2021 Application Information: $500 Million State Credit for 4% Credit New Construction Multifamily Housing
For 2021, the application and allocation timing of the $500 million in state tax credits will utilize the 4% credit calendar year application cycles. See the 2021 Program Schedule and Deadlines. Applications with financing by CalHFA’s Mixed-Income Program will be accepted in any funding round, subject to request by CalHFA, until the up to $150,000,000 amount is exhausted or reduced pursuant to TCAC regulation sections 10305(h) and 10326(b)(2).
The 2021 CDLAC/TCAC Joint Application is available on the website and is required by TCAC for applications requesting tax credits and tax-exempt bond financing. As a reminder, a TCAC allocation is contingent upon receipt of a CDLAC allocation, pursuant to TCAC regulation sections 10326(h) and (j).
Following an application deadline, CDLAC will publish an applicant list that includes applicant point and tie breaker self-scores. CDLAC will review and score the highest-ranking applications. Point reductions are subject to the CDLAC appeal process (see CDLAC Regulation Section 5036 for more information). Any projects not meeting CDLAC application and program requirements will not receive a federal or state tax credit allocation.
Projects awarded these state tax credits must begin construction within 180 days from the TCAC allocation date. TCAC application requirements to demonstrate readiness to begin construction include: all construction financing must be committed pursuant to TCAC regulation section 10325(c)(7), and evidence of all applicable local land use approvals must be demonstrated by the 2021 Attachment 14.
Projects receiving a bond allocation in 2020 are not eligible to apply for state tax credits allocated in 2021. In order to ensure fair access to these new state tax credits, TCAC limits the percent of state credit allocation that any one developer may receive in the first funding round: no more than 33% to a single developer or its affiliates.