California Code of Regulations › Title 18 - Public Revenues › Division 1 - State Board of Equalization-Property Tax (California Department of Tax and Fee Administration - Timber Yield Tax, See Chapter 11) › Chapter 2 - Assessment › Article 3 - Exemptions and Immunities › Section 140 - Welfare Exemption Requirements for Low-Income Housing Properties

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) Definitions.
				  The definitions set forth in this regulation shall govern the construction of
				  Revenue and Taxation Code section
				  214,
				  subdivision (g):
(1) "Low-income housing tax
				  credits" means that the property owner is eligible for and receives state
				  low-income housing tax credits pursuant to Revenue and Taxation Code sections
				  12205,
				  12206,
				  17057.5,
				  17058,
				  23610.4
				  and
				  23610.5
				  or federal low-income housing tax credits pursuant to section
				  42 of the Internal Revenue
				  Code.
(2) "Government financing"
				  means financing or financial assistance from local, state or federal government
				  used for the acquisition, rehabilitation, construction, development, or
				  operation of a low-income housing property in the form of:
(1) tax-exempt mortgage revenue
				  bonds;
(2)  general obligation
				  bonds;
(3) local, state or federal
				  loans;
(4) local, state or federal
				  grants;
(5) any loan insured, held,
				  or guaranteed by the federal government; or
(6) project-based federal funding under
				  section 8 of the Housing Act of 1937. The
				  term "government financing" does not include properties that solely receive
				  federal rental assistance through tenant rent-subsidy vouchers under section
				  8 of the Housing Act of
				  1937.
(3) "Other legal
				  document" means a document that is adopted as a resolution or statement of
				  policy by an organization's board of directors, or executed by an
				  organization's chief executive officer, provided that the board of directors
				  has delegated this authority in writing to the chief executive officer, that
				  restricts the property's use to low-income housing, such that a minimum of 90%
				  of the units of the property are made continuously available to or occupied by
				  lower income households at rent levels that do not exceed those prescribed by
				  section
				  50053
				  of the Health and Safety Code.
(4)
				  "Lower income households" means "lower income households" as defined by section
				  50079.5
				  of the Health and Safety Code.
(5)
				  "Recorded deed restriction" means a deed recorded as an encumbrance against
				  title to the property in the official records of the county in which the
				  property is located, which specifies that all or a portion of the property's
				  usage is restricted to rental to lower income households and identifies the
				  number of units restricted to use as low-income housing.
(6) "Regulatory agreement" means an
				  enforceable and verifiable agreement with a government agency that has provided
				  low-income housing tax credits or government financing for the acquisition,
				  rehabilitation, construction, development or operation of a low-income housing
				  property that restricts all or a portion of the property's usage for rental to
				  lower income households. The regulatory agreement shall identify the number of
				  units restricted for use as low-income housing, specify the maximum rent
				  allowed for those units, and be recorded in the county in which the property is
				  located. Until such time as the Regulatory Agreement is finalized and recorded,
				  the Preliminary Reservation Letter from the California Tax Credit Allocation
				  Committee or California Debt Limit Allocation Committee Bond Cap Allocation
				  Letter is acceptable.