California Releases Proposed LIHTC Program Changes
The California Tax Credit Allocation Committee recently released a memorandum that lists proposed changes for the state’s low-income housing tax credit program. For 2020, the $500 million in state credits will be available through the noncompetitive application process. The committee also seeks to add authority to utilize the 130 percent basis increase with state credits allocated from the new $500 million. The boost in state LIHTCs is intended to help developers build more affordable housing around the state.
The proposals also would eliminate a requirement that all units in 4 percent LIHTC developments awarded from the original state LIHTC allocation be LIHTC units. There are 37 proposed changes, and the allocation committee will conduct public hearings on the proposals in September. The target date for adopting the new regulations is Oct. 16. The proposed changes can be found at https://www.treasurer.ca.gov/ctcac/programreg/2019/20190816/proposed-changes.pdf.