The California Tax Credit Allocation Committee (TCCA) has released a memo outlining how TCCA processes applications for approval for the allocation of credit reservations. approval of the allocation of transfers; changes made to the applicant and complements at the time of the establishment of the ownership structure of the project; Resyndications: regulatory agreement, standstill agreement, subordination agreement; and other similar consents. TCCA does not require the allocation of a tax credit during the development of the project (between application and commissioning) if the original applicant is the developer, complement or related partnership of the limited partnership, who will be the beneficiary of the credit allocation and IRS Forms 8609. If a party to the team requests formal confirmation, TCCA will provide written confirmation upon request, but please note that the assignment of a credit reservation from an applicant from a close party to the limited partnership is not a TCCA requirement during the development phase. This also applies to supplementary contracts. For the approval of the allocation of a transfer allowance, this authorization is granted by e-mail upon request; If any part of the application team requires formal confirmation, TCCA will provide, upon request, written confirmation or performance of an assignment contract. For verification, a Certificate of Limited Partnership california Form LP-1 is required. For resyndication projects, TCCA is regularly invited to sign the assignment and acquisition of TCCA regulatory agreements, subordination agreements and status quo agreements. Information on subordination agreements can be found in the TCCA Subordination Directive.
Since setting provisions for transfer events in 2015, TCCA has provided guidelines that TCCA will subordinate loans that would fund rehabilitation in the absence of a net distribution of project capital. For all these written requests for agreement and understanding, TCCA needs sufficient time to verify the form and content. At the time of your application, indicate TCCA all planned closing dates and request an estimate of when TCCA expects the agreement(s) to be audited, approved and signed. Please note that at the time of your application, there may be a queue of agreements that will be checked. All changes made to a document after TCCA signature are subject to TCCA approval and, if notarized, must be terminated….