The California Legislature passed S.B. 451, which would create a State Historic Tax Credit (HTC) for 20 or 25 percent of qualified rehabilitation expenses (QREs) that meet specific criteria and would be in effect from 2021 through 2026. The credit would have a statewide cap of $50 million per calendar year, with $2 million set aside for residences and $8 million set aside for developments with QREs of less than $1 million. The bill would require the Legislature to provide for the expenditure each year in appropriations and would require an annual review of the effectiveness of the credits. Governor Newsom has until Oct. 13 to sign the bill. If he doesn’t sign or veto the legislation, it becomes law.
RBC Capital Markets Tax Credit Equity Group recently announced the closing of RBC Tax Credit Equity California Fund–5 with total tax credit equity of $65,676,225. The Fund consists of federal LIHTC equity and federal Historic Tax Credit equity. The Fund is comprised of investments in six LIHTC eligible multi-family apartment communities located throughout California, representing 707 affordable homes.Read More