Carryover Allocation & 10% Test
Carryover Allocation Agreements were issued for all projects awarded Housing Tax Credits in 2008, including the normal 2008 LIHTC Round in March and projects awarded Midwestern Disaster Relief Credits in December 2008. These projects are required to meet the 10% Test by 9-30-09. The 10% Test for Carryover Allocation Application Package is now available.
Carryover Allocation Agreements for 2009 Tax Credit Awards are being prepared on a quarterly basis per the table below.
Applicants will have 9 months from carryover reservation to meet the 10% Test.
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Scheduled Carryover Issuance Dates
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Dates 10% Test Must be Met
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December 31, 2008
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September 30, 2009
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March 31, 2009
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December 31, 2009
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June 30, 2009
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March 31, 2010
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September 30, 2009
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June 30, 2010
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December 31, 2009
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September 30, 2010
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IFA staff will review the Carryover Application and documentation for the 10% Test and provide notification regarding whether the 10% Test requirements were met. A Checklist has been prepared identifying items required with the submission.
If you have questions, please contact Dave Vaske, Tax Credit Manager or Karen Winchester, Tax Credit Underwriter Analyst or by calling 800-432-7230.
The 10% Test for Carryover Allocation Application Package must be submitted to the IFA by the due dates listed above.
10% Test for Carryover Allocation Application Package
2. 10% Test for Carryover Allocation Checklist & checklist documents. The following required forms are available for the following checklist items:
- Original Attorney’s Opinion
- Original Independent Auditor’s Report
- Exhibit A to Auditor’s Report
- Original Certificate to Ownership & Basis
- Certification of Owner Equity
The following documents are also required; however, the lender and investor may use their own format, but it must be on lender and investor letterhead and contain the required information and be signed.
- Documentation of Enforceable Financing Commitment (Sample)
- Documentation of Syndicator Equity Commitment with Equity Factor & Pay-in Schedule (Sample)
- Construction Completion Schedule
- IFA construction sign (Appendix F)
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