablenumbersarealso
noted.
• UnitsinStructure(SF3–TableH30)
• VacancyStatus(SF3–TableH8)
• TenurebyYearStructureBuilt(SF3–TableH34)
• TenurebyRooms(SF3–TableH26)
• TenurebyPlumbingFacilitiesbyOccupantsperRoom(SF3–TableH22)
• GrossRent(SF3–TableH62)
• GrossRentasaPercentageofHouseholdIncome(SF3–TableH69)
• ValueofOwner‐OccupiedHousingUnits(SF3–TableH74)
The Market Analyst must address the affordability of home ownership alternatives
availabletothetargetpopulationwithintheMarketArea,anditsimpactontheproposed
rental housing development. If applicable the analyst must address the chain of
substitutionprincipleandcommentonthepotentialimpactofhomeownershiponClass
Aproperties,whichinturnimpactsClassBandLIHTCproperties.
E.RequirementsforProjectsProposingNon‐affordableComponents
Market Studies supporting projects that propose non‐affordable components such as
market‐rateunitsormixed‐use(i.e.non‐residentialcommercialorretail)componentsofa
projectshallcomplywiththefollowing:
ExhibitL 2009MarketStudyGuide
(1)TheMarketStudymustclearlyidentifyandaccountforthedemandforthenon‐
affordablecomponentofaproject;and,
(2) For projects with non‐affordable income producing components, the market
studymustreasonablyaddressthe demandforeachnon‐affordablecomponentand the
consequencesofpoormarketperformanceofthenon‐affordablecomponentondemand
fortheaffordablerentalunits.Ataminimumamarketstudyforaprojectwithamixed‐
usecomponentshallincludethefollowingelements:
(a) Ajustificationof the construction of theproject’scompetitive market/trade area
(“CMA”) as required by this Guide for the primary market area for residential
rentalproperties.
(b) Agap analysisanalyzingthe currentsupplyand demandconditions withinthe
CMAfortheproposeduse.
(c) A5‐yearforecastforsupplyanddemandfactorswithintheCMA.
(d) An explanation of the optimal tenant mix forcommercialspace(s)based on the
CMAconstructionanalysisdescribedinparagraph7(l)(ix)(2)(a).
(e) Ananalysisandexplanationofachievablerentsandanycompetitiveadvantage
offeredbytheproject.
(f) Estimatedvacancyrateswithbestcase,worstcase,andexpectedscenarios.
(g) Estimated lease up time frames with best case, worst case, and expected
scenarios.
(h) An explanation of the suitabilityof the proposed mixed use for the project as a
whole, i.e., demonstration that the proposed use is complementary and
synergisticwithotherusesorcomponentsoftheproject.
(i) An explanation and analysis of ingress/egress (both pedestrian and vehicular)
andparkingneedsforthetotalproject.
(j) Anexplanationofotherfunctionalconstraintssuchascommercialdelivery,trash
disposal, odor control, ventilation, and other constraints reasonably
contemplatedbytheproposedproject.
(k) Evidenceofanypre‐leasinginterestintheproperty.
F.CrimeAnalysisandMaps
Inconjunctionwithcrimeinformationanalysisandcommunicationswithknowledgeable
localmarketparticipants(SectionVMarketAreaDescription),theanalystisexpectedto
provide ADOH with a commentary and analysis on neighborhood crime trends and
perceptionsintegratingallpertinentinformation.
Include a map of the Primary Market Area showing property and violent crime for the
most recent period, as well as a map showing crime data for the prior 12 months.
Describeifthereareanyspecial enforcementzones orconcentrationefforts onbehalf of
lawenforcementwithinoradjacenttothePMA.
If the controlling jurisdiction does not provide mapping, the analyst can provide the
most recent data and the prior year data for violent and property crime statistics in
tabularform.
ExhibitL 2009MarketStudyGuide
VII.SupplyAnalysis
A.RentalHousingOverview
The Market Analyst must conduct a large enough survey of the existing rental stock
within the market area to provide an accurate overview of the entire rental housing
market.In addition to market rate properties, this survey must include all Tax Credit
(9%)andBond(4%)developments.
Thefollowinginformationmustbeprovidedataminimum.Ifcertaininformationisnot
available, provide as much information as possible.In addition to tables, the Market
Analystmustincludeanarrativesummarizingtheoverallconditionoftherentalhousing
marketwiththemarketarea.
Followingisabreakdownofdataandinformationrequired(totheextentitisavailable).
HistoricalandCurrentRentalInventory
• CurrentrentalinventoryinthemarketareaformarketrateandTaxCredit/Bond
units(separately)detailingnumberofunitsbyunittype,averagegrossrentsbyunit
type(adjustedforutilities),averageunitsizesbyunittype,andvacancyrates
• Historical&currentvacancyratesandnewunitsconstructedfortheentirerental
market
• Historical&currentvacancyratesandnewunitsconstructedforTaxCreditand
Bonddevelopments
• Historical&currentvacancyratesforGovernmentSubsidizeddevelopments(if
applicable)
• Seasonalityofmarket
• ListofLIHTCandBonddevelopmentsincludingnumberofunits,incomesetasides,
currentvacancyrates,andyearbuilt
• ProvideamapshowingthelocationsoftheLIHTCandBonddevelopmentsinthe
marketarea
CurrentRents&Concessions
• Currentgrossrentsforcomparableandcompetitiveprojectsinthemarketarea.This
mustincludeallTaxCreditandBondprojectsaswellasanymarketrateproperties
offeringrentseffectivelyequaltothoseproposedrentsatthesubjectproperty.
• Discusstrendsinrentincreases/decreasesduringthemostrecentyears–compare
andcontrasttovacancytrends.
• Discussinitialandrenewalconcessiontrendsatcompetitiveproperties.
• Evaluatehowandtowhatextent(ifany)rentsareoverstatedduetoconcessionsor
otherfactors
• Provideinformationonhistorical,current,andprojectedmonthlyrentconcessions,if
offered
AbsorptionandWaitingLists
• Absorptionexperienceofrecently‐completedmarketrateprojects
• Absorptionexperienceofrecently‐completedTaxCreditandBonddevelopments
• Waitinglistofexistingdevelopmentsconsideredmostcomparabletotheproposed
development.
• Waitlistsusedasevidenceofdemandmustbesubmittedandhavebeenrecently
updated;waitlistsnotupdatedwithinthepast3monthsshallbeconsideredstale
andunreliable.
• Thiscanincludeincome‐appropriatewaitinglistsfromlocalhousingauthorities.
ExhibitL 2009MarketStudyGuide
PropertiesUnderConstructionorPlanned
• IdentifyallTaxCreditandBondpropertiesinthemarketareathatareeitherunder
constructionorplanned.Iftherearenodevelopmentsintheplanningstagesor
underconstruction,astatementtothateffectmustbeprovided.
• Identifyanymarketratedevelopmentseitherunderconstructionorplannedthat
haverentssimilartothoseofferedbythesubjectproperty
• ProvideamapshowingthelocationsofallLIHTCandBondpropertieseitherunder
constructionorplanned
• Foreachprojectunderconstructionorplanned,provideinformationsuchasunit
typesoffered,unitsizes,averagerents,estimatedcompletiondate,andtheextentof
anylease‐upactivity(ifavailable)
ListsofTaxCreditandBondpropertiesalreadycompletedandcurrentlyunder
developmentcanbefoundatthefollowinglinks.
http://azcms.housingaz.com/uploads/RENTAL%20APPLICATIONS/LIHTC/Tax_Credit_Projects_1987_Current.pdf
http://azcms.housingaz.com/azcms/uploads/RENTAL%20APPLICATIONS/MF_Bond_Revenue_Applications_List.pdf
B.ComparableProperties
The Market Analyst is required to identify those properties that are considered
comparableto and will competedirectly with the proposed development.Comparable
marketinformationshallbedrawnfrompropertiesthat arelocatedinandare,asmuch
as reasonably possible, fairly evenly distributed throughout the primary market area.
This requirement shall be strictly construed. Comparable properties are those
developmentswithsimilarfinancing,developmentsserving thesametargetpopulation,
developments offering similar amenity packages, and/or developments offering similar
rents.Thisanalysisisintendedtoillustratetheprojectscompetitivepositionwithrespect
tootherhousingchoiceswithinthePMA.TheseincludeTaxCreditandBondproperties
aswellasmarketratecomplexes(ifapplicable).

Proposedrentsandunitsizesatthesubjectpropertymustbecomparedtothoseoffered
atthecomparablepropertiesinthemarketarea.Thefollowinginformationisrequiredin
tableformat.
1. Compare subject property to Tax Credit and Bond properties including a
breakdownbyunittype,unitsize,currentconcessions,andcurrentrent.
2. Compare subject property to comparable market rate properties including a
breakdownbyunittype,unitsize,currentconcessions,andcurrentrent.
3. Ifthe proposedprojectincludesany3bedroomor largerunits theanalystmust
survey the PMA and identify all single family rental units available for rent
duringthesurveyperiod.Theanalystmustquantifythenumberofrentalsfound
and describe the quality,asking rents and amenity levels of these properties. If
asking rents for single family properties are within $100 of any concession
adjustedrentusedasarentcomparable,thesinglefamilyunitsmustbeincluded
inthecompetitivesupplyanalysissectionofthemarketstudy.Propertieswith
80%ormoresubsidizedunits/tenants(projectbasedrents,HUD,RD)areNOTto
be used as comparables to LIHTC/Bond projects unless a waiver is submitted
documentingwhytheirinclusioniswarranted.
4. For projects located in rural areas, the analyst must evaluate the potential for
mobilehomesto be considered competitivesupply. Followingis a sample table
ExhibitL 2009MarketStudyGuide
thatmaybeusedforeachunittype.Theanalystcancreateasingleconsolidated
tableorcreateaseparatetableformarketpropertiesandsubsidizedproperties.
Comparable Property
# o
f
Units
Unit
Size
Rent per
month
Rent
per s
f
Concessions
per month
Net Rent
per month
Net Rent
per s
f
1 Bedroom
Sample Property #1 50 650 $715 $1.10 $50 $665 $1.02
Sample Property #2 75 850 $723 $0.85 $100 $623 $0.73
Totals / Averages 125 770 $720 $0.93 $80 $640 $0.83
Subject Property 35 625 $521 $0.83 $0 $521 $0.83
% difference from Comparables -18.8% -27.6% -10.8% -18.5% 0.4%
Thefollowinginformationmustbeprovidedinaone‐pagesummarysheetforeach
ComparableProperty(ifavailable).
1. Colorphotographofaresidentialbuildingrepresentativeoftheentire
development
2. Name,address,telephonenumberofthedevelopment
3. Contactperson,dateofcontact,andmodeofcontact(i.e.,in‐personorby
telephone)
4. Yearofopeningandyearofsignificantrenovation(ifapplicable)
5. Amenities(bothunit‐andproject‐related),includingparkingprovisions
6. Sourceofheat,waterheating,andcooking(i.e.,electric,naturalgas,propane,
etc.)
7. Utilityresponsibility(i.e.,tenant‐paidorowner‐paid)
8. Numberofunitsdistributedbystructuretype(e.g.,townhouse,garden‐style,
etc.)andunittype(i.e.,numberofbedroomsandbathswithintheunit)
9. Net(heated)squarefootageofunits
10. Collectedrentsandestimatedgrossrents.(Grossrentisderivedbyaddingthe
estimatedcostoftenant‐paidutilitiestothecollectedrent.TheapplicableUtility
AllowanceWorksheetmustbethesourceoftheutilitycostestimates.)
11. Vacancyratesbyunittype
12. Programparticipation(e.g.,HUDSection8,RDSection515,TaxCredit,etc.),if
applicable
13. Tenantprofile(e.g.,family,elderly,personswithspecialneeds,etc.)
14. Waitinglists
15. Turnoverrate
16. Absorptionrate(ifthepropertyislessthan3yearsofage)
17. Distancefromthesubjectproperty.Thedistancefromthesubjectproperty(in
miles)mustbedescribedastraveldistance(i.e.,calculatedalongdedicated
roadways),notasdirectdistanceor“asthecrowflies.”
ExhibitL 2009MarketStudyGuide
Forcomparabledevelopmentsintheplanningorconstructionstages,provideasmuchofthe
required information (described on the preceding page) as is available, and include the
development’sestimateddateofmarketentry.

VIII.CaptureRateAnalysis
The Market Analyst must describe the appropriate income range for each percent of Area
MedianIncome(AMI)electionattheproposeddevelopment.
Forincome‐restrictedFamilyUnits,theminimumincomemustbebased onthe assumption
that the household will apply up to 40% of their gross income towards their total housing
expense.The maximum income must be based on the assumption that population per
householdwillequalthenumberofbedroomsplusone (1).Forexample,thepopulationof
anefficiencyunitisassumedtobe1(i.e.,zerobedroomsplus1equals1),andthepopulation
ofathree‐bedroomunitisassumedtobe4(i.e.,3bedroomsplus1equals4).
For income‐restricted Senior Units, the minimum income must be based on the assumption
that the household will apply up to 45% of their gross income towards their total housing
expense.Themaximum incomemustbebasedon the assumptionthatjust oneperson will
occupy all senior units, regardless of the number of bedrooms within the unit.The Senior
Capture RateAnalysismust focus on the targeted age group (i.e., age55+,or in the case of
federally subsidized units‐age 62+).Up to 10% of the age‐ and income‐appropriate
homeowners within the Market Area may be included in the Senior Capture Rate analysis.
(HomeownersarenottobeincludedintheFamilyCaptureRateAnalysis.)
For market‐rate units, the Market Analyst must make some reasonable determination of a
maximum income level beyond which a household will not likely be a participant in the
rental market.The Market Analyst must clearly explain the assumptions used in
determiningtheappropriateincomerangefortheproposedmarketrateunits.Forunitswith
project‐basedrentalassistance,theappropriateincomerangecanextenddownto$0.
In summarizing the Capture Rate Analysis, the Market Analyst is required to use the
appropriatetableprovidedinADDENDUM5.Thereisonetableforfamilyprojectsandone
table for senior projects.Each of these tables includes two sections:Gross Households
CaptureRateandNetNewHouseholdsCaptureRate.Completionofthesetwosectionsis
required.
In addition to the components of demand identified on the capture rate tables, the Market
Analystisrequiredtoaccountfortwootherfactors.Thenumberofcomparablelowincome
andmarket rateunits(ifapplicable)inthemarketareathatmustbe absorbedto reducethe
vacancyratetonormalizedconditionsmustbedetermined.TheMarketAnalystisrequired
to assume that normalized vacancy is no more than 8%.The second factor that must be
considered is comparable low income and market rate units either under construction or
planned in the market area.Also, for all Rehab projects, the estimated number of existing
residents that will be income‐eligible and will likely remain at the property must be
subtractedfromtheanalysis.
IftheMarketAnalystbelievesthereareothersourcesofdemandnotincludedintheCapture
Rate tables, they may be considered if the Market Analyst can justify the reason.Any
additional sources of demand shall be calculated separately and be easily added or
subtracted from the Capture Rate tables. If more than 50% of the project’s total net new
household demand is found to be contingent upon demandfrom: substandard,
overcrowdedorunitslackingcompleteplumbingthemaximumallowablerentshallbe20%
belowmarketrents.
ExhibitL 2009MarketStudyGuide
Furthermore,iftheproposedproject’sPMAincludes3ormoreexisting orapprovedand/or
underconstructionLIHTC/Bondprojects,andthe 50% thresholdaboveis triggered, ADOH
may consider the PMA to be at an elevated risk of saturation and for cannibalism.
Accordingly,ADOHmayrejectthecapturerateoutrightorsignificantlyadjustthesefigures.
Therefore, in these circumstances the analyst has an additional burden of proof and must
include relevant documentation showing recent cases in comparable market(s) where this
demandactuallymaterializedatorneartheamountsforecastedwithoutadverselyaffecting
existingstock.
The Market Analyst must provide a narrative of what the capture rate means for the
proposeddevelopmentandmarketarea.Ifthenumberofproposedunitsexceedsgrowth,
theMarketAnalystmustprovideadditionaldocumentationofdemandthatdoesnotinclude
cannibalizationofexistingaffordableprojects.
IX.Conclusions
TheMarketAnalystmustsummarizetheproposeddevelopment’sstrengthsandweaknesses
in terms of the market area’s rental housing market and target population.The Market
Analyst must state his/her professional opinion regarding the proposed development’s
feasibilityfromamarketperspectiveandwhateffecttheproposeddevelopmentwouldhave
on the existing market.Also, the Market Analyst must indicate any other information
believedtobeimportanttooverallrentaldemandinthemarketarea includingcommentson
theappropriatenessoftheunitmixandproposedrents.
The Market Analyst must project an absorption rate (units per month), lease‐up period (in
months),andstabilizedvacancyrateforthe proposeddevelopment.The MarketAnalystis
required to properly justify the projected absorption rate, lease‐up period, and stabilized
vacancy rate for the proposed development.If the anticipated absorption rate causes the
proposed development’s initialabsorption period to extend beyond one year, “replacement
absorption” (i.e., the need to re‐rent vacated units due to tenant turnover) needs to be
factored into the Market Analyst’s projection.(The subject property’s absorption period is
consideredtostartassoonasitsfirstunitiscertifiedforoccupancy.)
For acquisition/rehabilitation projects, the Market Analyst must estimate the anticipated
number of existing (program‐eligible) residents who will elect to remain at the property
through its renovation.With respect to the anticipated absorption period of renovation
projects, the Market Analyst must describe the projection in two ways: 1) using the
anticipated retention level and 2) using the assumption that no residents remain at the
property.
If an unusually slow absorption rate and/or unusually low stabilized occupancy rate is
anticipated,theMarketAnalystmustindicateifitisduemoresotomarket‐relatedissuesor
product‐relatedissues.The Market Analyst is encouraged to make recommendations as to
howtheproposeddevelopmentcouldbebetterstructuredtosucceedwithinthemarket.
TheMarket Analystmustevaluatethe impacttheproposed developmenton the occupancy
ratesofallincome‐restrictedpropertieswithintheMarketArea.Thisevaluationmustresult
inatablenotingeachincome‐restrictedrentalhousingproperty,itscurrentvacancyrate,and
anticipatedvacancyrateatthesubjectproperty’sprojecteddateofstabilizedoccupancy.
AlistofallADOH‐TaxCreditfundedrentalhousingproperties(existingandunder
development),areavailableforreviewatthefollowingsites:
http://azcms.housingaz.com/uploads/RENTAL%20APPLICATIONS/LIHTC/Tax_Credit_Projects_1987_Current.pdf
ExhibitL 2009MarketStudyGuide
ADDENDUM1–CertificationLetter
ArizonaDepartmentofHousing
MarketStudyCertification
Theundersigned,a recognizedfirm of independentmarketanalystsknowledgeableand experienced in
thedevelopmentofaffordablerentalproperties,completedthisMarketStudyof 
(DevelopmentName)in (CommunityName),Arizonafor
(Developer/Applicantname).
Tothebestofourknowledge,alldatacontainedinthisreportiscorrecttotheextentthatthelocal,State
ofArizona,andfederalrecordingagenciesanddemographicsuppliersaccuratelyrecordandpublishthis
data.All projections were based on current professionally accepted methodology, and that we have
primarily followed the ADOH Market Study Guidelines.If ADOH Market Study Guidelines have not
beenfollowed,thentheanalystfollowedNCAHMAmodel.
Themarketanalysthasnofinancialinterestintheproposedprojectorinanyothermattersinvolvingthe
DeveloperorApplicant,ortheirprincipals.Therelationshipofthemarketanalystislimitedtothatofan
independent market analyst.The fee assessed for the study was not contingent on the proposed
developmentorapplicationbeingapprovedbytheArizonaDepartmentofHousing.
Themarketanalystmadeaphysicalinspectionofthemarketarea,reviewedallrelevantdata,conducted
personalinterviews withlocal apartmentmanagers, governmentofficials,localrealestateprofessionals,
andserviceproviders,andindependentlyestablishedtheconclusionsforthisreport.
By:
(MarketAnalystCompany)
By:
(AuthorizedRepresentative)
Title:
Date:
ExhibitL 2009MarketStudyGuide
NOTIFICATIONOFCONFIDENTIALITYANDDECLARATIONOF
PROPRIETARYRIGHTTOMARKETDEMANDSTUDY
The attached market demand study is submitted to the Arizona Department of Housing (“the
Department”) in support of the application to the Department and undersigned hereby notifies the
Departmentasfollows:
1) ThatapplicantprovidestheattachedmarketdemandstudytotheDepartmentsolelyforthe
Department’suseinevaluatingandconsideringtherelatedapplicationandforuseindetermining
therelativemarketdemandforaffordablehousinginArizona.
2) ThatalthoughtheDepartmentshallretaincustodyoftheattachedmarketdemandstudy,thestudy
remainsthepropertyoftheapplicantand/ortheanalystandshallbeconsideredconfidential,
proprietaryinformationoftheapplicantand/ortheanalystforaperiodofnomorethantwoyears
afterthedateofitssubmittaltotheDepartment.
3) Theapplicantand/ortheanalystfurthernotifytheDepartmentthateitheroneorbothofthem
intendtotreatthemarketdemandstudyasaconfidentialproprietarydocumentandshallnot
releasethemarketdemandstudytothirdpartieswithouttakingreasonableandnecessarystepsto
protectandpreservetheconfidentialandproprietarynatureofthedocument.
4) Intheeventthateitheroneorbothoftheundersigneddetermine,withinthetwo‐year
confidentialityperiod,toabandonorwaivetheproprietaryrighttothemarketdemandstudy,the
Departmentshallbenotifiedaccordingly.
5) Theapplicantandthepreparinganalystunderstandthatamarketdemandstudysubmitted
withoutexecutingthisnotificationshallbeconsideredbytheDepartmenttoberecordssubjectto
publicdisclosurepursuanttoA.R.S.Title39,Chapter1,Article2.
6) Theundersignedhaslegalauthoritytobinditsprincipal.
For the Applicant:
By:
Name:
Title:
For the Analyst:
By:
Name:
Title:
ExhibitL 2009MarketStudyGuide
ADDENDUM2–ProjectSummaryTable
UNITTYPE
PERCENT
OFAREA
MEDIAN
INCOME
NUMBER
OF
UNITS
NET
SQUAR
EFEET
MAXIMUM
ALLOWABLE
GROSSRENT
RENTSATOPENING*
GROSS
UTILITY
ALLOWANCE
COLLECTED
EFFICIENCY/
1BATH
20%
30%
40%
50%
60%
MKT
$
$
$
$
$
N/A
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
ONE‐BEDROOM/
1BATH
20%
30%
40%
50%
60%
MKT
$
$
$
$
$
N/A
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
TWO‐BEDROOM/
1BATH
20%
30%
40%
50%
60%
MKT
$
$
$
$
$
N/A
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
TWO‐BEDROOM/
2BATH
20%
30%
40%
50%
60%
MKT
$
$
$
$
$
N/A
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
THREE‐BEDROOM/
2BATH
20%
30%
40%
50%
60%
MKT
$
$
$
$
$
N/A
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
FOUR‐BEDROOM/
2BATH
20%
30%
40%
50%
60%
MKT
$
$
$
$
$
N/A
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
TOTAL
*__________200_
MKT:MarketRate
N/A:NotApplicable
ExhibitL 2009MarketStudyGuide
ADDENDUM3–ProposedAmenities
UNITAMENITIES PROJECTAMENITIES
RANGE ON‐SITEMANAGEMENT
REFRIGERATOR COMMUNITY
BUILDING/ROOM*
DISHWASHER
DISPOSAL LAUNDRY
WASHER&DRYER RESIDENTBUSINESSCENTER
WASHER/DRYER
HOOKUPS
DAYCARECENTER
CARPETING EXERCISEROOM
WINDOWCOVERINGS SWIMMINGPOOL
PATIO/BALCONY PLAYGROUND
BASEMENT TENNISCOURT
CARPORT BASKETBALLCOURT
GARAGE RAQUETBALLCOURT
INTERCOMSYSTEM WALKINGTRAIL
SECURITYSYSTEM LAKE
OTHER: OTHER:
*Thecommunitybuilding/roomhas_____squarefeetofheatedspace.
ExhibitL 2009MarketStudyGuide
ADDENDUM4–CommunityServicesandSiteAreaDetractions
COMMUNITYSERVICES
NAME
TRAVELDISTANCE*
FROMSITE
(INMILES)
MAJORHIGHWAY(S)

PUBLICBUSSTOP

MAJOREMPLOYERS/
EMPLOYMENTCENTERS

CONVENIENCESTORE

GROCERY

DISCOUNTDEPARTMENT
STORE

SHOPPINGCENTER/MALL

SCHOOLS:
ELEMENTARY
MIDDLE/JUNIORHIGH
HIGH

HOSPITAL

POLICE

FIRE

POSTOFFICE

BANK

SENIORCENTER

RECREATIONALFACILITIES
OTHER

*CALCULATEDALONGDEDICATEDROADWAYS
SITEAREADETRACTIONS
DIRECTDISTANCE°
FROMSITE
(INMILES)
ACTIVERAILROADS
FREEWAYS
NATURALWASHAREAS
HIGHTENSIONPOWERLINES
LANDFILL/GARBAGEDUMP
OIL/CHEMICALREFINERY
POWERPLANT
OTHER
°D
I
R
E
CTD
I
ST
A
NC
E
I
S“
A
STH
E
CR
O
WFL
IE
S”
ExhibitL 2009MarketStudyGuide
ADDENDUM5–CaptureRateAnalysis
FAMILYCAPTURERATEANALYSIS

30%
AMI
40%
AMI
50%
AMI
60%
AMI
MARKET
RATE
TOTAL
PROJECT
AppropriateIncomeRange
$___to
$___
$___to
$___
$___to
$___
$___to
$___
$___to
$___
$___to
$___

GrossHouseholdsCaptureRate
     
NumberofRenterHouseholdsinCurrentYear(20XX)
     
Add:Numberofrenterhouseholdsexpectedtobeaddedto
themarketbyprojectopening(20XX)
     
Equals:Numberofrenterhouseholdsatprojectopening
     
Multiply:Percentageofrenterhouseholdswhoareincome
eligible
     
Equals:Numberofincomeeligiblerenterhouseholdsat
projectopening
     
Equals:Numberofageandincomeeligiblerenterhouseholds
atprojectopening
     
Divide:Numberofunitsbeingproposedateachincomerange
     
Equals:GrossHouseholdCaptureRate
     
      
Net(New)HouseholdCaptureRate
     
Numberofrenterhouseholdsexpectedtobeaddedtothe
marketareabetweenthecurrentyearandprojectopening
(20XX)
     
Multiply:Percentageofrenterhouseholdswhoareincome
eligible
     
Equals:Numberofincomeeligiblerenterhouseholds
expectedtobeaddedtothemarketareabetweenthecurrent
yearandprojectopening
     
Subtract:Numberofcurrentlyexcessvacantunitsat
comparablepropertiesinthemarketarea
     
Subtract:Numberofcompetitiveunitsthatareeitherunder
constructionorplannedinthemarketarea
     
Subtract:Numberofexistingresidentsthatareincomeeligible
andwilllikelyremainattheproperty(REHABOnly)
     
Equals:Netnewrenterhouseholdsexpectedtobeaddedto
themarketareabetweenthecurrentyearandprojectopening
     
Divide:Numberofunitsbeingproposedateachincomerange
     
Equals:Net(New)HouseholdCaptureRate
     
ExhibitL 2009MarketStudyGuide
SENIORCAPTURERATEANALYSIS

30%
AMI
40%
AMI
50%
AMI
60%
AMI
MARKET
RATE
TOTAL
PROJECT
AppropriateIncomeRange
$___to
$___
$___to
$___
$___to
$___
$___to
$___
$___to
$___
$___to
$___

GrossHouseholdsCaptureRate
     
NumberofRenterHouseholdsAge__+inCurrentYear
(20XX)
     
Add:NumberofrenterhouseholdsAge__+expectedtobe
addedtothemarketbyprojectopening(20XX)
     
Equals:Numberofrenterhouseholdsage__+atproject
opening
     
Multiply:Percentageofrenterhouseholdsage__+whoare
incomeeligible
     
Equals:Numberofincomeeligiblerenterhouseholdsat
projectopening
     
Add:10%oftheageandincomeeligiblehomeowners
     
Equals:Numberofageandincomeeligiblerenterhouseholds
atprojectopening
     
Divide:Numberofunitsbeingproposedateachincomerange
     
Equals:GrossHouseholdCaptureRate
     
      
Net(New)HouseholdCaptureRate
     
Numberofrenterhouseholdsexpectedtobeaddedtothe
marketareabetweenthecurrentyearandprojectopening
(20XX)
     
Multiply:Percentageofrenterhouseholdswhoareincome
eligible
     
Equals:Numberofincomeeligiblerenterhouseholds
expectedtobeaddedtothemarketareabetweenthecurrent
yearandprojectopening
     
Subtract:Numberofcurrentlyexcessvacantunitsat
comparablepropertiesinthemarketarea
     
Subtract:Numberofcompetitiveunitsthatareeitherunder
constructionorplannedinthemarketarea
     
Subtract:Numberofexistingresidentsthatareincomeeligible
andwilllikelyremainattheproperty(REHABOnly)
     
Equals:Netnewrenterhouseholdsexpectedtobeaddedto
themarketareabetweenthecurentyearandprojectopening
     
Divide:Numberofunitsbeingproposedateachincomerange
     
Equals:Net(New)HouseholdCaptureRate
     
102
ExhibitN
SERVICEPROVIDERQUESTIONNAIRE
ThisformisusedbyADOHtodeterminethecapacityoftheapplicanttomeettheneedsofresidents as
described in the Supportive Services Plan Outline.All applicants requesting consideration for resident
servicesforSpecialNeedsHousing,SupportforFamiliesinTransition,orElderlyHousingwithSupportive
Servicesmustcompleteandincludethisformwiththeapplication.
ADOHProposedDevelopment:
NameofOwnerofAgent:
NameofServiceProvider:
Pleaseattachanswerstoquestions1through11innarrativeform.
GENERALINFORMATION
1. Summarizetheserviceprovider’smissionandgoalsforthecurrentfiscalyear.
2. How many years has the service provider been active in delivering social services?If the service
providerhasnoexperienceindeliveringsocialservices,describetheserviceprovider’sexperiencewith
and knowledge of the community that the service provider will serve.Identify other community
agencieswithwhomtheserviceproviderwillcollaborate.
3. Describeotheractivi ties,asidefromsocialservices,inwhichtheserviceproviderisengaged.
EXPERIENCEINSERVICE‐ENRICHEDHOUSING
4. Is the service provider cur rently involved in service‐enriched housing programs?If yes,
summarizeexperienceinprovidingsupportiveserviceson‐siteforresidents.Includenameof
housingdevelopment(s),propertyManagementCompany,andtypeofservicesprovided.If
no, please describe methods that will be used to increase your company’s knowledge and
understandingofprovidingservice‐enrichedhousing.
5. Describe collaborative efforts that demonstrate the service provider’s capacity to deliver
supportiveservices.Pleaseidentifyorganizationsorcompaniesinvolvedinthecollaboration
andthenatureoftheorganization’sinvolvement.
PERSONNEL
6. Howmanypeopleareemployedbytheserviceproviderorganization?
7. Listthejobtitlesofpersonnelwhowillworkdirectlywithresidentsoftheproposedproperty.Attachan
organizationalchart.
8. Attachresume(s)ofkeypersonnelwhowillberesponsibleforprovidingservicesinthisproposed
development.Ifnewstaffmustbehiredinordertoimplementtheworkatthisproperty,attachjob
description(s),includingqualificationsandidentifyresourcestopayforcostofsalaries.
9. Arekeypersonnelcurrentlyinvolvedinservice‐enrichedhousingprogramsatotherproperties?Ifyes,
explainhowmanyproperties,ho wmanytotalunits,wheretheyarelocated,andhowstaff’stimewillbe
dividedbetweencurrentresponsibilitiesandresponsibilitiesatthenewdevelopment.
103
STAFFPROFESSIONALDEVELOPMENT
10. Listthenamesoftheprofessionaltrainingcourses/workshops/ seminarsthatstaffwhowillbe
involvedwiththisprojecthavecompletedoverthepast3years.(Listjobtitleofstaff,training
attended,anddateoftraining.)
11. Will participation in this service‐enriched housing program require additional staff pro fessional
development?Ifyes,describetrainingand/orskillsthatwillneedtobedevelopedorimproved.
SERVICEPR OVIDER’SOFFICELOCATION(S)
AddressofPrincipalOffice:
Name/TitleofContactPerson:
TelephoneNumber:( )
FaxNumber:( )
E‐mail:
AreasServed:{County(s),Neighborhood(s), etc.}
________________________________________ _____________________________________________________
________________________________________ _____________________________________________________
________________________________________ _____________________________________________________
OtherOfficesclosetoproposeddevelopm ent: __________________________________________________
Address:
Telephone: ( )
Address:
Telephone: ( )
A. Istheserviceproviderasubsidiaryofanotherorganization?
Yes No
Ifyes,pleaseprovidenameandaddressoftheparentorganizationandde scriberelationshipand
taxstatus.
________________________________________ ______________________________________________
________________________________________ ______________________________________________
________________________________________ ______________________________________________

104
B. Indicatethe totalnumberofclients servedduringthe lastfiscalyear. Identifythe amounts and
sourcesoffunding.
Client/ServiceType
Number
Served
FundingLevel
FundingSource
Senior/ElderlyServices
 
Adult/FamilyServices
 
Children/YouthServices
 
Addictions
 
MH/MR
 
Education/JobReadiness
 
Other
 

C. Has the serv ice provider or any of its current personnel ever been involved in governmental
investigationorjudicialactionorsettlementconcerningchargesofaviolationoflocal,stateorfederal
lawsorregulationsconcerningdiscrimination,fairhousingviolationsorothercivilrightslaws,or
concerningviolationsoffederal,stateorlocalregulationsregar dinguseoffunds?
Yes No
D. Have any service grants or contracts heldbythe service provider over the past five years been
terminatedpriortotheirexpirationdates?
Yes No
E. Haveanygrantsor contractsheldbytheserviceprovideroverthepastfiveyearsnotbeenrenewed
uponexpiration?
Yes No
IfyouansweredyestoquestionC,D,orE,attachanexplanationoranysupportingdocumentationnecessary
toexplainthecircumstancessurroundingthesesituations.
Icertifythattheinformationcontainhereinandattachedisaccurateandcomplete.
________________________________________ _____________________________________________________
NAMEOFCEO/EXECUTIVESTAFFSIGNATURE
________________________________________ _____________________________________________________
TITLEORGANIZATIONNAME
________________________________________ _________
DATE
105
SUPPORTIVESERVICESPLANOUTLINE
The submitted plan must be specific to the proposed development.A completed Service Provider
Questionnairemustbeinclude datTab14.
1) TargetPopulation
Definethetargetpopulationanddemonstratethatasignificantnumberofresidentsareexpectedto
needandbenefitfromtheplannedprogramsandservices.
2) Goals/Expectedoutcome s
a) Describetheserviceprovider’sphilosophyand guidingprinciplesastheyrelatetoproviding
servicestoelderlyresidentsorfamiliesintransition.
b) Describe the specific goals of the supportive services pro gram and how they relate to the
anticipatedneedsofresidents.
Example:FamiliesinTransition
i) Toprovidenecessarysupports,suchaschild‐care,after‐schoolcareandtransportation,to
enableresidentstomaintainsignificantemployment.
Example:SeniorHousingwithServices
ii) Tomaintainhealthofresidentsthrougheducationalprograms,healthscreenings,andfitness
andnutritionprograms.
c) Describeexpectedoutcomesrelatedtoeachgoalandhowimpact/successwillbemeasuredor
identified.
d) Describehowtheprogramwillidentifyandrespondtothechangingneedsofresidentsover
time.(Example:regularly scheduled resident meetings, needs assessments, surveys, focus
groups,etc.)
3) Implementationofservices,programs,andactivities
a) Describetheservicesandactivitiesplannedforresidentsofthe proposeddevelopment.These
mayinclude(butarenotlimitedto)child‐careprograms,after‐schoolandsummerchildrenand
youthprograms,counselingprograms,parentingskillsclasses,budgeteducation,pre‐vocational
training, D&A Programs, family violence prevention, crime prevention, on‐site service
coordination or goal‐oriented case management, health services, screenings and education,
housekeeping,on‐sitemeals,transportation,benefitscounseling,wellnessactivities,andsocial
andrecreationalprogramming.
• Identifythepartyresponsibleforprovidingeachservice
• Howandwherewilltheservicebeprovided
• Frequencyofprogramoractivity(daily,weekly,monthly,etc.)
• Eligibilityrequirementsforresidentparticipation
b) Describeserviceprovider’smethodstoen courage residentparticipation.
c) Describe the staffing plan and supervision responsibilities.Plans that include a service
coordinatorpositionasprimarycomponentshouldconsidertheratioofonehourperweekto
everyfiveresidentsasaguideline.
4) Budgetan dsourceoffunds
Provideanannualbudgetthatidentifiesthecostsassociatedwithimplementationoftheservices
identifiedabove.Identifythesourceoffunds.Fundsmustbeavailableforthelifeoftheprogram.
5) Evidenceofcoordinationwithcommunityresources
If community service pro viders are expected to be involve d in the delivery of services for the
residents,includealetterofintenttoprovideservicesthatde scribestheirintendedinvolvement.
106
ExhibitW1
ARCHITECTʹSCERTIFICATE
Theundersigned,beingadulylicensedarchitectregisteredinthe StateofArizona, haspreparedfor

(theʺProject Ownerʺ) final plans, working
drawingsanddetailedspecifications(andaddenda)dated DATE
(collectively, theʺPlans and
Specificationsʺ)inconnectionwithcertainrealpropertylocatedin CITY
Arizona(theʺProjectʺ)
forwhichtheundersignedacknowledgesthattheProjectOwnerhasappliedtoreceivelow‐inc omehousing
taxcreditsunderSection 42oftheInternalRevenueCodeor tofinanceorrefinancethecoststoacquire,
rehabilitate,orconstructtheProjectbyborrowingproceedsfromthesaleofpubliclyissuedprivate activity
bonds.
TheundersignedherebycertifiestotheProjectOwnerandtheArizonaDepartmentofHousingthatthe
Plans and Specifications for the Project comply with and conform in all respec ts to the requirements of
existing law, have been duly filed with and have been approved by all appropriate governmental and
municipalauthoritieshavingjurisdictionovertheProjectandthattheProjectasshownonthePlansand
Specificationsisincompliancewithallrequirementsandrestrictionsofallapplicablezoning,environmental,
building,fire,healthandothergovernmentalordinan c es,rulesandregulationsandtherequirementsofthe
appropriateboardoffireunderwritersorothersimilarbodyactinginandforthelocalityinwhichtheProject
islocated.Allconditionstotheissuanceofbuildingpermitshavebeensatisfied.
Intheopinionoftheundersigned,theProjecthasbeenconstructedinagoodandworkmanlikemanner
substantiallyinaccordancewiththePlansandSpecificationsandisfreeandclearofanydamageorstructural
defects that would in any material respect affect the value of the Project.In the further opinion of the
undersigned,allofthepreconditionshavebeenmetjustifyingtheissuanceof(i)thepermanentcertificateor
certificatesofoccupancyfortheProject(ortheletterorcertificateofcomplianceorcompletionstatingthatthe
construction complies with all requirements and restrictions of all governmental ordinances, rules and
regulations)and(ii)suchothernecessaryapprovals,certificates,permitsandlicensesthatmayberequired
fromsuchgovernmentalauthoritieshavingjurisdictionovertheProjectpertainingtotheconstructionofthe
Project.
TheProjectwillbeincompliancewithallcurrentzoning, environmentalandotherapplicablelaws,
ordinances,rulesandregulations,restrictionsandrequirements,including,withoutlimitation,TitleIIIofthe
AmericanswithDisabilitiesActof1990andtheFairHousingAct,asitrelatestothefollowing:
* AccessibleBuildingEntranceonanAccessibleRoute:Coveredmultifamilydwellingsmusthaveat
leastonebuildingentranceonanaccessibleroute,unlessitisimpractica ltodosobecauseofterrain
orunusualcharacteristicsofthesite.Forallsuchdwellingswithabuildingentranceonanaccessible
routethefollowingsixrequirementsapply.
* Accessible and Usable Public and Common Use Areas:Public and common use areas must be
readilyaccessibletoandusablebypeoplewithdisabilities.
* UsableDoors:Alldoorsdesignedtoallowpassageintoand withinallpremisesmustbesufficiently
widetoallowpassagebypersonsinwheelchairs.
* AccessibleRouteIntoandThroughtheCoveredDwellingUnits:Theremustbeanaccessibleroute
intoandthroughthedwellingunits,providingaccessforpeoplewithdisabilitiesthroughoutthe
unit.
* Light Switches, ElectricalOutlets, Thermostats and Other Environm en tal Controls in Accessible
Locations:Allpremises withinthedwellingunitsmustcontain lightswitches,electricaloutlets,
thermostatsandotherenvironmentalcontrolsinaccessiblelocations.
107
* ReinforcedWallsforGrabBars:Allpremiseswithindwellingunitsmustcontainreinforcementsin
bathroomwallstoallowlaterinstallationofgrabbarsaroundtoilet,tub,showerstallandshower
seat,wheresuchfacilitiesareprovided.
* UsableKitchensandBathrooms:Dwellingunitsmustcontainusablekitchensan dbathroomssuch
thatanindividualwhousesawheelchaircanmaneuveraboutthespace.
TheforegoingcanbefoundintheFairHousingActDesignManual.
ThereisnobuildingorothermunicipalviolationsfiledornotedagainsttheProject.Allnecessarygas,
steam,telephone,electric,waterandsewerservicesandotherutilitiesrequiredtoadequatelyservicethe
ProjectarenowavailabletotheProject.Allstreetdrainage,waterdistributionandsanitarysewersystems
havebeenacceptedforperpetualmainte nancebytheappropriategovernmentalauthorityorutility.
ThePlansandSpecificationsdonotrequiretheinstallationoruseofanyasbestos‐containingmaterialsin
connectionwiththeconstructionoruseoftheProject.
Dated:
ARCHITECTSIGNATURE:________________________________________________
PRINTEDNAME:
NAMEOFCOMPANY:____________________________________________________

THISEXHIBITISTOBECOMPLETE DANDEXECUTEDONFIRMLETTERHEAD
108
ExhibitW2
CONTRACTORʹSCERTIFICATE
Theundersignedhasservedasthegeneralcontractoroftherealpropertyconstructedat ADDRESS
_______________________(“theProject”)forNAMEOFOWNER_______ (“the Project
Owner”).TheundersignedacknowledgesthattheProjectOwnerhasappliedtoreceivelow‐incomehousing
taxcreditsunderSection 42oftheInternalRevenueCodeor tofinanceorrefinancethecoststoacquire,
rehabilitate,orconstructtheProjectbyborrowingproceedsfromthesaleofpubliclyissuedprivate activity
bonds.
TheundersignedherebycertifiestotheProjectOwnerandtheArizonaDepartmentofHousing(ADOH)that
the Project was constructed in conformity with the Plans and Specifications dated ___________
, 200__.
[PLEASE NOTE THAT THIS DATE MUST MATCH THE PLANS AND SPECIFICATIONS DATE IN
ARCHITECTʹSCERTIFICATE].
Dated________________ _______,20___.
[CONTRACTORNAME]
Signature:_________ ______________________
PrintedName:_____________________________
Title______________________________
THISEXHIBITISTOBECOMPLETE DANDEXECUTEDONFIRMLETTERHEAD
Pro
j
ect Name:
1) Insurance Company NAME 1) INSURANCE COMPANY NAME
2) A.M. Best Financial Rating 2) A.M. Best Financial Rating
3) Describe method used for selecting coverage limit 3) Describe method used as basis for Coverage Valuation
4) PRIMARY CGL COVERAGE LIMITS 4) PROVIDE SOURCE OF VALUATION (AGENT, APPRAISER, ETC)
PER OCCURRENCE LIMIT
AGGREGATE LIMITS 5) PROVIDE DATE OF VALUATION
5) EXCESS/UMBRELLA COVERAGE LIMITS 6) PROPERTY COVERAGE LIMITS
AGGREGATE LIMITS
DOES POLICY HAVE ITS OWN DEDUCTIBLE OR SIR?
7) POLICY DEDUCTIBLE AMOUNT
IF YES, DESCRIBE
8) EXCESS/UMBRELLA COVERAGE LIMITS
AGGREGATE LIMITS
6) CGL POLICY DEDUCTIBLE AMOUNT DOES POLICY HAVE ITS OWN DEDUCTIBLE OR SIR?
Deductible S I R
APPLIES TO PROPERTIES INSURED IN A PORTFOLIO
1
)
HAS A PML STUDY BEEN CONDUCTED ON THE PORTFOLIO?
7) BUSINESS INCOME INTERRUPTION LIMITS
FIXED DOLLAR AMOUNT/YR 2) PLEASE PROVIDE A COPY OF THE PML IF LESS THAN 2 YEARS OLD
WILL COVERAGE PAY > 1 YEAR 3) IF NO PML STUDY, DESCRIBE COVERAGE VALUATION METHODOLOGY.
1) INSURANCE COMPANY NAME 4) TOTAL PORTFILIO COVERAGE
2) A.M. BEST FINANCIAL RATING AGGREGATE LIMITS
3) DESCRIBE METHOD USED AS BASIS FOR COVERAGE LIMIT?
1) INSURANCE COMPANY NAME
4) DOES THE POLICY SPECIFICALLY COVER
MOLD LOSSES?
2) A.M. BEST FINANCIAL RATING
3) DESCRIBE METHOD USED AS BASIS FOR SELECTING COVERAGE LIMIT
5
)
POLLUTION COVERAGE LIMITS
4) EPL COVERAGE LIMITS
6) POLICY DEDUCTIBLE AMOUNT
Deductible S I R POLICY DEDUCTIBLE AMOUNT
GENERAL RISK MANAGEMENT POLICIES & PRACTICES
Are Vendors And Subcontractors Re
q
uired To Provide Certificates Of Insurance
?
Is The Ownershi
p
Entit
y
Named As Additional Insured On The Certificates
?
Does O
p
erational Polic
y
Include Annual Or Periodic Com
p
rehensive Safet
y
Surve
y
s
?
Does O
p
erational Polic
y
Provide Instruction For Cleanin
g
/Preventin
g
/Remediatin
g
Mold
?
Does Your Polic
y
Allow For Residents Do
g
s On Premises
?
Is There A Polic
y
Limitin
g
The Breed Or Size Of Do
g?
Does O
p
eration Polic
y
Have A Proactive Crime Prevention Strate
gy?
Are All Hazardous Chemicals Stored In A
pp
ro
p
riate Locked Containers
(
I.E. Chlorine
)
Date:
POLLUTION LIABILITY COVERAGE
EXHIBIT X
OPERATIONAL RISK MANAGEMENT PRACTICES
AGGREGATE LIMIT
EMPLOYMENT PRACTICES LIABILITY COVERAGE
Signature:
YES / NO
COMMERCIAL GENERAL LIABILITY (CGL) DATA COMMERCIAL PROPERTY INSURANCE DATA
PER OCCURRENCE
AGGREGATE LIMITS
PER OCCURRENCE
AGGREGATE LIMITS
Deductible
S I R Both
No Umbrella/Excess
Yes No
Yes No
Deductible
S I R Both
No Umbrella/Excess
Yes No
110
ExhibitY
FAIRHOUSINGACTACCESSIBILITYCHECKLIST
Thefollowingisachecklis tofdesignan dconstructionrequirementsoftheFairHousingAct(theʺActʺ).This
checklistrepresentsmany,butnotall,oftherequirementstotheAct.Thischecklistisnotintendedtobe
exhaustive;rather,itisahelpfulguideindeterminingifthemajorrequirementsoftheActhavebeenmetin
designingandconstructingaparticularmultifamilydevelopment.
PROJECTDESCRIPTION:
NAME:
LOCATION:



OTHERIDENTIFYINGINFORMATION:


GENERALREQUIREMENTS
Developmenthasbuildingscontaining4ormoreunitsandwasdesignedan dconstructedfor
firstoccupancyonorafterMarch13,1991.
Ifitisanelevatorbuilding,allunitsareʺcoveredunits.ʺ
Allunitsinbuildingswithelevatorshavefeaturesrequiredbythe Act.
Ifitisanon‐elevatorbuilding,allground‐floorunitsarecoveredunits.ʺ
Allgroun d ‐floorunitsinbuildingswithoutelevatorshavefeat ures requiredbytheAct.
NOTE:Thereisanarrowexception,whichprovidesthatanon‐elevatorbuildinginadeve lopmentneed
notmeetalloftheActʹsrequirementsifitisimpracticaltohaveanaccessibleentrancetothenon‐elevator
buildingbecauseofhillyterrainorotherunusualcharacteristicsofthesite.
ACCESSIBLEBUILDINGENTRANCEONANACCESSIBLEROUTE
Theaccessiblerouteisacontinuous,unobstructedpathnostairs)throughthedevelopmentthat
connectsallbuildingscontainingcoveredunitsandallotheramenities.
Theaccessibleroutealsoconnectstoparkinglots,publicstreets,publicsidewalksandpublic
transportationstops.
Allslopesarenosteeperthan8.33%.
Allslopesbetween5%and8.33%havehandrails.
111
Coveredunitshaveatleastoneentranceonanaccessibleroute.
Therearesufficientcurbcutsforapersonusingawheelchairtoreacheverybuildinginthe
development.
COMMONANDPUBLICUSEAREAS
Atleasttwopercentofallparkingspacesaredesignatedashan dicappedpar king.
Atleastoneparkingspaceateachcommonandpublicuseamenityisdesignatedashandicappe d
parking.
Allhandicappedparkingspacesareproperlymarked.
Allhandicappedparkingspacesareatleast96ʺwidewitha60ʺwideaccessaislewhichcanbe
sharedbetweentwospaces.
Theaccessibleaisleconnectstoacurbrampandtheaccessibleroute.
Therentalorsalesofficeisreadilyaccessiblean dusablebypersonswithdisabilities.
Allmailboxes,swimmingpools,tenniscourts,clubhouses,restrooms,showers,laundryfacilities,
trashfacilities,drinkingfountains,publictelephonesandothercommonandpublicuseamenities
offeredbythedevelopmentarereadilyaccessiblean dusablebypersonswithdisabilities.
USABLEDOORS
Alldoorsintoandthroughcoveredunitsandcommonusefacilitiesprovideaclearopeningofat
least32ʺnominalwidth.
Alldoorsleadingintocommonusefacilitieshaveleverdoorhandle sthatdonotrequire grasping
andtwisting.
Thresholdsatdoorstocommonusefacilitiesarenogreaterthan ½ʺ.
Allprimaryentrancedoorstocoveredunitshaveleverdoorhandlesthatdonotrequiregrasping
andtwisting.
Thresholdsatprimaryentrancedoorstocoveredunitsarenogreaterthan3/4ʺandbeveled.
ACCESSIBLEROUTEINTOANDTHROUGHTHECOVEREDUNIT
Allroutesthroughthecoveredunitsarenolessthan36ʺwide.
ACCESSIBLEENVIR ONMENTALCONTROLS
Alllightswitches,electricaloutlets,thermostatsandotherenvironmentalcontr o lsmustbenoless
than15ʺandnogreaterthan 48ʺfromthefloor.
REINFORCEDBATHROOMWALLSFORGRABBARS
Reinforcementsarebuiltintothebathroomwallssurroundin gtoilets,shower sandbathtubsfor
thelaterinstallationofgrab bars.
112
USABLEKITCHENSANDBATHRO OMS
Atleast30ʺx48ʺofclearfloorspaceateachkitchenfixtureandappliance.
Atleast40ʺbetweenopposingcabinetsandapplianc es.
Atleasta60ʺdiameterturningcircleinU‐shapedkitchensunlessthecooktoporsinkatendof
U‐shapedkitchenhasremovablecabinetsbeneathforkneespace.
Inbathroom,atleast30ʺx48ʺofclearfloorspaceoutsideswingofbathroomdoor.
Sufficientclearfloorspaceinfrontofandaroundsink,toiletandbathtubforusebypersons
usingwheelchairs.
TheundersignedcertifiesthatthisChecklisthasbeencompletedbytheProjectArchitect,tha ttheeachofthe
itemscheckedaboveisadesignandconstructionrequirementfortheProject,andthattherepresentations
madeinthisChecklistarealltrueandcorrecttothebestofmyknowledge.
PROJECTARCHITECT:

Signature

PrintedName

Title

Date
Download
Save PDF to desktop
Email
Email completed PDF
Send for Signing
Email for others to sign
Print
Print document
Choose a Field
Click on a field and
select the person that should complete it
Want to add a signature?
You can add a signature field
and assign it to someone else
to sign
Choose a Field
Click on a field and
select the person that should complete it

2009 QAP And Exhibits (Arizona)

This document is locked as it has been sent for signing.

You have successfully completed this document.

Other parties need to complete fields in the document. You will recieve an email notification when the document has been completed by all parties.

This document has been signed by all parties.

Completed 12 August 2020

Message

View Audit Log
Print With Audit Log
Duplicate Document