(ddd) Related Party.

• (1) the sibling(s), spouse, ancestors, and direct descendants of a person;

• (2) a person and corporation where that person owns more than 50% in value of the outstanding stock of that corporation;

• (3) two or more corporations, general partnership(s), limited partnership(s) or limited liability corporations connected through debt or equity ownership, in which

  • (A) stock is held by the same persons or entities for

    • (i) at least 50% of the total combined voting power of all classes that can vote, or

    • (ii) at least 50% of the total value of shares of all classes of stock of each of the corporations or

    • (iii) at least 50% of the total value of shares of all classes of stock of at least one of the other corporations, excluding, in computing that voting power or value, stock owned directly by that other corporation;

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Regulations Section 10325

  - (B) concurrent ownership by a parent or related entity, regardless of the percentage of ownership, or a separate entity from which income is derived; 

  - (C) concurrent ownership by a parent or related entity, regardless of the percentage of ownership, or a separate entity where a sale-leaseback transaction provides the parent or related entity with income from the property leased or that creates an undue influence on the separate entity as a result of the sale-leaseback transaction; 

  - (D) concurrent ownership by a parent or related entity, regardless of the percentage of ownership, of a separate entity where an interlocking directorate exists between the parent or related entity and the separate entity. 

• (4) a grantor and fiduciary of any trust;

• (5) a fiduciary of one trust and a fiduciary of another trust, if the same person is a grantor of both trusts;

• (6) a fiduciary of a trust and a beneficiary of that trust;

• (7) a fiduciary of a trust and a corporation where more than 50% in value of the outstanding stock is owned by or for the trust or by or for a person who is a grantor of the trust;

• (8) a person or organization and an organization that is tax-exempt under Subsection 501(c)(3) or (4) of the IRC and that is affiliated with or controlled by that person or the person’s family members or by that organization;

• (9) a corporation and a partnership or joint venture if the same persons own more than:

  • (A) 50% in value of the outstanding stock of the corporation; and

  • (B) 50% of the capital interest, or the profits’ interest, in the partnership or joint venture;

• (10) one S corporation or limited liability corporation and another S corporation or limited liability corporation if the same persons own more than 50% in value of the outstanding stock of each corporation;

• (11) an S corporation or limited liability corporation and a C corporation, if the same persons own more than 50% in value of the outstanding stock of each corporation;

• (12) a partnership and a person or organization owning more than 50% of the capital interest, or the profits’ interest, in that partnership; or

• (13) two partnerships where the same person or organization owns more than 50% of the capital interests or profits’ interests.

• The constructive ownership provisions of IRC Section 267 also apply to subsections 1 through 13 above. The more stringent of regulations shall apply as to the ownership provisions of this section.

• (eee) Reservation. As provided for in Health & Safety Code Section 50199.10(e) the initial award of Tax Credits to an Eligible project. Reservations may be conditional.

• (fff) Resyndication. A project subject to an existing tax credit regulatory agreement that is awarded a new allocation of tax credits to preserve and extend the affordability of the project.

• (ggg) Rural. An area defined in H & S Code Section 50199.21.

• (hhh) Scattered Site Project. A project in which the parcels of land are not contiguous except for the interposition of a road, street, stream or similar interposition.

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Regulations Section 10325

• (1) For acquisition and/or rehabilitation projects with one pre-existing project-based Section 8 contract in effect for all the sites, there shall be no limit on the number or proximity of sites.

• (2) For acquisition and/or rehabilitation projects with any of the following: (A) existing federal or state rental assistance or operating subsidies, (B) an existing CTCAC Regulatory Agreement, or (C) an existing regulatory agreement with a federal, state, or local public entity, the number of sites shall be limited to five, unless the Executive Director approves a higher number, and all sites shall be either within the boundaries of the same city, within a 10-mile diameter circle in the same county, or within the same county if no location is within a city having a population of five-hundred thousand (500,000) or more.

• (3) For new construction projects and all other acquisition and/or rehabilitation projects, the number of sites shall be limited to five, and all sites shall be within a 1-mile diameter circle within the same county.

• (iii) Single Room Occupancy (SRO)/Studio: A unit that may or may not include a complete private bath and kitchen but generally does not have a separate bedroom. A complete private bath consists of a toilet and shower, with a vanity sink that may or may not be in the same room. SRO units in projects with an existing regulatory agreement recorded with CTCAC or another government agency shall be deemed having met the requirements of an SRO/Studio. Projects containing units that do not have complete private baths shall provide at least one bath per eight units and at least one complete bath per floor. Common kitchen facilities shall be provided for units without complete kitchens. CTCAC uses SRO and Studio interchangeably but recognizes some jurisdictions may not, and the project shall comply with all local regulations.

• (jjj) Special Needs. A housing type servicing Special Needs Population(s) and meeting the requirements of Section 10325, subdivision (g)(3).

• (kkk) Special Needs Population(s). One or more of the following groups who need Supportive Services to maintain and stabilize their housing:

  • (1) People with Disabilities;

• (2) At-Risk of Homelessness;

  • (3) Individuals with substance use disorders;

  • (4) Frequent users of public health or mental health services, as identified by a public health or mental health agency;

  • (5) Individuals who are fleeing domestic violence, sexual assault, and human trafficking;

  • (6) Individuals who are experiencing Homelessness or Chronic Homelessness;

  • (7) Homeless youth as defined in Government Code section 12957, subdivision (e)(2);

  • (8) Families meeting the definition of “Eligible family” under the Bringing Families Home program at WIC section 16523, who may or may not be participating in the program.

  • (9) Individuals exiting institutional settings or at risk of placement in an institutional setting;

  • (10) Older Adults in Need of Supportive Services; or

  • (11) Other specific groups with unique housing needs as determined by the Executive Director.

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Regulations Section 10325

• (lll) State Credit. The Tax Credit for low-income rental housing provided by the Revenue and Taxation Code Sections 12205, 12206, 17057.5, 17058, 23610.4 and 23610.5, including the State Farmworker Credit, formerly the Farmworker Housing Assistance Program provided by the Revenue and Taxation Code Sections 12206,17058, and 23610.5 and by the Health and Safety Code Sections 50199.2 and 50199.7.

• (mmm) Supportive Services. Services that address the special needs of people served by a project necessary to assist people maintain housing. Such services shall be consistent with the definition of “Supportive Services” in subdivision (29) of section 11360 of title 42 of the United States Code, and may include social, health, educational, income support and employment services and benefits, coordination of community building and educational activities, individualized needs assessment, and individualized assistance with obtaining services and benefits.

(nnn) Tax Credit Units. Low-Income Units and manager units.

• (ooo) Tax-Exempt Bond Project. A project that meets the definition provided in IRC Section 42(h)(4).

• (ppp) Tax forms. Income tax forms for claiming Tax Credits: for Federal Tax Credits, IRS Form 8609; and, for State Tax Credits, FTB Form 3521A.

• (qqq) “Transfer Event” shall mean (i) a transfer of the ownership of a project, (ii) the sale or assignment of a partnership interest in a project owner and/or (iii) the refinancing of secured debt on a project. The following shall not be deemed a Transfer Event: (i) the transfer of the project or a partnership or membership interest in a project owner in which reserves remain with the project and the debt encumbering the project is not increased, refinanced or otherwise modified, (ii) the refinancing of project debt which does not increase the outstanding principal balance of the debt other than in the amount of the closing costs and fees paid to the project lender and third parties as transaction costs, provided that reserves remain with the project, (iii) the replacement of a general partner by a limited partner upon the occurrence of a default by a general partner in accordance with partnership agreement of the project owner, (iv) a transfer pursuant to a foreclosure or deed in lieu of foreclosure to a non-related party, (v) a “Subsequent Transfer” pursuant to Section 10338(c) hereof, (vi) a transfer of the ownership of a project subject to an existing tax credit regulatory agreement with a remaining term of five (5) or less years if the transfer is made in connection with a new reservation of 9% or 4% tax credits, or (vii) the sale of a project, or the sale or assignment of a partnership interest in a project owner, to an unrelated party for which the parties entered into a purchase agreement prior to October 9, 2015. Notwithstanding the foregoing, the term “Transfer Event” shall be applicable only to projects in which at least 50% of the units are Tax Credit Units.

• (rrr) Threshold Basis Limit. The aggregate limit on amounts of unadjusted eligible basis allowed by the Committee for purposes of calculating Tax Credit amounts. These limits are published by CTCAC on its website, by unit size and project location, and are based upon average development costs reported within CTCAC applications and certified development cost reports. CTCAC staff shall use new construction cost data from both 9 percent and 4 percent funded projects, and shall eliminate extreme outliers from the calculation of averages. Staff shall publicly disclose the standard deviation percentage used in establishing the limits, and shall provide a worksheet for applicant use. CTCAC staff shall establish the limits in a manner that seeks to avoid a precipitous reduction in the volume of 9 percent projects awarded credits from year to year.

• (sss) Tribe. A federally recognized Indian tribe located in California, or an entity established by the tribe to undertake Indian housing projects, including projects funded with federal Low Income Housing Tax Credits.

• (ttt) Tribal Trust Land. Real property located within the State of California that meets both the following criteria:

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Regulations Section 10302 - 10305

• (1) is trust land for which the United States holds title to the tract or interest in trust for the benefit of one or more tribes or individual Indians, or is restricted Indian land for which one or more tribes or individual Indians holds fee title to the tract or interest but can alienate or encumber it only with the approval of the United States.

  • (2) the land may be leased for housing development and residential purposes under Federal law.

• (uuu) Waiting List. A list of Eligible Projects approved by CTCAC following the last application cycle of any calendar year, pursuant to Section 10325(h) below.

• (vvv) CTCAC/HCD Opportunity Area Map. A map or series of maps approved annually by the Committee as the CTCAC/HCD Opportunity Area Map.

Note: Authority cited: Section 50199.17, Health and Safety Code; Sections 12206, 17058 and 23610.5, Revenue and Taxation Code.

Reference: Sections 12206, 17058 and 23610.5, Revenue and Taxation Code; and Sections 50199.4, 50199.5, 50199.6, 50199.7, 50199.8, 50199.9, 50199.10, 50199.11, 50199.12, 50199.13, 50199.14, 50199.15, 50199.16, 50199.17, 50199.18, 50199.20, 50199.21 and 50199.22, Health and Safety Code.