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California TCAC Issues Memo on Using LIHTC Units for Property Managers

Monday, December 9, 2019 - 12:30PM

The California Tax Credit Allocation Committee (CTCAC) released a memo last week clarifying that applicants or operators of low-income housing tax credit (LIHTC) properties must meet several requirements when proposing to use a LIHTC apartment for a property manager who also qualifies as an income-restricted tenant. CTCAC said the unit must be considered income-restricted and comply with all associated requirements, that the unit must be included in the applicable fraction and that the tenant cannot be evicted upon employment termination. CTCAC said this standard applies to all existing LIHTC properties as well as any LIHTC application. CTCAC highlighted that if employment is terminated, the property owner is still responsible to meet onsite-manager-unit requirements. The agency said that any application that proposes to use a low-income unit to meet the manager-unit requirements must include a description of how the project will meet those requirements if employment is terminated.

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