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Chiang Announces Tax Credits to Construct More Than 1,800 New Affordable Housing Units

March 18, 2015

Contact: Jacob Roper

SACRAMENTO – State Treasurer John Chiang today announced awarding tax credits and tax-exempt bonds to 16 affordable housing projects in 12 counties that will add approximately 1,815 rental units to the housing market. The affordable housing credits, valued at $319 million, provide a 4 percent tax incentive to potential investors who may help to finance the housing developments. The $295 million of tax-exempt bonds awarded will allow affordable housing construction to be financed at below market interest rates. In order to qualify for the credit and bonds, the housing development must remain affordable for a period of no less than 55 years.

"Lack of affordable housing is not only pushing Californians out of the communities in which they work and have family roots, but is now threatening the vitality of our economy. While today's action represents a sizeable amount of development, it represents only a small part of the total solution needed for this problem,” Chiang said. “That is why I am delighted to have joined with Speaker Toni Atkins and others to pursue legislation that will expand affordable housing incentives and help to address the supply side of this problem.”

The Treasurer also announced that funding will be available for a first-time homebuyer program in Orange County. That program will help approximately 146 families by reducing their federal tax liabilities and thereby increasing their purchasing power. The funding is provided by issuing tax-exempt bonds, which are then converted to tax credits for individual families.

Currently, more than 34 percent of working renters pay more than 50 percent of their income toward housing, and the State Department of Housing and Community Development estimates that California needs to build 220,000 new homes a year to keep up with population growth.

The Treasurer chairs two of the State's main housing finance authorities, the California Tax Credit Allocation Committee and the California Debt Limit Allocation Committee. Both committees held meetings earlier today, where the credits were approved for the following developments:

Development City County
Northgate Terrace Apartments Oakland Alameda
Stoneman Village Apartments Pittsburg Contra Costa
Amberwood Apartments I & II Hanford Kings
Leaster Apartments Los Angeles Los Angeles
Anton Portola Apartments Irvine Orange
Anton Arcade Apartments Sacramento Sacramento
The Crossings at Escondido Manor Apartments Escondido San Diego
Betel Apartments San Francisco San Francisco
Block 7W Mission Bay South Apartments San Francisco San Francisco
Edgewater Isle Apartments San Mateo San Mateo
Ocean View Senior Apartments Pacifica San Mateo
6800 Mission Family Housing Apartments Daly City San Mateo
Butterfield Retirement Apartments Morgan Hill Santa Clara
Madrone Village Apartments Petaluma Sonoma
Park Lane Apartments Petaluma Sonoma
Johnson Gardens Apartments Ventura Ventura

Earlier this year, Treasurer Chiang started a six-month engagement with housing leaders and key stakeholders regarding California’s growing affordable housing crisis. He and his office have begun meeting with local government officials, developers, financing experts, federal and state housing officials. They also plan to meet with leaders of the state’s high tech and life sciences industries and other business sectors which have been particularly impacted by California’s affordable housing shortage.

Read this press release in Spanish.

For more news, please follow the Treasurer on Twitter at @CalTreasurer, and on Facebook at California State Treasurer's Office.