California Gov. Newsom’s Budget Update Includes $500 Million Increase in State LIHTC

Friday, May 10, 2019 - 10:00am

California Gov. Gavin Newsom released a revised 2019-2020 budget request Thursday that includes the $200 million annual expansion of the state Low-Income Housing Tax Credit program included in his original proposal, which would increase the annual statewide cap by $500 million for new construction. The extra $200 million would target mixed-income properties for households earning between 30 percent and 120 percent of the area median income (AMI), which is a change from a January proposal that targeted housing for residents with incomes at 60 percent to 80 percent of the AMI. Newsom’s budget also includes new provisions for more subsidies for housing preservation developments and a new proposal to eliminate the 2020 sunset for the ability to transfer certificated credits. The state Legislature must pass a state budget by June 15.