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#2145540 - 09/11/17 01:37 PM CDL credit on part low income building
Lori01 Offline
Member

Registered: 01/17/07
Posts: 70
Loc: VT
We did 75% of the financing for a mixed use multifamily building in a middle income tract. 9% was financed by a Community Loan Fund and 13% was owner equity.3% of additional funds were provided by state government to revitalize a brown field.

Per zoning regulations 13% of the building will be designated for low income renters. This property is considered the “gateway to the city” and abuts several moderate income neighborhoods, the property is in a middle income tract.

Question #1: Can I consider 13% of the funds we provided to be a CDL since that’s the percent of the building that will be low income?
Question #2: Do I have a prayer of including the whole amount if I put the whole thing in as a type 3 “other” and present at my exam?

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#2145652 - 09/12/17 10:11 AM Re: CDL credit on part low income building [Re: Lori01]
RR Jen Offline
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Registered: 05/20/03
Posts: 3756
Loc: Running and riding everywhere ...
You indicate "mixed use"...will there be retail shops or offices on the first floor or is it all housing?
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#2145713 - 09/12/17 03:15 PM Re: CDL credit on part low income building [Re: Lori01]
Lori01 Offline
Member

Registered: 01/17/07
Posts: 70
Loc: VT
The fist floor will have 2 retail shops consistent with a neighborhood, such as a café or coffee shop

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#2145745 - 09/12/17 05:11 PM Re: CDL credit on part low income building [Re: Lori01]
RR Jen Offline
Power Poster

Registered: 05/20/03
Posts: 3756
Loc: Running and riding everywhere ...
Can you get the information on the number of LMI jobs that would be created? That could help in an attempt at claiming the entire project or more of it.
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#2145831 - 09/13/17 11:00 AM Re: CDL credit on part low income building [Re: Lori01]
Len S Offline
Diamond Poster

Registered: 10/14/04
Posts: 1575
Loc: Connecticut
Questions to be answered
1 Will any of the housing be "affordable"?
2 Is the area "targeted" by federal, state or local government for revitalization/stabilization?
3 What documentation do you have to substantiate the CD qualifications?]

If you meet the "primary purpose test" (there are 2 ways to do that) you may be able to report and claim the entire amount of the loan as community development. If you don't meet the primary purpose test you may be able to receive credit on a pro rata basis for affordable housing. Usually CD is all or nothing, but there is an exception for affordable housing.
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