(First Published December 10, 2015) MISSOURI HOUSING DEVELOPMENT COMMISSION NOTICE OF 2016-17 MORTGAGE CREDIT CERTIFICATE PROGRAMS The Missouri Housing Development Commission (the "Commission") announces the renewal of its Mortgage Credit Certificate Programs (the "Programs"). Section 25 of the Internal Revenue Code of 1986, as amended, authorizes issuers of qualified mortgage bonds, such as the Commission, to elect to issue Mortgage Credit Certificates (MCCs) in lieu of qualified mortgage bonds. MCCs entitle qualifying individuals to a credit against the individual's Federal income tax. The amount of the credit is determined by multiplying the certificate credit rate by the amount of interest paid or accrued during each taxpayer's taxable year on the mortgage loan for the taxpayer's "principal residence." In order for an individual to claim the credit provided by Section 25, the MCC must be a "qualified mortgage credit certificate" issued pursuant a "qualified mortgage credit certificate program." The following criteria/requirements must be met: Principal Residence Requirement The homebuyer(s) must use the residence as his or her principal residence within a reasonable time (e.g. sixty (60) days) after the MCC is issued. The MCC holder must notify the Issuer of the MCC if the residence ceases to be his or her principal residence. New Mortgage Requirements An MCC cannot be issued in conjunction with the acquisition, replacement or refinancing of an existing mortgage. However, a certificate can be used in conjunction with the replacement of construction period loans, bridge loans, or other temporary initial financing with a term of twenty-four (24) months or less. Three-Year No Prior Homeownership Requirement The homebuyer(s) cannot have had any present ownership interest in a principal residence at any time during the preceding three years ending on the date the mortgage executed with respect to the residence in connection with which the MCC is issued. This three-year, first time homebuyer requirement does not have to be met if the residence for which a mortgage loan application is being made is located in a federally designated targeted area. A targeted area is a particular area in the State determined or approved by the Federal government that will receive special consideration to provide an added stimulus to housing in that area. Purchase Price Requirements There are maximum allowable purchase prices for residences assisted by MCCs vary based upon whether the home is in a targeted or non-targeted area. The current maximum purchase prices are: NON-TARGETED AREAS TARGETED AREAS 1-Family Residence 1-Family Residence All Areas$258,690 $316,177 Homebuyer Income Limits The homebuyer must have family income at or below the income limit for the area in which the residence being purchase is located, considering family size and whether the home is located in a targeted area. The current homebuyer income limits are: NON-TARGETED AREASTARGETED AREAS 1-2 persons3+ persons1-2 persons3+ persons Kansas City MSA *$73,300 $84,295$87,960 $102,620 Jefferson City MSA **65,100 74,865 78,120 91,140 Columbia MSA72,500 83,375 87,000 101,500 St. Louis MSA ***70,300 80,845 84,360 98,420 All Other Areas 60,300 69,345 72,360 84,420 * Excluding Bates County ** Excluding Calloway and Moniteau Counties *** Excluding Washington County Methods by Which Certificates Are Issued Prior to the mortgage loan closing, an application and supporting affidavits and documents must be submitted to the Commission. The Commission will review these documents and either reject or accept the application. At the mortgage loan closing a Closing Affidavit will be prepared and sent with supporting documents to the Commission. If all documents are acceptable a Mortgage Credit Certificate will be issued by the Commission, which will allow the homebuyer to claim the credit. The Commission will begin accepting applications for MCCs beginning February, 2016. In order to comply with federal requirements, Mortgage Credit Certificates may not be issued prior to the date which is at least 90 days after the date of publication of this Notice. Solicitation of Interested Mortgage Lenders The Commission intends to maintain a list of mortgage lenders that have stated that they will make loans to qualified holders of Mortgage Credit Certificates. Mortgage Lenders may contact the Commission to express their interest in being included in such a list. Borrowers will not be required to obtain financing from the mortgage lenders included in the list. Additional Information For further information contact: Don Brinker, Missouri Housing Development Commission, 920 Main Street, Suite 1400, Kansas City, Missouri 64105, (816) 759-6814. MISSOURI HOUSING DEVELOPMENT COMMISSION (306)
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