99-346-27 Me. Code R. § 1

Current through 2024-50, December 11, 2024

Section 346-27-1 - Definitions

The following terms have the following meanings in this rule:

A. "Additional Circumstances" means any one or more of the following in connection with the Transfer of an Ownership Interest:

(i) a request for additional funding or tax credit allocation from MaineHousing or for the modification, assumption or refinancing by MaineHousing of existing MaineHousing obligations;

(ii) the existence of HUD project-based rental assistance for the Project;

(iii) management deficiencies in the Project;

(iv) a Project that is financially unstable, on MaineHousing's watch list or in default; or

(v) increased risks to a Project as assessed by MaineHousing.

B. "Affiliate" means, with respect to any entity:

(i) another entity which has a Controlling Interest in the entity;

(ii) another entity in which the entity has a Controlling Interest; or

(iii) another entity that is subject to a common Controlling Interest with the entity.

C. "Application" means the form of application required by MaineHousing and any other information required or considered by MaineHousing in connection with the Transfer of an Ownership Interest in a Project.

D. "Code" means the Internal Revenue Code of 1986, as amended.

E. "Controlling Interest" means an Ownership Interest, contractual right, or other interest with respect to an entity which confers upon its holder the authority or right, directly or indirectly, to manage or otherwise direct any material part of all of the business or financial affairs and polices of the entity and/or any material part of or all of the day-to-day or long-term operation of the entity's business or assets.

F. "HUD" means the United States Department of Housing and Urban Development.

G. "Maine Housing" means Maine State Housing Authority.

H. "Owner" means a person or entity having an Ownership Interest in a Project.

I. "Ownership Interest" means any right or indicia of ownership, possession or title of any kind or nature in a Project or Owner, including without limitation:

(1) a fee simple interest;

(2) a leasehold or sub-leasehold interest;

(3) a general partner interest or a limited partner interest in a limited partnership;

(4) the partner interest of a partner in a general partnership;

(5) the member or manager interest in a limited liability company;

(6) the interest of a shareholder in a for-profit corporation;

(7) a voting member or director in a non-profit corporation;

(8) a beneficial interest in a trust; or

(9) a Subsidiary Interest, specifically excluding an upper-tier limited partner or non-managing member interest of an investor in a tax credit fund that has a limited partner or non-managing member interest in the Owner of a Tax Credit Project;

J. "Project" means a multifamily or supportive housing project that has funding or an allocation of tax credits, or a commitment or reservation thereof, from MaineHousing at the time of the request for MaineHousing consent to the Transfer.

K. "Qualified Rural Development Preservation Project" has the same meaning as set forth in Chapter 35 of MaineHousing's rules, the State Low Income Housing Tax Credit Rule.

L. "Sponsor" means the entity that is the designated developer of a Tax Credit Project or has a Controlling Interest in the general partner of a limited partnership or the manager or managing member of a limited liability company that owns a Tax Credit Project.

M. "Subsidiary Interest" means the direct or indirect interest of any person or entity in an entity that has an Ownership Interest as determined by MaineHousing.

N. "Tax Credit Investor Transfer" means a Transfer of the Ownership Interest of a limited partner of a limited partnership or a non-managing member of a limited liability company that owns a Tax Credit Project.

O. "Tax Credit Project" means a Project for which MaineHousing allocated federal low-income housing tax credits pursuant to Section 42 of the Code or State of Maine affordable housing tax credits pursuant to 36 M.R.S. §5219- WW and 30-A M.R.S. §4722(1) (GG).

P. "Transfer" means a change, whether voluntary or involuntary, of all or part of an Ownership Interest in a Project regardless of the type or nature of the change or the means used to accomplish it, including but not limited to a change made by sale, mortgage, lease (except residential tenant leases in the ordinary course of business of operating a Project as a residential rental project), sub-lease, assignment, bond or contract for deed, land installment contract, like-kind (1031) exchange, merger, conversion, dissolution, substitution of partners or members, consolidation, submission to a condominium or land trust or similar construct, change of control (other than incremental change through occasional individual vacancies due to resignations or expirations of terms in the ordinary course of voting members or directors of corporations), gift, grant, death, creation of an estate or inheritance resulting from the death of an Owner, or operation of law.

99-346 C.M.R. ch. 27, § 1