Post your questions here for DSHA's Development staff. Once your question is reviewed it will be posted and answered. The forum is currently off until the next QAP.


Postby DSHA Dev Staff » Wed Mar 18, 2015 4:23 pm

DSHA has received several questions on how a project located in a DDD would work for the leverage point and DDD point categories. DSHA has defined both point categories below:

Downtown Development District (DDD) and Leveraging Points

• A reservation of the DDD grant must be received by the applicant from DSHA prior to the 2015 LIHTC application deadline.
• The grant can be applied to:
• Deferred Developer Fee;
• Seller’s Note;
•The principal balance of DSHA deferred debt (regardless of source).

•No points will be received for Leveraging unless the grant is used as a permanent source.

• If the grant is to be used as a permanent source then:
•The DDD grant will be designated as gap permanent financing and used to increase the amount of the first amortizing mortgage (with a minimum term of 20 years) beyond what can be supported by the cash flow; or
• The DDD grant awarded to the developer will be designated as gap permanent financing, loaned to the General Partner and then to the Limited Partner with appropriate notes and mortgages for a minimum term of 20 years.

It is the responsibility of the development team to ensure that the use of the DDD grant as permanent financing is structured so that the funds do not constitute a grant to the development. An opinion of counsel should be included attesting to the status of the funding. To the extent that the funds retain their status as a grant, then the LIHTC basis will be reduced by the value of the DDD grant.

DDD Points:

0-24% of properties are in a DDD – 0 pt
25 to 49% of properties are in a DDD – 1 pt.
50-74% of properties – 2 pts
75% or more of properties – 3 pts
DSHA Dev Staff
Posts: 47
Joined: Thu Jan 20, 2011 10:35 am

Return to 2015 Qualified Allocation Plan Questions and Answers

Who is online

Users browsing this forum: No registered users and 1 guest