Section 10302. Definitions. — CTCAC Regulations Implementing the Federal and State Low-Income Housing Tax Credit Programs

(a) Accessible Housing Unit(s). Includes “Housing Units with Mobility Features” and “Housing Units with Hearing/Vision Features.”
(b) Adaptive Reuse. Adaptive Reuse means retrofitting and repurposing of existing buildings that create new residential rental units, and expressly excludes any project that involves rehabilitation of any construction affecting existing housing units, as defined by the U.S. Census Bureau. Adaptive Reuse may include retrofitting and repurposing of existing hotels or motels if the hotel or motel is not currently a place of residence for the occupants, and/or sites that received a Project Homekey allocation.
(c) AHP. The Affordable Housing Program of the Federal Home Loan Bank.
(d) Allocation. The certification by the Committee of the amount of Federal, or Federal and State, Credits awarded to the applicant for purposes of income tax reporting to the IRS and/or the California Franchise Tax Board (“FTB”).
(e) Alternative Accessibility Standards or “HUD Deeming Memo,” HUD-2014-0042-001. The Alternative accessibility standard for accessibility in the U.S. Department of Housing and Urban Development’s (HUD) notice at 70 Fed. Reg. 29,671 (May 23, 2014,) when used in conjunction with the requirements of 24 Code of Federal Regulations (C.F.R.) part 8 and 28 CFR part 35, including the 2010 Standards for Accessible Design (2010 ADAS) (28 C.F.R. part 35.104), available at https://www.ada.gov/law-and-regs/design-standards/2010-stds/.
(f) Applicable Credit Percentage. The monthly rate, published in IRS revenue rulings pursuant to IRC Section 42(b)(1), applicable to the Federal Program for purposes of calculating annual Tax Credit amounts.
(g) Area Median Income or AMI. HUD developed income limits based on median family income estimates and fair market rent area definitions for each metropolitan area, parts of some metropolitan areas, and each non-metropolitan area, published annually on the CTCAC website.
(h) At-Risk of Homelessness. The condition experienced by people defined as “at risk of homelessness” in 24 CFR Section 91.5 or 578.3.
(i) Bath or bathroom. A bath or bathroom must be equipped with an exhaust fan, a toilet, a sink, a shower or bathtub, and a receptacle outlet.

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(j) Bedroom. A bedroom be at least 70 square feet, must include an interior door, a closet or freestanding wardrobe provided by the project owner, and at least one receptacle outlet.
(k) Capital Needs Assessment or CNA. The physical needs assessment report required for all rehabilitation projects, described in Section 10322(h)(26)(B).
(l) CDLAC. The California Debt Limit Allocation Committee or its successor.
(m) Certified Access Specialist or CASp. Any individual currently holding a valid certification of certified access specialist pursuant to subchapter 2.5 of title 21 of the California Code of Regulations (C.C.R.).
(n) Chairperson. The Chairperson of the California Tax Credit Allocation Committee.
(o) Chronic Homelessness or Chronically Homeless. The condition experienced by people defined as “chronically homeless” in 24 CFR Sections 91.5 or 578.3 and includes individuals and families:
- (1) Residing in a place not meant for human habitation, emergency shelter, or safe haven, after experiencing Chronic Homelessness and subsequently residing in a Low-Income Unit within the last year;
- (2) Residing in transitional housing after experiencing Chronic Homelessness; or
- (3) Residing in an existing Low-Income Unit being rehabilitated with financial assistance from a state housing agency or being replaced by a project receiving financial assistance from a state housing agency provided that upon occupancy, the individual or family was experiencing Chronic Homelessness.
(p) Committee. The California Tax Credit Allocation Committee (“CTCAC”) or its successor.
(q) Community Foundation. A local foundation organized as a public charity under section 509(a)(1) of the Internal Revenue Code.
(r) Compliance Period. That period defined by IRC Section 42(i)(1) and modified by R & T Code Section 12206(h), and further modified by the provisions of these regulations.
(s) Credit(s). Housing Tax Credit(s), or Tax Credit(s).
(t) Credit Ceiling. The amount specified in IRC Section 42(h)(3)(C) for Federal Program purposes (including the unused credits from the preceding calendar year, the current year’s population based credits, returned credits and national pool credits), and in R & T Code Section 17058(g) for State Program purposes.
(u) CTCAC. California Tax Credit Allocation Committee.
(v) Developer Fee. All Funds paid at any time as compensation for developing the proposed project, to include all processing agent fees, developer overhead and profit, construction management oversight fees if provided by the developer, personal guarantee fees, syndicator consulting fees, and reserves in excess of those customarily required by multi-family housing lenders.
(w) Development Team. The group of professionals identified by the applicant to carry out the development of a Tax Credit project, as identified in the application pursuant to subsection 10322(h)(5).
(x) Disability. Has the same meaning as “disability” in the Americans with Disabilities Act (ADA) at 42 United States Code (U.S.C.) section 12102 or the California Fair Employment and Housing Act (FEHA) at Government Code (Gov. Code) section 12926 and C.C.R., title 2, section 14020.

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(y) Eligible Project. A proposed 9% Tax Credit project that has met all of the Basic Threshold Requirements and Additional Threshold Requirements described in Sections 10325(f) and (g) below.
(z) Executive Director. The executive director of the California Tax Credit Allocation Committee.
(aa) Fair Housing Law(s). Including the California FEHA (Gov. Code, § 12900 et seq.); 2 C.C.R. § 12005 et seq.); the Unruh Civil Rights Act (Unruh Act) (Civ. Code, § 51 et seq.); Gov. Code section 11135 and 2 C.C.R. § 14000 et seq. (the prohibition of discrimination in state-funded programs); Gov. Code section 8899.50 (the duty to affirmatively further fair housing); California’s Housing Element Law (Gov. Code, § 65583 et seq.); the Disabled Person Act (Civ. Code § 5, et seq.), Title VI of the Civil Rights Act of 1964 (42 U.S.C. § 2000d et seq.); the Americans with Disabilities Act of 1990 (ADA) (42 U.S.C. § 12101 et seq.); the Fair Housing Act (FHA) and amendments (42 U.S.C. § 3601 et seq.); the Fair Housing Amendments Act of 1988; Section 504 of the Rehabilitation Act of 1973 (29 U.S.C. § 794); the Architectural Barriers Act of 1968 (42 U.S.C. § 4151 et seq.); the Age Discrimination Act of 1975 (42 U.S.C. §§ 6101 – 6107); and all federal and state regulations implementing these laws.
(bb) Farmworker. An individual who derives, or prior to retirement or disability derived, a substantial portion of their income as an agricultural employee as defined in subdivision (b) of Section 1140.4 of the Labor Code.
(cc) Farmworker Housing. A development of permanent housing in which at least 50 percent of the units are available to, and occupied by, farmworkers and their households. The Committee may permit an owner to temporarily house non farmworkers in vacant units in the event of a disaster or other critical occurrence. However, such emergency shelter shall only be permitted if there are no pending qualified farmworker household applications for residency.

(dd) Federally Subsidized. As defined by IRC Section 42(i)(2).

(ee) Federal Credit. The Tax Credit for low-income rental housing provided under IRC Section 42 and implemented in California by the Committee.
(ff) Financial Feasibility. As required by IRC Section 42(m)(2), and further defined by these regulations in Section 10327.
(gg) FTB. State of California Franchise Tax Board.
(hh) Gross Rent. Gross rent has the same meaning as “gross rent” in 26 U.S.C. section 42, subdivision (g)(2).
(ii) Hard construction costs. The amount of the construction contract, excluding contractor profit, general requirements and contractor overhead.
(jj) High-Rise Project(s). A project which applies for a Credit reservation pursuant to Section 10325 in which 100 percent (100%) of the residential units are Tax Credit Units and for which the project architect has certified concurrently with the submission of an application to the Committee that (1) one or more of the buildings in the project would have at least six stories; and (2) the construction period for the project is reasonably expected to be in excess of 18 months.
(kk) Homeless or Homelessness. The condition of individuals or households who meet the definition of “homeless” in HUD regulation, 24 CFR parts 91.5 or 578.3 and includes:
- (1) Individuals or families subject to a Continuum of Care (CoC) emergency transfer plan;
(2) Individuals or families receiving or who received Supportive Services or rental subsidies administered by a CoC or other program(s) for people experiencing homelessness,

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including a public housing authority's shelter plus care program or SRO Moderate Rehabilitation Program; and

(3) Individuals or families of a development undergoing rehabilitation with Tax Credits, or being replaced by a Tax Credit-funded property, shall be deemed to qualify under this definition if they qualified upon initial occupancy.
(4)
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- Individuals defined as Chronically Homeless herein. 
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- (5) People at-risk of homelessness referred to fill a Low-Income Unit vacancy through a local CES consistent with Section 10336(b)(2)(B)(ii).
(ll) Housing and Accessibility Requirements. Include California Building Code (CBC) Chapters 11 A and B; the Fair Housing Act (FHA) (42 U.S.C. § 3601 et seq.; 24 C.F.R. part 100) the ANSI A117.11986 design and construction standard incorporated by reference at 24 C.F.R. part 100.201a; the ADA (42 U.S.C. § 12101 et seq.; 28 C.F.R. part 35 (Title 11) and part 36 (Title III)) the Uniform Federal Accessibility Standards (UFAS) at 24 C.F.R. 40, or, in the alternative, the Alternative Accessibility Standards (as defined in (e)) when used with the 2010 ADAS and CBC 11 B; the Department of Agriculture Regulations for Rural Housing Programs (7 CFR 15b); and all federal and state regulations implementing these laws.
(mm) Housing First. Has the same definition as “Housing First” in Welfare and Institutions (WIC) Code section 8255.
(nn) Housing Unit with Mobility Features. A housing unit located on an accessible route and compliant with 24 C.F.R. part 8.22, CBC Ch. 11B, Division 4 and Sections 809.2 through 809.4, and all applicable provisions of UFAS or comparable provisions of the Alternative Accessibility Standard, including but not limited to Sections 809.2 through 809.4 of the 2010 ADAS. A Housing Unit with Mobility Features can be approached, entered, and used by persons with mobility disabilities, including individuals who use wheelchairs.
(oo) Housing Unit with Hearing/Vision Features. A housing unit compliant with 24 C.F.R. part 8.22, CBC Ch. 11B, including Section 809.5, and all applicable provisions of UFAS or comparable provisions of the Alternative Accessibility Standard, including but not limited to Section 809.5 of the 2010 ADAS.
(pp) Hybrid project or development. A new construction development constructed with separate 9% and 4% Federal Credit Allocations. The development must meet the conditions set forth in Section 10325(c)(9)(A).
(qq) IRS. United States Internal Revenue Service.
(rr) Local Development Impact Fees. The amount of impact fees, mitigation fees, or capital facilities fees imposed by municipalities, county agencies, or other jurisdictions such as public utility districts, school districts, water agencies, resource conservation districts, etc.
(ss) Local Reviewing Agency. An agency designated by the local government having jurisdiction that will perform evaluations of proposed projects in its locale according to criteria set forth by the Committee.
(tt) Low-Income Unit. As defined by IRC Section 42(i)(3).
(uu) Market-Rate Unit. A unit other than a Tax Credit Unit as defined by these regulations.
(vv) Multifamily Housing Program or MHP. Multifamily Housing Program of California’s Department of Housing and Community Development (HCD).

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(ww) “Net Project Equity” shall mean the total sale or refinancing proceeds resulting from a Transfer Event less the payment of all obligations and liabilities of the owner, including any secured and unsecured related and third-party debt thereof (including, without limitation, repayment of deferred developer fees and repayment of any advances made by a partner to fund operating and/or development deficits).
(xx) Net Tax Credit Factor. The estimated or actual equity amount raised or to be raised from a tax credit syndication or other instrument, not including syndication related expenses, divided by the total amount of Federal and State Tax Credits reserved or allocated to a project. The calculation must include the full ten-year amount of Federal Tax Credits and the total amount of State Tax Credits.
(yy) Older Adults in Need of Supportive Services. Individuals aged 55 or older who need Supportive Services to maintain and stabilize their housing.
(zz) Qualified Allocation Plan or QAP. The “Low Income Housing Tax Credit Program Qualified Allocation Plan,” as adopted in regulation Sections 10300 et. seq., and in accordance with the standards and procedures of IRC Section 42(m)(1)(B).
(aaa) Qualified CNA. A CNA for a property subject to a Transfer Event dated within one hundred eighty (180) days of the proposed Transfer Event which (i) meets the requirements of (a) the Fannie Mae Multifamily Instructions for the PNA Property Evaluator, (b) Freddie Mac’s Property Condition Report requirements in Chapter 14 of the Small Balance Loan Addendum, (c) HUD’s Multifamily CNA section in Appendix 5G of the Multifamily Accelerated Process Guide, or (d) Standard Guide for Property Condition Assessments: Baseline Property Condition Assessment Process (ASTM Designation E 2018-08) utilizing a recognized industry standard to establish useful life estimates for the replacement reserve analysis, and (ii) clearly sets forth (a) the capital needs of the project for the next three (3) years (the “Short-Term Work”) and the projected costs thereof, and (b) the capital needs of the project for the subsequent twelve (12) years (the “Long Term Work”) and the projected contributions to reserves that will be needed to accomplish that work.
(bbb) Qualified Nonprofit Organization. An organization that meets the requirements of IRC Section 42(h)(5), whose exempt purposes include the development of low-income housing as described in IRC Section 42, and which, if a State Tax Credit is requested, also qualifies under H & S Code Section 50091.
(ccc) RHS. United States Rural Housing Service, formerly Rural Housing and Community Development Service or RHCDS, formerly Farmers Home Administration or FmHA