To provide an incentive for the rehabilitation or construction of owner-occupied homes in certain areas of the state.
The 2018 NPA application period is now closed. Once the applications have been reviewed and processed, approval and denial letters will be sent no later May 31, 2018.
Note: Please submit the Certification of Alien Employment form with all final applications. This includes all program years, 2000-present. Originally this document was sent with the final application from 2000-2004. However, in 2005 the form was included with the preliminary application. There has been a change in requirements and this form is now required with the final application for all program years including 2000-present.
Note: Please be advised that “soft costs” will not be allowed as qualified rehabilitation expenditures, regardless of whether they are paid or accrued, if:
(1) the transaction is between the same individual;
(2) the transaction is between the same business entity;
(3) the transaction is between a “wholly owned entity” or “disregarded entity” and its owner; or
(4) the transaction is between one “wholly owned entity” or disregarded entity” and another “wholly owned entity” or “disregarded entity,” both of which have the same owner.
“Soft costs” include, but are not necessarily limited to, developer fees and general contractor fees. “Wholly owned entity” and “disregarded entity” have the same meanings prescribed by 26 CFR § 301.7701-2(c)(2) and 26 CFR § 1.368-2(b)(1)(i)(A), respectively, and related Treasury Regulations. In essence, a “wholly owned entity” or “disregarded entity” is a business entity that is disregarded as separate from its owner for taxation purposes. DED further reserves the right to disallow “soft costs” in connection with a transaction other than one listed above if such other transaction does not result in a taxable event.
“Qualifying Areas” include “distressed communities,” as defined in 135.530, RSMo, and areas with a median household income of less than 70% of the median household income for the applicable MSA or non-MSA.
“Eligible Areas” with a median household income of 70% to 89% of the median household income for the applicable MSA or non-MSA.
Any taxpayer who incurs eligible costs for a new residence or rehabilitates a residence for owner occupancy that is located in a designated area.