1. (a) The following criteria will be used to evaluate and rank all Qualified Residential Rental Project applications. Each of the items in this section shall be memorialized in the Committee Resolution.

2. (b) Acquisition/Rehabilitation Project Priorities (20 points maximum).

   1. (1) A project meeting all of the following criteria shall receive 10 points:

      1. (A) The project does not result in a distribution of net project equity, as that term is defined in Section 10302(gg) of the CTCAC Regulations, to a general partner or a related party to the general partner. For purposes of this subparagraph, there may be a buyout of a limited partner or equity distributed to a third party seller;
      2. (B) There is no partial or full repayment of existing soft financing, except for loans less than or equal to the greater of $500,000 or 1.5% of the project's total development costs or for temporary repayments that will be restored in the permanent financing; and

      3. (C) The application's developer fee limit pursuant to Section 10327(c)(2) of the CTCAC Regulations is further limited to a cash-out developer fee no greater than 80% of the CTCAC cash-out developer fee limit.

         (2)(A) An At-Risk Project shall receive 20 points.

      4. (B) A project that meets at least one of the following shall receive 9 points:

         1. (i) A replacement or rehabilitation project approved by HUD pursuant to a Section 18 or 22 Demolition/Disposition authorization.
         2. (ii) A project being rehabilitated under the HUD Rental Assistance Demonstration (RAD) Program, or a rehabilitation project that has received a new Section 515 loan from the United States Department of Agriculture; or
         3. (iii) A project that received an award from HCD's Portfolio Reinvestment Program
         4. (iv) A project with a pre-1999 HCD loan.

      5. (C) A project that meets at least one of the following shall receive 8 points:

         1. (i) A project with at least $120,000 in hard construction costs per tax credit unit and is replacing at least two major building systems
         2. (ii) A project applying as an SRO housing type, as defined in Section 10325(g) of the CTCAC regulations, and the rehabilitation will add a bathroom and complete kitchen to each unit.

      6. (D) A project that meets at least one of the following shall receive 7 points:

         1. (i) A project that has previously received an allocation of Low-Income Housing Tax Credits where it has been greater than 20 years from the placed in service date.
         2. (ii) A project that has never received an allocation of Low Income Housing Tax Credits.

3. (c) New Construction Density and Local Incentives (10 points maximum); Acquisition/Rehabilitation Projects are not eligible for these points). A New Construction Project that meets any of the following shall receive 10 points:

   1. (1) The local jurisdiction has approved the project pursuant to Section 65913.4 of the Government Code; or at a density greater than that allowed by the site's zoning through the use of a density bonus allowed by Government Code Section 65915; or pursuant to a local ordinance; or with concessions and/or waivers granted pursuant to Government Code Section 65915;

   2. (2) The project is being developed at a per net acre density that meets one of the following criteria:

      1. (A) 100 bedrooms per net acre in a metropolitan county;
      2. (B) 60 bedrooms per net acre in a suburban jurisdiction;
      3. (C) 40 bedrooms per net acre in all other areas.
   3. (3) The project is located in a city or unincorporated portion of a county for which HCD has designated the city or county, respectively, as pro-housing pursuant to Section 65589.9(c) of the Government Code.
   4. (4) For purposes of this subdivision, “net acre” is defined as the acreage within the parcel boundaries after subtracting any area affected by the dedication of public right-of-way, the presence of restrictive easements, and non-buildable areas. “Metropolitan county” and “suburban jurisdiction” shall have the same meanings as in Section 65583.2 of the Government Code. Projects with land-use approvals obtained prior to January 1, 2022, shall earn full points in this category.

4. (d) Exceeding Minimum Income Restrictions (20 points maximum). A project shall receive points in either of the following manners:

   1. (1) 2 points for each full percent that the average affordability of tax credit units is less than 60% of area median income subject to the Gross Rent definition; or
   2. (2) 20 points if the average affordability of tax credit units is less than or equal to 60% of area median income, provided that at least 10% of tax credit units are restricted at or below 30% of area median income and an additional 10% of tax credits units are restricted at or below 50% of area median income, subject to the Gross Rent definition.
5. (e) Exceeding Minimum Rent Restrictions (10 points maximum). A project shall receive one point for each full percent that the average affordability of tax credit units is more than ten percent (10%) below the average adjusted rental rates of comparable market-rate units as demonstrated by each applicable Rent Comparability Matrix. This percentage shall be calculated separately for units of each bedroom count, with the results for each unit type weighted relative to the percentage of tax credit units of that type in the project, and the resulting percentage shall be used to determine the final point score. In cases where unit sizes of the same unit type vary, the smallest of these units shall be the basis for comparison. When family comparables are used in addition to senior comparables (outside the 1-mile radius), points will be calculated using the family comparables.

6. (f) General Partner and Management Company Experience (10 points maximum).

   1. (1) A project shall receive general partner experience points in one of the following manners:

      1. (A) The number of general partner experience points for which it is eligible pursuant to Section 10325(c)(1)(A) of the CTCAC regulations.
      2. (B) 7 points if the project is a joint venture between an entity that receives maximum general experience points pursuant to Section 10325(c)(1)(A) of the CTCAC regulations and a BIPOC Entity, provided that the partnership agreement allocates at least 51% of the developer fee, cash flow, and net sale proceeds to the BIPOC Entity and provides the BIPOC Entity an option to purchase the development.
      3. (C) 7 points if the sponsor is a BIPOC Entity that (i) is a general partner in at least one California Low-Income Housing Tax Credit development that has received a certificate of occupancy, or if a rehabilitation project, completed rehabilitation, within ten years of the date of application, (ii) submits the certification from a third-party certified public accountant referred to in Section 10325(c)(1)(A)(i) of the CTCAC regulations for that development, and (iii) completes training as prescribed by CTCAC prior to a project's placing in service.

   2. (2) A project shall receive management company experience points in one of the following manners:

      1. (A) The number of management company points for which it is eligible pursuant to Section 10325(c)(1)(B) of the CTCAC regulations.
      2. (B) 3 points if the management company will be the BIPOC Entity for which the project receives general partner experience points pursuant to paragraph (1)(C).

7. (g) Housing Types (10 points maximum; Acquisition/Rehabilitation Projects not eligible for these points). A New Construction Project that meets any of the following criteria shall receive 10 points:

   1. (1) The project meets the criteria for any of the housing types described in Section 10325(g) of the CTCAC regulations. Points will be awarded only in one housing type.
   2. (2) The project meets the requirements of subdivision (c) of this section or is a New Construction Project that obtained all land use approvals prior to January 1, 2022.

8. (h) Readiness to Proceed (10 points maximum). Projects may earn 10 points by documenting enforceable financing commitments as defined in Section 5102(b)(5) for all construction financing and demonstrating that construction can begin within 180 days, 201 days, or 222 days of the bond allocation, as assigned by the Executive Director. Additionally, Applicants shall provide evidence that all deferred-payment financing, residual receipts payment financing, grants and subsidies shown in the application are “committed” at the time of application, as described in CTCAC Regulations Section 10325(f)(8)(A)-(D), except a project is exempt from this requirement if it has funds anticipated and publicly published with provisional awardee names but not yet officially awarded in the capacity required.

   1. (1) Before the end of the assigned deadline, CDLAC must receive:

      1. (A) An executed construction contract.
      2. (B) Recorded deeds of trust for all construction financing (unless precluded by tribal trust land), binding commitments for permanent and any other required financing.
      3. (C) Executed limited partnership agreement with equity investor.

      4. (D) Issued building permits or applicable tribal documents.

         1. (i) Grading permits may be used to meet this requirement only if the city or county does not issue building permits before grading is complete.
         2. (ii) Documentation that the city or county approved construction to begin may be used to meet this requirement for design-build projects where the city or county does not issue building permits until designs are fully complete.
      5. (E) Notice to proceed delivered to the contractor.
   2. (2) If no construction lender is involved, evidence of equity partner admission and initial disbursement must be submitted by the deadline. CDLAC will conduct a financial feasibility and cost reasonableness review upon receipt. In cases of federally or state-declared emergencies (or similar events, at the Executive Director's discretion), extensions may be granted.
   3. (3) Failure to meet the deadline or provide sufficient documentation may result in the Executive Director issuing a notice rescinding the bond allocation for failure to be ready to proceed. Prior to the deadline, the applicant may submit one request for an extension of up to ninety (90) days, which the Executive Director may grant at their discretion. If the applicant fails to meet the requirements by the expiration of the granted extension, the bond allocation may be rescinded, subject to appeal under Section 5005. The Executive Director's denial of an extension request, as well as any notice of rescission, is also appealable under Section 5005. The Committee may issue negative points under Section 5105(m) in connection with any allocation rescission, or with any extension granted or denied, including those addressed through an appeal under Section 5005

9. (i) Access to Opportunity (10 points maximum).

   1. (1) A New Construction project shall receive points in only one of the following manners:

      1. (ii) Using the sort order described in Section 5106, after projects receiving 10 points pursuant to this subdivision have been recommended for allocations that meet or exceed the following threshold, all remaining projects in each pool or set aside shall receive 9 points for meeting the requirements of this subdivision. For the purpose of awarding points per round, excluding an established waiting list, pursuant to this subdivision, 10 points shall be awarded until 48% of the amount available to a pool or set aside has been allocated or until the next eligible project in line would allocate over 52% of the amount available to the pool or set aside. Subsequently, all remaining projects in each pool or set aside shall receive 9 points for meeting the requirements of this subdivision.
      2. (B) 9 points if the project does not receive points pursuant to subdivision (i)(1)(A). With respect to New Construction Projects, at least 10% of tax credit units shall be restricted at or below 30% of area median income and an additional 10% of tax credits units shall be restricted at or below 50% of area median income.

      (A)(i) Except as provided in (ii) below, 10 points if the project receives points as a Large Family project or Special Needs project pursuant to subdivision (g) (except the Special Needs project shall have at least 50% of its units set aside as permanent supportive housing), is located in a High or Highest Resource Area as specified on the CTCAC/HCD Opportunity Area Map, and at least 10% of tax credit units shall be restricted at or below 30% of area median income and an additional 10% of tax credit units shall be restricted at or below 50% of area median income (except Special Needs projects shall be exempt from this 50% AMI requirement).

10. (j) Service Amenities (10 points maximum). A project shall receive the number of points for which it is eligible pursuant to Section 10325(c)(4)(B) of the CTCAC regulations, except that projects not meeting one of the housing types specified in Section 10325(g) of the CTCAC regulations shall be able to choose the services provided without regard to the housing type conditions within the service amenity categories.
11. (k) Cost Containment (12 points maximum). A project shall receive 1 point for each full percent that the project's eligible basis is less than the project's CDLAC adjusted threshold basis limit, except that a New Construction Project that receives points as a Large Family project or Special Needs project pursuant to the conditions specified in Section 5105(i)(1)(A) and is located in a High or Highest Resource Area as specified on the CTCAC/HCD Opportunity Area Map shall receive 2 points for each full percent that the project's eligible basis is less than the project's CDLAC adjusted threshold basis limit. For purposes of this subdivision, a project's CDLAC adjusted threshold basis limit shall be the project's threshold basis limit as determined pursuant to Section 10327(c)(5) of the CTCAC regulations, except that the increase for deeper targeting pursuant to Section 10327(c)(5)(C) of the CTCAC regulations shall be limited to 80%.
12. (l) Site amenities (10 points maximum). A project shall receive up to 10 site amenity points for which it is eligible pursuant to Section 10325(c)(4)(A) of the CTCAC regulations, except that a maximum of three points shall be available to any project that meets the Resource Area criteria of Section 10325(c)(4)(A)11.

13. (m) Negative Points (no maximum). The Committee may deduct points for an Application involving a Project Sponsor that has been or is a Related Party to a Project Sponsor (i.e. in the ownership structure) for which an Allocation has been awarded as follows:

    1. (1) Ten (10) points may be deducted for each failure to fully utilize the leveraged soft resources for which points were awarded in connection with the prior Allocation, unless it can be demonstrated that the failure was unforeseen and entirely outside of the Project Sponsor's control or the amount not utilized is not material, or is the result of voluntarily returning leveraged soft resources due to the project being over-sourced, or if a change in federal or state law provides additional financial resources that result in a reduction in leveraged soft resources. This deduction may be assessed against the Project Sponsor for a period of up to two (2) calendar years (10 points each year) from the date on which the prior Allocation was awarded.
    2. (2) Ten (10) points may be deducted for each failure to issue Bonds or utilize 90% or more of a Supplemental Allocation, unless it can be demonstrated that the failure was unforeseen and entirely outside of the Project Sponsor's control. This deduction may be assessed against the Project Sponsor for a period of up to two (2) succeeding years (10 points each year) following the year the Allocation was awarded.
    3. (3) Ten (10) points may be deducted for each failure to spend the proceeds of Bonds issued pursuant to an Allocation in full, or in accordance with the terms and conditions of the Committee Resolution, unless it can be demonstrated that the failure was unforeseen and entirely outside of the Project Sponsor's control, the amount not spent is not material or is consistent with the requirements of Section 5006(c), or the deviation from the terms and conditions of the Committee Resolution is not material. This deduction may be assessed against the Project Sponsor for a period of up to three (3) calendar years (10 points each year) from the date of determination of failure to spend proceeds.
    4. (4) Ten (10) points may be deducted for failure to comply with any provision of the Committee Resolution, unless it can be demonstrated that the failure was unforeseen and entirely outside of the Project Sponsor's control. This deduction may be assessed for a period of up to three (3) calendar years (10 points each year) from the date of determination of non-compliance with the Committee Resolution.
    5. (5) Ten (10) points may be deducted in connection with any adverse action taken under Section 5105(h). This deduction may be assessed against the Project Sponsor for a period of up to two (2) succeeding years (10 points each year) following the year the Allocation was awarded.
    6. (6) Where CTCAC has determined an Application for tax credits involving a Project Sponsor that has been or is a Related Party to a Project Sponsor who is subject to negative points under its regulations, CDLAC will deduct an equal amount of points for an equal period of time from tax exempt bond applications involving the Project Sponsor or a Related Party to the Project Sponsor.
    7. (7) Where CTCAC has determined an Applicant for tax credits involving a Project Sponsor that has been a Related Party to a Project sponsor who is subject to any type of determination of ineligibility, CDLAC will recognize the length of ineligibility and apply it to the tax exempt bond applications involving the Project Sponsor or Related Party to the Project Sponsor.

Note: Authority cited: Section 8869.94, Government Code. Reference: Sections 8869.84(c), 8869.85(a) and 8869.85(b), Government Code.

History

1. New section filed 7-12-2010 as an emergency pursuant to Government Code section 8869.94; operative 7-12-2010 (Register 2010, No. 29). A Certificate of Compliance must be transmitted to OAL by 1-10-2011 or emergency language will be repealed by operation of law on the following day.

2. New section refiled 1-6-2011 as an emergency pursuant to Government Code section 8869.94; operative 1-6-2011 (Register 2011, No. 1). A Certificate of Compliance must be transmitted to OAL by 4-6-2011 or emergency language will be repealed by operation of law on the following day.

3. New section refiled 4-1-2011 as an emergency pursuant to Government Code section 8869.94; operative 4-6-2011 (Register 2011, No. 13). A Certificate of Compliance must be transmitted to OAL by 7-5-2011 or emergency language will be repealed by operation of law on the following day.

4. Certificate of Compliance as to 4-1-2011 order, including new section heading and repealer and new section, transmitted to OAL 6-2-2011 and filed 7-1-2011 (Register 2011, No. 26).

5. Renumbering of former section 5105 to section 5104 and renumbering of former section 5106 to new section 5105 filed 11-9-2015 as an emergency pursuant to Government Code section 8869.94; operative 11-9-2015 (Register 2015, No. 46). A Certificate of Compliance must be transmitted to OAL by 5-9-2016 or emergency language will be repealed by operation of law on the following day.

6. Certificate of Compliance as to 11-9-2015 order transmitted to OAL 1-27-2016 and filed 3-10-2016 (Register 2016, No. 11).

7. Editorial correction of History 6 (Register 2016, No. 25).

8. Amendment filed 8-1-2022 as an emergency; operative 8-1-2022 (Register 2022, No. 31). A Certificate of Compliance must be transmitted to OAL by 1-30-2023 or emergency language will be repealed by operation of law on the following day.

9. Amendment refiled 2-9-2023 as an emergency; operative 2-9-2023 (Register 2023, No. 6). A Certificate of Compliance must be transmitted to OAL by 5-10-2023 or emergency language will be repealed by operation of law on the following day.

10. Certificate of Compliance as to 2-9-2023 order, including further amendment of section, transmitted to OAL 4-18-2023 and filed 5-31-2023; amendments effective 5-31-2023 pursuant to Government Code section 11343.4(b)(3) (Register 2023, No. 22).

11. Repealer of former section 5105 and renumbering of section 5230 to new section 5105, including amendment of section heading and section, filed 2-4-2026; operative upon adoption by the California Debt Limit Allocation Committee on 12-10-2025 pursuant to Government Code section 8869.94(c). Submitted to OAL for filing and printing only pursuant to Government Code section 11343.8 (Register 2026, No. 6).