Montana Administrative Register Notice 8-111-162 No. 20   10/19/2018    
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In the matter of the amendment of ARM 8.111.602 definitions and 8.111.603 housing credit allocation procedure






 TO: All Concerned Persons


1. On November 8, 2018, at 9:00 a.m., the Department of Commerce will hold a public hearing in Room 228 of the Park Avenue Building at 301 South Park Avenue, Helena, Montana, to consider the proposed amendment of the above-stated rules.


2. The Department of Commerce will make reasonable accommodations for persons with disabilities who wish to participate in this rulemaking process or need an alternative accessible format of this notice. If you require an accommodation, contact the Department of Commerce no later than 5:00 p.m. on November 6, 2018, to advise us of the nature of the accommodation that you need. Please contact Bonnie Martello, Board of Housing, Department of Commerce, 301 South Park Avenue, P.O. Box 200501, Helena, Montana, 59620-0501; telephone (406) 841-2596; fax (406) 841-2771; TDD (406) 841-2702; or e-mail bmartello@mt.gov.


3. The rules as proposed to be amended provide as follows, new matter underlined, deleted matter interlined:


            8.111.602 DEFINITIONS (1) and (2) remain the same.

            (3)  "QAP" means the board's "Housing Credit Program 2019 2020 Qualified Allocation Plan," which sets forth the application process and selection criteria used by the board for evaluation and selection of projects to receive awards for allocation of housing credits for calendar year 2019 2020. The board adopts and incorporates by reference the Housing Credit Program 2020 Qualified Allocation Plan, copies of which may be obtained by contacting the Board of Housing by mail at P.O. Box 200528, Helena, MT 59620-0528, by telephone at (406) 841-2845 or (406) 841-2838, or at the board's web site www.housing.mt.gov.

            (4) remains the same.


AUTH: 90-6-106, MCA

IMP: 90-6-104, MCA


REASON: The proposed amendments to ARM 8.111.602 are necessary to adopt and incorporate by reference the board's Housing Credit Program 2020 Qualified Allocation Plan (QAP).


Federal low-income housing tax credits are allocated by the federal government to the states, according to their population, for allocation to particular buildings. Each state's share of federal low-income housing tax credits is allocated to particular buildings under programs administered by the respective states' housing credit agencies. The Montana Board of Housing is Montana's housing credit agency for purposes of administering the tax credit program and allocating tax credits in the state of Montana. In Montana, the program is known as the Montana Housing Credit Program. Federal law requires that tax credits allocated to the state by the federal government must be allocated by the state pursuant to a "qualified allocation plan" or "QAP."


Prior to publication of this notice, the board conducted several public meetings to consider suggestions and comments regarding the provisions of the 2020 QAP. Thereafter, at its August 8, 2018 meeting, the board considered and approved public notice and distribution of the proposed 2020 QAP. After public notice of the proposed 2020 QAP and of the opportunity for public comment was published and distributed, a public hearing on the proposed 2019 QAP was held on August 23, 2018, and written comments were also received. At its September 11, 2018 meeting, after considering all written and oral comments on the proposed 2020 QAP, staff recommendations, additional public comment and various proposed revisions in response to comments, the board approved the 2020 QAP for submission to and approval by the Montana Governor, as required by the federal tax credit statute, 26 U.S.C. § 42. The Governor approved the 2020 QAP on September 20, 2018.


A copy of the 2020 QAP is available on the internet at http://housing.mt.gov/MFQAP or by requesting a copy from: Mary Bair, Board of Housing, Department of Commerce, 301 South Park Avenue, P.O. Box 200528, Helena, Montana, 59620-0528; telephone (406) 841-2845; fax (406) 841-2841; or e-mail mbair@mt.gov.


8.111.603 HOUSING CREDIT ALLOCATION PROCEDURE  (1) through (3) remain the same.

(4)  Following submission of applications, board staff will review and evaluate each invited application for conformance with the threshold and other requirements of the QAP.  Applications meeting all minimum threshold requirements and not excluded from further consideration under the QAP will be reviewed and evaluated according to all applicable QAP criteria and requirements, including but not limited to determining for the amount of housing credits needed for feasibility and long-term viability, and evaluation and scoring will be further evaluated and scored according to the development evaluation criteria of the QAP.  The points awarded to each project pursuant to the development evaluation criteria and scoring provisions of the QAP are for the purposes specified in (9), and not for purposes of ranking projects for allocation of housing credits.  Following application review, evaluation and scoring, board staff may provide recommendations to the board for allocation of housing credits to qualifying projects.

(5) through (9) remain the same.


AUTH: 90-6-106, MCA

IMP: 90-6-104, MCA


REASON: The proposed amendment to ARM 8.111.603(5) is necessary to clarify that applications will be reviewed and evaluated in accordance with all applicable QAP criteria and requirements, not solely those listed specifically in the current rule. The QAP includes various requirements and evaluation processes, including but not limited to certain development cost limitations, financial underwriting and related underwriting assumptions, accessibility requirements, energy and green building initiatives, goals and requirements, and rehabilitation requirements. The proposed amendments clarify that applications will be reviewed and evaluated in accordance with all applicable QAP provisions.


4. Concerned persons may submit their data, views, or arguments either orally or in writing, at the hearing. Written data, views, or arguments may also be submitted to:  Mary Bair, Board of Housing, Department of Commerce, 301 South Park Avenue, P.O. Box 200528, Helena, Montana, 59620-0528; telephone (406) 841-2845; fax (406) 841-2841; or e-mail mbair@mt.gov, and must be received no later than 5:00 p.m., November 16, 2018.


5. Mary Bair, Department of Commerce, has been designated to preside over and conduct this hearing.


6. The department maintains a list of interested persons who wish to receive notices of rulemaking actions proposed by this agency. Persons who wish to have their name added to the list shall make a written request that includes the name, e-mail, and mailing address of the person to receive notices and specifies for which program the person wishes to receive notices. Notices will be sent by e-mail unless a mailing preference is noted in the request. Such written request may be mailed or delivered to the contact person in 4 above or may be made by completing a request form at any rules hearing held by the department


7. The bill sponsor contact requirements of 2-4-302, MCA, do not apply.


8. With regard to the requirements of 2-4-111, MCA, the department has determined that the amendment of the above-referenced rules will not significantly and directly impact small businesses.



/s/ G. MARTIN TUTTLE___                         /s/ PAM HAXBY-COTE                  

G. MARTIN TUTTLE                                   PAM HAXBY-COTE

Rule Reviewer                                             Director

                                                                    Department of Commerce


Certified to the Secretary of State October 9, 2018.


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