The California Tax Credit Allocation Committee (CTCAC) has released the proposed changes to the state’s Qualified Allocation Plan (QAP) for Low-Income Housing Tax Credits (LIHTC) and has announced the schedule for four public hearings regarding those revisions. A few significant proposed changes include:

  • Increase the set-aside of State credits for 4% tax credit projects from 15 percent to 30 percent of the total state credits available for the year;
  • Updated market study guidelines;
  • Updated final cost certification audit requirements;
  • CTCAC has proposed a process where high cost projects would not be considered for funding unless approved by the Committee;
  • CTCAC has proposed to treat developer fees charged for all 4% credit deals consistently, regardless of the presence of a State credit;
  • The agency has proposed to allow developers of high-rise projects to return year one credits and receive an equal amount of year two credits to afford more time for project completion.

CTCAC will accept written comments until 5:00 pm on Wednesday, December 21, 2011. The public hearing schedule is as follows:

Los Angeles
Monday, December 5, 2011, 1:00 pm
Ronald Regan State Building
300 South Spring Street, Auditorium

San Diego
Tuesday, December 6, 2011, 10:00 am
San Diego Housing Commission
1122 Broadway, Floor 4 Conference Room

Oakland
Wednesday, December 7, 2011, 1:00 pm
Elihu Harris Building
1515 Clay Street, Auditorium

Sacramento
Thursday, December 8, 2011, 1:00 pm
CalPERS
400 P Street, Auditorium

To view the public notice regarding proposed regulation changes and public hearing schedule, click here.