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California Tax Credit Allocation Committee

$500 Million State Credit for 4% Credit New Construction Multifamily Housing

California Assembly Bill 101 (AB 101) provides $500 million additional state low-income housing tax credits for 4% credit new construction multifamily housing projects pursuant to subsection (g)(1)(B) of Sections 12206, 17058, and 23610.5 of the Revenue and Taxation Code. California Tax Credit Allocation Committee (CTCAC) has incorporated the provisions of AB 101 into CTCAC regulations.
Highlights of AB 101 include:

  • CTCAC shall consider projects located throughout the state and allocate housing credits applying the minimum requirements of Section 10326 for 4% credit applications, which is contingent upon receipt of a CDLAC allocation pursuant to Section 10326(i) and (j).
  • Up to $500 million additional state tax credits for 4% + state credit NC if the annual Budget Act, or if any bill providing for appropriations related to the Budget Act, specifies an amount to be available for allocation in that calendar year by CTCAC.
  • Of the $500 million, CTCAC shall set aside up to $200 million for projects receiving financing from the CalHFA Mixed-Income Program (MIP).
  • Projects located in a DDA or QCT are eligible for both the federal 130% basis increase and for state credit. State credit is calculated from 100% of basis (not 130%). (DDA and QCT status is determined by HUD.)
  • The original pool of state credit, roughly $126 million, remains essentially unchanged, where 15% of the credits is available to acquisition and/or rehabilitation bond financed projects using a 13% multiplier, but with an added option of a 95% multiplier and ranking priority for qualifying rehabilitation projects:
    • The project’s buildings must be 15 years old and complete substantial rehabilitation with the new tax credit allocation;
    • The project must currently restrict rent to 45% AMI targeting and below and continue to do so with the new tax credit allocation OR be financed with USDA RD Section 514 or 521; and
    • The project has a low appraised value.

See Application Information: $500 million State Credit for general application information.  
See the State Tax Credits Table for more information about the different state credit multipliers