1. (a) Private Activity Bond allocation awards made in or before Round 2 of 2025 cannot exceed 55% of the aggregated depreciable basis plus land basis. In determining compliance with this test, CDLAC staff may rely on the legal or tax opinion submitted with the application.
2. (b) Private Activity Bond allocation awards made after Round 2 of 2025 cannot exceed 30% of the aggregated depreciable basis plus land basis, except the Executive Director may grant a request for an allocation award up to 40% of the aggregated depreciable basis plus land basis if the request demonstrates to the Executive Director's satisfaction that (1) the project's permanent financing supports the larger allocation award, and (2) the project is unable to obtain recycled bonds from the applicant. In determining compliance with this provision, CDLAC staff may rely on the legal or tax opinion submitted with the application.

3. (c) The following issuance deadline rules apply to QRRP allocations made prior to December 31, 2025:

   1. (1) Bond issuance deadline extensions may be granted based on the terms of the Regulations governing the allocation.
   2. (2) Any project awarded an allocation subject to the limit set forth in (a) and requesting an expiration date extension to January 1, 2026 or later is required to reduce the project's allocation to comply with the limits set in subdivision (b) or demonstrate to the Executive Director's satisfaction why the project cannot be restructured to meet the reduced allocation limits.
   3. (3) Negative points under Section 5105(m)(5) must be assessed to any project awarded an allocation in Round 2 of 2025, that received maximum readiness points, and receives an expiration date extension after November 19, 2025, at the time such request is granted by the Executive Director or the Committee.

Note: Authority cited: Section 8869.94, Government Code. Reference: Sections 8869.84(c), 8869.84(e) and 8869.89, Government Code.

History

1. New 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).