The California Tax Credit Allocation Committee recently released final proposed regulation changes as well as responses to public comment.

Changes include the following:

  • Section 10317(C) Limit on Credit Amount: If reservations of state credits to credit ceiling applications exceed available credits, CTCAC post-reservation shall designate applications for which there are insufficient state credits as DDA projects and exchange state credits for federal credits in an amount that will yield equal equity.
  • Section 10322(e) Cure Period: No documents will be accepted after the application filing deadline except for in instances which a clear scanning error occurred and no more than half the pages of the document are missing. In such a case, the Executive Director has sole discretion in granting the applicant 5 days to submit the missing pages.
  • Section 10322(f) Application Changes by the Committee: While changes to an application made by the Committee under Section 10327(a) will still not affect score or credit amount, they may now affect tiebreaker scores.
  • 10322(h)(9) Appraisals: Now also applies to new construction applications involving a land sale from a related party.
  • Section 10322(h)(10) Market Studies: A change was made to include a calculation regarding a project’s lifetime rent benefits. Most recently, this calculation is not required at application as long as it is provided prior to reservation.
  • Section 10322(h)(26)(B): Capital Needs Assessment: The CNA must now be prepared by the project architect if the architect has no identity of interest with the developer (or by a qualified independent third party who has no identity of interest with the development team).
  • Section 10325(c)(1)(C) Public Funds: As in the past, Public contributions of off-site costs are not counted competitively save for a few exceptions. The exception regarding off-site costs totaling $100,000 or less has been removed.
  • Section 10325(C)(6)(A): Green Requirements on New Construction and Adaptive Reuse: National Green Building Council silver rating or higher has been added to the list of programs an applicant may choose from in committing to green standards.