NOTICE TO PUBLIC AND
TO ALL INTERESTED
CAPITAL AREA HOUSING FINANCE CORPORATION
MORTGAGE CREDIT CERTIFICATE PROGRAM
Capital Area Housing Finance Corporation (the orporation intends to implement a Mortgage Credit Certificate Program (the rogram that will entitle eligible low and moderate income first-time homebuyers and borrowers of qualified home improvement loans and qualified rehabilitation loans to a federal income tax credit.
Under the Program, a homebuyer who satisfies the eligibility requirements described below may receive a federal income tax credit in an amount equal to the product of the certificate credit rate established under the Program and the interest paid or accrued by the homeowner during the taxable year on the remaining principal of the certified indebtedness amount incurred by the homeowner to acquire the principal residence of the homeowner; provided that such credit allowed in any taxable year generally may not exceed $2,000. In order to qualify to receive a credit certificate, the homebuyer must qualify for a conventional, FHA, VA or other home mortgage loan from a lending institution and must meet the other requirements of the Program.
Home improvement loans of up to $15,000 are also eligible for a mortgage credit certificate. To qualify, the home improvements must substantially improve or protect the livability or energy efficiency of the home; such as renovated plumbing or electric systems, renovation of the kitchen, or the installation of improved heating or air-conditioning system. Installation of a swimming pool, tennis court, hot tub or other recreational and entertainment facilities will not qualify.
Qualified rehabilitation loans are also eligible for a mortgage credit certificate. Qualified rehabilitation loans are incurred by the owner in connection with a qualified rehabilitation or the acquisition of a residence with respect to which there has been a qualified rehabilitation, but only if the mortgagor to whom such financing is provided is the first resident of the residence after the completion of the rehabilitation. A ualified rehabilitation is a rehabilitation of a building that meets certain specific requirements as to the building age, the amount of the structure retained in place and the expenditures for the rehabilitation as a percentage of the mortgagor basis in the residence.
The credit certificates will be issued to qualified mortgagors on a first-come, first-served basis by the Corporation acting through an administrator, which will review applications from lending institutions and prospective mortgagors to determine compliance with the requirements of the Program and determine that credit certificates remain available under the Program. No credit certificates will be issued prior to 90 days from the date of publication of this notice or after the date that all of the credit certificate amount has been allocated to homebuyers and in no event with respect to debt incurred after December 31, 2014.
In order to satisfy the eligibility requirements for a certificate under the Program, (a) the prospective residence must be a single-family residence located within the geographic limits of the Texas Counties of Bastrop, Blanco, Burnet, Caldwell, Fayette, Hays, Lee, Llano and Williamson and the City of San Marcos, Texas, that can be reasonably expected to become the principal residence of the mortgagor within a reasonable period of time after the financing is provided; (b) except for residences in certain federally-designated targeted areas, home improvement loans and qualified rehabilitation loans, and certain veterans, all mortgagors must not have an ownership interest in a residence at any time during the three-year period ending on the date the mortgage is executed; (c) the prospective homebuyer current family income must not exceed, (i) for families of three or more persons, 115% (140% in certain targeted areas) of the area median income, and (ii) for individuals and families of two persons, 100% (120% in certain targeted areas) of the area median income; (d) the acquisition cost of the residence must not exceed 90% (110% in certain targeted areas) of the average area purchase price applicable to the residence; and (e) no part of the proceeds of the qualified indebtedness may be used to acquire or replace an existing mortgage, except in the case of certain qualified rehabilitations. To obtain additional information on the Program as well as the current income and purchase price limits (which are subject to revision and adjustment from time to time by the Corporation pursuant to applicable federal and state law), please call Jim Shaw at (512) 347-9953 or write Capital Area Housing Finance Corporation, 4101 Parkstone Heights Drive, Suite 280, Austin, Texas 78746, Attention: Jim Shaw.
The Corporation intends to maintain a list of single family mortgage lenders that will participate in the Program by making loans to qualified holders of these mortgage credit certificates. Applicants for certificates under the Program will not be required to obtain financing from lenders on the list.
Any lender interested in appearing on this list or in obtaining additional information regarding the Program should call Jim Shaw at (512) 347-9953 or write Capital Area Housing Finance Corporation, 4101 Parkstone Heights Drive, Suite 280, Austin, Texas 78746, Attention: Jim Shaw no later than September 30, 2012.
The list will be updated annually. If adequate interest is expressed, the Corporation may schedule a meeting with lenders to discuss in greater detail the requirements of the Program.
This notice is published in satisfaction of the requirements of Section 25 of the Internal Revenue Code of 1986, as amended, and Treasury Regulation Sections 1.25-7T and 1.25 3T(j)(4) issued thereunder regarding the public notices prerequisite to the issuance of mortgage credit certificates and to maintaining a list of participating lenders.
August 1, 2012