The California Tax Credit Allocation Committee (CTCAC) has proposed regulation changes to the state’s QAP in order to assist projects affected by the pending redevelopment litigation before the California State Supreme Court. Due to the uncertainty surrounding the litigation and the court-issued stay, many financing sources are unwilling or unable to close funding commitments at this time. The proposed regulation change would allow 2011 9% tax credit project recipients that rely on redevelopment agency funding commitments to receive a 90 day extension to the 180-day readiness deadline. The reason for this change is to ensure that project sponsors are not held accountable for these uncontrollable circumstances and allow them more time to close construction period financing.
In order to qualify, project sponsors must provide CTCAC with documentation in the form of a letter from the redevelopment agency and, if applicable, other project financing sources explaining that the financing is unable to close specifically due to the pending Supreme Court litigation. CTCAC will hold a public hearing with regards to the proposed regulation changes on October 5, 2011 at 10:00 am at the State Treasurer’s Office located at 915 Capitol Mall, Room 587 Sacramento, CA 95814.
To review the proposed regulation changes,click here.
