California Law Expands State LIHTC to More ‘At-Risk’ Buildings, Adaptive Reuse Properties
California Gov. Gavin Newsom signed legislation that expands the state’s low-income housing tax credit (LIHTC) to additional buildings “at risk of conversion” and allows LIHTC allocations for adaptive reuse. AB 447 expands the types of programs that qualify as governmental assistance under the definition of properties “at risk of conversion.” The legislation also changes the definition of “at risk of conversion” for rent-restricted properties to include only properties where 50% of units are restricted to initial occupancy by lower-income households. AB 447 also expands the definition of adaptive reuse to include hotels and motels converted to residential use within five years of the date of application for the credit.
The Novogradac Low-Income Housing Tax Credit Handbook is an essential resource for affordable rental housing owners, developers, managers and investors and includes the interaction of state and federal incentives.