Mo. Code Regs. tit. 4 § 170-5.100

Current through Register Vol. 49, No. 23, December 2, 2024

Section 4 CSR 170-5.100 - Introduction

PURPOSE: This rule establishes guidelines to assist eligible donors and eligible agencies in the implementation of the Affordable Housing Assistance Program (AHAP).

PUBLISHER'S NOTE: The secretary of state has determined that the publication of the entire text of the material which is incorporated by reference as a portion of this rule would be unduly cumbersome or expensive. This material as incorporated by reference in this rule shall be maintained by the agency at its headquarters and shall be made available to the public for inspection and copying at no more than the actual cost of reproduction. This note applies only to the reference material. The entire text of the rule is printed here.

(1) All term(s) used in 4 CSR 170-5 shall bear the same meaning as the defined term(s) described herein and in 4 CSR 170-1.100, the state housing act, and, as applicable, in sections 135.350-135.363, RSMo.

(2) The Missouri Housing Development Commission (commission), as an instrument of the state of Missouri, shall administer the Affordable Housing Assistance Program (AHAP), subject to the requirements of state of Missouri law and any regulations promulgated pursuant to state of Missouri law. The commission staff shall provide the application forms to eligible agencies seeking to provide affordable housing and to take advantage of the tax credits issued under this program. Said applications may be obtained at the commission's website or by contacting the commission directly.

(3) As used in the implementation of the AHAP, the following terms shall mean:

(A) Adjusted gross income. An amount equal to adjusted income as such amount is defined under Title 24, Code of Federal Regulations, Part 5, published annually in January, herein incorporated by reference and made a part of this rule, as published by the United States Superintendent of Documents, 732 N Capital Street NW, Washington, DC 20402-0001, phone: toll free (866) 512-1800, DC area (202) 512-1800, website: http://bookstore.gpo.gov. This rule does not incorporate any subsequent amendments or additions;

(B) Affordable Housing Assistance Programs (AHAP). Those programs designed to provide affordable housing to very low-income persons who would not otherwise be adequately housed;

(C) Affordable housing assistance activities. Includes money, real or personal property, or professional services expended or devoted or contributed through an eligible agency which is providing affordable housing units-

1. Through the use, construction, or rehabilitation of those units; or

2. To eligible occupants through an affordable housing rent subsidy program approved by the commission staff, all in accordance with the criteria established in subsection (3)(C) herein, with the exception of fees to administer rent subsidy programs, which shall not be paid from eligible donations;

(D) Affordable housing rent subsidy. Eligible donation funds that may be set aside to provide to low-income residents a monthly rental assistance. They may not be used for households already receiving rental assistance through other resident assistance programs;

(E) Affordable housing unit. For the purposes of AHAP, means a residential unit generally occupied by persons and families with incomes at or below the levels described in this rule and charging a gross rental rate or bearing a cost to the occupant no greater than thirty percent (30%) of the maximum eligible household income for the affordable housing unit. In the case of owner-occupied units, the cost to the occupant shall be considered the amount of the gross monthly mortgage payment, including casualty insurance, mortgage insurance, and taxes. Gross rent includes the cost of any customary utilities, other than telephone, as approved by the commission staff. If any utilities are paid directly by the occupant, the maximum rent that may be paid by the occupant is to be reduced by a utility allowance prescribed by the commission staff;

(F) AHAP land use restriction agreement (AHAP LURA). An agreement between the commission and the approved mortgagor which shall be prepared by the commission staff, executed by the applicable parties, and shall restrict the use of the property during the compliance period;

(G) AHAP tax credit. A one (1)-time credit that may be allocated to an eligible donor for up to fifty-five percent (55%) of the total value of the eligible donation;

(H) Application. A written submission of a request for production credits and/or operating assistance credits by an eligible agency which is providing affordable housing units through affordable housing assistance activities, including use, construction, rehabilitation, or grant of affordable housing rent subsidies to eligible occupants in a manner consistent with the AHAP requirements;

(I) Chief elected official. That official elected to the highest governing position in the local jurisdiction in which the development is located;

(J) Compliance period. The AHAP LURA shall restrict the use of the property receiving the benefit of production credits for a period of ten (10) years or for such other period as may be set forth below-

1. For properties that have existing residents, the AHAP LURA shall be filed at the time of the eligible donation or at the closing of the deal, whichever occurs first, and shall remain in place for a period of ten (10) years;

2. For new construction, conversion, or rehabilitation of properties with no existing residents, the AHAP LURA shall be filed at the time of the first eligible donation, and restriction will begin upon issuance of the first certificate of occupancy and shall remain in place for a period of ten (10) years;

3. If the eligible donation is of vacant land for the purpose of developing affordable housing units, the AHAP LURA shall be filed upon donation of the vacant land but will not be effective until the first certificate of occupancy is issued, after which time it shall remain in place for a period of ten (10) years; and

4. Developments receiving an affordable housing rent subsidy shall be subject to the restrictions of the AHAP LURA for as long as the affordable housing rent subsidy is in place and only with regard to those units receiving the affordable housing rent subsidy;

(K) Eligible agency. Any organization performing community services or economic development activities in the state of Missouri having the producing, maintaining, or operating of low-income housing as part of their charter and as one (1) of their stated purposes, and-

1. Holding a ruling from the Internal Revenue Service of the United States Department of Treasury that the organization is exempt from income taxation under the provisions of the Internal Revenue Code sections 501(c)3, 501(c)4, or 501(c)6; or

2. Incorporated in the state of Missouri as a not-for-profit corporation under the provisions of Chapter 355, RSMo; or

3. Designated as a community development corporation by the United States government under the provisions of 42 U.S.C.A. 9802; and

4. Not controlled by a for-profit corporation, company, partnership, or entity of any kind; and

5. Any organization not solely relying on AHAP tax credit in the furtherance of their business activities must meet the minimum requirements of subsection (3)(K) and shall have conducted their business activities for at least one (1) year;

(L) Eligible donation. A donation that may be in the form of cash, stock, real estate, professional services, or materials/products and must be eligible for the federal income tax charitable deduction. The donation must be made to an eligible agency which has already received a reservation of AHAP tax credits from the commission staff. To allocate the credit, the commission staff requires supporting documentation evidencing the receipt and value of the donation and a certification form executed by the eligible donor and the eligible agency. To be an eligible donation, the donation must be received by the eligible agency after the date of reservation and prior to the deadline outlined in the reservation letter;

(M) Eligible donor. A person, firm, or corporation doing business in the state of Missouri and subject to the income tax imposed by the provisions of Chapter 143, RSMo, or a corporation subject to the annual corporation franchise tax imposed by the provisions of Chapter 147, RSMo, or an insurance company paying an annual tax on its gross premium receipts in the state of Missouri, or other financial institution paying taxes to the state of Missouri or any political subdivision of the state of Missouri under the provisions of Chapter 148, RSMo, or an express company which pays an annual tax on its gross receipt in the state of Missouri.

1. Employees of an eligible agency which has been allocated AHAP tax credits are not eligible to make donations for AHAP tax credits. However, they are eligible to receive AHAP tax credits through the transfer process;

(N) Eligible occupants. Persons or families whose household combined adjusted gross income, as defined by the commission staff, is equal to or less than the percentages of median family income set forth in section 32.105, RSMo. Median family income is that for the geographic area in which the residential unit is located or the median family income for the state of Missouri, whichever is larger. Geographic area means the metropolitan area or county designated as an area by the federal Department of Housing and Urban Development under Section 8 of the United States Housing Act of 1937 for purposes of determining fair market rental rates;

(O) Fiscal year. As defined by the commission, shall be from July 1 through June 30;

(P) Operating assistance credits. Tax credits allocated through the AHAP to eligible agencies to provide for qualified operating expenses of the eligible agency pursuant to section 32.112, RSMo;

(Q) Production credits. Tax credits allocated through the AHAP to eligible agencies for affordable housing assistance activities pursuant to section 32.111, RSMo;

(R) Qualified operating expenses. For the purposes of operating assistance credits, may include salaries, office supplies/equipment, office rent/mortgage payments, utilities, taxes, insurance, maintenance/repairs, professional services procured by the eligible agency, and any other expenses approved by the commission staff. However, the cost of applying for the AHAP tax credits and the tax credit fee shall not be included in qualified operating expenses;

(S) Reservation. The process by which the commission staff sets aside AHAP tax credits for use by a specific eligible agency;

(T) Reservation letter. A letter issued by the commission staff to the eligible agency upon approval of their application which sets out the approved AHAP tax credit amount, the beginning and end dates for receiving eligible donations, and any additional terms for administration of the program; and

(U) Tax certification. A form provided to the commission staff by the eligible donor and the eligible agency to certify the information provided by each as it pertains to the donations and all applicable requirements for receiving the AHAP tax credit.

4 CSR 170-5.100

AUTHORITY:sections 32.111, 32.112, and 215.030(5), (12), and (19), RSMo 2000.* Original rule filed May 24, 2010, effective Jan. 30, 2011 .

*Original authority: 32.111, RSMo 1990, amended 1993, 1996, 1998, 1999; 32.112, RSMo 1996, amended 1999; and 215.030, RSMo 1969, amended 1974, 1982, 1985, 1989, 1993, 1995, 1998.