Carryover Allocation/10% Test
For developments that will not be placed into service in the year in which a Conditional Reservation is issued, NIFA will grant a Carryover Allocation subject to the conditions set forth below.
To receive a Carryover Allocation, the owner must (a) submit one hardcopy of all documentation detailed in the Carryover Allocation Procedures Manual by November 1st of the current year, and (b) incur 10% or more of the reasonably expected basis (including land) in the development ("10% Test Certification") within one year from the date of the Carryover Allocation and by no later than June 30th of the preceding year.
NIFA shall grant a Carryover Allocation upon receipt and review of the following completed Carryover Allocation Documentation:
- Carryover Allocation Agreement
- LIHTC Calculation Worksheet, Attachment I of the Carryover Allocation Agreement
- Executed and filed organizational documents of the Owner
- Letter from the IRS evidencing the Owner's federal Employer Identification Number (EIN)
- Certificate of Good Standing for the Owner (dated within 30 days of submission of Carryover Allocation Documentation)
- Updated cost figures (firm bids at minimum, contracts preferred)
- Any additional information requested by NIFA
- If applicable, firm commitment for Department of Economic Development HOME Funds or USDA-RD
- Executed IRS Form 8821 (Tax Information Authorization Form) for the sharing of information between NIFA and the IRS. Each development will be required to execute a new Form 8821 every 3 years. Form 8821 must be from the Owner to NIFA and list the following on the respective line items.
- 3(a): Income
- 3(b): (i) Partnership or LLC - Form 1065; (ii) Individual - Form 1040; or (iii) Corporation - Form 1120
- 3(c): Current year and next two years
- 3(d): Any related federal income tax information pertaining to LIHTC, including audit findings and assessments
When all conditions and requirements of this section have been deemed satisfied by NIFA, NIFA will execute the Carryover Allocation Agreement and return one copy to the Owner.
10% Test Certification
- 10% Test Worksheet Certification, Attachment II of the Carryover Allocation Agreement
- Independent Auditor's Report on Applying Agreed-upon Procedures
- Recorded Warranty Deed in the name of the Owner
- Settlement Statement for purchase of land
- Current Certificate of Good Standing for the Owner (dated within 30 days of submission of 10% Test Certification)
- Certification from an appropriate city official with jurisdiction over the development or from the local Department of Energy or from such other source acceptable to NIFA that the plans and specifications meet the local energy conservation code