Low Income Housing Tax Credits & Sustainable Development in Washington, 2018

Washington's 2018 QAP awards points for projects that promote Green & Sustainable communities

Green

All Projects funded with Housing Tax Credits must comply with the Evergreen Sustainable Development criteria as developed under legislative mandate by the State of Washington Department of Commerce.

Energy Consumption Model for Calculating Utility Allowance

In an effort to encourage building owners to make all energy savings investments that optimize a building’s energy efficiency and for tenants to conserve energy usage, we are encouraging the use of utility allowance that is based on an energy consumption model. Utility allowances that are calculated based on past consumption, while often accurate, weaken tenants’ incentives to conserve because conserving will decrease their allowance amount. To receive an Energy Consumption Model Utility Allowance, Appendix O of the Tax Credit Compliance Manual must be followed.

 Sustainable Development

Points will be awarded to Projects that provide nearby access to food and go beyond the minimum Access to Services criterion of the Evergreen Sustainable Development Standard (ESDS). Under ESDS Criterion 2.5, urban projects should be located within ¼ mile walking distance of at least two or a ½ mile of at least 4 community, retail or service facilities. Rural projects should be located within 2 miles of at least 2 facilities. For the purposes of this Allocation Criterion, urban and rural hold the same definitions as under ESDS (See Section 4.9) and the same distance measurement, from the center of the site to the entrance of the facility, will be used.

Two points will be awarded to Urban Projects that are:

• located within ¼ mile walking distance of at least 3 community, retail or service facilities or within a ½ mile walking distance of 5 facilities from the list below; AND

• located within ½ mile walking distance of a supermarket, a grocery store with produce or a farmers’ market. This does not count as one of the 3 or 5 facilities referenced in number 1 above.

Two points will be awarded to Rural Projects that are:

• located within a 2 mile driving distance of 4 or more facilities from the list below; AND

• one of the 4 facilities must be a supermarket, a grocery store with produce or a farmers’ market supermarket, a grocery store with produce or a farmers’ market.

 Capital Needs Assessment (CNA)

All Rehabilitation projects must submit a professional, independent, third party Capital Needs Assessment (CNA) with their application. The purpose of the CNA is to determine a project’s physical capital needs over the next 20 years based on the observed current physical conditions of the project. CNA must identify deferred maintenance; physical needs; the age, useful life and remaining useful life of key components; building material deficiencies and material building code violations that affect the property use; structural or mechanical integrity, and future physical and financial needs. The CNA must be the basis from which the scope of work for the project has been developed and the basis on which any capitalized or annual contributions to the replacement reserves are based. If 100% of the units have not been inspected, the CNA must include an explanation that includes any assumptions about areas that were not inspected and the reasons for making those assumptions. Applicants must also complete the Property Conditions Summary Form in the LIHTC Rehab Addendum using the information from the CNA.

Contributed By: 
National Housing Trust

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