Sign Up For Novogradac Industry Alert Emails

California May Consider LIHTC ‘Hybrid’ Structure to Cover Financial Gaps

Tuesday, January 24, 2017 - 2:30PM

California Tax Credit Allocation Committee (CTCAC) executive director Mark Stivers announced today that the agency is considering a proposal to allow 2016 low-income housing tax credit (LIHTC) allocatees to convert to a hybrid 9 percent/4 percent LIHTC structure to generate more equity to build and preserve affordable rental housing. The likelihood of tax reform created a significant disruption in the equity market for LIHTCs and Stivers wrote that the hybrid structure could bring in additional 4 percent equity through monetizing the voluntary basis reduction contained in the original 9 percent application. Stivers asked any 2016 awardees who would consider such a course to email him at [email protected].

Descriptions of other state allocation agencies’ response to the equity market disruption can be found on the Notes from Novogradac blog

Learn more about Novogradac's expertise and many services