HTC Program Bulletin #23-002: Soft Cost/Hard Cost Ratio Tiebreaker

HOUSING TAX CREDIT PROGRAM

PROGRAM BULLETIN #23-002

TO: Developers, Owners, Management Agents Representing Owners, Interested Parties and State of Mississippi
FROM: Cliff Holmes, Senior Vice President of Tax Credits, Mississippi Home Corporation
SUBJECT: Soft Cost/Hard Cost Ratio Tiebreaker
DATE: August 17, 2023

 

Most awards for the 2023 Tax Credit Cycle were determined by the first tiebreaker, Soft Cost/Hard Cost Ratio. This tiebreaker provides priority funding for applications with the lowest soft cost percentage (calculated on Financial Feasibility Form FF-1).

For funded developments requesting additional sources such as HOME, Housing Trust Fund or Tax Credits due to increased costs will be underwritten by Allocations to determine if the new Sources and Uses results in an increased Soft Cost/Hard Cost ratio percentage.

For any increased soft cost percentage, Allocations staff will compare the percentage to the awards list to determine if that application would have been funded originally. If it is determined that the application would not have been funded, the applicant may rescind the request or return the tax credit award.

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