Dear Community Investment Partner:
When preparing your application for the 2014 AHP funding competition, please note the following:
Property Acquisitions from an Affiliated Party
When determining the acquisition costs, allowable developer fee, and overall need for AHP subsidy for projects that involve a property acquisition from an affiliated party (for example, a property transfer between a project sponsor and a development partner or limited partnership), including, but not limited to, Low-Income Housing Tax Credit projects involving rehabilitation, resyndication, or new construction, the Bank will allow only the original property acquisition price that was paid to an unaffiliated party as an eligible cost. The Bank will require third-party documentation, such as a final title company closing statement or HUD-1 statement, to validate the acquisition price.
When determining the allowable developer fee for projects involving the rehabilitation of existing affordable housing projects (with no property acquisition), the Bank will not allow acquisition costs to be included in the total development cost.
If you have any questions, please email Community Investment or call (415) 616-2542.
James E. Yacenda
Vice President and Community Investment Officer