In an October 24 memo, the California Tax Credit Allocation Committee (CTCAC) announced its proposed regulation changes and program schedule for 2013. Many of the changes mark significant revisions or provide clarifying language to current allocation regulations. CTCAC staff seeks public comment on the proposed revisions and will be holding several public hearings throughout November. The Committee will vote on these revisions at their January 2013 meeting. Some of the major proposed changes include:



  • Increase the at-risk housing type goal from 5% to 15% in the basic and additional threshold requirements. The proposal clarifies that “at-risk” housing projects are preservation projects for existing LIHTC properties nearing the end of its federal or state tax credit restrictions.  The increase is in response to a growing number of applications for this housing type.
  • Beginning in 2014, CTCAC plans to implement the proposed geographic apportionment methodology and would include a new geographic region for the City of Los Angeles. For more information on the proposed geographic methodology, please click here.
  • Eliminate the “50% rule,” which requires the last funded project in the region request no more than twice what remains in the apportionment at that time. Also, discontinue “skipping” larger credit requests and funding lower-scoring, smaller-request projects.
  • Provide the CTCAC Executive Director with the authority to waive market study value ratio requirement for rehabilitation projects with existing rental assistance or operating subsidies proposing minimal rent increase and having a history of low vacancies.
  • Clarify energy efficiency minimum measuring standards within CTCAC’s minimum construction standards. These clarifying items include relocating the on-site property manager provisions to the minimum construction standards section and applying those provisions to scattered site developments.
  • Establish policy regarding project based rental assistance renewal and discontinuation. The proposed policy would explicitly require property owners to notify CTCAC if project-based rental assistance is lost and to seek alternative financial strategies before resorting to disruptive rent increases.


CTCAC also released its proposed program schedule for the 2013 cycle. Current application deadlines are scheduled for March 6, 2013 and July 3, 2013 for the two rounds of funding. Awards are to be made on June 12, 2013 and September 25, 2013, respectively. All dates are tentative and subject to change.


CTCAC will be hosting public hearings at the following times and locations:


Wednesday, November 7, 2012

Los Angeles

Ronald Reagan State Building

300 South Spring Street, Auditorium

2:30pm-4:30pm


Thursday, November 8, 2012

San Diego

San Diego Housing Commission

1122 Broadway, Fourth Floor Conference Room

10:00am- 12:00 noon


Tuesday, November 13, 2012

Oakland

Elihu Harris State Building

1515 Clay Street, Room 2

1:00pm- 3:00pm


Wednesday, November 14, 2012

Sacramento

State Treasurer’s Office

915 Capitol Mall, Room 587

2:00pm- 4:00pm


CTCAC will accept written comments on the proposed regulations through Friday, December 7, 2012 at 5:00pm. All comments should be sent to: Tax Credit Allocation Committee, 915 Capitol Mall, Room 485, Sacramento, CA 95814.


To review the summary of proposed regulation changes with explanations, please click here.


To review the proposed 2013 program schedule, please click here.