Low Income Housing Tax Credits & Cost Containment in Alabama, 2019

Alabama's 2019 Qualified Allocation Plan (QAP) includes cost containment measures both as means of possible disqualification and as a tie-breaker

Any line item costs, square footage costs or total unit costs exceeding a range of reasonableness may be disallowed at the determination of AHFA. Additional information and documentation (verified by AHFA and/or an AHFA designee) may be required to substantiate the reasonableness of the cost inclusive of information regarding proposed costs which significantly exceed AHFA minimum design quality standards. Any allocation of Housing Credits, regardless of funding type or project type, will be determined using AHFA’s assessment of cost and overall application feasibility.

AHFA determines reasonableness of project costs by comparing aggregate cost data based on all applications received, historical cost certification cost data of completed projects, and current cost data provided by AHFA third party construction consultant reports. After evaluating all the data, reasonable standard project hard construction costs and soft costs are established.

AHFA reserves the right to request certification or verification in a form acceptable to AHFA of any line item cost at any time between the application cycle and actual cost certification.

In the event that multiple projects score the same number of points, and after two previous tie-breakers there remains a tie, the tax credits will be awarded to the application requesting the least amount of Housing Credits per unit.

 

Contributed By: 
National Housing Trust

Other Items of Interest