Section 15-313-10 - Selection of application; reservation of credits(a) Based on the review of the applications, documents, and any additional information submitted by the applicants or obtained from other sources by the corporation, the executive director shall make a determination as to the likelihood of the applicant being able to qualify for the credit under the Code and the corporation's qualified allocation plan. The executive director shall then prepare a recommendation to the board for a reservation of federal tax credits for applications selected pursuant to the corporation's qualified allocation plan.(b) The board shall review the recommendation of the executive director for the reservation of federal tax credits, and, if the board determines that the project will contribute to the housing goals of the State, it may approve the application and authorize the executive director to reserve an appropriate amount of credits to the applicant, subject to such terms and conditions as it shall deem necessary or appropriate to assure compliance with the Code and these rules. The board shall either approve, defer, or deny applications received no later than sixty days after an application with required exhibits is deemed complete and satisfactory by the executive director.(c) Upon the board's approval of a reservation of federal tax credits to an applicant, the executive director shall notify the applicant of the federal credit reservation by issuing a commitment letter which shall outline any terms and conditions imposed with respect thereto.(d) If the board determines to defer an application for a reservation of federal tax credits, such application shall remain active. If the board determines to disapprove an application, such application shall be considered null and void. Deferred applications may be brought back before the board as determined by the executive director but such applications shall become null and void at the end of each calendar year if not brought back before the board for further action. Applicants whose applications have been deferred by board action shall be notified within seven days of their applications being reheard before the board and within ten days of the end of the calendar year if such applications have not been reheard and have therefore become null and void.(e) When a federal credit reservation is approved, the executive director shall require the applicant to make a good faith deposit with the corporation of an amount equal to ten per cent of the federal tax credit reserved to assure that the applicant will comply with all requirements under the Code and these rules for allocation of the federal tax credits. Upon allocation of the federal tax credits, a portion of the ten per cent good faith deposit shall be retained by the corporation as an administrative fee and the remainder refunded. The amount of the administrative fee to be retained shall be established each calendar year effective January 1. Upon the cancellation by applicant or withdrawal by executive director of a tax credit reservation, applicant is entitled to a refund of the good faith deposit less the corporation's administrative fee provided that the credits withdrawn or canceled are reserved for another project. No deposits shall be refunded other than as provided in this paragraph.
[Eff APR 23 2010] (Auth: HRS §§ 201H-4, 201H-15) (Imp: HRS § 201H-15; 26 U.S.C. 42(h)(3)(c); 52 Fed. Reg. 23433 § 1.42-1T)