Section 195-C - Development Cost Relief Program.(a) Establishment.--The Development Cost Relief Program is established in the agency to support the production of developments by addressing financial deficiencies attributable to the effects of the COVID-19 pandemic and other economic factors. Money appropriated for COVID Relief - ARPA -Development Cost Relief Program shall be used for the purposes of this section.(b) Eligibility.--A development which meets all of the following criteria shall be eligible for an award under this section: (1) Has applied for, or has received a conditional or full allocation from the agency of, low-income housing tax credits under section 42 of the Internal Revenue Code of 1986 ( Public Law 99-514, 26 U.S.C. § 42 ) during the 2019, 2020, 2021, 2022 or 2023 application cycles.(2) Has not, as of the effective date of this section, received a certificate of occupancy for each unit within the development.(3) Has experienced cost increases, or a loss in equity investment, as the result of conditions arising from or related to the effects of the COVID-19 pandemic, which in the judgment of the agency necessitates the provision of additional funding to complete the development.(c) Application.--The agency shall make available to an eligible development an application that requires information, as determined necessary by the agency, to verify the need of the development and to determine the extent to which funding should be awarded, while ensuring that the development remains in compliance with the low-income housing tax credit program.(d)Determination.--A determination shall be made in accordance with the following: (1) Upon a determination of eligibility for money allocated under this section, the agency shall provide the development with a letter of commitment indicating the conditional award amount.(2) The agency shall use the same closing process and terms for an award of money from the fund as is used for an award from the Pennsylvania Housing Affordability and Rehabilitation Enhancement Program for a low-income housing tax credit recipient development.(e) Limitation.--Money provided for the program under this section may not be used to supplant other agency-committed resources except if the development risks noncompliance with the low-income housing tax credit program. Projects which have received or have been approved by the agency for construction cost relief funding under section 194-C may receive additional funding under the Development Cost Relief Program.(f) Additional amounts.--In addition to any amounts appropriated for the program under this section, any amounts which have not been awarded by the agency under section 194-C shall be available for award under this section.(g) Definitions.--As used in this section, the following words and phrases shall have the meanings given to them in this subsection unless the context clearly indicates otherwise: "Agency." The Pennsylvania Housing Finance Agency.
"Development." An affordable multifamily rental development.
Added by P.L. TBD 2022 No. 54, § 10, eff. 7/11/2022.