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California Bill Would Allow State LIHTC to be Paired with Federal 9% Credits if Bond Cap is Competitive

Tuesday, February 1, 2022 - 12:45PM

Legislation that would allow California officials to allocate low-income housing tax credits (LIHTCs) to properties that receive 9% federal LIHTCs when there is competition for the state tax-exempt bond cap passed the state Assembly Monday. Under current law, California can allocate up to $500 million annually in state LIHTCs, but only to properties that receive bonds and 4% federal LIHTCs. A.B. 1288 would allow properties receiving 9% federal credits to be eligible in years when there is competition for the bond cap. It passed the Assembly by a unanimous vote.

How California is addressing its affordable housing crisis will be a topic at the Novogradac 2022 Affordable Housing Conference, April 28-29 in San Francisco.

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