Release: California-Chartered Banks Need OK from State Agency Head to Invest in LIHTCs

Wednesday, October 24, 2018 - 1:45pm

A release from the California Department of Business Oversight (DBO) says that state-chartered banks must receive approval from the state commissioner of business oversight before making a passive equity investment in a low-income housing tax credit development–or any other tax-credit investment that meets the definition of “real property investment.” The agency further clarified to Novogradac that those banks must submit a letter to DBO with the general plan for the property, including the amount to be invested, the extent of diversification of those activities, the approximate date of the initial investment and other information. There are more than 110 state-chartered banks in California to which this requirement applies.