TCAC Published a Memo to First-Round Applicants for LIHTCs in Light of Prevailing Wage Coverage Determinations on Two LIHTCs Projects
The California Tax Credit Allocation Committee (TCAC) last week published a memo to first-round applicants for low-income housing tax credits (LIHTCs) in light of prevailing wage coverage determinations on two LIHTCs projects issued February 25 by the Department of Industrial Relations (DIR). The determinations that found that federal tax credits and tax-exempt bond financing are not subject to prevailing wage requirements are expected to reduce project costs and enable TCAC to fund more projects. However, because it is expected that an appeal will be filed there is continued uncertainty with respect to development costs. TCAC has made some adjustment to application requirements and procedures, including that all applications must be based on the assumption that prevailing wages will apply. Applications for the first round of LIHTCs are due March 17.