The California Tax Credit Allocation Committee has released its proposed regulation changes, including the elimination of its small development set-aside, for 2011.
The committee has scheduled three public hearings in early December to discuss the proposed changes to its low-income housing tax credit program.
Officials report they no longer see a compelling reason for the small development set-aside. In addition, small developments are costly on per-unit basis. In 2010, small developments proposing new construction averaged about $437,000 per unit. This category has been for projects with 20 or fewer units.
In other moves, officials proposed increasing the special-needs/single-room occupancy set-aside by 2 percent to 4 percent and adjusting the list of counties with difficult-to-develop status within the 9 percent program.
Another proposal would limit rural projects to no more than 20 percent of the credits available under the at-risk set-aside.
The committee is also looking at a new requirement involving general partner transfers. If a general partner changes during the 15-year compliance period, it must be to a party earning equal capacity points as the exiting partner, according to the proposal.
To review the complete list of proposed changes, visit http://www.treasurer.ca.gov/ctcac.