California Expands State LIHTC to At-Risk Properties

California Gov. Gavin Newsom signed legislation that expands the State’s LIHTC to additional buildings “at risk of conversion” and allows LIHTC allocations for adaptive reuse. AB 447 expands the types of programs that qualify as governmental assistance under the definition of properties “at risk of conversion.” The legislation also changes the definition of “at risk of conversion” for rent-restricted properties to include only properties where 50 percent of units are restricted to initial occupancy by lower-income households. AB 447 also expands the definition of adaptive reuse to include hotels and motels converted to residential use within five years of the date of application for the credit.