Based on additional feedback received, the California Tax Credit Allocation Committee has revised its proposed regulation changes for implementation of the American Recovery and Reinvestment Act (ARRA). The proposed revisions include:
- Clarify language describing eligible projects and reference a later description of post September 30, 2009 projects being eligible for exchange dollars.
- Clarify possible AB 55 related lending to allow bridge loans and to require repayment of any such TCAC loan by the State Department of Housing and Community Development.
- Reorganize and clarify different per-credit loan amounts for pre-2009 versus 2009 credit recipient projects. Calibrate pre-2009 assistance to 85 cents on the tax credit dollar, while leaving 2009 project assistance calibrated at 80 cents. Similarly calibrate cash for State credits at 60 cents on the State tax credit dollar, for pre-2009 projects, while leaving 2009 project assistance at 55 cents. Also clarify that gap financing for 2009 Credit Ceiling applicants is not constrained by a maximum credit-plus-cash amount per credits reserved.
- Eliminate uncertainty by explicitly including Homeless Assistance projects with Special Needs and SRO projects throughout the regulation.
- Make conforming changes reflecting that 2007 and 2008 cash in lieu of credit recipients would receive up to 85 cents in cash for each federal Credit Ceiling dollar, and no residual exchange cash would be available for a gap financing competition. Instead, returned Credit Ceiling credits plus some TCAP funding would be available for gap financing for such pre-2009 projects.
- Clarify that TCAC may consider the affects of TCAP funding beyond just prevailing wage impacts.
- Clarify that 2009 credit recipients requesting cash in lieu of credits must demonstrate project feasibility by submitting materials as requested by TCAC. Also clarify that State credit must be returned when requesting cash in lieu of credits.
- Clarify that pre-2009 Tax Exempt Bond Projects may apply for the first competitive round with a pending tax credit application if they also possess an HCD program or MHSA funding award.
- Establish that recaptures for uncorrected noncompliance would be proportionate to the scale and duration of the noncompliance. A scale will be established and incorporated into executed documents, and calibrated to a 15-year compliance standard.