The California Tax Credit Allocation Committee (TCAC) has issued a memo in response to public comments received with regards to proposed regulation changes to the 2009 low-income housing tax credit program. Pursuant to comments received, TCAC will offer a set of revised recommendations to Committee for consideration and adoption on February 25, 2009. Revised recommendations include:
- Clarify that projects within DDAs and QCTs may seek state low income housing tax credits when seeking 9 percent federal credits. Delete archaic preference language. Section 10317(d), page 5.
- Except existing project-based Section 8 projects from the scattered sites distance limitation. Section 10325(c), page 10.
- Withdraw proposed leveraging scoring changes except clarifying language regarding how to calculate cost-efficiency, and eliminating the mandatory two-points for credit reduction. Section 10325(c)(1), page 11.
- Clarify that the services minimum dollar amount for competitive purposes refers to value, not exclusively budgeted expenditures. The value of donated services would count toward the calculated minimum. Also, reduce competitive minimum value for small developments to $5,000. Section 10325(c)(5)(B), page 16.
- Add a one-point sustainable building methods option for developments in Qualified Census Tracts. Section 10325(c)(8), page 19.
- Remove permanent financing commitment as a readiness scoring factor, and move to the final tiebreaker. Extend proposed 60-day readiness requirements out to 90-days. Narrow proposed Executive Director authority to extend the 150-day readiness deadline for 2008 projects only. Section 10325(c)(10), page 23.
- Eliminate second tiebreaker altogether, and revise the final tiebreaker to measure the highest ratio of committed permanent financing to total project costs minus land (with one exception) and developer fee. Section 10325(c)(12), page 25.
- Explicitly permit substituting in AHP construction period funding after application. Section 10325(f)(8)(E) and F), page 28.
- Clarify that the minimum rehabilitation standard is the higher of the stated dollar minimum or the federally established percentage of adjusted basis. Section 10325(f)(10), page 30, and 10326(g)(7), page 31.
- Delete remaining reference to Balanced Communities scoring that becomes archaic
