CHC has long been advocating for a significant increase to the state’s low-income housing tax credit program (beginning in 2016 with AB 35 and this year with AB 10) that would pair with federal 4% tax credits. This year’s budget includes a one-time $500 million allocation and CHC will continue to advocate for this allocation to be ongoing through AB 10 (Chiu).

CTCAC will need to pass regulations to administer this “new” credit but they must include the following:

• Of the $500 million, up to $200 million may be set aside for projects receiving financing from the CalHFA Mixed-Income Loan Program
  • This setaside still only applies to the LIHTC units and not for any >80% AMI units
• Projects must be new construction and receiving a 4% LIHTC allocation
• Projects must meet the minimum threshold requirements for federal 4% LIHTCs and CDLAC bond allocations
• Projects must be able to begin construction within 180 days from award
• If the project is in a DDA/QCT, it may receive the 130% basis boost and an allocation of this “new” credit, but the credit will be calculated on 100% of basis.
• For projects receiving an allocation from this “new” credit, the applicable percentage will be 30% as opposed to 13% for regular state credits.

This increase is for the 2020 calendar year so we are hopeful the credits will be available in early 2020.