Section 10325. Application Selection Criteria - Credit Ceiling Applications.

• (a) General. All applications not requesting Federal Tax Credits under the requirements of IRC Section 42(h)(4)(B) and Section 10326 of these Regulations (for buildings financed by tax-exempt bonds) shall compete for reservations of Credit Ceiling amounts during designated reservation cycles. Applications for projects that have previously received private activity bond allocations that have not been returned as of the application filing deadline are ineligible to compete under the Credit Ceiling competition for Federal Tax Credits. Applications submitted to both the Credit Ceiling Application competition under Section 10325 and the Tax-Exempt Bond Application competition under Section 10326 for the same project with overlapping rounds shall be considered concurrent applications. The first application of the concurrent applications shall be deemed withdrawn unless it appears on the applicable final recommendation list. If the first application is included on the applicable final recommendation list, the second application shall be deemed withdrawn.

• (b) Authority. Selection criteria shall include those required by IRC Section 42(m), H & S Code Section 50199.14, and R & T Code Sections 12206, 17058, and 23610.5.

• (c) Credit Ceiling application competitions. Applications received in a reservation cycle, and competing for Federal and/or State Tax Credits, shall be scored and ranked according to the below-described criteria, except as modified by Section 10317(g) of these regulations. The Committee shall reserve the right to determine, on a case-by-case basis, under the unique circumstances of each funding round, and in consideration of the relative scores and ranking of the proposed projects, that a project’s score is too low to warrant a reservation of Tax Credits. All point selection categories shall be met in the application submission through a presentation of conclusive, documented evidence to the Executive Director's satisfaction. Point scores shall be determined solely on the application as submitted, including any additional information submitted in compliance with these regulations . Further, a project’s points will be based solely on the current year’s scoring criteria and submissions, without respect to any prior year’s score for the same projects.

31

Regulations Section 10325

Scattered Site Projects shall be scored proportionately in the site and service amenities category based upon (i) each site’s score, and (ii) the percentage of units represented by each site, except that for scattered site projects of less than 20 Low-Income Units, service amenities shall be scored in the aggregate across all sites.

The number of awards received by individuals, entities, affiliates, and related entities is limited to no more than four (4) per competitive round. This limitation is applicable to a project applicant, developer, sponsor, owner, general partner, and to parent companies, principals of entities, and family members. For the purposes of this section, related or non-arm’s length relationships are further defined as those having control or joint-control over an entity, having significant influence over an entity, or participating as key management of an entity. Related entity disclosure is required at the time of application. Furthermore, no application submitted by a sponsor may benefit competitively by the withdrawal of another, higher-ranked application submitted by the same sponsor or related parties as described above.