Policies and Procedures
Low-Income Housing Tax Credit
Rental Production Program (RPP)
DHHS Targetting Plans and Key Program Assistance
Project-Based Section 8
Agency-Issued Tax-Exempt Bonds
Affordable Housing Program (AHP)
Supportive Housing Development Program
Tenant-Based Rental Assistance (TBRA)
Low-Income Housing Tax Credit
The Program
The North Carolina Housing Finance Agency monitors developments that have received federal Housing Credits and the State Housing Credit for compliance with Section 42 of the Internal Revenue Code (the Code). Monitoring occurs periodically to ensure that units provide safe, decent, affordable housing, and that eligible renters occupy the units.
Major compliance issues for federal and state credits:
Compliance Policies and Procedures
Developers can benefit from housing tax credits at both the federal and state level. To read more about these tax credits, see the Developers’ section of our site.
The North Carolina Housing Finance Agency has adopted the Essential Guide to Housing Credit Compliance, Second Edition by Anthony S. Freedman as its official tax credit compliance manual.
This book costs $75 and can be ordered from:
National Council of State Housing Agencies
444 North Capital Street, NW Suite 438
Washington, DC 20001
Phone: 202-624-7710
Fax: 202-624-5899
www.ncsha.org
Information on Recertification Waivers
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Rental Production Program (RPP)
The Program
Rental Production Program (RPP) loans, used in conjunction with tax credits, provide gap financing to make rental housing more affordable. Through RPP loans, the Agency provides permanent long-term financing for rental projects that serve families who earn 60% or less of the area median income.
Compliance Policies and Procedures
If a development receives federal tax credits, it may also be eligible for a Rental Production Program loan. The RPP Workshop Training Manual provides guidance on operating a property with an RPP loan. For example, all rent increases and reserve withdrawals must be approved in writing by the North Carolina Housing Finance Agency. The manual provides owners and management with written procedures for these processes. Additionally, owners and managers must comply with all requirements established in Agency loan documents.
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DHHS Targeting Plans and Key Program Assistance
The Programs
Starting in 2002, NCHFA partnered with the NC Department of Health and Human Services (DHHS) to facilitate the inclusion of persons with disabilities and the homeless within LIHTC properties. As part of this partnership, LIHTC applicants committed to targeting 10% of the units in their developments to these populations. To support this commitment, developers partner with local lead agencies in the preparation and implementation of Targeting Plans. These plans outline how the property will work with the agencies to make these units available.
In order to make the targeted units affordable, NCHFA and DHHS expanded their partnership in 2004 to create the Key Program. This program provides a bridge subsidy for households on disability income who have not yet received a Section 8 Housing Choice Voucher.
For more information on the NCHFA/DHHS partnership read this Background Information.
Compliance Policies and Procedures
There are additional Procedures and Requirements for carrying out targeting plans and participating in the Key Program. Please refer to the Forms page for the necessary documentation and other information.
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Project-Based Section 8
Non-Performance-Based Section 8 Portfolio
The North Carolina Housing Finance Agency serves as Non-Performance-Based Contract Administrator for U.S. Department of Housing and Urban Development (HUD) on a portfolio of properties with project-based Section 8 rental assistance. The Agency has direct responsibility for the day-to-day asset management requirements.
Performance-Based Contract Administration
The North Carolina Housing Finance Agency serves as the Performance-Based Contract Administrator for the State of North Carolina for certain project-based Section 8 Housing Assistance Payment (HAP) Contracts. The Agency has contracted the day-to-day functions of this responsibility to North Carolina Quadel Consulting Corporation (NCQ). HUD retains responsibility for asset management.
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Agency-Issued Tax-Exempt Bonds
The North Carolina Housing Finance Agency monitors projects financed with the following types of agency-issued bonds:
Private activity bonds
Monitoring ensures that units financed with private activity bonds provide safe, decent, and affordable housing and that the units are occupied by eligible households.
501(c) bonds
Monitoring of units financed with 501(c) bonds ensures that units provide safe and decent housing and that the units are occupied by eligible households, based on income. The Agency monitors these units to protect the tax-exempt status of the bonds.
Unsubsidized “80/20” program
Monitoring for the unsubsidized “80/20” program ensures compliance with North Carolina Housing Finance Agency rules, Deed Restrictions, and the IRS Code. The Agency monitors these units to protect the tax-exempt status of the bonds.
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Affordable Housing Program (AHP) (formally known as RTC)
The North Carolina Housing Finance Agency is responsible for monitoring Land Use Restriction Agreements (LURA) regulations of the AHP for the Federal Deposit Insurance Corp. (FDIC). These properties were purchased at below-fair-market value with the restriction that the units be made available to low- and very-low-income households.
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Supportive Housing Development Program
The North Carolina Housing Finance Agency is responsible for monitoring the Supportive Housing Development Program for compliance with state and federal regulations.
The Supportive Housing Development Program provides interest-free loans to government and nonprofit organizations for the production of transitional and permanent housing for persons with special needs. The loans are funded through the state Housing Trust Fund. Eligible populations to be served include homeless or non-homeless households that require supportive services including: persons with mental, physical, or developmental disabilities; persons with substance use disorders; persons diagnosed with AIDS and related diseases; and others with special needs on a case-by-case basis.
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Tenant-Based Rental Assistance (TBRA)
Tenant-based rental assistance has been available after certain designated natural disasters. No new sources of TBRA are currently available.
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Rental Developers
Owners & Managers
