of Law 74-1965, as amended

Located outside an area where the geography presents localized risks or, (b) if located in such an area, involves rehabilitation of an existing structure into rental housing to mitigate against the impacts of natural disasters both as described in the LIHTC-MIT Program Guidelines Located in areas with the lowest proportion of rental housing units outside the highest risk areas, as defined in the Disaster Recovery Action Plan Municipalities affected by the 2019 and 2020 Earthquakes and designated eligible for Public Assistance (PA), as per FEMA's Disaster Recovery Declaration-4473 (Designated Areas FEMA.gov) and the CDBG-MIT Action Plan in Response to the 2019-2020 Earthquakes: Effective on September 23, 2021 (Action Plan in Response to the 2019- 2020 Earthquakes: Effective on September 23, 2021 - CDBG). These municipalities are Adjuntas, Guánica, Guayanilla, Jayuya, Juana Díaz, Lajas, Las Marías, Mayagüez, Peñuelas, Ponce, Sabana Grande, San Germán, Utuado, and Yauco. Proximity to desirable amenities and avoidance of undesirable amenities Preferred Project Characteristics Redevelopment of an infill site or an expropriated site pursuant to a nuisance abatement process, or that is incorporated into a scatteredsite project Substantial rehabilitation of a state designated historic property, federally designated historic place, or a contributing resource to a federally designated Historic District Adaptive reuse of an existing non-industrial/commercial property. Improvements aimed at facilitating the mobility of its residents and public transportation Development that strengthens and improves the neighborhood's general urban character Unit-mix preferring 2 or more-bedroom units in a project targeted for families Provision of building amenities benefiting all units Capacity to effectively curb costs while complying with applicable standards, threshold requirements, and minimum scoring Construction readiness Preferred Housing Needs Characteristics Developments that set-aside the applicable percentage of units for the special population categories identified in the Puerto Rico State Housing Plan (Exhibit FF) Preservation projects that seek to maintain the stock of affordable rental housing Extended term of affordability beyond the extended use period of thirty (30) years Developments proposed to be converted to tenant homeownership Inclusion in any waiting list of a public housing agency (PHA) Developer Characteristics Previous successful participation developing and operating Tax Credit projects Preferred Financing Characteristics Leveraging capital funding from public sources other than those being managed by the Authority, PRDOH, or Municipalities Leveraging of local government capital funding through cash contributions, land donated or discounted, site or off-site improvements, grants, or municipal construction tax abatement which is granted to the project and is not available under a local or state statute of general application Projects with financing from the Authority Limited intermediary costs Supportive Services to Special Tenant Populations as defined in the Puerto Rico Housing State Plan (Exhibit FF) Projects that sustain a level of funding for the provision of supportive services Other Priorities as Described in the Point Scoring Criteria below REGARDLESS OF ANY PROVISION OF THIS 2025-QAP OR ANY DOCUMENT REFERENCED BY OR INCORPORATED IN THIS 2025-QAP, IT IS EACH APPLICANT'S SOLE RESPONSIBILITY TO DEMONSTRATE IN ITS APPLICATION THAT THE PROPOSED PROJECT WILL COMPLY WITH THE CODE AND ALL ASSOCIATED REGULATIONS IN ALL RESPECTS. FAILURE BY ANY APPLICANT TO DEMOSTRATE THAT THE PROPOSED PROJECT WILL COMPLY WITH THE CODE AND ALL ASSOCIATED REGULATIONS SHALL RESULT IN THE REJECTION OF THE APPLICATION AND THE PROJECT. 5.4.2. Point Scoring Criteria Criterion Score I. Project Location Up to 25 pts Location. A project might be awarded up to 17 points if located within one of Up to 17 pts I.1. the following areas: I.1.1. Urban area defined as: Central Urban Area in the Planning Board's Reglamento 3 de la Infraestructura en el Espacio Público; or Urban Center designated by the Department of Transportation and Public Works or adopted under an Urban Center Area Plan; or a state-designated Historical Zone or federally designated Historical District. See Annex Q for reference maps. Documentation required: Certification of location by a licensed land surveyor, physical address, and coordinates. Any project property straddling the limit of the designated urban area will be considered as located within. I.1.2 The portion of a census tract outside an urban area, that has a rate of: 20% or less below poverty line. 3 more than 20% and less than 30% below poverty line. 2 more than 30% and less than 40% below poverty line. 1 Documentation required: Certification of location by a licensed land surveyor. Any project property straddling the limit of the census tract will be considered as located within. Documentation required: Census tract number; census tracts % Below Poverty Line as per the Federal Financial Institutions Examination Council's (FFIEC) 2015 Census Report. (Application, page 1). I.1.3 The zone of influence around an Urban Train Station, as defined under Section 2 3(e) of Law 74-1965, as amended. Documentation required: Certification of location by a licensed land surveyor, physical address, and coordinates. Any project property straddling the limit of the zone of influence will be considered as located within. I.1.4 Project either (a) is located outside an area where "the geography presents 3 localized risks" or, (b) if located in such an area, involves rehabilitation of an "existing structure into rental housing to mitigate against the impacts of natural disasters," both as described in the draft CDBG-MIT Action Plan (Annex P) Documentation required: Verification of location consistent with (a) using the Puerto Rico Hazard and Risks Dashboard (Puerto Rico CDBGDR) or verification of rehabilitation consistent with (b) in the form of a signed certification from a qualified licensed registered architect and/or professional engineer. Such certification must identify the specific threats affecting the site and describe in detail the design features intended to mitigate risks associated with those threats (e.g., floodproofing, wind proofing, earthquake retrofit, landslide control). Criterion Score I.1.5. The project is located in areas with the lowest proportion of rental housing units 3 outside the highest risk areas, as defined in the Disaster Recovery Action Plan (CDBG-MIT Action Plan CDBG-DR/MIT Recovery Funds) Documentation required: Site plan certified by the project's designer and (municipality identified in the Disaster Recovery Action Plan) Documentation required: Project Name & Address (Application page 1) I.1.6. The project is located in a Municipality affected by the 2019 and 2020 3 Earthquakes and designated eligible for PA, as per FEMA's Disaster Recovery Declaration-4473 (Designated Areas 1 FEMA.gov) and the CDBG-MIT Action Plan in Response to the 2019-2020 Earthquake (Action Plan in Response to the 2019- 2020 Earthquakes: Effective on September 23, 2021 - CDBG). Documentation required: Site plan certified by the project's designer and (municipality identified in FEMA-DR-4473 & CDBG-MIT Action Plan-Earthquake) Documentation required: Project Name & Address (Application page 1) I.2.1. General. Projects located within 1,500 meters of the following amenities will be Up to 6 Pts awarded a point each, up to 6 points: Town square of an urban center. 1 Public Park or Recreation Center (must incorporate a passive non-sports area). 1 Traditional town market (plaza de mercado). 1 Education Facility (includes K-12 schools, university, vocational school, 1 community college). Shopping center (100,000 square feet or more of net commercial space; no 1 other listed use is eligible if located within the shopping mall). Grocery store or supermarket with meat, produce and dairy. 1 Hospital, diagnostic and treatment center (CDT) or federally qualified health 1 center (see www.hrsa.gov). Pharmacy. 1 Federal post office. 1 Public transit terminal (Autoridad Metropolitana de Autobuses, Urban Train 1 Station, Maritime Transport or any other municipal transportation system) Documentation required: Map certified by a licensed land surveyor attesting to location of the facilities and the distance along a walkable public pathway or roadway between the project's main pedestrian entrance and the closest point of a town square or park facility or a public entrance to any target facility (in case of a shopping mall, to the commercial concourse or a big box-type facility entrance). If close to more than one installation belonging to the same type, only one point will be awarded. In case of a scattered-site project, distance will have to be certified from the nearest point of the closest building in the project. Amenities must also be referenced by the market study. 1.2.2. Targeted. Projects with 50% or more units targeted at the following special needs Up to 2 pts populations and located within 500 meters of the following amenities will be awarded a point for each one, up to 2 points. Elderly and Disabled households: Criterion Score Physician or dental office. 1 Civic center or voluntary work facility. 1 Documentation required: Name and physical address of facilities. Documentation required: Map certified by a licensed land surveyor attesting to location of facilities and distance along a walkable public pathway or a roadway between the project's main pedestrian entrance and the public entrance to any target facility, If close to more than one installation belonging to the same type, only one point will be awarded. In case of a scattered-site project, distance will have to be certified from the nearest point of the closest building in the project. Amenities must also be referenced by the market study. Single-headed household: Grocery store with WIC contract. 1 Licensed or chartered childcare facility. 1 Documentation required: Name and physical address of facilities, Documentation required: Evidence of inclusion in the WIC Vendor Registry published at wicpuertorico.com. Documentation required: Childcare facility charter issued by ACUDEN. Documentation required: Map certified by a licensed land surveyor attesting to location of facilities and distance along a walkable public pathway or a roadway between the project's main pedestrian entrance and the public entrance to any target facility. If close to more than one installation belonging to the same type, only one point will be awarded. In case of a scattered-site project, distance will have to be certified from the nearest point of the closest building in the project. Amenities must also be referenced by the market study. Households headed by youth (ages 18 to 24): Public transit terminal (Autoridad Metropolitana de Autobuses, Urban Train 1 Station, Maritime Transport or any other municipal transportation system). Post-secondary education centers (public or private universities, colleges, 1 community colleges, and/or vocational schools). Documentation required: Name and physical address of facilities. Documentation required: Map certified by a licensed land surveyor attesting to location of facilities and distance along a walkable public pathway or a roadway between the project's main pedestrian entrance and the public entrance to any target facility. If close to more than one installation belonging to the same type, only one point will be awarded. In case of a scattered-site project, distance will have to be certified from the nearest point of the closest building in the project. Amenities must also be referenced by the market study. Homeless (as defined under HEARTH Act): WIOA training center. 1 ASSMCA licensed public or private institution for the ambulatory treatment of 1 mental disabilities, drug addiction or substance dependency. Documentation required: Name and physical address of facilities. Criterion Score Documentation required: Authorization for WIOA training center issued by Local Workforce Development Area. Documentation required: Copy of license issued by ASSMCA. Documentation required: Map certified by a licensed land surveyor attesting to location of facilities and distance along a walkable public pathway or a roadway between the project's main pedestrian entrance and the public entrance to any target facility. If close to more than one installation belonging to the same type, only one point will be awarded. In case of a scattered-site project, distance will have to be certified from the nearest point of the closest building in the project. Amenities must also be referenced by the market study. Persons with HIV/AIDS: Participant of a Housing Opportunities for Persons with AIDS (HOPWA)- 2 Supportive Services Program Documentation required: Agreement with HOPWA-Subrecipient Amenities must also be referenced by the market study. 1.3. Undesirable Activities. Even If compliant with required environmental review, Up to projects will be discounted one point for each one of the listed undesirable Minus 5 activities, up to a 5 points reduction, if located: I.3.1. Within one-eighth mile of a: Junkyard. -1 Landfill or dumpsite. -1 Industrial site. -1 Airport. -1 Wastewater treatment plant. -1 1.3.2. Adjoining a property which is or contains a: Gas station. -1 Auto repair, paint, or tire repair shop. -1 Woodworking shop. -1 Unabated nuisance, as declared by a Municipality. -1 Documentation required: Map prepared by a licensed land surveyor certifying due diligence by identifying any of the listed nuisances within the established distance measured along the shortest straight line between the project lot and the nuisance property. In case of a scattered-site project, the distance will have to be certified from the closest point of the project's lot closest to the identified nuisance. Every applicant must file the Map prepared by a licensed land surveyor certifying due diligence and indicating that none of the listed nuisances surround the project. II. Project Characteristics Up to 39 pts II.1. Infill or nuisance. Projects will be awarded one point if proposed to develop an Up to 2 pts infill site or site expropriated as part of a nuisance abatement process; and one additional point, up to 2 points, for each non-contiguous infill site or site Criterion Score expropriated as part of a nuisance abatement process that is incorporated into a scattered-site project, located within an area with a radius no larger than onequarter mile. An infill site shall be defined as a site that is bound on all except one of its sides, or two of its sides in case of a corner-type property, by adjoining builtup properties, and that has immediate access to existing public infrastructure of roads, water, sewer, and power. Documentation required: Aerial photograph for each infill site showing properties. Documentation required: Cadastral numbers of properties (Application, page 1). Documentation required: Nuisance abatement completed by Municipality supported by property deed and certification provided by Municipality. II.2. Historic property. A substantial rehabilitation project site located in or 3 incorporates a state-designated historic property, federally designated historic place, or a contributing resource to a federally designated Historic District will be awarded 3 points. Documentation required: Act citation or Planning Board's Resolution number and date in case of state-designated properties; listing in the National Register of Historic Places in case of federally designated properties; or State Historic Preservation Office's (SHPO) certification of contributing resource. II.3. Adaptive reuse. Where the residential use is an adaptive reuse of an existing 3 industrial/commercial property (refers to the process of reusing an old site or building for a purpose other than which it was built or designed for; does not apply if the existing structure will be demolished) a project will be awarded 3 points. Documentation required: Appraisal certifying present land use of the property. II.4. Site Characteristics. Up to 6 Pts II.4.1. Mobility. Projects (or the totality of the building sites, in the case of a scattered- Up to 3 pts site project), that incorporate improvements aimed at facilitating the mobility of residents and promoting public transportation will be awarded up to 3 points, as follows: The project provides an accessible and dedicated pedestrian network within the 1 project site to connect the main pedestrian entrance(s) of the building(s) with egress points on all property sides adjoining a public street. Documentation required: Site plan certified by the project's designer identifying the proposed improvements. Provided It is not required by a competent authority as an off-site improvement, 1 the project includes the construction or rehabilitation of all non-conforming sidewalks in the perimeter of the project site adjoining a public roadway, in compliance with applicable accessibility standards and local codes. Documentation required: A separate plan drawing certified by the project's designer identifying any segments of the existing pedestrian pathways requiring accessibility improvements or in need of repair, and proposed improvements or new construction required to comply with applicable accessibility standards and local codes. Documentation required: Approval from Municipality and competent transit authority, if applicable. Criterion Score Documentation required: Letter from competent authority attesting the improvement is not a required off-site. Provided it is not required by a competent authority as an off-site improvement, 1 the project includes the construction or rehabilitation of transit pull-offs or public transit stops and required signage in any point of the roadway perimeter of the project site; or the provision or improvement of the sidewalks, crosswalks, refuge islands, and required signage to connect an off-site existing public transit stop with the project site, in compliance with applicable accessibility standards and local codes. Documentation required: A separate plan drawing certified by the project's designer identifying any segments of the existing pedestrian pathways requiring accessibility improvements or in need of repair, and proposed improvements or new construction required to comply with applicable accessibility standards and local codes, Documentation required: Approval from Municipality and competent transit authority, if applicable. Documentation required: Letter from competent authority attesting the improvement is not a required off-site, II.4.2. Urban Considerations. A proposed development that strengthens and improves Up to 3 pts the neighborhood's general urban character may be awarded one point for each one of the following criteria, up to 3 points, as follows: The project achieves the maximum allowable gross floor area, housing density, 1 and/or height under applicable code provisions. Documentation required: Table with applicable code provisions, maximum parameters, and project parameters certified by the project's designer. The parking spaces and service areas are screened from any public sidewalk or 1 roadway by green hedges, fences, or walls with a void-to-solid area ratio of 1 or less. Documentation required: Site plan and elevation details certified by the project's designer identifying visual barriers and certifying compliance. The main entrance(s) of building(s) open(s) to the sidewalk of an adjoining public 1 roadway. Documentation required: Site plan certified by the project's designer showing the location of the building's main entrance(s). II.5. Building Characteristics. Up to 10 Pts II.5.1. Unit Mix. Projects might earn up to 2 points for a unit mix, preferring 2 or more Up to 2 pts bedrooms per unit as follows: 75% or more with 2 or more bedrooms per unit 2 50% or more with 2 or more bedrooms per unit 1 Documentation required: Floor plans certified by the project's designer. Documentation required: Project pro forma. 11.5.3. Building Amenities. Projects will be awarded one point, up to 8 points, for each Up to 8 pts one of the following building or unit features benefiting all units and, if applicable, not required by code or a permit authority: Criterion Score Centrally located courtyard or patio with an area of no less than 30 sq. ft. per 1 unit directly accessible from the main entrance(s) of the building(s). Community or meeting center with an area of no less than 15 sq. ft. per unit, 1 with kitchen and public bathrooms. Open balcony in each unit with an area of no less than 24 sq. ft. (this area is 1 part of the unit's Gross Living Area). Equipped exercise room(s) with an area or aggregate area of no less than 300 1 sq. ft. Common laundry facilities must include at least one washer-dryer pair per 15 1 units that do not have in-unit washer/dryer hookups. Equipped playground outdoor area with visual control from the main 1 entrance. Night shift security guard or virtual security. 1 Trash chutes (for mid- or high-rise facilities) or a dedicated onsite recycling 1 area. Storm windows or shutters in all units. 1 Units with 3 or more bedrooms have 2 bathrooms. 1 Units provide Washer/Dryer hookups. 1 Single-family units provide Carport (marquesina). 1 Ceiling fans for all bedrooms and living room areas. 1 Documentation required: Floor plans and elevations certified by the project's designer showing designated spaces, equipment, and/or floor area. Documentation required: Designer's Preliminary Opinion Letter (Annex J, model of certification), specifying compliance with applicable design criteria. II.6. Gap Financing Efficiency. Projects that demonstrate the capacity to efficiently Up to 10 pts curb gap financing sources (HOME, HTF, CDBG-MIT, RD, FHLB-NY, among others) relative to total development costs-while complying with applicable standards, threshold requirements, and minimum scoring-may earn up to 10 points. This efficiency will be measured by the following ratio: Total Development Cost (TDC), Minus Gap Financing requested (GFR), Divided by the TDC, Times 10 [number of max points that a project can receive for this criterion], rounded to four (4) decimal points. The result of the above computation equals the points earned by the project as follows: (TDC-GFR)/TDC) *10=Points Earned Documentation required: Project Development Costs (Application, Pages 11 and 12). If the Gap Financing is provided by an entity, other than PRHFA, copies of the commitment letter/agreement for such financing. Documentation required: Sources and Uses. (Application, Page 15). Criterion Score II.7. Construction Readiness. Up to 5 points, if requesting only Tax Credits, will be Up to 5 Pts awarded if the project has one of the following: For Multi-Family Developments: Unexpired Notification of Approval of the 5 Construction Permit. For Single-Housing Developments: Urbanization permit or notification of 5 approval of the urbanization permit, and approved Plano Seguro. Documentation required: Document issued by OGPe or Autonomous Municipality. III. Housing Needs Characteristics Up to 11 Pts III.1. Targeted Units. A project will be awarded up to 3 points if it sets aside the Up to 3 pts applicable percentage of units for any of the following special population categories identified in the Puerto Rico State Housing Plan (Exhibit FF): elderly, single-family, youth-headed households, persons with HIV/AIDS, and persons with disabilities sectors. Other special population set asides that will be awarded these points include those for: veterans, and assisted living. As follows: If requesting Tax Credits, at least 75% of total project units are set aside for 3 one or more targeted group during the length of the extended use period. If requesting Tax Credits, at least 50% of total project units are set aside for 2 one or more targeted group during the length of the extended use period. If requesting Tax Credits, at least 25% of total project units are set aside for 1 one targeted group during the length of the extended use period. Documentation required: Proposed covenant provision for income targeting included in letter of intent to sign Land Use Restrictive Covenant Agreement (in substantially the same form as Annex K) and recording the targeted set-aside for the length of the affordability period. Documentation required: If requesting CDGB-DR, Affirmative Fair Housing Marketing Plan (similar to Annex S). Documentation required: If requesting only Tax Credits, tenant selection procedures. III.2. Preservation. To strengthen the Public Policy of Puerto Rico that seeks to Up to 4 Pts maintain the stock of affordable rental housing, a substantial rehabilitation project that meets the threshold expenditure level established under IRC 42(c)(3)(A)(ii) might earn up to 4 points If: The project curbs the risk of loss due to physical condition by replacing more 2 than one major building component, which includes roof, bearing wall, floor, or foundation structures; plumbing system; electrical system; fire prevention and safety system; vertical transportation; or building envelope. Documentation required: Comprehensive capital needs assessment certified by an architect or civil engineer, duly licensed in Puerto Rico, including the identification of the condition of major building systems and the extent of required code compliance retrofitting. The project curbs a significant risk for market conversion of the Tax Credit or 2 otherwise rent-assisted property; or preserves a comparable level of existing Criterion Score project-based rental subsidies that will expire within two years of the application date. Documentation required: Housing market study must demonstrate the capacity of the project to compete for market rate tenants; copy of existing rental subsidy contract, If applicable. Documentation required: Letter from rental assistance provider stating intention to extend the existing contract. III.3. Term. If requesting Tax Credits, a project might earn up to 2 points for extending Up to 2 Pts the term of affordability beyond the extended use period of thirty years for: At least 10 more years. 2 At least 5 more years. 1 Documentation required: Letter of intent to extend the initial 15-year period of compliance with the Tax Credits program's income and rent restriction requirements for a minimum of 15 additional years and sign the Land Use Restrictive Covenant Agreement (in substantially the same form as Annex K). Documentation required: Project pro-forma. III.4. Homeownership Conversion. If requesting Tax Credits, a project will be awarded 1 1 point if proposed to be converted to tenant homeownership (right of first refusal) for the residents after the compliance period expires. Documentation required: Letter of intent to sign the Land Use Restrictive Covenant Agreement (In substantially the same form as Annex K and reflecting a right of first refusal granted to the residents). Documentation required: Syndication documents with conversion provisions. Documentation required: Detailed plan with projections on maintenance, reserves, homeownership training, continued affordability, sales price calculation, lease and purchase agreements, and any other relevant information to demonstrate compliance with applicable regulations. III.5. Public Housing Agency (PHA) Waiting Lists. If requesting Tax Credits, any project 1 included in any waiting list of a PHA might earn 1 point. Documentation required: Referral agreement with the correspondent PHA to include the project in any listing of public housing opportunities where households with tenant-based subsidies are welcomed and where the project's owner or management agent agrees to actively seek referrals from the public housing authority to apply for units at the project. Also, Annex S, specifying in item 8 that "the owners will rent the units of the project to eligible families referred by the PHA from its waiting list or from their own waiting list if the PHA cannot provide adequate candidates, as determined and requested on the PHA's Administrative Plan." IV. Project Developer CharacterIstics Up to 8 Pts IV.1. Developer, General Partner, or Managing Partner can demonstrate successful Up to 8 Pts record and full compliance participating in the same capacity in the development of Tax Credit projects, or other low-income housing programs. Up to 8 points shall be awarded based on the number of Low-Income housing properties successfully developed by the general partner, managing member, and/or developer that have maintained financial stability and full compliance throughout operations: Criterion Score 5 or more developments in service for more than 3 years 8 5 or more developments in service for less than 3 years 6 2-4 developments in service for more than 3 years 4 2-4 developments in service for less than 3 years 2 1 development in service for more than 5 years 1pt 1 Documentation required: Duly completed Compliance Disclosure form (Exhibit HH) showing history of the projects for which points are requested. Documentation required: Copy of HAP, IRS form 8609 for each project, as applicable. Documentation required: For projects placed in service for less than 3 years, audited financial statements, for each year in service, of the projects for which points are requested. Documentation required: For developments in service for more than 3 years, a certification from a certified public accountant that the projects for which points are requested have maintained a positive operating cash flow from typical residential income for the year in which each development's last financial statement has been prepared and have funded reserves in accordance with the partnership agreement and any applicable loan documents. V. Financing Characteristics Up to 14 Pts V.1. Funds Leveraging. The leveraging of capital funding from public grants or non- Up to 2 Pts financing sources, other than those being managed by the Authority, PRDOH, or the Municipalities, is encouraged by awarding a project up to 2 points as follows: At least 15% of the total development cost is covered by other sources of 2 public funding. At least 10% of the total development cost is covered by other sources of 1 public funding. Documentation required: Sources and Uses (Application, page 15). Documentation required: Binding commitment, agreement, or award documentation. V.2. Local Government Funding. Up to 3 points are awarded to projects that leverage Up to 3 Pts local government capital funding through cash contributions, land donated or discounted, site or off-site improvements, grants, or a municipal construction tax abatement which is granted to the project and is not available under a local or state statute of general application, with a total value of: At least 5% of the total development cost. 3 At least 3% of the total development cost. 2 At least 1% of the total development cost. 1 Documentation required: Sources and Uses (Application, Page 15). Documentation required: Binding commitment, agreement, or award documentation. Document required: If applicable, Ordinance, Resolution, or Bld supporting property transaction. Criterion Score Document required: Evidence of site control by Owner, including earnest money agreement, option or closing statement for land and/or buildings, title, deed, or leasehold agreement, or equivalent for Municipal land transaction. Document required: If applicable, documentation supporting construction tax abatement (Ordinance and/or Resolution). V.3. Local Government Land/Building. Projects which have bought, or optioned to Up to 3 Pts buy, land for redevelopment owned by PRDOH, PRPHA, a Municipality or other instrumentality of the Government of Puerto Rico, will be awarded 3 points. Documentation required: Copy of long-term lease agreement, deed, or letter of commitment. Document required: If applicable, Ordinance, Resolution, or Bid supporting property transaction. Document required: Evidence of site control by Owner, including earnest money agreement, option or closing statement for land and/or buildings, title, deed, or leasehold agreement, or equivalent for Municipal land transaction. V.4. Projects applying for financing with the Authority will be awarded up to 3 points. Up to 3 pts Interim and Permanent Financing. 3 Interim or Permanent Financing. 2 Documentation required: PRHFA loan application V.5. Intermediary Costs. A project may be awarded up to five (5) points if it meets the Up to 3 pts corresponding intermediary cost percentage. Intermediary costs are third-party service costs related to the project development, such as architectural, engineering, accounting, legal, environmental consulting, and construction management, among others. Calculate the percentage total using the following formula: Intermediary costs divided by Total Development Costs = Intermediary Cost % (rounded to the nearest tenth): 0.0% to 5.00% 3 5.01% to 10.00% 2 10.01% to 15.00% 1 Documentation required: Worksheet with calculations. Documentation required: Project Development Costs (Application pages 11, 12, and 13) VI. Supportive Services Up to 3 Pts VI.1. Supportive Services. To advance the public policy of Puerto Rico to increase the provision of supportive services by integrating agencies that provide these services and coordinate their actions to support permanent housing for populations with special needs, any project might earn up to 3 points for sustaining a funding allocation for the provision of supportive services of the type: (1) authorized under a federally subsidized program and that could be funded with resources obtained directly as a grantee in competitive or demonstrative grants, or as a recipient of rental or operational assistance (i.e. CoC, VASH, GPD, Low-Income Housing Tax Credits 2025-Quallfied Allocation Plan Criterion Score SSVF, Veteran Per-Diem, CDBG, 811, 202, HOPWA, FSS Program, etc.), or indirectly as sub-grantee or provider, or by contracting the services of a subgrantee or provider, of any state or municipally managed program (i.e., ADFAN's CSGB, VRA's Independent Living, ASSMCA's Homeless and Chronic Mental Health, ADFAN's Adult and Person with Disabilities Services, Medicaid's Home and Community-Based Service Waivers, among others); or (2) contracted for a certified Assisted Living facility authorized under Act 244-2003, as follows: Up to 5% of the project's annual operational cost for the length of the 3 compliance period of affordability. Up to 3% of the project's annual operational cost for the length of the 2 compliance period of affordability. Up to 1% of the project's annual operational cost for the length of the 1 compliance period of affordability. Documentation required: Copy of supportive services commitment letter, binding commitment, award letter, contract, or agreement. Documentation required: Project pro forma. Documentation required: Letter of intent to sign the Land Use Restrictive Covenant Agreement (in substantially the same form as Annex K) and specifying operational budget commitment for supportive services. Total Score 100 Minimum Score 30 VII. Tie-Breaking Criteria, listed in order of Importance These criteria will be applied when two or more applicants have the same score. The criteria will be evaluated in the order shown below. The first project to meet a criterion prevails over the others with the same score. VII.1. Will favor the project that is the readiest to proceed. VII.2. Will favor the project with lowest total development costs per unit. VII.3. Will favor the project that is located in a Municipality with the longer elapsed period without a Tax Credit allocation. 5.5. Tax Credit Allocation 5.5.1. Description Following the Point Ranking System calculation, projects will be ranked in descending order, most points to least points. The Authority anticipates reserving Tax Credits for those projects scoring highest under the Point Scoring Criteria up to the amount permitted by law and this 2025-QAP. The Authority anticipates reserving Tax Credits for projects in the list, starting with the highest scoring project, and continuing down the rankings, reserving Tax Credits, and subtracting them from the cumulative balance of available Tax Credits for that year, until that balance reaches zero. Tax Credit allocations for projects that received binding commitments in prior years will be honored by the terms of such commitments, and projects competing under set asides will initially be ranked and compete only against other projects competing under such set asides, until the Tax Credit balance of such set asides reaches zero, whereupon such projects will be ranked and compete against all projects outside such set asides. If there are insufficient Nonprofit eligible projects to meet the Nonprofit Set-Aside, the unallocated Nonprofit Set-Aside credits cannot be allocated to other eligible projects and will become unused carryforward in next years' Authority Tax Credits ceiling, as provided in Section 4.3.1. However, the credit allocation process may vary in order to further the public policy set forth in this 2025-QAP, and/or the Action Plan. Specifically, notwithstanding the Point Ranking System, nor other provisions set forth in this 2025-QAP, the Authority reserves the right and shall have the power to allocate credits and other administered funds to a project, or waive provisions, irrespective of its point ranking, if such intended action is: (1) in compliance with Section 42 of the Code; (2) in furtherance of the allocation priorities, Set-Asides, and preferences stated herein; and (3) determined to be in the interest of citizens of Puerto Rico. THE RANKING UNDER THE PROJECT SELECTION CRITERIA DOES NOT VEST AN APPLICANT OR PROJECT WITH ANY RIGHT TO RESERVATION OR ALLOCATION OF TAX CREDITS. Applications for new construction projects that will be placed in service within the next calendar year in which the application is submitted will receive the highest priority. Projects returning Tax Credits from the previous year allocation and not placed in service within the established two-year period will receive the lowest priority. 5.5.2. Allocation of Other Authority-Administered Funds It is possible that other programs and sources of funds managed by the Authority may choose to rely on the Point Ranking System set forth in this 2025-QAP, as amended from time to time, to select projects to receive fund allocations. It is also possible that such other sources of funds may be included as part of a particular project's pro-forma statements calculated as described in Section 5.3.2; that the Point Ranking of such project is sufficient to receive Tax Credits; yet that there are not sufficient funds in one or more of such other programs to meet the recommended amounts for such other programs. In such situation, the Authority may, in its sole discretion and based on the criterion of necessity, adjust upwards the recommended Tax Credits up to the maximum limits prescribed in Section 42 of the Code. 5.5.3. Notification of Tax Credit The Authority will notify each applicant of an initial reservation of Tax Credits, or lack thereof. The Executive Director of the Authority will sign the letter awarding, or denying, reservation of Tax Credits. For successful applicants, the initial reservation letter will specify the preliminary amount of annual Tax Credits, any additional information and documentation required to adjust said amount to established parameters, and the date by which to submit to the Authority such information and documentation necessary to receive the final allocation. The Initial Reservation Letter will also include: Itemization of adjustments to costs, income, expenses, and underwriting assumptions made to the application. Any deficiency in sources of funds for the project based on the information submitted with the application, and a reasonable time to present additional sources of funds already committed to cover such deficiency, subject to cancellation of the Initial Reservation Letter. 5.5.4. Review An applicant adversely affected by a decision of the Authority denying reservation of Tax Credits may submit a written petition for reconsideration to the Executive Director of the Authority within ten (10) calendar days after the notification by mail of the letter denying the application. A copy of the petition for reconsideration must be filed with the Financing and Tax Credit Department. The Authority shall consider the petition for reconsideration within ten (10) calendar days of filing. If the Authority decides upon the merits of the petition for reconsideration, the term to petition for judicial review shall commence as of the date of the notification by mail of the final determination. If the Authority takes no action with respect to the petition for reconsideration within ten (10) calendar days of filing, the petition for reconsideration shall be deemed to have been denied outright and the term for judicial review shall commence to run as of that date. An applicant adversely affected by a decision of the Authority denying reservation of Tax Credits may present a petition for review before the Court of Appeals within ten (10) calendar days after the notification by mail of the letter denying the application, or within ten (10) calendar days after the expiration of the term provided to the Authority to consider the petition for reconsideration. The filing of a petition for reconsideration or a petition for judicial review shall not stay the Authority's allocation of Tax Credits to successful applicants. If an applicant who petitions for review obtains a final order or judicial decree that modifies the decision of the Authority, so that the application is worthy of a reservation of Tax:Credits, the Authority shall provide the applicant with a reservation of Tax Credits from the next available allocation round, whether in the current year or a subsequent year. The reconsideration and judicial review procedure provided herein shall be the exclusive proceeding to review the merits of a decision of the Authority regarding the reservation or allocation of Tax Credits pursuant to this 2025-QAP. Other regulations regarding formal or informal adjudicatory proceedings before the Authority are not applicable to Tax Credit reservation and allocation decisions. 5.5.5. Environmental Review Requirements Environmental Review (ER) is the process of reviewing a project and its potential environmental impacts to determine whether it meets federal, state, and local environmental standards. Every project undertaken with federal funds, and all activities associated with such projects, are subject to the provisions of the National Environmental Policy Act of 1969 (NEPA), as well as the HUD environmental review regulations in 24 CFR Part 58 on Environmental Review Procedures for Entities Assuming HUD Environmental Responsibilities. Applications under other federal programs (e.g., CDBG-MIT, HOME, and HTF) will be subject to a level of environmental determination for project activity. This review and determination (based on project Application) will be required prior to the development of any program Agreement (e.g., CDBG-MIT, HOME, and HTF). The ER (based upon that level of environmental determination) will then be required prior to receiving funding. The CDBG funds agreement will contain a provision prohibiting the State recipient, Subrecipient, or project owner from undertaking or committing any funds (not limited to HOME funds) to physical or choice-limiting actions. Physical or choice-limiting actions include entering into contracts (including conditional contracts) for property acquisition, demolition, movement, rehabilitation, conversion, repair, or construction prior to the environmental clearance. The violation of this provision may result in the denial of any funds under the agreement. Finally, the agreement to provide funds for the project will be conditioned to proceed with, modify, or cancel the project based on the results of the environmental review. No work may start on a proposed project before the ER process is completed, even if that work is being done using non-HUD funds. All program recipients must comply with all applicable Federal, State, and local environmental laws and regulations. A violation of this requirement may jeopardize federal funding to a project and disallow all costs that were incurred before the completion of the Environmental Review. PRDOH is the Responsible Entity (RE) for ER and compliance for all projects that receive CDBG-MIT funds; whereas the Authority is the RE for all other federal funds, such as HOME and HTF. Both agencies will maintain a written Environmental Review Record (ERR) of the ER process meeting the legal requirements and documenting their review and compliance with the related federal authorities listed in 24 CFR Part 58. For additional details, regarding the ER please refer to Annex P. Be advised that if the project only applies for Tax Credits, the ER explained in this section is not required. Nevertheless, after construction begins, the project will not be eligible for any federal funding (e.g., CDBG-MIT, HOME, and HTF) without an ERR. 5.5.6. Accessibility Requirements The Authority will verify the project applications for compliance with accessibility requirements as part of the Technical Review, which is required as a prerequisite to any reservation and/or award. The Authority will also cause the Applicant to comply with: Davis-Bacon and related acts (40 USC. §§ 276a-276a-7) Contract Work Hours and Safety Standards Act (40 USC §§ 327-333) Copeland (Anti-Kickback) Act (18 USC § 874/40 USC § 276c) Fair Labor Standards Act of 1938, as amended (29 USC § 201, et seq.)