Cal. Code Regs. Tit. 4, § 5230 - Evaluation Criteria
(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.
(b) Preservation and
Other Rehabilitation Project Priorities (20 points maximum).
(1) Preservation Projects meeting the
following criteria shall receive points in the highest scoring category only:
(A) A project that meets at least one of the
following shall receive 20 points:
(i) An
At-Risk Project.
(ii) A project in
which lower-income rent and income restrictions on at least 50 percent of the
total units pursuant to a regulatory agreement with a public entity shall
terminate or be eligible for termination within five years of application with
no other rent and income restrictions remaining.
(iii) A replacement or rehabilitation project
approved by HUD pursuant to a Section
18 or 22 Demolition/Disposition
authorization.
(iv) A component one
project being rehabilitated under the HUD Rental Assistance Demonstration (RAD)
Program.
(v) A project that has
received an award from HCD's Portfolio Reinvestment
Program.
(B) A project
that meets at least one of the following shall receive 14 points:
(i) A component two project being
rehabilitated under the HUD Rental Assistance Demonstration (RAD) Program;
or
(ii) A project with a pre-1999
HCD loan that is being restructured pursuant to Health and Safety Code section
50560
(AB 1699) that has not previously received an allocation of Low-Income Housing
Tax Credits.
(iii) 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.
(C)
A project with a pre-1999 HCD loan that is being restructured pursuant to
Health and Safety Code section
50560
(AB 1699) that has previously received an allocation of Low-Income Housing Tax
Credits shall receive 6 points.
(2) Other Rehabilitation Projects meeting all
of the following criteria shall receive 20 points:
(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;
(B) There is no partial or full repayment of
existing soft financing; and
(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.
(c) New
Construction Density and Local Incentives (10 points maximum); Preservation
Projects and Other Rehabilitation Projects are not eligible for these points).
A New Construction Project that meets any of the following shall receive 10
points:
(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) The project is being developed at a per
net acre density that meets one of the following criteria:
(A) 100 bedrooms per net acre in a
metropolitan county;
(B) 60
bedrooms per net acre in a suburban jurisdiction;
(C) 40 bedrooms per net acre in all other
areas.
[For the purposes of subdivision (c)(2), "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.]
(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.
(d) Exceeding Minimum Income Restrictions (20
points maximum). A project shall receive points in either of the following
manners:
(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) 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.
(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 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.
(f) General Partner
and Management Company Experience (10 points maximum).
(1) A project shall receive general partner
experience points in one of the following manners:
(A) The number of general partner experience
points for which it is eligible pursuant to Section
10325(c)(1)(A) of
the CTCAC regulations.
(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.
(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) A project
shall receive management company experience points in one of the following
manners:
(A) The number of management company
points for which it is eligible pursuant to Section
10325(c)(1)(B) of
the CTCAC regulations.
(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).
(g)
Housing Types (10 points maximum; Preservation Projects and Other
Rehabilitation Projects not eligible for these points). A New Construction
Project that meets any of the following criteria shall receive 10 points:
(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) 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.
(h) Leveraged Soft Resources (8 points
maximum). A project shall receive 1 point for each full percent that leveraged
soft resources defraying residential costs represent as a percentage of total
residential project development costs, 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
5230(j)(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 of leveraged
soft resources. For purposes of this subdivision, leveraged soft resources
shall have the same meaning as in Section
10325(c)(9) of the
CTCAC regulations.
(i) Readiness to
Proceed (10 points maximum). A project shall receive the number of points for
which it is eligible pursuant to Section
10325(c)(7) of the
CTCAC regulations, except that the applicant shall demonstrate that
construction can commence within 180 days of the bond allocation. Projects that
receive the maximum number of points pursuant to this subdivision shall have a
readiness deadline that aligns with the allocation expiration assigned pursuant
to Section 5100(b)(3)(i), and
submit within that time period evidence of the issuance of building permits or
the applicable tribal documents, and notice to proceed delivered to the
contractor. Failure to meet the assigned due date shall result in rescission of
the bond allocation and negative points may be assessed at the discretion of
the Committee pursuant to subdivision (n).
(1)
For purposes of submitting evidence of the issuance of a building permit:
(A) A grading permit shall not suffice to
meet the building permit requirement except that if the city or county as a
rule does not issue building permits prior to the completion of grading, then a
grading permit shall suffice.
(B)
If the project is a design-build project in which the city or county does not
issue building permits until designs are fully complete, then the city or
county shall have approved construction to begin.
(j) Affirmatively Furthering Fair Housing (10
points maximum).
(1) A New Construction
project shall receive points in only one of the following manners:
(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).
(ii) Using the sort order described in
Section 5231, after projects receiving 10
points pursuant to this subdivision have been recommended for allocations that
meet or exceed the following 50% 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 approximately 50% of the amount available to a pool or set aside
has been allocated. Subsequently, all remaining projects in each pool or set
aside shall receive 9 points for meeting the requirements of this
subdivision.
(B) 9 points
if the project does not receive points pursuant to subdivisions (j)(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.
(k)
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.
(l) 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
5230(j)(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%.
(m) 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.
(n) Negative Points (no maximum).
(1) 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:
(A) 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.
(B)
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.
(C) 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 5052(b), 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.
(D) 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.
(E) Ten (10) points may be deducted in
connection with any extension granted by the Committee for allocations of QRRP
Bonds pursuant to Sections
5101 and
5132. 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.
(2) 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.
(3) 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.
Notes
Note: Authority cited: Section 8869.94, Government Code. Reference: Sections 8869.84(c), 8869.85(a) and 8869.85(b), Government Code.
Note: Authority cited: Section 8869.94, Government Code. Reference: Sections 8869.84(c), 8869.85(a) and 8869.85(b), Government Code.
2. New article 7 (sections 5230-5232) and section refiled 1-6-2011 as an emergency; 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 article 7 (sections 5230-5232) and section refiled 4-1-2011 as an emergency; 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 amendment of section, transmitted to OAL 6-2-2011 and filed 7-1-2011 (Register 2011, No. 26).
5. Renumbering of former article 7 to article 8, new subsection (j)(1)(G), amendment of subsections (k)-(k)(3), repealer of subsections (k)(3)-(k)(5)(O), new subsections (k)(3)-(k)(9) and amendment of subsections within subsection (l) filed 12-9-2011 as an emergency; operative 12-9-2011 (Register 2011, No. 49). A Certificate of Compliance must be transmitted to OAL by 6-6-2012 or emergency language will be repealed by operation of law on the following day.
6. Amendment of subsections (i)(1), (j)(2)(C)-(E), (j)(2)(G), (k)(1)-(2) and (l)(1)(D) filed 4-4-2012 as an emergency; operative 4-4-2012 (Register 2012, No. 14). A Certificate of Compliance must be transmitted to OAL by 10-1-2012 or emergency language will be repealed by operation of law on the following day.
7. Renumbering of former article 7 to article 8, new subsection (j)(1)(G), amendment of subsections (k)-(k)(3), repealer of subsections (k)(3)-(k)(5)(O), new subsections (k)(3)-(k)(9) and amendment of subsections within subsection (l) refiled with further amendment of subsection (l)(1)(C) 6-1-2012 as an emergency; operative 6-1-2012 (Register 2012, No. 22). A Certificate of Compliance must be transmitted to OAL by 8-30-2012 or emergency language will be repealed by operation of law on the following day.
8. Amendment of subsections (d)(1)(B)(ii), (e), (j)(2)(C)-(D), (l)(1)(B) and (l)(2)(E) filed 8-1-2012 as an emergency; operative 8-1-2012 (Register 2012, No. 31). A Certificate of Compliance must be transmitted to OAL by 1-28-2013 or emergency language will be repealed by operation of law on the following day.
9. Renumbering of former article 7 to article 8, new subsection (j)(1)(G), amendment of subsections (k)-(k)(3), repealer of subsections (k)(3)-(k)(5)(O), new subsections (k)(3)-(k)(9) and amendment of subsections within subsection (l) refiled 8-29-2012 as an emergency; operative 8-29-2012 (Register 2012, No. 35). A Certificate of Compliance must be transmitted to OAL by 11-27-2012 or emergency language will be repealed by operation of law on the following day.
10. Certificate of Compliance as to 4-4-2012 order transmitted to OAL 9-6-2012 and filed 9-27-2012 (Register 2012, No. 39).
11. Certificate of Compliance as to 8-29-2012 order transmitted to OAL 11-26-2012 and filed 1-8-2013 (Register 2013, No. 2).
12. Amendment of subsections (d)(1)(B)(ii), (e), (j)(2)(C)-(D), (l)(1)(B) and (l)(2)(E) refiled 1-24-2013 as an emergency; operative 1-24-2013 (Register 2013, No. 4). A Certificate of Compliance must be transmitted to OAL by 4-24-2013 or emergency language will be repealed by operation of law on the following day.
13. Certificate of Compliance as to 1-24-2013 order transmitted to OAL 4-17-2013 and filed 5-16-2013 (Register 2013, No. 20).
14. Amendment of subsections (j)(2)(E) and (l)(2)(E) filed 6-3-2013 as an emergency; operative 6-3-2013 (Register 2013, No. 23). A Certificate of Compliance must be transmitted to OAL by 12-2-2013 or emergency language will be repealed by operation of law on the following day.
15. Certificate of Compliance as to 6-3-2013 order transmitted to OAL 11-14-2013 and filed 12-23-2013 (Register 2013, No. 52).
16. Amendment of subsections (e), (j)(2)(E), (l)(1)(B), (l)(2)(E), (m) and (n)(1)(A)-(D) filed 7-10-2014 as an emergency; operative
17. Certificate of Compliance as to 7-10-2014 order, including repealer and new subsection (j)(2)(E), new subsections (j)(2)(E)(i)-(iii) and amendment of subsections (k)(4)-(5) and (k)(7)(A), transmitted to OAL 11-26-2014 and filed 1-13-2015; amendments effective
18. Amendment of subsections (d)(1)(B)(ii) and (k)(4), new subsections (k)(4)(A)-(B) and amendment of subsections (k)(6) and (k)(8)(B)-(C) filed 3-13-2015 as an emergency; operative
19. Certificate of Compliance as to 3-13-2015 order, including amendment of subsection (l)(1)(D), transmitted to OAL 5-21-2015 and filed 7-2-2015; amendments effective
20. Amendment 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.
21. Amendment of subsections (h)(1)-(2) and (k)(11) and nonsubstantive amendments establishing correct subsection hierarchy filed 2-4-2016 as an emergency pursuant to Government Code section 8869.94; operative 2-4-2016 (Register 2016, No. 6). A Certificate of Compliance must be transmitted to OAL by 8-2-2016 or emergency language will be repealed by operation of law on the following day.
22. Certificate of Compliance as to 2-4-2016 order, including nonsubstantive amendment of section, transmitted to OAL 1-27-2016 and filed
23. Editorial correction of History 22 (Register 2016, No. 25).
24. Certificate of Compliance as to 2-4-2016 order, including nonsubstantive amendment of section, transmitted to OAL 5-4-2016 and filed 6-14-2016 (Register 2016, No. 25).
25. Amendment of subsections within subsection (k) filed 12-15-2016 as an emergency pursuant to Government Code section 8869.94; operative 12-15-2016 (Register 2016, No. 51). A Certificate of Compliance must be transmitted to OAL by 6-13-2017 or emergency language will be repealed by operation of law on the following day.
26. Editorial correction of subsection (k)(6) (Register 2017, No. 22).
27. Amendment of subsections within subsection (k) refiled 5-30-2017 as an emergency pursuant to Government Code section 8869.94; operative 6-14-2017 (Register 2017, No. 22). A Certificate of Compliance must be transmitted to OAL by 9-12-2017 or emergency language will be repealed by operation of law on the following day.
28. Reinstatement of section as it existed prior to 12-15-2016 emergency amendment by operation of Government Code section 11346.1(f) (Register 2017, No. 38).
29. Amendment of subsections within subsection (k) filed 10-13-2017; operative
30. Amendment of subsections (d)(1), (d)(1)(B)2. and (k)(1)-(2) filed 12-1-2017 as an emergency; operative
31. Change without regulatory effect amending subsection (b)(3) filed 3-13-2018 pursuant to section 100, title 1, California Code of Regulations (Register 2018, No. 11).
32. Amendment of subsections (d)(1), (d)(1)(B)2. and (k)(1)-(2) refiled 5-25-2018 as an emergency; operative
33. Certificate of Compliance as to 5-25-2018 order transmitted to OAL 8-9-2018 and filed
34 Amendment of subsections (k)(6)-(9) filed 5-22-2020 as an emergency pursuant to Government Code section 8869.94; operative
35. Emergency filed 5-22-2020 extended 60 days (Executive Order N-40-20). A Certificate of Compliance must be transmitted to OAL by 1-19-2021 or emergency language will be repealed by operation of law on the following day.
36. Editorial correction of History 34 and History 35 (Register 2020, No. 44).
37. Repealer and new section filed 2-1-2021 as an emergency pursuant to Governmental Code section 8869.94; operative 2-1-2021. Emergency expiration extended 60 days (Executive Order N-40-20) plus an additional 60 days (Executive Order N-71-20) (Register 2021, No. 6). A Certificate of Compliance must be transmitted to OAL by 11-30-2021 or emergency language will be repealed by operation of law on the following day.
38. Reinstatement of section as it existed prior to 5-22-2020 emergency amendment by operation of Government Code section 11346.1(f) (Register 2021, No. 17).
39. Amendment filed 5-10-2021 as an emergency; operative
40. Refiling of 5-22-2020 and 2-1-2021 orders, including amendment of subsections (c)(3) and (k), on 12-3-2021 as an emergency; operative
41. Certificate of Compliance as to 12-3-2021 order, including further amendment of section, transmitted to OAL 4-11-2022 and filed 5-23-2022; amendments operative
42. Amendment filed 8-1-2022 as an emergency; operative
43. Amendment refiled 2-9-2023 as an emergency; operative
44. 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
45. Amendment of subsections (f)(1)(B), (f)(1)(C)(i) and (j)(1)(A)(ii) filed 9-26-2024; operative upon adoption by the California Debt Limit Allocation Committee on
46. New subsections (b)(1)(A)(v), (b)(1)(B)(iii), (f)(1)(C), (i), repealer of subsection (j)(2) and new subsection (n)(1)(E) filed 2-4-2025; operative upon adoption by the California Debt Limit Allocation Committee on
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