Request Issuance, including Certificated State Credits
The California Tax Credit Allocation Committee (CTCAC) Form 3521A is issued by CTCAC as the Certificate of Final Award of California Low-Income Housing State Tax Credits. Placed in Service (PIS) packages submitted after December 31, 2024, shall include completed Form(s) 3521A for CTCAC’s review.
To request issuance of state tax credits, include completed Form(s) 3521A in the PIS package. The Form(s) 3521A shall be issued in conjunction with IRS Form(s) 8609 after the PIS review is completed.
- Form 3521A Instructions
- Form 3521A (Submit in Word Document Format)
- Attachment to Form 3521A – Additional Rows (Submit in Word Document Format)
For projects electing to certificate their state tax credits, ensure “Certificated State Credit” requirements below are met. The Form(s) 3521A must be completed with the indication of the project's election by checking off the applicable boxes as directed in the above “Form 3521A Instructions”.
Certificated State Credit
In 2016, the Legislature provided authority for CTCAC to “certificate” state low-income housing tax credits for credit reservations made beginning in 2017. Certificated state tax credits are sold outright to investors who take no ownership interest in the housing development. This eliminates the impact of the state tax credits on an investor’s federal tax liability, allowing the investor to offer higher tax credit pricing.
Applicants to CTCAC for certificated state credits must be a non-profit entity. The ownership entity may be both for profit and non-profit, but the named applicant must be a non-profit entity.
The minimum pricing for certificated state tax credits is eighty (80) cents per dollar of credit. The election to sell may be made at any time before CTCAC issues Form(s) 3521A for the project. Once Form(s) 3521A is issued, the election is irrevocable.
The purchaser of certificated state tax credit is not liable for the housing development’s compliance with the LIHTC program. The project ownership entity remains fully liable for program compliance.
For projects electing to certificate their state tax credits, the applicant must provide in their PIS application submission, the completed Form(s) 3521A as instructed above per the “Request Issuance, including Certificated State Credits” section.
The Non-Profit Entity Certificated State Credits form must be completed and included in the PIS package, along with supporting documentation of the applicant’s non-profit status.
Sale of certificated state tax credit must be reported to CTCAC using CTCAC’s prescribed form (below). Sale of credit occurs when the applicant or project owner receives payment from the certificated state tax credit purchaser. If this is done in installments, the Notice of Sale may be made as late as 10 days after the final installment. Certificated state tax credits may be resold multiple times, the one-time resale limit has been eliminated. Each sale must be reported to CTCAC.
Send completed Notice of Sale forms to Cheng Lee at Cheng.Lee@treasurer.ca.gov
If the project no longer elects to certificate the state credits and instead will allocate the credits, the applicant will need to inform the PIS analyst before the PIS review is completed. If CTCAC is not properly notified before the Form(s) 3521A are issued the election becomes irrevocable. Form(s) 3521A will be issued to the Non-Profit applicant for certificated state credits that have not yet been sold.
If you have questions please contact Diane SooHoo at Diane.SooHoo@treasurer.ca.gov.
Certificated State Credits Webinar – 12/18/2018