The Personal Income Tax Law and the Corporation Tax Law allow various credits against the taxes imposed by those laws.

This bill would allow a credit against those taxes for each taxable year beginning on or after January 1, 2019, and before January 1, 2024, to a taxpayer in an amount equal to 50% of the amount that is paid or incurred by a contributed by the taxpayer to a qualified developer for the development of a qualified project, as defined, but that does not exceed a specified amount per taxpayer per qualified project. The bill would also limit the aggregate amount of the credit, as specified.

This bill would take effect immediately as a tax levy.

The Personal Income Tax Law and the Corporation Tax Law allow various credits against the taxes imposed by those laws.

This bill would allow a credit against those taxes for each taxable year beginning on or after January 1, 2019, and before January 1, 2024, in an amount, determined by the California Tax Credit Allocation Committee, amount equal to 50% of the amount that is paid or incurred by a taxpayer to a qualified developer for the development of a qualified project, as defined, not to exceed an aggregate amount of $5,000,000 per year. but that does not exceed a specified amount per taxpayer per qualified project. The bill would also limit the aggregate amount of the credit, as specified.

This bill would take effect immediately as a tax levy.

The Personal Income Tax Law and the Corporation Tax Law allow various credits against the taxes imposed by those laws.

This bill would allow a credit against those taxes for each taxable year beginning on or after January 1, 2019, and before January 1, 2024, in an amount, determined by the California Tax Credit Allocation Committee, that is paid or incurred by a taxpayer to a qualified developer for the development of a qualified project, as defined, not to exceed an aggregate amount of $5,000,000 per year.

This bill would take effect immediately as a tax levy.

Date of Hearing: May 16, 2018

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Lorena Gonzalez Fletcher, Chair

ABPCA Bill Id:AB 2922

Author:(Gipson) – As Amended Ver:May 2, 2018

Urgency: No State Mandated Local Program: No Reimbursable: No

SUMMARY:

This bill provides, for taxable years 2019 through 2023, a credit under the Personal Income Tax (PIT) Law and the Corporation Tax (CT) Law equal to 50% of funds contributed to a nonprofit, as defined, for the development of a qualified housing project. The credit may not exceed $250,000 and total new allocations may not exceed $5 million per fiscal year.

FISCAL EFFECT:

Annual General Fund revenue loss of $900,000 in 2018-19, $4.2 million in 2019-20, and $6.5 million in 2020-21. AB 2922 caps new credit allocations to $5 million per year, but unused credits may be rolled over in future years.

COMMENTS:

1. Background. Habitat for Humanity is a non-profit organization that works with families who contribute “sweat equity” to the construction of the home. Habitat for Humanity attaches a covenant or restrictions sometimes known as a "silent second mortgage," secured by a deed of trust that limits any family purchasing the home from reselling it so that the home remains affordable should the initially selected family choose to move. Households that assume a mortgage from Habitat for Humanity are restricted from spending more than 30% of their income on their monthly mortgage, which includes property taxes, insurance, HOA dues, and deferred maintenance. Homeowners can sell their homes at any time. However, Habitat for Humanity receives first right of refusal so the home can continue to serve local families. The right-of-first refusal is generally extinguished once the mortgage is paid in full.
2. Purpose. AB 2922 enacts a new tax credit program for housing units sold to low- and moderate-income families. This bill would enact a new tax expenditure program in the form of a tax credit for housing units that will generally be sold to low- and moderate-income families. A taxpayer contributes to a qualified developer (such as Habitat for Humanity) and receives a tax credit worth 50% of the donated amount, not to exceed $250,000. According to the author, AB 2922 will stimulate private investment in affordable housing development projects.
3. Fiscal implications of tax expenditures. Existing law allows for various tax expenditures such as credits, deductions, exclusions, and exemptions for particular taxpayer groups. These features of the tax code can result in significant state costs through foregone tax revenue and, in many cases, policymakers have little control over the revenue loss that occurs in any given year. As a result, many tax expenditure bills now include provisions designed to give the Legislature more control over costs. Examples of such provisions include placing a sunset date or making a bill’s provisions contingent upon a separate budget appropriation. AB 2922 contains a sunset and a cap on total credits that may be allocated.

Analysis Prepared by: Luke Reidenbach / APPR. / (916) 319-2081

Date of Hearing: May 9, 2018

ASSEMBLY COMMITTEE ON HOUSING AND COMMUNITY DEVELOPMENT

David Chiu, Chair

ABPCA Bill Id:AB 2922 (

Author:Gipson) – As Amended Ver:May 2, 2018

SUBJECT: Income taxes: credits: qualified developer: affordable housing

SUMMARY: Provides a credit, under the Personal Income Tax (PIT) Law and the Corporation Tax (CT) Law, equal to 50% of funds contributed by a taxpayer to a "qualified developer" for the development of a "qualified project," not to exceed $250,000. Specifically, this bill:

1. Provides, on or after January 1, 2019, and before January 1, 2024, a credit equal to 50% of funds contributed to a "qualified developer" for the development of a "qualified project," not to exceed $250,000.
2. Defines a "qualified developer" as a nonprofit organization organized pursuant to Internal Revenue Code Section 501(c)(3) that has received a welfare exemption pursuant to Revenue and Taxation Code (R&TC) Section 214.5.
3. Defines a "qualified project" as a project that meets the following requirements:
   1. The housing units will be sold to persons or families with incomes between 30% to 80% of the "area median income" and be subject to a contract that meets all of the following:
      1. The contract restricts the use of the land for at least 30 years to owner-occupied housing available at an affordable housing cost in accordance with Health and Safety Code Section 50052.5;
      2. The contract includes a deed of trust on the property in favor of the nonprofit corporation to ensure compliance with the terms of the program, which has no value unless the owner fails to comply with the covenants and restrictions of the terms of the home sale; and,
      3. The local housing authority or an equivalent agency, or, if none exists, the city attorney or county counsel, has made a finding that the long-term deed restrictions in the contract serve a public purpose.
   2. Is subject to equity sharing provisions as described in Government Code Section 65915(c)(2); and,
   3. Has a specific site in California with a parcel identifier or address.
4. Defines "area median income" in the same manner as provided for under Health and Safety Code Section 50093.
5. Limits the credit to $5 million per fiscal year, plus both of the following:
   1. The unallocated credit amount, if any, for the preceding fiscal year; and,
   2. The amount of previously reserved credits not claimed.
6. Requires a taxpayer, prior to paying any funds to a qualified developer for a qualified project, to request a tentative credit reservation from Franchise Tax Board (FTB) in a form and manner prescribed by FTB. To obtain a tentative credit reservation, the taxpayer shall identify the qualified developer and the qualified project in the request.
7. Provides that the amount of the tentative credit reservation shall be equal to 50% of the amount paid or incurred by a taxpayer during the taxable year, but shall not exceed $250,000 for any qualified project.
8. Requires FTB to approve the request for a credit reservation, and allows the FTB to verify that the developer is a qualified developer and that the project is a qualified project.
9. Requires FTB to determine the aggregate amount of all tentative credit reservations, and to only approve a request for a tentative credit reservation if the amount does not exceed the $5 million cap.
10. Allows the credit to be assigned among members of the same combined report.
11. Provides that Revenue and Taxation Code Section 41 does not apply.
12. Allows unused excess credit to be carried forward to the following taxable year and succeeding five taxable years, if necessary, until the credit is exhausted.
13. Provides that this credit is in lieu of any other credit or deduction that the taxpayer may have otherwise claimed.
14. Repeals the credit on December 1, 2024.
15. Takes effect immediately as a tax levy.

EXISTING LAW:

1. Allows various tax credits under both the PIT Law and the CT Law. These credits are generally designed to encourage socially beneficial behavior or to provide relief to taxpayers who incur specified expenses.
2. Provides a Low-Income Housing Tax Credit (LIHTC) for the costs of constructing, rehabilitating, or acquiring low-income housing. The credit amount varies depending on several factors including when the housing was placed in service and whether it was federally subsidized. The California Tax Credit Allocation Committee allocates and administers the federal and state LIHTC program.
3. Allows a deduction for charitable contributions made to a qualified organization, including nonprofits organized pursuant to IRC Section 501(c)(3).
4. Applies performance measurement standards to any new tax credit under either the PIT Law or CT Law if enacted by a bill introduced on or after January 1, 2015.  Specifically, existing law requires all of the following:
   1. Specific goals, purposes, and objectives that the tax credit will achieve;
   2. Detailed performance indicators for the Legislature to use when measuring whether the tax credit meets the goals, purposes, and objectives stated in the bill; and,
   3. Data collection requirements to enable the Legislature to determine whether the tax credit is meeting, failing to meet, or exceeding those specific goals, purposes, and objectives. The requirements shall include the specific data and baseline measurements to be collected and remitted in each year the credit is in effect, for the Legislature to measure the change in performance indicators, and the specific taxpayers, state agencies, or other entities required to collect and remit data. (R&TC Section 41).

FISCAL EFFECT: Unknown

COMMENTS:

Background: Habitat for Humanity is a non-profit organization that works with families who contribute sweat equity to the construction of the home. Habitat for Humanity attaches a covenant or restrictions sometimes known as a "silent second mortgage," secured by a deed of trust that limits any family purchasing the home from reselling it so that the home remains affordable should the initially selected family choose to move. Households that assume a mortgage from Habitat for Humanity are restricted from spending more than 30% of their income on their monthly mortgage, which includes property taxes, insurance, HOA dues, and deferred maintenance. Homeowners can sell their homes at any time. However, Habitat for Humanity receives first right of refusal so the home can continue to serve local families. The right-of-first refusal is generally extinguished once the mortgage is paid in full.

This bill would enact a new tax expenditure program in the form of a tax credit for housing units that will generally be sold to low and moderate-income families. A taxpayer would make a charitable donation to a qualified developer and would receive a tax credit for 50% of the donated amount, not to exceed $250,000. The bill narrowly applies to projects that are for-sale housing for low- and moderate-income families that conform to the Habitat for Humanity model – households cannot pay more the 30% of their income toward a mortgage, household income is between 30% and 80% of the area median income, and a contract with a non-profit restricts the home to owner-occupancy for 30-years. This bill includes a five-year sunset date.

Purpose of this bill: According to the author, this bill "will help low-income families become homeowners by stimulating private investment in affordable housing development projects. This bill will create an affordable housing development tax credit, incentivizing private entities to contribute to qualified non-profit corporations that are building homes to be sold to families whose income is 30-80% of the area median income.…Between January 1, 2019, and January 1, 2024, the tax credit would allow a donor to claim a 50% tax credit on their donations to a qualified non-profit corporation building homes for low-income families. Cost to the State for the credit would be capped at $5 million annually. This will support funding and investment for affordable housing while reducing the burden on the state budget and taxpayers."

Proponents state that AB 2922 "is modeled after successful tax incentive programs in other states and would create an affordable housing development tax credit, incentivizing private entities to contribute to qualified non-profit organizations that are building long-term for-sale, deed restricted homes for families with incomes at or below 80% of the area median income. These types of projects do not qualify for the federal or state low-income housing tax credit program because they are for-sale homes, as opposed to rental homes."

State Oversight: The LIHTC is overseen by the California Tax Credit Allocation Committee (TCAC). In allocating credits to rental housing projects, TCAC performs feasibility analyses on every project to ensure that allocations do not exceed the amount required for project feasibility. Although statutes define the qualifying basis for determining the maximum credit, TCAC will only provide a rental housing project with the amount of credit necessary to make the project feasible. TCAC, in allocating credits, will also consider factors other than cost. For example, Internal Revenue Code Section 42 requires that each state give preference to projects that serve the lowest income tenants, projects obligated to serve qualified low-income tenants for the longest period of time, and projects located in qualified census tracts that contribute to a concerted community revitalization plan. California additionally adds its own requirements when reviewing LIHTC applications. Public policies encouraging smart growth principles and energy efficiencies are part of California's housing tax credit program. California implements a competitive scoring system where points are awarded for a variety of items, ranging from serving lower income tenants to achieving energy efficiencies to the degree that the project will contribute to revitalization efforts in the area where it will be located. The criteria for choosing eligible projects are, in part, a way of ensuring that the best projects among the applicants are chosen.

This bill, however, takes a different approach and allows a taxpayer to qualify for the credit so long as its contribution is being given to a qualified developer for the development of a qualified project. All qualifying projects will serve low-income and moderate- income families, but no feasibility test is required. There is also no way of knowing how or where the funds will be spent, and this bill does not assess a community's need for the qualified project.

Evaluation of the new credit: The committee may wish to consider that to meaningfully evaluate this new credit after five years, the Legislature will need information. The committee may wish to require a qualified developer that benefits from the tax credit to report each year to the Department of Housing and Community Development (HCD) the following information: number of units built the location of the units, and the household income of the individual or family that owns the unit. HCD would be required to submit this information at the end of each year to the Legislature.

Double-referred: This bill is double-referred. It was heard in the Assembly Committee on Revenue and Taxation and passed out on a vote of 10-0 on April 30, 2018.

REGISTERED SUPPORT / OPPOSITION:

Support

Habitat for Humanity (Sponsor)

California Housing Consortium

Non-Profit Housing Association of Northern California

Opposition

None on file

Analysis Prepared by: Lisa Engel / H. & C.D. / (916) 319-2085

Date of Hearing: April 30, 2018

ASSEMBLY COMMITTEE ON REVENUE AND TAXATION

Autumn R. Burke, Chairwoman

ABPCA Bill Id:AB 2922 (

Author:Gipson) – As Amended Ver:April 23, 2018

Majority vote. Tax levy. Fiscal committee.

SUBJECT: Income taxes: credits: qualified developer: affordable housing

SUMMARY: Provides a credit, under the Personal Income Tax (PIT) Law and the Corporation Tax (CT) Law, equal to 50% of funds contributed by a taxpayer to a "qualified developer" for the development of a "qualified project," not to exceed $250,000. Specifically, this bill:

1. Provides, on or after January 1, 2019, and before January 1, 2024, a credit equal to 50% of funds contributed to a "qualified developer" for the development of a "qualified project," not to exceed $250,000.
2. Defines a "qualified developer" as a nonprofit organization organized pursuant to Internal Revenue Code Section 501(c)(3) that has received a welfare exemption pursuant to Revenue and Taxation Code (R&TC) Section 214.5.
3. Defines a "qualified project" as a project that meets the following requirements:
   1. The housing units will be sold to persons or families with incomes between 30% to 80% of the "area median income" and be subject to a contract that meets all of the following:
      1. The contract restricts the use of the land for at least 30 years to owner-occupied housing available at an affordable housing cost in accordance with H&SC Section 50052.5;
      2. The contract includes a deed of trust on the property in favor of the nonprofit corporation to ensure compliance with the terms of the program, which has no value unless the owner fails to comply with the covenants and restrictions of the terms of the home sale; and,
      3. The local housing authority or an equivalent agency, or, if none exists, the city attorney or county counsel, has made a finding that the long-term deed restrictions in the contract serve a public purpose.
   2. Is subject to equity sharing provisions as described in Government Code Section 65915(c)(2); and,
   3. Has a specific site in California with a parcel identifier or address.
4. Defines "area median income" in the same manner as provided for under Health and Safety Code (H&SC) Section 50093.
5. Limits the credit to $5 million per fiscal year, plus both of the following:
   1. The unallocated credit amount, if any, for the preceding fiscal year; and,
   2. The amount of previously reserved credits not claimed.
6. Requires a taxpayer, prior to paying any funds to a qualified developer for a qualified project, to request a tentative credit reservation from the Franchise Tax Board (FTB) in a form and manner prescribed by FTB. To obtain a tentative credit reservation, the taxpayer shall identify the qualified developer and the qualified project in the request.
7. Provides that the amount of the tentative credit reservation shall be equal to 50% of the amount paid or incurred by a taxpayer during the taxable year, but shall not exceed $250,000 for any qualified project.
8. Requires the FTB to approve the request for a credit reservation, and allows the FTB to verify that the developer is a qualified developer and that the project is a qualified project.
9. Requires the FTB to determine the aggregate amount of all tentative credit reservations, and to only approve a request for a tentative credit reservation if the amount does not exceed the $5 million cap.
10. Allows the credit to be assigned among members of the same combined report.
11. Provides that R&TC Section 41 does not apply.
12. Allows unused excess credit to be carried forward to the following taxable year and succeeding five taxable years, if necessary, until the credit is exhausted.
13. Repeals the credit on December 1, 2024.
14. Takes effect immediately as a tax levy.

EXISTING LAW:

1. Allows various tax credits under both the PIT Law and the CT Law. These credits are generally designed to encourage socially beneficial behavior or to provide relief to taxpayers who incur specified expenses.
2. Provides a Low-Income Housing Tax Credit (LIHTC) for the costs of constructing, rehabilitating, or acquiring low-income housing. The credit amount varies depending on several factors including when the housing was placed in service and whether it was federally subsidized. The California Tax Credit Allocation Committee allocates and administers the federal and state LIHTC program.
3. Allows a deduction for charitable contributions made to a qualified organization, including nonprofits organized pursuant to IRC Section 501(c)(3).
4. Applies performance measurement standards to any new tax credit under either the PIT Law or CT Law if enacted by a bill introduced on or after January 1, 2015.  Specifically, existing law requires all of the following:
   1. Specific goals, purposes, and objectives that the tax credit will achieve;
   2. Detailed performance indicators for the Legislature to use when measuring whether the tax credit meets the goals, purposes, and objectives stated in the bill; and,
   3. Data collection requirements to enable the Legislature to determine whether the tax credit is meeting, failing to meet, or exceeding those specific goals, purposes, and objectives. The requirements shall include the specific data and baseline measurements to be collected and remitted in each year the credit is in effect, for the Legislature to measure the change in performance indicators, and the specific taxpayers, state agencies, or other entities required to collect and remit data. (R&TC Section 41).

FISCAL EFFECT: Unknown

COMMENTS:

1. The author has provided the following statement in support of this bill:

A full-fledged housing crisis has gripped California, marked by a severe lack of affordable homes for working and middle-class families. Studies show that improved educational outcomes, higher civic participation, lower crime, and improved health remain the biggest social benefits linked to homeownership. However, the cost of renting a home is at an all-time high and homeownership in California is at its lowest rate since the 1940s.

The state Legislature has begun to respond to this crisis by increasing funds for housing development projects, but policies that promote private investment for affordable housing, and more specifically home ownership, are still needed.

Assembly Bill 2922 will help low-income families become homeowners by stimulating private investment in affordable housing development projects. This bill will create an affordable housing development tax credit, incentivizing private entities to contribute to qualified non-profit corporations that are building homes to be sold to families whose income is 30-80% of the area median income. Unlike other affordable tax credit housing programs, these homes will be long-term resale and deed restricted, which limits the use of the land and restricts the resale price of these properties to ensure that the units remain affordable in the community. These restrictions aside, qualifying families will earn a financial benefit by building modest equity in their homes and obtain the social benefits of being homeowners in their communities.

Between January 1, 2019, and January 1, 2024, the tax credit would allow a donor to claim a 50 percent tax credit on their donations to a qualified non-profit corporation building homes for low-income families. Cost to the State for the credit would be capped at $5 million annually. This will support funding and investment for affordable housing while reducing the burden on the state budget and taxpayers.

1. Proponents state that AB 2922 "is modeled after successful tax incentive programs in other states and would create an affordable housing development tax credit, incentivizing private entities to contribute to qualified non-profit organizations that are building long-term for-sale, deed restricted homes for families with incomes at or below 80% of the area median income. These types of projects do not qualify for the federal or state low-income housing tax credit program because they are for-sale homes, as opposed to rental homes."
2. Committee Staff Comments:
   1. What is a "Tax Expenditure"? Existing law provides various credits, deductions, exclusions, and exemptions for particular taxpayer groups. In the late 1960s, United States Treasury officials began arguing that these features of the tax law should be referred to as "expenditures," since they are generally enacted to accomplish some governmental purpose and there is a determinable cost associated with each of them (in the form of forgone revenues). This bill would enact a new tax expenditure program in the form of a tax credit for housing units that will generally be sold to low and moderate-income families.
   2. Tax Expenditure vs. Direct Expenditure: As the Department of Finance notes in its annual Tax Expenditure Report, there are several key differences between tax expenditures and direct expenditures. First, tax expenditures are reviewed less frequently than direct expenditures once they are put in place. This can offer taxpayers greater certainty, but it can also result in tax expenditures remaining part of the tax code without demonstrating any public benefit. Second, there is generally no control over the amount of revenue losses associated with any given tax expenditure. Finally, it should also be noted that, once enacted, it takes a two-thirds vote to rescind an existing tax expenditure absent a sunset date. This bill includes a five-year sunset date.
   3. Background: Habitat for Humanity works with families who contribute sweat equity to the construction of the home. Habitat for Humanity attaches a covenant or restrictions sometimes known as a "silent second mortgage," secured by a deed of trust that limits any family purchasing the home from reselling it so that the home remains affordable should the initially selected family choose to move. Households that assume a mortgage from Habitat for Humanity are restricted from spending more than 30% of their income on their monthly mortgage, which includes property taxes, insurance, HOA dues, and deferred maintenance. Homeowners can sell their homes at any time. However, Habitat for Humanity receives first right of refusal so the home can continue to serve local families. The right-of-first refusal is generally extinguished once the mortgage is paid in full.
   4. Renting vs. Buying: There are a number of benefits associated with home ownership, which include predictable housing payments, greater privacy, and freedom to modify the property, but the largest benefit is probably the forced savings and appreciation in value that comes from owning property. Unlike renting, when an individual purchases a home, the individual generally begins to build equity in the property and property usually appreciates in value over the life of the loan. In some cases, the value of the property may exceed the original purchase price, the cost of borrowing, and the costs associated with owning the property. However, this is not always the case. In fact, depending on the market, it may be better to rent a comparable property and invest the savings in an investment vehicle or retirement account. Of course, not every person is disciplined enough to invest the savings that come from renting. As such, the forced savings associated with homeownership can serve as a retirement benefit for many low and moderate-income families.
   5. State Oversight: The LIHTC is overseen by the California Tax Credit Allocation Committee (Committee). In allocating credits to rental housing projects, the Committee performs feasibility analyses on every project to ensure that allocations do not exceed the amount required for project feasibility. Although statutes define the qualifying basis for determining the maximum credit, the Committee will only provide a rental housing project with the amount of credit necessary to make the project feasible. The Committee, in allocating credits, will also consider factors other than cost. For example, Internal Revenue Code Section 42 requires that each state give preference to projects that serve the lowest income tenants, projects obligated to serve qualified low-income tenants for the longest period of time, and projects located in qualified census tracts that contribute to a concerted community revitalization plan. California additionally adds its own requirements when reviewing LIHTC applications. Public policies encouraging smart growth principles and energy efficiencies are part of California's housing tax credit program. California implements a competitive scoring system where points are awarded for a variety of items, ranging from serving lower income tenants to achieving energy efficiencies to the degree that the project will contribute to revitalization efforts in the area where it will be located. The criteria for choosing eligible projects are, in part, a way of ensuring that the best projects among the applicants are chosen.

This bill, however, takes a different approach and allows a taxpayer to qualify for the credit so long as its contribution is being given to a qualified developer for the development of a qualified project. All qualifying projects will serve low-income and moderate- income families, but no feasibility test is required. There is also no way of knowing how or where the funds will be spent, and this bill does not assess a community's need for the qualified project. The expenditure of these state resources is entirely left up to the taxpayer; as a result, it is unclear if the best projects will be funded.

1. Double dipping: Existing law already provides a tax incentive, in the form of a charitable deduction, for contributions made to a qualified organization, including nonprofits organized pursuant to IRC Section 501(c)(3). A deduction decreases the taxpayer's income and its value depends on the taxpayer's tax bracket. For example, if a taxpayer is in a 25% bracket, a $1,000 deduction would lower the taxpayer's tax bill by $250. In contrast, a $1,000 credit decreases the tax liability by the full $1,000, regardless of the tax bracket. Thus, the value of a tax credit is the same regardless of the tax rate and, therefore, it is generally more appealing to taxpayers because it lowers tax liability dollar-for-dollar.

Generally, efficient tax policy disallows multiple tax benefits for the same item of expense. Because this bill does not specifically disallow the charitable contribution, a taxpayer could take advantage of the existing charitable contribution deduction and this tax credit for the same item of expense. The Committee may wish to consider whether allowing such double dipping is an efficient use of limited state resources.

• 1. R&TC Section 41: SB 1335 (Leno), Chapter 845, Statutes of 2014 added R&TC Section 41, which recognized that the Legislature should apply the same level of review used for government spending programs to tax preference programs, including tax credits.  Thus, Section 41 requires any bill that is introduced on or after January 1, 2015 and allows a new PIT or CT credit to contain specific goals, purposes, and objectives that the tax credit will achieve.  In addition, Section 41 requires detailed performance indicators for the Legislature to use when measuring whether the tax credit meets the goals, purposes, and objectives so-identified. This bill provides that R&TC Section 41 does not apply to the proposed tax credit. Because there is no meaningful state oversight with respect to the projects that will be approved, it may be appropriate for the author to comply with Section 41 to assess the credit's effectiveness.
  2. Double-referral: This bill was double-referred to the Assembly Committee on Housing and Community Development. Should this bill pass out of this Committee, it will be referred to the Committee on Housing and Community Development.

REGISTERED SUPPORT / OPPOSITION:

Support

Habitat for Humanity (Sponsor)

California Housing Consortium

Non-Profit Housing Association of Northern California

Opposition

None on file

Analysis Prepared by: Carlos Anguiano / REV. & TAX. / (916) 319-2098