CTCAC Proposes Changes for State LIHTC Allocation
The California Tax Credit Allocation Committee (CTCAC) has released a list of proposed regulation changes for allocating the state’s 2020 low-income housing tax credits (LIHTCs), including details on the allocation of extra LIHTCs provided in the federal budget due to 2017 and 2018 fires. CTCAC will allocate all the additional credit this year and designated those properties as having difficult development area status, which allows the LIHTCs to be calculated on a basis of 130 percent of eligible basis and reduces their need for state credits. CTCAC also proposes how the extra LIHTCs will be allocated among disaster-affected counties. The proposed regulation address other issues, including allocations concerning the state’s opportunity area map and the allocation in consecutive years of state 4 percent LIHTCs. Comments on the proposed regulations are due by May 18 at 5 p.m. PT.