A Letter from Executive Director Mark Stivers:
It is my understanding that a number of the 2016 9% projects are experiencing significant financial gaps and closing challenges as a result of the turbulence in the credit markets, rising interest rates, and other factors. For 2016 awardees only, TCAC is considering allowing the projects to convert to a hybrid 9%/4% structure to bring in additional 4% tax credit equity, which would be made available through monetizing a portion or all of the voluntary basis reduction contained in the original 9% application. If allowed at all, TCAC would insist that the aggregate development maintain the original number and targeting of units, points, public funds, and developer fee contained in the 9% reservation letter and staff report. In addition, TCAC would continue to enforce the high-cost rules in the aggregate.
Before making any decisions on allowing this concept, I am interested in ascertaining whether any of the 2016 awardees are even interested in exploring and/or pursuing such a course. If so, please let me know no later than January 31 via email to mark.stivers@treasurer.ca.gov. Alternatively, if any members of the community oppose such an allowance from TCAC, please let me know as well. I look forward to your feedback.
Mark Stivers
Executive Director
California Tax Credit Allocation Committee
915 Capitol Mall, Room 485
Sacramento, California 95814
Ph. (916) 654-6340
Fax: (916) 654-6033
