Low-Income Housing Tax Credits & Cost Containment in North Dakota, 2018

The 2018 North Dakota Qualified Allocation Plan (QAP) limits the amount of annual tax credits projects can receive. Cost containment measures are considered in the event of a tiebreaker. 

Cost Containment

In the case of a tie between two or more projects, the project requiring fewer credits per unit will be selected first.

Maximum Developer Fee: Developer’s fee will be limited to 15 percent of the eligible basis of the project for those with 50 or fewer units and 12 percent for projects of 51 or more units. Fees paid to consultants will be included in this limitation. The developer fee for the acquisition portion of an acquisition/rehabilitation project cannot exceed 5 percent

Maximum Builder/Contractor Fees: Builder/General Contractor fees may not exceed the following limits:

  • Builder/General Contractor's Profit 6 percent of hard construction costs
  • Builder/General Contractor's Overhead 2 percent of hard construction costs
  • General Requirements 6 percent of hard construction costs

Fees in one area may exceed the stated percentage if other areas are not at their maximum, so long as they don’t exceed 14 percent collectively. Any fees in excess of 14 percent will not be included in the eligible basis.

NDHFA may waive the $15,000 minimum average rehabilitation threshold requirement if a capital needs assessment supports a lower rehabilitation requirement. See Section V (Threshold Requirements) for information on completing a capital needs assessment.

No one project will be eligible to receive Conditional Reservations for more than an aggregate 25 percent of the NDHFA annual per capita allocation. An exception to this limitation will be made to ensure maximum distribution of the tax credits:

  • If during the regular allocation cycles, the only requests remaining are from applicants that have reached the 25 percent limit, or
  • If, after the regular cycles, there are recaptured or unallocated tax credits, they may be allocated without regard to the 25 percent limitation.
Contributed By: 
National Housing Trust

Other Items of Interest