99-346-16 Me. Code R. § 6

Current through 2024-51, December 18, 2024

Section 346-16-6 - SCORING CRITERIA

The Applicant must complete all information and submit all documentation required to be eligible for points.

Project Characteristics

A. Rehabilitation or Reuse of Existing Housing, Structure or Site. 5 Points

The Project site exhibits one or more of the following characteristics (1 point for each that applies):

1. Replacement or rehabilitation of existing rental housing containing 5 or more units without permanently displacing any existing tenants or increasing their housing costs (including rent and all other charges paid by the tenant) by more than 10%;

2. Rehabilitation, remediation, or reuse of an existing building or structure that has a current use other than multifamily rental housing;

3. One or more buildings or structures used for purposes other than single family residential housing or agriculture purposes, have been or will be demolished or removed for purposes of redeveloping the site;

4. Lots left vacant or nearly vacant in the development of a downtown or other city or town center, such as vacant lots or parking lots abutting commercial buildings and/or multifamily rental housing. Vacant lots in single-family residential areas are not eligible for points under this subsection. Undeveloped portions of existing sites are not eligible for points unless the existing project on the site previously satisfied one of the above criteria.

5. Specifically designated by a municipality for redevelopment to renew a blighted area or remediate environmental risks to the occupants.

B. Historic Rehabilitation. 5 points

The Project includes the rehabilitation of a certified historic structure using capital contributions generated from federal and state historic rehabilitation tax credits.

C. Populations with Special Needs. 6 points

The Project provides a set-aside for at least 20%, but not less than 4 of the units, for Persons Experiencing Homelessness or persons who have disabilities, are victims of domestic violence, or have other special housing needs, to create permanent supportive housing for persons who require that level of intervention within the special needs populations.

The Applicant must set aside units for the specific population(s) that qualify for the set- aside, maintain a separate waiting list for these units and make appropriate, voluntary services available through a qualified third-party provider other than the resident service coordinator required under Section 5. J. Additional funding from the Housing Trust Fund and/or Project-based Vouchers will be made available as necessary.

D. Family Housing. Up to 6 points

The Project is for families and a minimum percentage of the Credit Units are two and/or three or more bedroom units as follows:

Project for Families with Minimum Percentage of Credit Units by Bedroom Size	Points
At least 50% of the Credit Units are two or more bedroom units and at least 20% of the Credit Units are three or more bedroom units	6 points
At least 70% of the Credit Units are two or more bedroom units	3 points

E. Accessibility. Up to 12 points

One (1) point for each unit that

1. exceeds the minimum number of such units required by applicable federal and state accessibility laws, and

2. meets the requirements for a Type A unit under ANSI Standard A117.1-2009, up to the maximum points by project type below.

Type of Project	Maximum Points
Projects providing Housing for Older Adults	12 points
Projects that are not specifically for Older Adults or Families, having only 1 BR and/or efficiency units	9 points
Family Projects	6 points

Financial Characteristics

F. National Housing Trust Fund. 2 points

The Applicant agrees to accept and use any funding from MaineHousing's National Housing Trust Fund program for the Project. Any funding award will require a certain number of units in the Project to be affordable to and occupied by Extremely Low Income households. Awarding points is not a commitment of funding from the National Housing Trust Fund.

G. Acquisition Cost. Up to 5 points

Points are based on the percentage by which the acquisition costs are less than the average acquisition costs for a project of its type as follows:

Type of Project	Average Acquisition Cost
Acquisition and rehabilitation of existing housing	$60,500 per unit
New construction	$7,500 per unit
Adaptive Reuse	$10,500 per unit

For purposes of this subsection, acquisition costs include

1. the purchase price for all of the land and any existing building(s) even if donated or leased to the Applicant at below market value,

2. the cost of razing or demolishing any building(s) and structure(s), or any part thereof, on the Project site, and

3. the Capitalized Lease Value of all leases of land or land and building(s) that are part of the Project, with the exception of parking spaces.

The value of any project reserves transferred to the Project as part of the acquisition and included in the purchase price will not be included for purposes of this subsection.

Percentage of Project's Acquisition Cost as compared to Average Acquisition Cost	Points
0% to 1% (nominal)	5 points
>1% to 20%	4 points
>20% to 40%	3 points
>40% to 60%	2 point
>60% to 80%	1 point

H. Property Tax Relief. Up to 3 points

Points are based on the percentage of the Project's annual incremental property tax revenue returned to the Applicant or foregone by the taxing authority as follows:

Percentage and Duration of Tax Benefit or Relief	Points
50% to <75% for at least 15 years	1 point
50% to <75% for at least 30 years	2 points
[GREATER THAN EQUAL TO] 75% for at least 15 years	2 points
[GREATER THAN EQUAL TO] 75% for at least 30 years	3 points

Only Tax Increment Financing, payment in lieu of taxes, abatement, or other property tax relief arrangement approved by the taxing authority and all other applicable governing entities is eligible. A Project that is either a) located in a jurisdiction that does not assess property taxes or b) exempt from property taxes will be awarded one (1) point.

Funding made possible by an Affordable Housing TIF will not be eligible unless the Applicant submits a complete application for the TIF at least 30 calendar days before the applicable Application deadline (Tuesday, August 20, 2024 for the 2025 State Ceiling and Tuesday, August 19, 2025 for the 2026 State Ceiling.

Project Location

I. Housing Need. Up to 10 points

Points are based on the need for the type of housing in an area as follows:

1. Projects providing Housing for Older Adults located in the following Service Center Communities:

Projects providing Housing for Older Adults
Service Center Community			Points
Auburn	Kennebunk	Scarborough	10 points
Augusta	Kittery	Skowhegan
Bangor	Lewiston	South Portland
Bath	Old Orchard Beach	Topsham
Biddeford	Portland	Waterville
Brunswick	Presque Isle	Westbrook
Falmouth	Saco	Windham
Freeport	Sanford	Yarmouth
Bar Harbor	Dexter	Norway	8 points
Belfast	Dover-Foxcroft	Oxford
Blue Hill	Ellsworth	Rockland
Brewer	Fort Kent	Rockport
Bridgton	Gardiner	Rumford
Camden	Hallowell	Southwest Harbor
Caribou	Madawaska	Van Buren
Damariscotta	Mexico	Wiscasset
Bethel	Farmington	Millinocket	6 points
Bingham	Greenville	Newport
Guilford	Houlton	Paris
Boothbay Harbor	Jackman	Pittsfield
Calais	Limestone	Rangeley
Cornish	Lincoln	Stonington
Danforth	Mars Hill	Thomaston
Eastport	Millbridge	Winter Harbor

2. Other Housing Projects in the following Service Center Communities:

Other Housing Projects (not specifically for Older Adults)
Service Center Community			Points
Auburn	Farmington	Scarborough	10 points
Augusta	Lewiston	Skowhegan
Bangor	Old Orchard Beach	South Portland
Bath	Orono	Waterville
Biddeford	Portland	Westbrook
Brewer	Rumford	Windham
Brunswick	Saco
Caribou	Sanford
Bar Harbor	Hallowell	Norway	8 points
Blue Hill	Houlton	Paris
Dexter	Kittery	Presque Isle
Ellsworth	Limestone	Rockland
Falmouth	Madawaska	Rockport
Fort Kent	Mexico	Topsham
Millinocket	Yarmouth
Gardiner	Newport
Ashland	Danforth	Stonington	4 points
Bethel	Dover-Foxcroft	Thomaston
Lincoln	Greenville	Van Buren
Bridgton	Machias	Winter Harbor
Calais	Oxford	Wiscasset
Columbia Falls	Patten
Cornish	Rangeley
Damariscotta	Southwest Harbor

3. Projects located on Native American tribal lands will be awarded 8 points.

For each QAP round, municipalities receive their Housing Need score from the immediately preceding QAP if that score was higher.

J. Community Revitalization. Up to 5 points

Two (2) points if the Project is located within the boundaries of and contributes to the revitalization goals and efforts identified in a Community Revitalization Plan.

Two (2) points if the Project is located in a QCT and at least 20% of the units are market rate.

One (1) extra point if the Project also involves the preservation of existing Affordable Housing.

K. Smart Growth. Up to 15 points

Smart Growth Feature	Points
Access to Public Transportation. The Project is located within a Safe Walking Distance (1/2 mile or less) of a designated pick-up location for existing Fixed-route Public Transportation.	5 points
Demand Response Transportation. Demand Response Transportation is available to all tenants with no eligibility criteria that would limit or deny service.	5 points
Proximity to Activities Important to Daily Living. Activities Important to Daily Living are located within not more than a 1/2 mile of the Project. (1 point per Activity)	Up to 5 points

Sponsor Characteristics

L. Readiness. Up to 10 points

MaineHousing must approve both the design to be submitted to the municipality and the State and the final design, including all plans, details and specifications. The Project and any Related Developments must have all

1. municipal land use approvals (except building and other permits 5 points customarily issued during construction), and

2. State land use approvals (such as site plan, subdivision, storm 5 points water, or wetlands approvals) required to proceed with and complete construction.

As of the Application date, the timeframe to appeal all such approvals must have expired with no appellate action being taken, or all appeals have been resolved.

M. Developer Capacity. Up to 5 points

Points are based on the development experience of the Applicant, any Principal thereof, or Affiliates of either as follows:

Successfully completed at least one multifamily rental housing project with MaineHousing funding or completed at least one LIHTC Project in another state(s).	5 points
Experience successfully developing and operating multifamily rental housing or experience managing Affordable Housing, and the Applicant has a contract with a qualified LIHTC consultant to develop the Project.	4 points
Experience successfully developing and operating multifamily rental housing.	3 points

N. Owner Performance. Up to a 5 Point loss

Points reductions are based on the recent performance of the Applicant. MaineHousing may reject the Application if it determines outstanding deficiencies are not addressed, or require financial statements from the Applicant, Principals thereof, or Affiliates.

Has been 60 calendar days or more delinquent in the payment of any MaineHousing loan since September 22, 2014 (except delinquencies resulting from the delay or loss of Section 8 housing assistance payments), was declared in default by MaineHousing, or needed a financial workout for any project within the last 5 years.	-2 points
Had LIHTC Projects still in their Compliance Period had a year-end operating deficit, in the last full Fiscal Year, unless the operating deficit was fully funded by the Application deadline.	-2 point
Was (a) issued an IRS Form 8823 from owner non-performance; or (b) had an IRS audit finding resulting in a recapture event, since September 22, 2016. MaineHousing may consider, in its sole discretion, whether (a) or (b) resulted directly from: the Applicant's non-performance, the performance of an unaffiliated third-party, or something outside the control of any affiliated party provided it was corrected appropriately within a reasonable timeframe.	-1 point

O. Management Experience. Up to 2 points

The company that will manage the Project has at least

one (1) staff person with a minimum of three (3) years of experience successfully managing: (a) at least one (1) LIHTC Project; or (b) at least one (1) low income housing property developed under a Federal program that is substantially similar to LIHTC, to be determined at MaineHousing's sole discretion.	1 point
one (1) staff person with LIHTC training for every 150 units in LIHTC Project(s) the company plans to manage.	1 point

P. Management Performance. Up to a 3 point loss

Management Companies which have shown instances of poor performance in their management of LIHTC Projects still in their Compliance Period may lose points as follows.

The average of the most recent physical plant inspection scores as of June 30 before the Application deadline is below Above Average.	-1 point
The average of Project Reports submission scores for the last reporting period as of June 30 before the Application deadline is below Above Average.	-1 point
The average of the most recent Management and Occupancy Review scores as of June 30 before the Application deadline is below Above Average.	-1 point

Q. Tie Breaker.

If more than one Application has the same score, the Application for the least amount of Credit and 0% deferred debt from MaineHousing per unit will have priority. If the Applications request the same amount of these resources, the Application with the most acceptable plan to convert the Project to affordable homeownership for the residents after the Extended Use Period will have priority. The plan must describe the process for transferring ownership to the residents, the purchase price or process for determining it, any financial assistance available for residents (including any reserves), how the affordability will be maintained, and must provide for homebuyer counseling and professional representation of the residents at the time of the conversion.

R. Review Process.

MaineHousing will notify each Applicant of its initial score in writing. If MaineHousing assigns a score in a scoring category which is lower than the score the Applicant assigned itself in the scoring category, the Applicant will have five business days from such written notice to demonstrate to MaineHousing that the Application as submitted should receive the higher score. MaineHousing will then make a final determination of scores and the ranking of Applications.

99-346 C.M.R. ch. 16, § 6