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California Agencies Announce Adjustments to Application Rules

Friday, December 16, 2016 - 11:30AM

The California Tax Credit Allocation Committee (CTCAC) announced today that it will neither rescind credits nor assess negative points to 2016 second round awardees who do not meet the 90-day letter of intent (LOI) deadline for the Low-Income Housing Tax Credit (LIHTC) program. This is a blanket extension and applicants do not need to apply for a development-specific extension. This does not affect the 180- and 194- day closing deadlines for these second-round developments. TCAC will further assess the situation after the Dec. 19 closing deadline to consider whether any additional steps are necessary. 

The California Debt Limit Allocation Committee (CDLAC) today also granted the authority until March 31, 2017, to waive the forfeiture of a performance deposit related to all extension requests that are a result of the current disruptions in the equity and debt markets. To exercise the option, an issuer should include a request to waive the performance deposit forfeiture and an accompanying explanation.

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