A CROWN project is developed with the following steps:
- A developer approaches a local government about developing a CROWN project.
- Land is secured and reserved for the project. Communities are encouraged to provide the land on which the home is built with a 15-year deferred payment contract in order to make the home more affordable to the low-income household.
- A CROWN ownership entity is established which will share ownership of the project with the credit investor.
- A Low Income Housing Tax Credit Application is submitted to NIFA by the owner entity for the next scheduled allocation round.
- Concurrently applications are submitted to the Department of Economic Development (for AHTF/HOME funds), the Federal Home Loan Bank, and the permanent financing lender.
- NIFA evaluates the application for compliance with CROWN guidelines and criteria, and level of effort to meet CROWN goals.
- At this point a successful CROWN program applicant will receive a reservation of Low Income Housing Tax Credits.
- Upon award of tax credits and with permanent financing in place, the CROWN owner entity purchases the land from the local government, secures a tax credit investor and arranges construction financing.
- Construction contracts are awarded and houses are built.
- A management company is selected and a management plan is submitted for approval.
- Residents are selected in accordance with the plan and move into their new home.