The California Tax Credit Allocation Committee has released proposed QAP changes with a target adoption date of December 13. Four public hearings will be held from October 10-17 in Oakland, Sacramento, Los Angeles, and San Diego.

The following summarizes some of the proposed changes:

  • Areas of Opportunity
    • Opportunity Area Map Points: New Construction Large Family Projects can earn 4 or 8 points for being located in a high resource or highest resource designated area on the TCAC/HCD Opportunity Area Map
    • Increased Basis: 5% increase to the basis limit for projects in High Resource Areas
    • Lowest Opportunity: Historically, roughly 35% of New Construction Large Family 9% projects were built in lowest opportunity areas. The proposal is to set the housing goal for these projects to 30%. Once that number is reached, TCAC will look to other projects to fund and will only return to this type of
  • Hybrid Projects: Hybrid developments meeting certain criteria will include the 4% units in the size factor for the 9% project
  • Combine SRO and Special Needs Housing type goals and set combined goal at 30%
  • 9% projects must have all soft funds committed at time of application
  • High Cost Test: The High Cost Test would also be applied to 4% and state credit projects (no longer just 9% projects). Increases related to deeper income targeting are excluded from the test.
  • Increase maximum 9% tax credit award for projects with 100 low-income units from $2.5 million to $3 million
  • Property Management: Management company changes will require approval from TCAC. If an incoming management company does not meet minimum criteria, they must attend training.
  • Eliminate the leveraging point category