(b) The supplemented Application will be scored and ranked in accordance with the Credit Program Rules in effect as of the deadline of the reservation cycle in which the request is made.
(c) An additional feasibility analysis will be undertaken. The Applicant must prepare an in-depth analysis of why additional Credits are required. OHFA may request information from the Applicant’s lender(s), accountants, legal advisors or financial Consultants to confirm representations contained in the Application.
(d) Neither the Applicant nor OHFA shall be required to give additional notice pursuant to 330:36-5-3.1 of these Chapter 36 Rules if the notice requirements of the Credit Program Rules if effect as of the date of the Applicant’s original filing of an Application were met.

(1) Prohibition of Phased Developments. Phased Developments are permitted in MSAs only if they are described and contemplated in the original Application, and if all phases contain 50% or more market rate units, or the development is part of a HUD approved revitalization plan and the financing includes HUD HOPE VI Program funding.
(2) Notice Requirements. The provisions of this subsection apply to all Applicants for a TCA, including the owners of Developments to be located on tribal property(ies). All notice requirements must be satisfied not less than 30 days prior to submission of an Application. Every application cycle requires notice.

(A) Developments located within a MSA. The Applicant must notify, in writing and by certified mail, the local Chief Executive Officer of the local Governing Body, Chairman of the appropriate county commissioners, state legislators within whose district the proposed Development is to be located regarding their intent to submit a Development proposal. This written notice shall serve to provide a reasonable opportunity to comment on the proposed Development. All notice requirements must be satisfied not less than 30 days prior to submission of an Application. Every application cycle requires notice.
(B) Developments located outside of a MSA. The Applicant must notify, in writing and by certified mail, the local Chief Executive Officers of the Local Governing Body, the Chairman of the appropriate county commissioners, and state legislators within whose district the proposed Development is to be located regarding their intent to submit a Development proposal. This written notice shall serve to provide a reasonable opportunity to comment on the proposed Development. All notice requirements must be satisfied not less than 30 days prior to submission of an Application. Every application cycle requires notice.
(C) Publication notice. Notice of an Applicant's intent to file an Application shall also be published in a newspaper of general circulation in the area wherein the Development will be located. All notice requirements must be satisfied not less than 30 days prior to submission of an Application. Every application cycle requires notice. At a minimum all such notices must contain the following information:

(i) the name and the legal description or street address of the proposed Development;
(ii) the names, business addresses and telephone numbers of the Applicant and the Applicant’s designated contact person in regard to the proposed Development;
(iii) whether the Development is new construction, acquisition and rehabilitation and/or substantial rehabilitation;
(iv) the maximum number of Units proposed and their characteristics;
(v) the amount of credits requested;
(vi) the Cycle and year for which the Application will be submitted;
(vii) the month in which the Applicant reasonably expects the Application to be considered by the OHFA Trustees for an award of a TCA ;
(viii) the name, business address, telephone number and extension number of the contact person at OHFA to whom all inquiries about the hearing on the Application and the proposed Development should be directed.

(D) Additional notice requirements. If the site for the proposed Development is not located within the specific corporate limits of an incorporated town or city, but is proposed to be located within two (2) miles of an incorporated town or city(ies) limits, Applicant must provide the same notice to each such town(s) and city(ies) as if the site was located within the corporate limits of each such town(s) and city(ies). All notice requirements must be satisfied not less than 30 days prior to submission of an Application. Every application cycle requires notice.

(3) Market analysis. All Applicants must submit third party, independent housing market analyses conforming to the Threshold Criteria set forth in the applicable AP, demonstrating and documenting the status of the market demand for the type and number of housing units proposed to be developed. The market analysis must be prepared no more than 12 months prior to the date Application is filed with OHFA. An update, including at a minimum, new federal subsidized housing must be included.
(4) Nonprofit owners. Applicants proposing Developments under the nonprofit set-aside must demonstrate and document that the Nonprofit owner and/or Nonprofit ownership participant meet the definition of a nonprofit as defined in Section 42h(5)(C) of the Code and these Chapter 36 rules at 330:36-1-4. Applicants for nonprofit set-aside TCAs must demonstrate that the Nonprofit participant:

(A) has an ownership interest (either directly or through a Partnership) in the Development;
(B) is at least a co-general partner, co-managing member, or a controlling stockholder, or can otherwise demonstrate ownership of, or the contractual obligation to acquire a controlling interest in the proposed Development by not later than the date the Development is substantially completed and commences business;
(C) will materially participate, on a regular basis, in the planning and construction of the Development, and in the operation and management of the Development throughout the entire compliance period pursuant to 469(h) of the Code;
(D) has a Board of Directors and Officers that are independent from any for-profit Development partner;
(E) is duly authorized to do business within the State; and
(F) has at least one year of housing experience in the State.

(5) Resolution of local support.  Applicants must provide documentation of official local support for the Development by the jurisdiction within which the proposed Development is to be located, i.e. the Local Governing Body. The required documentation must be in the form of a resolution duly adopted by the Local Governing Body, and must be in a form that shall be subject to approval by OHFA’s General Counsel. If there are any conditions in the resolution, OHFA may exercise its discretion to contact the governing body to ascertain the potential impact of the conditions. In the case of Developments to be located on tribal property, the resolution of support may be issued by the official elected tribal governing body.
(6) Capacity and prior performance.  Each Applicant must demonstrate and document the degree of expertise of Applicant and owner in the use of TCAs and the Development, rehabilitation and/or conversion, management and operation of properties related to the type of the proposed Development. Applicants, Owners, and their Affiliates, including all Development team members, shall be examined in regard to their existing Developments, and the record of compliance performance within Oklahoma and other states in which the Development team members have developed or are developing affordable housing. Applicants with existing Developments shall be ineligible for a TCA where OHFA has or receives notice of uncorrected or repeated instance of nonperformance by Applicant, owner, or any of their Affiliates, including any of their Development team, including without limitation:

(A) failure to meet and maintain minimum property standards;
(B) failure to meet and maintain any material aspect of a Development as represented in a Development Application;
(C) have been involved in uncured financing defaults, foreclosures, or placement on USHUD’s list of debarred contractors;
(D) events of material uncorrected non-compliance with any Federally or State assisted housing programs within the prior seven (7) years; or
(E) the appointment of a Receiver; conviction on a felony criminal charge; or bankruptcy within the prior seven (7) years.
(F) the removal as a General Partner may be considered lack of capacity and performance.

(7) Acquisition credits/ten-year holding requirement. Applicants requesting acquisition credits must provide an opinion of counsel, in a form satisfactory to OHFA, that the ten-year holding requirement of Code Section 42(d)(2)(B)(ii) has been met or a waiver obtained from the IRS. If an existing waiver or waiver to be granted is claimed, copy of the waiver letter or a copy of the letter indicating a waiver will be granted and is forthcoming must be included in the applicant’s Development proposal.
(8) Appraisal. Applicants must provide an appraisal of the Development prepared no more than twelve (12) months prior to the date an Application is filed with OHFA. The appraisal must be on an "as built" basis and must be prepared by a State Certified General Appraiser.
(9) Phase 1 environmental study. Applicants must submit a Phase 1 Environmental Assessment of the Development prepared no more than twelve (12) months prior to the date an Application is filed with OHFA. In lieu of assessment for existing RHS-financed properties to be acquired and rehabilitated, the Applicant and RHS must certify that there are no adverse environmental concerns.
(10) Financial feasibility and viability. Applicants must provide a plan that demonstrates and makes commitments to the Development's financial feasibility and viability as a qualified low-income housing Development throughout the extended use period. Projects financed through the RHS programs must submit a Multiple Family Housing Obligation-Fund Analysis, Form FmHA 1944-51, or other evidence of firm commitment.
(11)  Readiness to proceed. Applicants must demonstrate readiness to proceed in a timely manner should they be awarded a TCA. Factors that may be considered regarding Development readiness shall include but not be limited to:

(A) obtaining firm financing commitments. Applicant must demonstrate to OHFA’s satisfaction that the Applicant has financing commitments for one hundred percent (100%) of the project’s total estimated construction and permanent financing. Financing rates and the terms of the commitment must have been approved by the lending institution(s) and the commitment conditioned only on the award of TCAs;
(B) site control;
(C) land preparation. Applicant must provide preliminary plans or specifications for those activities commonly necessary to make a site ready for building, i.e. clearing, grading, infrastructure (streets, utilities, and the like), etc.
(D) completion of all environmental impact and assessment activities with remediation requirements detailed and costs identified in the budget; and
(E) proper zoning for the proposed Development.

(c) Code preference selection criteria.

(d) Selection criteria. The Selection Criteria shall be set forth in the appropriate AP, and shall include, but not necessarily be limited to the following:

(1) Development Leverage/Level of Community Support. Each Application will be analyzed and evaluated as to the extent to which it incorporates Development beneficial participants that result in tangible, cost beneficial investments or contributions to the proposed Development. Such investments and contributions may include, but are not necessarily limited to: funding under the HOME Investment Partnership Program, the Native American Housing Assistance and Self-Determination Act (NAHASD) Program, the Affordable Housing Program of the Federal Home Loan Banks, the Rural Housing Services 515 Program and other comparable funding sources, for which an application process exists, and the application has been approved or filed, which may be incorporated in the assets and liabilities, income or deductions from expenses of the Development in accordance with generally accepted accounting principles. Leverage shall be considered as the proportion or percentage of leverage resources to total eligible basis. A maximum of 10 points is available under this criterion as established in the annual AP.
(2) Community Support.  Examples of community support include, but are not necessarily limited to: fee waivers, tax abatements, public improvements directly related to a Development, donations of property and/or materials, and other contributions of direct value to the proposed Development that are under the control of the unit of local government providing such assistance or support. A maximum of 10 points is available under this criterion. Support must be directly related to the proposed project and be a tangible contribution that can be incorporated into the assets and liabilities, income or deductions from expenses of the development in accordance with generally accepted accounting principles. Eligible evidence of support will be established in the annual AP.
(3) Development Characteristics.  Each Application will be analyzed and evaluated as to commitments made therein for the provision of resident appropriate supportive amenities and services, including but not limited to: supportive services, day care, formalized resident involvement in the Development’s on-going operations and management, and special on-site facilities. Services and amenities must be on-site if a Large Development; Small Developments may provide off-site or contractual services. A maximum of 20 points is available under this criteriaon for the resident appropriate supportive amenities and/or services established in the annual AP. Only services and amenities which exceed the minimum required by applicable laws, such as the ADA, will be eligible for points.
(4) Applicant/Owner Management Experience.  Each Application will be analyzed and evaluated as to the experience of the owner in owning and successfully operating and managing or providing management for Developments in the OAHTC Program and/or for other types of affordable housing Developments. A maximum of 20 points is available under this criteriaon for Owner/Applicants that have placed into service three (3) or more developments which are being successfully operated in compliance with the Code and federal regulations, the Regulatory Agreement and the rules of OHFA;10 points may be awarded for Owner/Applicants that have placed into service one (1) or two (2) developments that are being successfully operated in compliance with the Code and federal regulations, the Regulatory Agreement and the rules of OHFA. This evaluation will be based on the experience of the Owner/Applicant and professional development team members.
(5) Tenant/Special Needs Populations.  Each Application will be analyzed and evaluated as to the extent to which commitments are made therein to serve Special Needs populations. A maximum of 10 points is available under this criterion. To be eligible for the maximum number of points, the project must be 100% dedicated to tenants with special needs. A development with 15% of total residential units with rents set at 50% of the allowable tax credit rent will be eligible for 5 points.
(6) Public Housing Wait Lists. Each Application will be analyzed and evaluated as to the extent to which it is demonstrated that the local public housing authority documents the presence of a client waiting list for affordable housing units. A maximum of 5 points is available under this criteria.
(7) Tenant populations of individuals with children. Each Application will be analyzed and evaluated as to the extent to which it is demonstrated that the development will provide amenities and a unit mix conducive to families/individuals with children. A maximum of 5 points is available under this criteria.To be eligible, the market study must indicate a need for family units.
(8) Tenant ownership. A maximum of 5 points is available to applicants proposing for single family home ownership after the Compliance Period. Applicants must submit a detailed plan which includes projections on maintenance, tenant reserve funds, etc. which plans will be evaluated for feasibility.
(9) Cost per unit. Each Application will be analyzed and evaluated as to the ability demonstrated therein to cost efficiently produce the highest number of quality housing units for the TCAs requested in the Application together with all other benefits provided by OHFA or applied for with OHFA by the Applicant or any Affiliate of the Applicant for the same Development. Projects with the lowest Tax Credit eligible basis per unit will be given priority in the case of a tie in the final total rating scores.

(e) OHFA discretion. Not withstanding the point ranking under the Selection Criteria set forth above under 330:36-4-2(c), OHFA reserves the right and shall have the power to allocate Credits to a project irrespective of its point ranking, if such intended allocation is:

(1) in compliance with Code Section 42;
(2) in furtherance of the housing goals set forth herein, in the AP or any formally adopted resolution of the Trustees; and
(3) is determined by the Trustees to be in the interests of the citizens of the State.

(1) Small developments. Developer Fees may not exceed eighteen percent (18%) of the Eligible Basis, excluding the Developer Fees.
(2) Large Developments. Developer Fees may not exceed fifteen percent (15%) of the Eligible Basis, excluding the Developer Fees.
(3) OHFA may, in its sole discretion, increase the Developer Fees allowable in order to create special financing incentives to meet a pressing local affordable housing need. All determinations of allowable Developer Fees shall be made in a manner consistent with the Code, IRS regulations and/or any directives of the Internal Revenue Services at the time of Allocation.

(c) Contractor Fee limitation. Allowable Contractor Fees shall be limited to:

(1) Small Developments. Total allowable Contractor fees may not exceed sixteen percent (16%) of the hard construction costs, excluding the Contractors Fees. Allowable Contractor Fees are further limited as follows:

(d) Underwriting standards.

(1) Operating and replacement reserves.

(e) Progress reports. Progress reports must be filed by the Applicant/Owner beginning with the calendar quarter following the approval of a reservation of Credits until the Form 8609 is issued for a building. The report must contain, at a minimum, the status of site preparation and/or construction, including the percentage of completion of each building. The report must address any other requirements set forth in a Resolution of the Trustees and/or the Carryover Agreement. Within thirty (30) days after the Certificate of Occupancy is issued for the last building in the project, the Owner must notify OHFA and submit a copy of the Permanent Certificate of Occupancy for each building in the Project. Remedies for violation of these provisions include those denoted at 330:36-6-3, including but not limited to return of unused tax credits.
(f) Construction time period. Construction, not including site prep work, must begin within 180 days of credit reservation, unless extended for cause by OHFA. Remedies for violation of these provisions include those denoted at 330:36-6-3, including but not limited to return of unused tax credits.
(g) Additional requirements. OHFA may, as it deems necessary in its sole discretion, impose additional requirements or Program limitations on any Applicant, Owner or Project. Said requirements or limitations may be set forth in a Resolution of the Trustees or in any contract between the Applicant or Owner and OHFA.
(h) Bond financed developments. Taxable or tax-exempt bond Ddevelopments financed at least fifty percent (50%) with the proceeds of tax-exempt bonds subject to the private activity bond volume cap are required to comply with all requirements of these Rules except the competitive selection process. Evidence of the bond financing must be submitted at least 7 business days before the board meeting wherein the 4% tax credits are to be awarded.
(i) Timeliness and completeness of filings. Deadlines for filing Applications will be established in the AP. Should OHFA request additional information the deadline for filing same with OHFA will be set forth in the letter requesting same. Applicants/Owners must strictly comply with all deadlines and all filings must be complete when filed.

(1) Application fees.

(a)The following are violations of OAHTC Program policies and procedures and these OAHTC Program Rules:

(7) From and after the date of the filing of the Application, failure to notify OHFA of any material changes effecting the proposed development, including, but not limited to, modifications to any representations contained in the Application, any amendments or modifications of the financing plan, syndicators or equity partners or any other Threshold requirement and/or changes in Development Team Members, contractors, property managers, and the like. Notification must be filed with OHFA not less than sixty (60) business days prior to the proposed change. Approval by the OHFA Board of Trustees is required for any changes or amendments involving the ownership or control of the Development or the Owner after the Application is filed. This would; include, but not be limited to, changes or transfers of the Development, changes or modifications of the ownership or composition of the general partner entity (i.e. addition or removal of members, partners, stockholders, etc.), any addition, substitution, withdrawal or removal of any general partner. Other amendments may be handled administratively by staff, although staff reserves the right to refer any amendments to the OHFA Board of Trustees for their consideration; or
(8) Failure to submit reports including but not limited to the timely filing of progress reports, updates, compliance reports, etc., and fees when due and failure to provide OHFA with any additional information requested by OHFA within the period set forth in any request for information.
(9) Little or no progress has been achieved with previous taxcredit reservations approved for the Applicant or Developer or any of the Principals of either. This would include, but not be limited to: failure to meet the minimum carryover allocation requirements resulting in the return of credits; failure to place a development in service within twenty-four (24) months receiving the carryover allocation; involvement of a foreclosure or deed-in-lieu of foreclosure within the past seven (7) years.

(b) Failure to follow all required procedures throughout the allocation process could jeopardize the final allocation or result in housing credit being recaptured.

(1) Taking all action necessary to enforce the terms of the Regulatory Agreement against any private or public owner that fails to comply with applicable provisions of the Regulatory Agreement or any subcontract or documents resulting from it, and to recover on behalf of OHFA, all costs and expenses incurred by or on behalf of OHFA, that may arise as a result of a violation or breach of the commitments made in the Application and/or the Regulatory Agreement by any Applicant or owner or any Affiliate of either. Nothing in this subsection shall restrict OHFA's right to independently enforce the terms of the commitments made to OHFA in the Application and/or the Regulatory Agreement or in any subcontracts or documents resulting from either of them, or to recover any sums that may become due to OHFA as the result of a breach of any of the commitments made to OHFA in the Application and/or the Regulatory Agreement, or in any such subcontracts or documents.
(2) Complying with all applicable provisions of the Code, state and federal regulations, guidelines, circulars, rulings and notices, these Rules, the applicable AP, the Application, the Regulatory Agreement between the Applicant and/or Owner, and/or any subcontracts or documents resulting from either of them, and OHFA or other Program requirements that may be released by the Internal Revenue Service or OHFA from time to time.
(3) Maintaining records and accounts, including, but not limited to, property, personnel, financial and tenant records that properly document and account for all Development funds and compliance with the tenant income certification requirements of the Code, these Rules, the applicable AP, and the Application and the Regulatory Agreement. All records required by the Code or 26 CRF 1.42-5, as presently effective or as may be amended in the future, must be kept and retained by the Owner. Additional requirements of OHFA respecting said records may be included in the Regulatory Agreement. OHFA may require specific types and forms of records. All such records and accounts shall be made available upon request by OHFA for the purpose of inspection and use in carrying out its responsibilities for administration of the tax credits.
(4) OHFA may require the Applicant and/or Owner to provide special narrative and financial reports related to the elements of a written agreement in the forms and at such times as may be necessary or required by OHFA.
(5) Retaining all books, documents, papers, records, and other materials involving all activities and transactions related to the Owner’s commitments to OHFA found in the Application and in the Regulatory Agreement, as required by the Code, federal regulations, the AP, the Application and the Regulatory Agreement.
(6) OHFA shall have the right to perform as many audits of any Development, from time to time, in the complete discretion of OHFA, as OHFA deems necessary or appropriate to discharge its compliance duties to the IRS in regard to each Development for which TCAs have been awarded, at least through the end of the compliance period and extended use period of the buildings and units in the Development. Audits may include physical inspection of any building in the Development, as well as a review of the records described in this subchapter. The cost of any such audit shall be borne by the Applicant and/or Owner if any material violations are documented as a result of the audit. The audit and inspection provisions of this subsection are in addition to any inspection of OAHTC certifications, supporting documentation, or inspection of records performed pursuant to annual compliance review.

(1) The owner of a low-income housing project is required to keep records for each qualified low-income building in the project showing:

(2) The owner is required to retain the records described in this section for each building in the project for at least six (6) years after the due date (with extensions) for filing the federal income tax return for that year. The records for the first year of the credit period must be retained for at least six (6) years beyond the due date (with extensions) for filing the federal income tax return for the last year of the compliance period of the building.

(c) Certification and review provisions

(1) Between the placed in service date of a building and the submission of an application for a final allocation of credits, and prior to the issuance of an 8609, OHFA may physically inspect the property. An on-site review will again be conducted within the following year as described in 330:36-6-7(c)(6) of these Rules.
(2) Owner Certification

(B) This certification is accomplished by completing Part II of the 8609(s). A copy of the completed 8609(s) must also be submitted to OHFA by the end of the first period for which the Housing Credit is claimed for each building.

(3) At the end of the first full calendar quarter following the placed-in-service date, and for the subsequent three quarters, owners must prepare and submit a Quarterly Status Report accompanied by copies of the Tenant Income Certification for each tenant and new move-ins for the appropriate quarter. If a project is determined not to be in compliance with Program requirements or there is indication of possible noncompliance, OHFA, at its discretion, may require reports each quarter until compliance is demonstrated.
(4) The owner of a low-income housing project is required to certify annually, in a form prescribed by OHFA, that for the preceding 12-month period:

(A) The project met the requirements of the 20-50 or 40-60 test under Section 42(g)(I) of
the Code, whichever minimum set-aside is applicable to the project, and, if the applicable to the project, the 15-40 test under Section 42(g)(4) for “deep rent skewed” projects;
(B) There was no change in the applicable fraction (as defined in Section 42(c)(1)(B))of any
building in the project, or that there was a change and a description of the change;
(C) The owner has received an annual income certification from each low-income tenant and
documentation to support that certification;
(D) Each low-income unit in the project was rent-restricted under Section 42(g)(2);
(E) All units in the project were for use by the general public and used on a non-transient basis (except for transitional housing for the homeless);
(F) Each building in the project was suitable for occupancy, taking into account local health, safety, and building codes (or other habitability standards), and the state or local government
unit responsible for making building code inspections did not issue a report of a violation
for any building or low-income unit in the project;
(G) There was no change in the eligible basis (as defined in Section 42(d) of any building in the project, or that there was a change, and the nature of that change; (H) All tenant facilities included in eligible basis under Section 42(d) of any building in the project, such as swimming pool, other recreational facilities, and parking areas, were provided on a comparable basis without charge to all tenants in the building;
(I) If a low-income unit in the project became vacant during the year, reasonable attempts were, or are being made to rent that unit or the next available unit of comparable or smaller size to tenants having a qualifying income before any units in the project were, or will be rented to tenants not having a qualifying income;
(J) If the income of the tenant of a low-income unit in the project increased above the limit
allowed in Section 42(g)(2)(D)(ii), the next available unit of comparable or smaller size in the project was, or will be, rented to tenants having a qualifying income;
(K) An extended low-income housing commitment, as described in Section 42 (h)(6), was in effect;
(L) The project meets the additional requirements contained in the Land Use Restriction Agreements;
(M) There was no change in the Owner entity (for example, transfer of general partnership
interest);
(N) If the owner received its credit allocation from a portion of the State’s ceiling set-aside for projects involving “qualified non-profit organizations” under Section 42(h)(5) of the Code, the non-profit organization has materially participated in the operation if the development (within the meaning of Section 469(h) of the Code);
(O) No finding of discrimination under the Fair Housing Act, 42 U.S.C. 3601-3619, has occurred for this project. A finding of discrimination includes an adverse final decision by a substantially equivalent state or local fair housing agency, 42 U.S.C. 361a(a)(1), or an adverse judgement from federal court; and
(P) An extended low-income housing commitment as described in Section 42(h)(6) was in effect, that an owner cannot refuse to lease a unit in a project to an applicant because the applicant holds a voucher or certificate of eligibility under Section 8 of the United States Housing Act of 1937, 42 U.S.C. 1437s.

(5) OHFA will review the owner certifications submitted pursuant to 330:36-6-7(c)(4),
for compliance with the requirements of Section 42 of the Code.
(6) OHFA must and will conduct on-site inspections of all buildings in the project by the end of the second calendar year following the year the last building in the project is placed in service, and for at least 20 percent of the project’s low-income units, inspect the units and review the low-income certifications, the documentation supporting the certifications, and the rent records for the tenants in those units.
(7) At least once every three (3) years through the extended use period, OHFA must conduct on-site inspections of all buildings in the project and, for at least 20 percent of the project’s low-income units, inspect the units and review the low-income certifications, the documentation supporting the certifications, and the
rent records for the tenants in those units.
(8) The certifications and reviews of paragraphs 330:36-6-7(c)(2) and (c)(4) of these Chapter 36 Rules are required to be made at least annually until the end of the extended use period and the certifications are to be made under penalty of perjury.
(9) The owner is required to provide annually to OHFA a copy of the completed 8609 Schedule A and IRS Form 8586 that is submitted to the Internal Revenue Service.
(10) The owner is required to provide to OHFA, as it occurs, copies of all correspondence with the Internal Revenue Service.

(d) Auditing provisions. OHFA has the right to perform an audit of any low-income housing project during the term of the Land Use Restriction Agreement. An audit includes physical inspection of any building in the project, as well as a review of the records described in 330:36-6-7(c)(1) of these Chapter 36 Rules. The auditing provision of this paragraph is in addition to any inspection of low-income certifications and documentation under 330:36-6-7(c)(7)of this Chapter 36 Rules.
(e) Notification of non-compliance provisions.

(1) OHFA will provide prompt written notice to the owner of a low-income housing project if OHFA does not receive the certification described in 330:36-6-7(c)(4) of these Chapter 36, or does not receive, or is not permitted to inspect, the tenant income certification supporting documentation and rent records, or discovers on audit, inspection review, or in some other manner, that the project is not in compliance with the Code or these Chapter 36 rules. The owner shall have a period of time, not to exceed thirty (30) days, from the date of such notice (the “Correction Period”) to supply any missing certifications and bring the project into compliance. OHFA may extend, in its own discretion, the Correction Period for up to an additional thirty (30) days for good cause.
(2) OHFA must file IRS Form 8823 Report of Noncompliance with the Internal Revenue Service no later than 45 days after the end of the Correction Period whether or not the noncompliance or failure to certify is corrected. OHFA will explain on Form 8823 the nature of the noncompliance or failure to certify and indicate whether the owner has corrected the noncompliance or failure to certify. Any change in either the applicable fraction or eligible basis that results in a decrease in the qualified basis of the project under Section 42(c)(1)(A) is an event of noncompliance that must be reported under this paragraph.