Credit Assistance Programloan support programme
HUD published a Communication on 4 May 2009 specifying certain programme needs for the TCAP. In particular, the announcement shall contain information on the TCAP funding payment procedure, the conditions for approval at programme stage and the application of the Swiss government's subsidy requirement to programmes awarded a TCAP Distinction. HUD - How do state lending institutions for residential construction obtain TCAP funding from HUD?
TCAP funding must be allocated to each state according to the law. This is done on the basis of the HOME programme funding obtained in FY 2008. So that a LICT awarding authority may obtain the TCAP grants allocation formulae, it must provide certain information to HUD within 30 working days of the publication of the notice.
Information provided to HUD shall contain a declaration of intention to adopt TCAP funding, a delineation of the competition processes to be used by the credit bureau to allocate subsidy income, and the processes to be used by the bureau to secure that TCAP funding is tied up and spent within the time limits set by law.
Once HUD has received and reviewed the Agency's application, HUD concludes a funding arrangement with the Office. What low-income residential properties can benefit from TCAP funding? The LIHTC project (s) qualifying for TCAP grants are those which have received or will continue to be allocated by LIHTC pursuant to §42(h) of the Internal Revenue Code (the Code).
LIHTC must have obtained a loan grant between 1 October 2006 and 30 September 2009. Proposals that have been granted a LIHTC, which also receives tax-exempt debt funding, are entitled to TCAP funding. Where the sole resource for fiscal credit for a given scheme is the Golf Opportunity Zone or the Midwestern Disaster Area Housing Credit Programme, the scheme is not entitled to TCAP funding, as these credit items are not allocated under Section 42(h) of the Code.
The governmental authority is, however, able to assign a notional amount of 42(h) LCTCs by 30 September 2009 to challenge the TCAP funding receipt of the proposed scheme. What will the TCAP funding for eligibility be done by the LICT allocator? Government awarding bodies of LICTs must grant TCAP resources on a competitively based manner and in accordance with the Agency's qualifying grant scheme.
Although it is up to the agents to determine their own competition processes and their own eligibility requirements, the processes must give precedence to those projects of the LCIFTC which should be finalised by 16 February 2012. Every state awarding authority of the LIHTC must have committed 75 per cent of its TCAP subsidy by 16 February 2010 and be able to demonstrate that all promoters have issued 75 per cent of the TCAP subsidy by 16 February 2011.
Agencies must issue their full TCAP scholarship by 16 February 2012. HUD will recover any money not disbursed by that date. Government authority concludes a letter of intent with the promoter defining these and other conditions. The TCAP resources will be recovered from HUD if the developer does not meet the spending timetable.
What is the procedure for awarding TCAP prizes to the team? It is for the public authority to decide whether to allocate TCAP resources to qualifying investments in the form of a loan or grant. Should the Agent decide to consider the TCAP Fund as a loan, then the reimbursement of capital and interest by a projekt holder before February 16, 2012 is TCAP program revenue.
All revenues from the TCAP program must be issued by the government authority before the government authority is able to use the TCAP resources it provides. Once the government authority and the developer have reached a letter of intent, TCAP funding may be paid out by the US Treasury to cover recoverable cost of the proposed work.
The TCAP resources cannot, however, be used by the public authority before the need to make payment of the recoverable expenses has arisen. As soon as the money is withdrawn from the treasury accounts of the public authority, it must be earmarked for recoverable expenses within three working day. Government LIHTCs must either act as assets managers for those properties to which TCAP funding has been allocated or award the contracts for providing assets managed service at the promoter's own expenses.
It is the objective of wealth administration to guarantee adherence to the provisions of 42 of the Code and the long-term sustainability of those assets that have been awarded TCAP prizes. Given that the cost of managing assets is rather an administration than a financial improvement that can be included on an eligibility base, TCAP resources cannot be used for financing.
How much does it cost for a project to receive a TCAPA? Although the law provides the TCAP funding for the HOME programme, the legal and regulative obligations of HOME do not extend to TCAP investment trusts, with the exceptions of the environment assessment obligations, as detailed below. Nevertheless, any project awarded TCAP prizes must conform to the Fair Housing Act, Title VI of the Civil Rights Act of 1964, the Age Discrimination Act of 1975 and the Davis-Bacon Act.
In the case of those schemes already under development at the date the TCAP funding is allocated, the developer may receive a designation document stating that the Davis Bacon salary requirement is expected to apply at the date the TCAP is allocated. Part 504 of the 1973 Law on Rehabilitative Services covers those receiving TCAP funding, according to which those who are either new buildings or major refurbishments must make 5 per cent of accommodation available to people with reduced mobility and 2 per cent to people with impaired sight or hearing.
This Act shall apply 288 of the HOME Staff Regulations to HOME funded research using TCAP resources. Application of this section will have a significant effect on the timetable of decision making and action in the course of the implementation of a TCAP accepted budget based work. It is not possible for a promoter to carry out an "elective restrictive activity" after having committed to TCAP resources before successfully completing the SEA.
The implementation of an elective measure before completing the assessment may lead to exclusion from the TCAP. Once the Confederation's EIA for a particular scheme has been finalised, an extra EIA may not be required.