Applications for Disaster Tax Credits
The Further Consolidated Appropriations Act, 2020 (FCAA) provided TCAC with additional 9% federal tax credits for multifamily housing projects in certain disaster areas, in recognition of the 2017 and 2018 wildfire disasters occurring in California. The disaster areas defined in the FCAA are located in 13 of California’s 58 counties: Butte, Lake, Los Angeles, Mendocino, Napa, Nevada, Orange, San Diego, Santa Barbara, Shasta, Sonoma, Ventura, and Yuba. Applicants may apply for disaster area federal tax credits provided TCAC regulation and program requirements are met. Please refer application questions to TCAC Development Section (Applications) staff.
Disaster tax credit applications will be accepted for the TCAC 2020 July 1 competitive round, and the 2021 competitive rounds (please see TCAC Program Schedule & Deadlines). Certain application requirements have been modified for disaster tax credit applications. However, there is not a separate Excel application for disaster tax credits; for the July 2020 competitive round, complete the 2020 9% Competitive Tax Credit Application (June 19, 2020). Point score categories not applicable to disaster tax credit applications are: site amenities, sustainable building methods, readiness to proceed, and miscellaneous federal and state policies. The normal 9% tiebreakers are not applicable (please refer to TCAC Regulation §10325(d)(1) for the disaster tax credit tiebreakers). Applicants may leave these sections of their application blank. For the threshold requirement exemptions applicable to certain projects (CDBG-DR funding and zoning), applicants do not need to complete these sections of their application checklist/attachments.
IMPORTANT NOTE For disaster tax credit applicants that are unsuccessful in the disaster TAX credit competition: Unsuccessful applications for disaster tax credits will be considered in the normal 9% credit competition and will be scored and reviewed for compliance with all competitive application requirements, including those exemptions listed in the paragraph above. Applicants requesting more than $2,500,000 in federal tax credits are not eligible to compete in the normal 9% credit competition. Applicants requesting the disaster credit federal DDA basis boost are eligible to retain the basis boost in the normal 9% credit competition. TCAC will evaluate applications based on the documents in the application; no new documentation may be submitted after the application deadline, unless permitted by TCAC regulations (for example, an updated Attachment 26 or a disaster tax credit LRA letter of support).
Please refer application questions to TCAC Development Section (Applications) staff.