The California Tax Credit Allocation Committee (CTCAC) has released a final list of its proposed substantive changes to the 2013 tax credit program regulations. CTCAC initially released its list of 23 proposed changes on October 24, 2012. After holding four public hearings and collecting public comments, CTCAC plans to proceed with nine of the originally proposed changes and amend 14 of its original proposed changes. Some of the amended proposed changes include:
- Continue with the proposed timeline to implement a new geographic apportionment methodology that would include a new geographic region for the City of Los Angeles, but expedite establishing the City of Los Angeles region for 2013. CTCAC will achieve this by proportionately splitting the current County of Los Angeles apportionment between the City and the remainder of Los Angeles County.
- Remove proposal to score general partners and property managers based upon performance with tax credit projects and instead use a new scoring scale and requirement for less experienced general partners and property managers contract with more experienced parties.
- Continue with proposal to eliminate the “50% rule,” which required that at least 50% of a 9% applicant’s credit request must remain in a geographic apportionment to receive funding; however, rather than discontinuing to “skip” larger cred requests and funding lower-scoring, smaller-request projects, CTCAC should only skip projects that have the same scores and similar tiebreaker scores.
- Continue initiative to establish policy on project based rental assistance renewal and discontinuation, but also include language about preserving units for extremely low-income households in this section where possible.
CTCAC anticipates adopting the final proposed regulations at its January 23 committee meeting.
To review the complete list of final proposed 2013 regulation changes, including a summary of comments received and an explanation of changes, please click here.
