Sign Up For Novogradac Industry Alert Emails

CALIF. BUDGET ELIMINATES REDEVELOPMENT AGENCIES

Wednesday, July 6, 2011 - 8:00AM

The California Tax Credit Allocation Committee (TCAC) is encouraging developers applying for low-income housing tax credit funding to consider if financing agreements from redevelopment agencies (RDAs) will be enforceable at the time of development. TCAC issued the instructions because two budget trailer bills signed by the governor, ABx1 26 and ABx1 27, will effectively eliminate RDAs on October 1, 2011. The budget trailer bills, also known as the Redevelopment Restructuring Acts, suspend new redevelopment activities as of June 29, 2011 and dissolve RDAs on October 1, 2011, unless the RDAs make specified contributions to local school and special districts. TCAC assumes that RDAs will be eliminated October 1 and that only RDA obligations existing prior to June 29, 2011 will be enforceable. Guidance from TCAC, as well as legislation updates, will be posted to the Affordable Housing Resource Center as they become available.

Learn more about Novogradac's expertise and many services