PURPOSE: This rule establishes guidelines to assist business firms and neighborhood organizations in the implementation of the Affordable Housing Assistance Program and allows the commission to comply with the provisions of House Bill 960 (state tax credit).

Editor’s Note: The secretary of state has determined that the publication of this rule in its entirety would be unduly cumbersome or expensive. The entire text of the material referenced has been filed with the secretary of state. This material may be found at the Office of the Secretary of State or at the headquarters of the agency and is available to any interested person at a cost established by state law.

1. (1) Affordable housing assistance programs are those programs designed to provide affordable housing to very low income persons who would not otherwise be adequately housed.
2. (2) The commission shall administer the Affordable Housing Assistance Program. The commission shall provide the application forms to business firms wishing to provide affordable housing and to take advantage of the tax credits issued under this program.
3. (3) The amount of the state tax credit shall not exceed fifty-five percent (55%) of the total amount invested in affordable housing assistance activities by a business firm. Any tax credit not issued in the period for which the credit is approved may be carried over the next ten (10) succeeding calendar or fiscal years until the full credit has been claimed. To determine the amount of tax credit allowable if the affordable housing units for which a tax credit is claimed are within a larger structure, parts of which are not the subject of a tax credit claim, expenditures applicable to the entire structure shall be reduced on a prorated basis in proportion to the ratio of the number of net rentable square feet devoted to the affordable housing units.
4. (4) The total amount of tax credits granted for proposals approved for the first fiscal year beginning July 1, 1990 shall not exceed two
5. (2) million dollars, to be increased by no more than two (2) million dollars each succeeding fiscal year, until the total tax credits that may be approved in any fiscal year reaches ten (10) million dollars.

6. (5) As used in the implementation of the Affordable Housing Assistance Program, the following terms shall mean:

   1. (A) Affordable housing unit, a residential unit generally occupied by persons and families with incomes at or below the levels described in this rule and charging a gross rental rate no greater than thirty percent (30%) of the maximum eligible household income for the affordable housing unit. Gross rent includes the cost of any utilities, other than telephone. If any utilities are paid directly by the occupant, the maximum rent that may be paid by the occupant is to be reduced by a utility allowance prescribed by the commission. Persons or families are eligible occupants of affordable housing units if the household combined, adjusted gross income as defined by the commission is equal to or less than the following percentages of the median family income for the geographic area in which the residential unit is located, or the median family income for Missouri, whichever is larger. Geographic area means the metropolitan area or county designated as an area by the federal Department of Housing and Urban Development under Section 8 of the United States Housing Act of 1937 for purposes of determining fair market rental rates: Percent of State or Size of Geographic Area Household Family Media Income One Person Two Persons Three Persons Four Persons Five Persons Six Persons Seven Persons Eight Persons

   2. (B) Affordable housing assistance activities, money, real or personal property, or professional services expended or devoted or contributed through a neighborhood organization which is providing affordable housing units—

      1. 1. Through the use, construction or

rehabilitation of those units; or

1. 2. To eligible persons or families

through an affordable housing rent subsidy program approved by the commission, all in accordance with the criteria established in subsection (5)(A); 35% 40% 45% 50% 54% 58% 62% 66% 4 CSR 170-5

1. (C) Business firm, person, firm or corporation doing business in Missouri and subject to the income tax imposed by the provisions of Chapter 143, RSMo, or a corporation subject to the annual corporation franchise tax imposed by the provisions of Chapter 147, RSMo, or an insurance company paying an annual tax on its gross premium receipts in the state, or other financial institution paying taxes to Missouri or any political subdivision of this state under the provisions of Chapter 148, RSMo, or an express company which pays an annual tax on its gross receipt in this state;
2. (D) Commission, the Missouri Housing Development Commission; and

3. (E) Neighborhood organization, any organization performing community services or economic development activities in Missouri—

   1. 1. Holding a ruling from the Internal

Revenue Service of the United States Department of Treasury that the organization is exempt from income taxation under the provisions of the Internal Revenue Code 501(c)3, 501(c)4 or 501(c)6 and must have the producing, maintaining or operating of low income housing as part of their charter, as one (1) of their stated purposes;

1. 2. Incorporated in Missouri as a not-for-

profit corporation under the provisions of Chapter 355, RSMo; or

1. 3. Designated as a community develop-

ment corporation by the United States government under the provisions of Title VII of the Economic Opportunity Act of 1964.

AUTHORITY: Chapter 215 and section 215.030(5), (12) and (19), RSMo Supp. 1989.* Original rule filed Dec. 4, 1990, effective June 10, 1991. Emergency amendment filed May 20, 1992, effective May 30, 1992, expired Sept. 26, 1992. Emergency amendment filed Sept. 25, 1992, effective Oct. 5, 1992, expired Feb. 1, 1993. Amended: Filed May 27, 1992, effective Jan. 15, 1993.

*Original authority: 215.010, RSMo 1969, amended 1974, 1982, 1985; 215.020, RSMo 1969; 215.030, RSMo 1969, amended 1974, 1982, 1985, 1989; 215.035, RSMo 1989; 215.040–215.050, RSMo 1969; 215.060, RSMo 1969, amended 1974, 1982, 1985; 215.062, RSMo 1991; 215.070, RSMo 1969, amended 1972, 1974, 1975, 1985; 215.080, RSMo 1969; 215.090, RSMo 1969; 215.100–215.150, RSMo 1969; 215.160, RSMo 1969, amended 1974, 1985; 215.170–215.250, RSMo 1969; and 215.300–215.318, RSMo 1989.