California Debt Limit Allocation Committee

Qualified Residential Rental Project (QRRP) Program

Designed to assist developers of multifamily rental housing units to acquire land and construct new units or purchase and rehabilitate existing units.

The State of California is short 1.5 million affordable housing units. The Qualified Residential Rental Project Program helps spur affordable housing production by assisting developers of multifamily rental housing units with the acquisition and construction of new units, or the purchase and rehabilitation of existing units.

How does it work? State and local governmental agencies and other joint powers authorities can issue tax-exempt housing revenue bonds. The tax-exempt bonds lower the interest rate paid by developers. The developers in turn produce market rate and affordable rental housing for low and very low-income households by reducing rental rates to individuals and families. Projects that receive an award of bond authority have the right to apply for non-competitive 4% tax credits, administered by the California Tax Credit Allocation Committee.

Bond authority for rental projects is awarded to three sub-pools: the General Pool (Projects having more than 50% of total units designated as Restricted Rental Units); the Mixed Income Pool (Projects having 50% or fewer of total units designated as Restricted Rental Units); and the Rural Project Pool (Projects located in a rural area as defined by California Health and Safety Code Section 50199.21 but shall not include a Mixed Income Project).

For 2016, current minimum point thresholds are as follows: 45 points in the General Pool and Rural Pool and 20 points in the Mixed Income Pool. For 2017, minimum point thresholds are the same: 45 points in the General Pool and Rural Pool and 20 points in the Mixed Income Pool.