SB 16 Passes State Senate Revenue and Taxation Committee

The Senate Revenue and Taxation Committee has passed SB 16 (Lowenthal), a bill supported by SCANPH and affordable home builders making Low Income Housing Tax Credits (LIHTC) awarded between 2008 and 2010 refundable for investors or developers, in order to counter the recent drastic drop in interest among investors.

This measure responds to the recent meltdown in the national financial market by temporarily making the state's Low Income Housing Tax Credit refundable. This change will produce more homes affordable to all Californians while incurring little or no additional state costs.

When the economy is healthy, tax credit investors become partners in developments, injecting capital and claiming the state tax credit in return. Today, diminished tax liabilities have greatly reduced investors' interest in the tax credits, which in turn has lowered the credits' value.

By allowing any development partner to claim the credit as refundable, SB 16 will increase the tax credits' value and raise additional capital to construct affordable places to live. This change comes at little or no additional cost to the state; each $1 in tax credits will still cost the state $1.

TAKE ACTION! SCANPH is asking for everyone who cares about affordable housing to send a support letter to your senator. To find your Senator, please use this link and use the "Your Senator" tab to the left.

Use our SAMPLE LETTER and please send it today.