California Code of Regulations › Title 4 - Business Regulations › Division 17 - California Tax Credit Allocation Committee Regulations Implementing the Federal and State Low-Income Housing Tax Credit Laws › Chapter 1 - Federal and State Low-Income Housing Tax Credit › Section 10320 - Actions by the Committee

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) Meetings.
				Except for reservations made pursuant to Section 10325(h) of these Regulations,
				Reservations of Tax Credits shall occur only at scheduled meetings of the
				Committee, which shall announce application-filing deadlines and the
				approximate dates of reservation meetings as early in the year as
				possible.
(b) Approvals required by
				this Section 10320(b) shall not be unreasonably withheld if all of the
				following requirements, as applicable, are satisfied:
(1) No allocation of the Federal or State
				Credits, or ownership of a Tax Credit project, may be transferred without prior
				written approval of the Executive Director. In the event that prior written
				approval is not obtained, the Executive Director may assess negative points
				pursuant to section 10325(c)(2)(M), in addition to other remedies.
				Subparagraphs (A) through (C) apply to all ownership or Tax Credit transfers
				requested after January 31, 2014. Subparagraphs (A) through (E) apply to all
				ownership or Tax Credit transfers requested after April 3, 2024:
(A) Any transfer of project ownership
				(including changes to any general partner, member, or equivalent responsible
				party), or allocation of Tax Credits shall be evidenced by a written agreement
				between the parties to the transfer, including agreements entered into by the
				transferee and the Committee.
(B)
				The entity replacing a party or acquiring ownership or Tax Credits shall be
				subject to a "qualifications review" by the Committee to determine if
				sufficient project development and management experience is present for owning
				and operating a Tax Credit project. Information regarding the names of the
				purchaser(s) or transferee(s), and detailed information describing the
				experience and financial capacity of said persons, shall be provided to the
				Committee. Any general partner change during the 15-year federal compliance and
				extended use period must be to a party earning equal capacity points pursuant
				to Section 10325(c)(1)(A) as the exiting general partner. At a minimum this
				must be three (3) projects in service more than three years, or the
				demonstrated training required under Section 10326(g)(5). Two of the three
				projects must be Low Income Housing Tax Credit projects in California. If the
				new general partner does not meet these experience requirements, then
				substitution of general partner shall not be permitted. The requirements of
				this paragraph apply to a change to any general partner, member, or equivalent
				responsible party where an exiting party meets the experience capacity and the
				remaining party does not have experience equal to the minimum stated
				above.
(C) The transferor shall
				deliver all tenant files, inspection records, financial statements, and reserve
				balances to the transferee prior to or concurrent with the transfer. Failure to
				deliver such records may subject the transferor to negative points or a
				fine.
(D) The Executive Director
				shall not approve a transfer if, in any of the five calendar years prior to the
				transfer date or in the year to date of the transfer but not earlier than April
				3, 2024, the owner has increased the rent for any low-income household in
				excess of the amounts described in Section 10328(a)(4).
(E) The transferee shall annually certify
				that they have not increased the rent for any low-income household in excess of
				the amounts described in Section 10328(a)(4).