LOW INCOME HOUSING TAX CREDIT GENERAL INFORMATION

LOW INCOME HOUSING TAX CREDIT
GENERAL INFORMATION
4% TC - ANSWER-4% Tax Credit Financing (finances up to 30% of total costs)

9% TC - ANSWER-9% Tax Credit Financing (finances up to 70% costs)

CDLAC Tiebreaker Formula - ANSWER-Cost adjusted bond request / Bedroom
adjusted units

Lower tiebreaker is better.

CTCAC - ANSWER-California Tax Credit Allocation Committee

Tax Credit allocation authority

CDLAC - ANSWER-California Debt Limit Allocation Committee

Bond allocation authority

HCD - ANSWER-Department of Housing and Community Development.

Provides state subsidy for TCAC & CDLAC in the form of low interest loans or grants.

Two ways the bonds are allocated - ANSWER-Geographically: CDLAC allocates to
regional governments

Pools: Middle Income program Homeless, Rural projects, and a few others (mentioned
in other set). These are non-geographic and gets its own bond allocation.

NOFA - ANSWER-Notice of Funding Availability

QAP - ANSWER-Qualified Allocation Plan

Two types of Federal tax credit financing - ANSWER-4% Credits

9% Credits

$3.5T Budget Reconciliation - ANSWER-If approved:
It increases the amount of 9% tax credits available per state by 50%. Lowers the 50%
Test to 25% on bond financed tax credit projects, effectively doubling state bond
resource capacity.