Thirty-seven affordable housing proposals took a big step forward after receiving low-income housing tax credit (LIHTC) reservations in California.
The developments will provide 2,162 units across the state. The California Tax Credit Allocation Committee (CTCAC) reserved approximately $43.6 million in federal 9% credits and $30 million in state housing credits to the projects in the first of two allocation rounds this year.
California has the largest LIHTC program in the nation, with approximately $92 million in volume cap. Second-round applications are due June 29.
The developments were selected from 73 applications. CTCAC also approved 4% credits to finance an additional 850 new or rehabilitated units.
“We are proud to support the creation of over 2,000 units of very affordable housing that gives families, seniors and homeless persons safe and stable places to call home,” said John Chiang, state treasurer, in a statement. “The Treasury’s housing programs are a model for how to efficiently fund and build new units in a state facing a 1.5 million-unit shortfall in low-cost, rental units.”
Developments receiving LIHTCs include Second Street Studios in San Jose, which was reserved $1.95 million in annual federal credits and nearly $5 million in state credits. The development by First Community Housing will provide 134 units of housing serving special-needs residents.
In Los Angeles, Abode Communities received a $2 million federal LIHTC reservation to finance the construction of Rolland Curtis East, which will have 69 affordable units, most serving large families.
To see the list of projects, visit http://www.treasurer.ca.gov/ctcac/.
Overall, the state has been seeing strong activity on the 4% credit and tax-exempt bond side. As of June 8, it had awarded 4% LIHTCs to help finance 8,741 units. In 2015, 13,601 units received 4% credits. That means the state has already awarded credits for 64% of the units it awarded in all of last year.