Issuance of the Tax Credit

PURPOSE: This rule establishes the total amounts of Affordable Housing Assistance Program (AHAP) tax credits, computation of AHAP tax credits, and proof of contribution for AHAP. (1) The amount of the Affordable Housing Assistance Program (AHAP) tax credit shall not exceed fifty-five percent (55%) of the total amount of eligible donations donated for affordable housing assistance activities (or market rate housing in distressed communities as defined in section 135.530, RSMo) by an eligible donor. (2) Calculation of the minimum number of affordable housing units required— (A) For developments consisting of multiple residential units (multi-family development) for which the eligible donation is the donation of the property itself, the number of units subject to the restrictions set forth in the AHAP land use restriction agreement (LURA) shall be fifty percent (50%) of the total units; (B) For multi-family developments receiving other types of eligible donations, the number of units subject to the restrictions set forth in the AHAP LURA shall be calculated by taking the amount of the eligible donation and dividing it by the total development cost of the residential portion of the property and applying this fraction to the total number of units available for affordable housing units. The resulting number shall be rounded to the nearest whole number and will represent the number of affordable housing units required for the development; (C) For single family homes that are not a part of a greater development which is under common ownership, all homes that receive the benefit of an eligible donation shall be an affordable housing unit; (D) For the purposes of transitional housing and shelters, as such terms shall be determined by the commission staff from time-totime, the entire facility shall be subject to the restrictions set forth in the AHAP LURA; and (E) For purposes of the affordable housing rent subsidy, the number of units shall be determined by the number of qualifying eligible occupants receiving affordable housing rent subsidy from funds available from eligible donations. (3) AHAP tax credit recipients have the time remaining in the fiscal year in which the donation is made, plus one (1) full fiscal year, to submit their tax certification and any required documentation from both the eligible donor(s) and eligible agency, evidencing the validity of an eligible donation. Any reservation amount not supported by a valid eligible donation prior to the reservation deadline shall be recaptured subject to the discretion of the commission staff. (4) Any tax credit not used in the period for which the credit is approved may be carried over the next ten (10) succeeding calendar or fiscal years until the full credit has been claimed. (5) The total amount of AHAP tax credits granted for applications approved pursuant to Chapter 32, RSMo, shall not exceed one (1) million dollars per fiscal year for operating assistance credits or ten (10) million dollars per fiscal year for production credits. (6) Reservation for operating assistance credits may not exceed one hundred thousand dollars ($100,000) per eligible agency per fiscal year, unless approved by the commission staff based upon demonstrated need and the ability to successfully satisfy reservation amounts and deadlines or unless the commission staff determines that there are no other appropriate applications for the tax credits. (7) Reservations for production credits may not exceed one (1) million dollars per development, unless approved for more by the board of commissioners of the commission based upon demonstrated need and the ability to successfully satisfy reservation amounts and deadlines. (8) No AHAP tax credit shall be approved for any bank, bank and trust company, insurance company, trust company, national bank, savings association, or building and loan association for activities that are part of its normal course of business. If there are any questions concerning the normal course of business, the commission staff shall determine this on a case-by-case basis. (9) Computation of an AHAP tax credit depends on the form of the donation. Credits for donations by an eligible donor shall be computed by the commission staff. Evidence of proof of donations may include, but shall not necessarily be limited to, one (1) of the following: (A) Cash donations shall require proof of payment, such as a copy of both sides of the cancelled check(s) or a bank statement showing the check transaction; (B) Real estate investments shall have a copy of the deed and a copy of the appraiser’s report by an independent appraiser; (C) Professional services shall require documents detailing dates of service, type of service performed, and associated fees or value for service. The value of the services donated must not exceed the amount of the eligible donor charges for similar services to the general public in the ordinary course of the eligible donor’s business. The eligible donor must certify to the appropriateness of the charges and acknowledge the penalty for providing false information in a manner acceptable to the commission staff; (D) Materials or product, or both types of donations, shall have a copy of the invoice or other documentation showing the cost to the eligible donor and a copy of the invoice(s), signed by the eligible agency or agencies, describing the costs of the goods to the eligible donor; and (E) Stocks shall require attachment of the documentation of the transfer of stocks or bonds from the eligible donor to the eligible agency, indicating the name of the securities, number of shares, date of transfer, and market value as of the date of the transfer. Documentation by brokerage statements must include the eligible donor’s name. (10) The commission staff has sole discretion in analyzing the qualification, structure, and valuation of all donations from eligible donors. (A) If the eligible donation is in real or personal property or in professional services, rather than in cash, the valuation of the eligible donation will be substantiated as required by the commission staff, and its determination of value shall be final. (11) Transferability of AHAP Tax Credits. Production credits and operating assistance credits are fully transferable with commission staff consent. Employees of eligible agencies which have been allocated AHAP tax credits are not eligible to make donations for AHAP tax credits but may receive AHAP tax credits through the transfer process. (12) The commission staff shall transmit to the Missouri Department of Revenue the necessary information on the amount of AHAP tax credit allowable to the eligible donor provided that— (A) All money, real or personal property, or professional services included in the application shall have been irrevocably and unconditionally contributed, expended, or devoted to the AHAP activity approved by the commission staff; and (B) In all cases where the application involves new construction or rehabilitation or use of existing units, the AHAP LURA required by the commission staff shall be executed and filed for record prior to the issuance of any AHAP tax credit. (13) In the event that an AHAP tax credit was improperly approved or issued, the commission staff shall notify the eligible agency and the eligible donor of the reason for the adjustment and notify the Missouri Department of Revenue that the AHAP tax credit has been adjusted and the reason for the adjustment. AUTHORITY: sections 32.111, 32.112, and 215.030(5), (12), and (19), RSMo 2000.* Original rule filed May 24, 2010, effective Jan. 30, 2011. Development Commission *Original authority: 32.111, RSMo 1990, amended 1993, 1996, 1998, 1999; 32.112, RSMo 1996, amended 1999; and 215.030, RSMo 1969, amended 1974, 1982, 1985, 1989, 1993, 1995, 1998.