section 42 qualified contracts
DESCRIPTION
Section 42 Qualified Contracts. New Hampshire Housing Multi-Family Conference May 8, 2014. QCP Overview. Initial 15 year compliance period 1989 Reconciliation Act added the 15 year extended use period with an “opt out” - PowerPoint PPT PresentationTRANSCRIPT
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New Hampshire Housing
Multi-Family Conference
May 8, 2014
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Initial 15 year compliance period
1989 Reconciliation Act added the 15 year extended use period with an “opt out”
The intent to balance preservation with incentive for investors to have back end possibility
“Bona fide” qualified contract
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Owners request to NHH
Unless you waived this right- LURA or other governing docs
Verify all Right of First Refusal
Properties Requirements
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First Year commencement
Submitting the QCP
Description of property
Photographs
Financial operating statements
First year 8609’s
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Annual partnership tax returns
Loan documents including Partnership Agreement
Physical Needs Assessment
Appraisal
Market Study
Phase I environmental (if necessary)
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60 days review of submittal
60 days to validate the QCP
Once QCP has been approved commencement of the 1 year begins
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Owner to hire a broker
Post summary data on our website
Cooperation with NHH on QCP, including additional project data
Provide access to the property for viewing
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NHH’s only obligation is to present a QC price
No requirement in IRC 42 that prospective buyer actually purchase the property
“Bona Fide” offer declined by owner
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No “Bona Fide” is presented
Three (3) year tenant protection period
Commencing on the termination of compliance period
Owner may not evict tenant (except for cause)
Increase gross rent except as permitted by Section 42