(a) In addition to the information required by § 2306.6705, an application for a housing tax credit allocation from the nonprofit set-aside, as defined by Section 42(h)(5), Internal Revenue Code of 1986 (26 U.S.C. § 42(h)(5)), must contain the following written, detailed information with respect to each development owner and each general partner of a development owner:
(1) Internal Revenue Service documentation of designation as a Section 501(c)(3) or 501(c)(4) organization;
(2) evidence that one of the exempt purposes of the nonprofit organization is to provide low income housing;
(3) a description of the nonprofit organization’s participation in the construction or rehabilitation of the development and in the ongoing operations of the development;
(4) evidence that the nonprofit organization prohibits a member of its board of directors, other than a chief staff member serving concurrently as a member of the board, from receiving material compensation for service on the board;
(5) a third-party legal opinion stating that the nonprofit organization is not affiliated with or controlled by a for-profit organization and the basis for that opinion;
(6) a copy of the nonprofit organization’s most recent audited financial statement;
(7) a list of the names and home addresses of members of the board of directors of the nonprofit organization;
(8) a third-party legal opinion stating that the nonprofit organization is eligible under Subsection (b) for a housing tax credit allocation from the nonprofit set-aside and the basis for that opinion; and
(9) evidence that a majority of the members of the nonprofit organization’s board of directors principally reside:
(A) in this state, if the development is located in a rural area; or
(B) not more than 90 miles from the development in the community in which the development is located, if the development is not located in a rural area.
(b) To be eligible for a housing tax credit allocation from the nonprofit set-aside, a nonprofit organization must:
(1) control a majority of the development;
(2) if the organization’s application is filed on behalf of a limited partnership, be the managing general partner; and
(3) otherwise meet the requirements of Section 42(h)(5), Internal Revenue Code of 1986 (26 U.S.C. § 42(h)(5)).