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California Lawmakers Pass Bills to Expand, Amend State LIHTC

Monday, September 14, 2015 - 12:00PM

The California State Legislature last week passed two bills to make the state low-income housing tax credit (LIHTC) more effective. A.B. 35, a bill that would have increased the $70 million annual state LIHTC allocation cap by $300 million beginning in calendar year 2016, was amended so that it would only increase the allocation amount by $100 million for calendar years 2016 through 2021. S.B. 377 would allow a developer who is awarded state LIHTCs to sell the credits to an investor without admitting the investor to the ownership partnership, a practice that is commonly referred to as “certificating” the credit. It would also eliminate any sunset provision for bifurcation and would extend these provisions indefinitely. The bills now go to the governor for consideration.

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