A CEU can only be terminated before the extended use period expires for two reasons: as described in point 42 H) (6), all LIHTC properties that granted credits after 1989 must have an Extended Use Agreement (UCE). The agreement is entered into by the taxpayer and the Housing Credit Agency (HCA) and has a minimum term of 30 years (15 years after the end of the 15-year compliance period). If the third-party fee exceeds the amount of the deposit, HMFA will request additional deposits. All costs incurred by hmfa for processing a termination application are borne by the applicant. By applying for a qualified contract, the owner gives NJHMFA the power to commercialize the development and provide the appropriate information to interested parties. All information, including financial statements and financial statements and tax returns, may be made available to third parties or used by the Agency in some way, as it considers reasonable. The Agency must have ongoing cooperation from the owner. The lack of cooperation will result in the end of the processing of the application for a qualified contract. If, at any time, the company receives a notice of review or review by the IRS of the tax credit while processing a qualified contract application from the Agency, the one-year period is suspended and the processing is completed until the investigation or review is completed. In addition, any case of substantial non-compliance with the terms of one of the mortgages, mortgages or charges when processing a QC will disqualify the owner of the QC search or the extension of the one-year period that the Agency must meet. If the treatment is suspended or stopped due to non-compliance or an audit, the property must continue to be retained and operated under the extended use contract.
The one-year period under Section 42 (h) (6) (I) of the internal income code only begins when all of the above items have been submitted to the COMMISSION for satisfaction, including third-party reports referred to in the #14. Owners who submit a qualified contract must have either a tracking number, a proof of delivery for their parcel, or it is not accepted. Hmfa reserves the right to request additional items if necessary. The one-year period is suspended for any period during which hmfa awaits additional documents from the owner that HMFA believes are necessary to determine the price of the CQ. In the event that HMFA calculates a QC price different from the OWNER`s calculated QC price, the one-year year is suspended from the date HMFA submits its QC price to the owner until the owner and HMFA accept a QC price with a dated and signed brief. In accordance with Section 42 (h) (6) (e) (i) (II) of the Internal Revenue Code, HMFA`s only obligation is to present the owner with a good faith contract signed by a potential purchaser to acquire the owner`s project for the amount of the QC (the ”contract”). If HMFA presents the contract to the owner, regardless of when or when the contract is executed, the possibility of terminating the extended use period is removed forever and the project remains bound by the provisions of the extended use contract and cannot terminate it.