Application Information: $500 Million State Credit for 4% Credit New Construction Multifamily Housing
For 2020, the application and allocation timing of the $500 million in state tax credits will utilize the 4% credit calendar year application cycles. See the 2020 Program Schedule and Deadlines. There will be at least two funding rounds for the state tax credits. Applications with financing by CalHFA’s Mixed-Income Program will be accepted in any funding round, subject to request by CalHFA, until the reserved amount of $200,000,000 is exhausted. State tax credit allocations will be limited to no more than $150,000,000 per round, plus any applications with CalHFA’s Mixed-Income Program financing. Acceptance of applications received with CalHFA MIP financing are subject to the agreement of the Executive Directors of CalHFA and TCAC, to assist in workload prioritization.
The 2020 joint CDLAC/TCAC application will be available in early November after TCAC regulations are adopted. The 2020 joint application must be used for these applications.
The first state credit funding round will have a November 15, 2019 CDLAC and TCAC application deadline with a January 15, 2020 TCAC award date. As a reminder, this TCAC allocation is contingent upon receipt of a CDLAC allocation in February, pursuant to TCAC regulation sections 10326(h) and (j).CDLAC will make awards February 12, 2020 for those projects receiving a January 15th TCAC allocation of state tax credits. CDLAC will award bond allocations to 4%-only projects in its March allocation round. As stated above, applicants must apply to CDLAC and TCAC concurrently.
CDLAC will review the minimum threshold scores for the first round of applications after the November 15 submission. Please note, CDLAC will be releasing an updated minimum threshold score for the November 15 application deadline. Point reductions are subject to the CDLAC appeal process (see CDLAC Regulation Section 5036 for more information). CDLAC requirements will also include a limitation that bond allocations cannot exceed 60% of the aggregate basis of the buildings plus land cost, without the express written consent of the Executive Director.
Any application found by CDLAC to have missing, incomplete, or erroneous threshold items will be eliminated from the round pursuant to CDLAC regulations. Any projects not meeting CDLAC application and program requirements will not be eligible for state tax credits and will not receive a federal or state tax credit allocation from TCAC No more than $50 million of state tax credits will be awarded to a single developer or its affiliates in any one round.
Projects awarded these state tax credits must begin construction within 180 days from the TCAC allocation date.For projects awarded January 15, 2020 with a bond allocation date of February 12, 2020, the TCAC allocation date begins the 180 day period rather than the later CDLAC 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)(A), and evidence of all applicable local land use approvals must be demonstrated by the 2020 Attachment 26.
The second funding round will have a January 17, 2020 deadline with a March 18, 2020 award date. Any remaining state tax credits will be allocated in subsequent funding rounds (May, July, etc.). Applicants must apply to CDLAC and TCAC concurrently.
Projects receiving a bond allocation in 2019 are not eligible to apply for state tax credits allocated in 2020. In order to ensure fair access to these new state tax credits, TCAC plans to limit the percent of state credit allocation that any one developer may receive in a particular round; no more than 33% to a single developer or its affiliates.