2022 QUALIFIED ALLOCATION PLAN
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(d) not incurring a penalty under N.C.G.S. § 105-236 for failure to file a return, failure to pay taxes,
or having a large tax deficiency (as defined under N.C.G.S. § 105-236). The Agency may request
documentation demonstrating all project related taxes have been paid.
An owner’s or project’s failure to comply with all such conditions without written authorization from
the Agency will entitle the Agency, in its discretion, to deem the allocation to be cancelled by mutual
consent. After any such cancellation, the owner will acknowledge that neither it nor the project will
have any right to claim tax credits pursuant to the allocation. The Agency reserves the right, in its
discretion, to modify or waive any such failed condition.
B. COMPLIANCE MONITORING
1. Owners must comply with Section 42 of the Code, IRS regulations, rulings, procedures, decisions and
notices, state statutes, the Fair Housing Act, state laws, local codes, Agency loan documents,
Appendix F (incorporated herein by reference), and any other legal requirements. The Agency may
treat any failure to do so as a violation of the Plan.
2. The Agency will adopt and revise standards, policies, procedures, and other requirements in
administering the tax credit program. Examples include training and online reporting. Owners must
comply with all such requirements regardless of whether or not they expressly appear in the Plan or
Appendix F. The Agency will have access to any project information, including physical access to
the property, all financial records and tenant information.
VIII. DEFINITIONS
The terms listed below will be defined in the Plan as indicated below regardless of capitalization, unless the
context clearly indicates otherwise. Terms used in the Plan but not defined below will have the same meaning
as under the Code and IRS regulations.
4% Tax Credit: Low-income housing tax credits available pursuant to Section 42(h)(4) of the Code.
9% Tax Credit: Low-income housing tax credits available for allocation under the state’s volume cap
pursuant to Section 42(h)(3) of the Code.
Affiliate: As to any person or entity (i) any entity of which a majority of the voting interest is owned by such
person or entity, (ii) any person or entity directly or indirectly controlling (10% or more) such person or
entity, (iii) any person or entity under direct or indirect common control with any such person or entity, or (iv)
any officer, director, employee, manager, stockholder (10% or more), partner or member of any such person
or entity or of any person or entity referred to in the preceding clauses (i), (ii) or (iii).
Applicant: The entity considered under Section III(C)(6).
Choice-Limiting Activity: Includes leasing or disposition of real property and any activity that will result in a
physical change to the property, including acquisition, demolition, movement, rehabilitation, conversion,
repair, or construction.
Developer: Any individual or entity responsible for initiating and controlling the development process and
ensuring that all, or any material portion of all, phases of the development process are accomplished.
Furthermore, the developer is the individual or entity identified as such in the Ownership Entity Agreement
and any and all Development Fee Agreements.
Entity: Without limitation, any general partnership, limited partnership, limited liability company,
corporation, joint venture, trust, business trust, cooperative, association, public agency or other entity, other
than a human being.