The California Tax Credit Allocation Committee (CTCAC) recently released substantive regulation changes for 2011. In addition, CTCAC has released original proposed changes with comments and responses. A summary of the regulation changes is below:
- Eliminate the small development set-aside
- Limit rural projects to no more than 20% of the set-aside awards
- Modify the special needs set-aside to 4% of the annual federal credits
- Require a lender-approved construction budget at the 180-day readiness deadline
- Incorporate new minimum construction standards with enhanced energy-efficiency and green building indicators
- When regional credit winners return their entire award, always return those credits to their region of origin
- Permit DDA and QCT projects to apply for State credits with tax exempt bond financing if they elect to forgo the federal 130% basis increase
- Establish a “build and fill” policy for rural new construction tax credit applicants
- Establish a new scoring system for sustainable building methods
