14.5 Evidence of Tax Credit Allocations

A. The Firm Application for any LIHTC project should include evidence of 1) a LIHTC award in the form of a 9% State Agency Allocation or if 4% Tax Credits, an allocation of private activity bond cap, or 2) in the case of Historic Credits or New Market Credits, an equivalent form of verification from the appropriate agency.

B. LIHTC allocation timing varies by state, and in some cases FHA applications must be submitted before final allocations of tax credits can be secured. Accordingly, other evidence is allowable. For example, in the case of 4% LIHTC allocations, state agency bond cap allocators’ assurances and written procedures stating that bond cap remains available for the period in question, that an application has been submitted for the project in question, and that allocations are obtainable in the time available.

C. Regional offices have discretion to accept applications proposing 4% LIHTC allocations based on evidence of approval that is customary for the allocating agency in question.