Cal. Code Regs. tit. 4 § 10335

Current through Register 2024 Notice Reg. No. 43, October 25, 2024

Section 10335 - Fees and Performance Deposit

(a) Application fee.

(1) Every applicant for non-competitive tax credits shall be required to pay an application filing fee of $1,500. Scattered site applications and resyndication applications shall be required to pay an application filing fee of $1,700. This fee shall be paid to the Committee and shall be submitted with the application. This fee is not refundable.

(2) Every applicant for competitive tax credits shall be required to pay an application filing fee of $2,500, except for projects with sites within the jurisdictions of multiple Local Reviewing Agencies (LRA) for which applicants shall be required to pay an additional $1,000 application fee for each additional LRA. This fee shall be paid to the Committee and shall be submitted with the application. This fee is not refundable. Applicants reapplying in the same calendar year for an essentially similar project on the same project site shall be required to pay an additional $1,500 filing fee to be considered in a subsequent funding round, regardless of whether any amendments are made to the re-filed application. At the request of the applicant and upon payment of the applicable fee by the application filing deadline, applications remaining on file will be considered as is, or as amended, as of the date of a reservation cycle deadline. It is the sole responsibility of the applicant to amend its application prior to the reservation cycle deadline to meet all application requirements of these regulations, and to submit a "complete" application in accordance with Section 10322. $1,000 of the initial application filing fee shall be provided to each official LRA which completes a project evaluation for the Committee. A LRA may waive its portion of the application filing fee. Such waiver shall be evidenced by written confirmation from the LRA, included with the application.

(b) Allocation fee. Every applicant who receives a reservation of Tax Credits, except tax-exempt bond project applicants, shall be required to pay an allocation fee equal to four percent (4%) of the dollar amount of the first year's Federal Credit amount reserved. Reservations of Tax Credits shall be conditioned upon the Committee's receipt of the required fee paid to the Committee prior to execution of a carryover allocation or issuance of tax forms, whichever comes first. This fee is not refundable.

(c) Appeal fee. Any applicant submitting an appeal to the Committee shall pay a fee of five hundred dollars ($500) to CTCAC. The fee must accompany the appeal letter to the Committee.

(d) Reservation fee. Tax-exempt bond project applicants receiving Credit reservations shall be required to pay a reservation fee equal to one percent (1%) of the annual Federal Tax Credit reserved. Reservations of Tax Credits shall be conditioned upon the Committee's receipt of the required fee within twenty (20) days of issuance of a tax-exempt bond reservation, except that Hybrid projects and simultaneous phased projects as defined in Section 10327(c)(2)(C) shall submit the reservation fee for the first application within five (5) business days of the Committee's notice to the applicant of the reservation for the corresponding second application, or prior to the issuance of tax forms, whichever is first.

(e) Performance deposit. Each applicant receiving a preliminary reservation of Federal, or Federal and State (including State Farmworker), Tax Credits shall submit a performance deposit equal to four percent (4%) of the first year's Federal Credit amount reserved, but not to exceed $100,000, including applicants with a reservation of credit on or after October 14, 2020. Notwithstanding the other provisions of this subsection, an applicant requesting Federal Tax Credits not subject to the Federal housing Credit Ceiling and requesting State Tax Credits or State Farmworker Tax Credits, shall be required to submit a performance deposit in an amount equal to two percent (2%) of the first year's State Credit amount reserved for the project, but not to exceed $100,000. Notwithstanding the other provisions of this Section, an applicant requesting only Federal Tax Credits not subject to the Federal Credit Ceiling, shall not be required to submit a performance deposit.

(1) Timing and form of payment. The performance deposit shall be paid to the Committee within twenty (20) calendar days of the Committee's notice to the applicant of a preliminary reservation, except that Hybrid projects and simultaneous phased projects as defined in Section 10327(c)(2)(C) shall submit the performance deposit for the first application within five (5) business days of the Committee's notice to the applicant of the reservation for the corresponding second application.

(2) Returned Tax Credits. If Tax Credits are returned after a reservation has been accepted, the performance deposit is not refundable, with the following exceptions. Projects unable to proceed due to a natural disaster, a lawsuit, or similar extraordinary circumstance that prohibits project development may be eligible for a refund. Requests to refund a deposit shall be submitted in writing for Committee consideration. Amounts not refunded are forfeited to the Committee. All forfeited funds shall be deposited in the occupancy compliance monitoring account to be used to help cover the costs of performing the responsibilities described in Section 10337.

(3) Refund or forfeiture. To receive a full refund of the performance deposit, the applicant shall do all of the following: place the project in service under the time limits permitted by law; qualify the project as a low-income housing project as described in Section 42; meet all the conditions under which the reservation of Tax Credits was made; certify to the Committee that the Tax Credits allocated will be claimed; and, execute a regulatory agreement for the project. If the Committee cancels a Credit because of misrepresentation by the applicant either before or after an allocation is made, the performance deposit is not refundable. If the project is completed, but does not become a qualified low-income housing project, the performance deposit is not refundable.

(4) Appeals. An applicant may appeal the forfeiture of a performance deposit, by submitting in writing, a statement as to why the deposit should be refunded. The appeal shall be received by the Committee not later than seven (7) calendar days after the date of mailing by the Committee of the action from which the appeal is to be taken. The Executive Director shall review the appeal, make a recommendation to the Committee, and submit the appeal to the Committee for a decision.

(f) Compliance monitoring fee. The Committee shall charge a $700 per low-income unit fee to cover the costs associated with compliance monitoring throughout the extended-use period. Generally, payment of the fee shall be made prior to the issuance of Federal and/or State tax forms. Assessment of a lesser fee, and any alternative timing for payment of the fee, may be approved at the sole discretion of the Executive Director and shall only be considered where convincing proof of financial hardship to the owner is provided. Nothing in this subsection shall preclude the Committee from charging an additional fee to cover the costs of any compliance monitoring required, but an additional fee shall not be required prior to the end of the initial 15 year compliance period.

(g) Tax form revision fee. An owner who requests an amendment to 8609 or 3521A tax forms, including a request that occurs after CTCAC completes the drafting of these forms, shall pay a fee of $1000 unless the Executive Director determines that the amendment is necessary due to a CTCAC error.

Cal. Code Regs. Tit. 4, § 10335

Note: Authority cited: Section 50199.17, Health and Safety 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.

1. New section filed 7-30-90 as an emergency; operative 7-17-90 (Register 90, No. 41). A Certificate of Compliance must be transmitted to OAL by 11-14-90 or emergency language will be repealed by operation of law on the following day. This action is not subject to review by OAL (Health and Safety Code section 50199.17). For prior history, see Register 89, No. 2.
2. Readoption as an emergency of action originally filed as emergency on 7-30-90 filed 11-26-90; operative 11-13-90 (Register 91, No. 4). A Certificate of Compliance must be transmitted to OAL by 3-26-91 or emergency language will be repealed by operation of law on the following day.
3. Readoption and amendment of emergency action filed 11-26-90, filed 1-4-91 as an emergency; operative 12-18-90 pursuant to Health and Safety Code section 50199.17 (Register 91, No. 8). The regulation will be repealed by operation of law on 4-17-91 unless, before that date, the committee has completed the adoption process pursuant to Health and Safety Code section 50199.17(b).
4. Readoption of emergency actions and amendment filed 11-26-90 and 1-4-91 as an emergency filed 4-19-91 as an emergency; operative 3-28-91 pursuant to Health and Safety Code section 50199.17 (Register 91, No. 21). A Certificate of Compliance must be transmitted to OAL on 7-26-91 or emergency language will be repealed by operation of law on the following day.
5. Certificate of Compliance as to 3-28-91 order transmitted to OAL 7-16-91 and filed 8-15-91 pursuant to Health and Safety Code section 50199.17(b) (Register 91, No. 48).
6. Amendment of subsection (b) refiled 1-6-92 as an emergency; operative 1-6-92 (Register 92, No. 15). A Certificate of Compliance must be transmitted to OAL 5-5-92 or emergency language will be repealed by operation of law on the following day.
7. Amendment of subsections (a), (b), (c)(3) and (c)(4) filed 3-16-92 as an emergency; operative 1-16-92 (Register 92, No. 25). A Certificate of Compliance must be transmitted to OAL 7-14-92 or emergency language will be repealed by operation of law on the following day.
8. Repealer and new section filed 7-1-92 as an emergency; operative 5-15-92 (Register 92, No. 28). A Certificate of Compliance must be transmitted to OAL by 11-2-92 or emergency language will be repealed by operation of law on the following day.
9. Repealer and new section refiled, with amendment of subsection (b)(3), 11-9-92 as an emergency; operative 8-31-92 (Register 92, No. 46). A Certificate of Compliance must be transmitted to OAL 3-9-93 or emergency language will be repealed by operation of law on the following day.
10. Repealer and new section refiled 1-28-93 as an emergency; operative 12-29-92 (Register 93, No. 5). A Certificate of Compliance must be transmitted to OAL 5-28-93 or emergency language will be repealed by operation of law on the following day.
11. Repealer and new section refiled 6-15-93 as an emergency; operative 4-2-93 pursuant to Health and Safety Code section 50199.17 (Register 93, No. 25). A Certificate of Compliance must be transmitted to OAL by 7-31-93 or emergency language will be repealed by operation of law on the following day.
12. Repealer and new section refiled 10-6-93, with amendment of subsections (b) and (d)(1) and new subsection (c), as an emergency; operative 7-21-93 pursuant to Health and Safety Code section 50199.17 (Register 93, No. 41). A Certificate of Compliance must be transmitted to OAL by 11-18-93 or emergency language will be repealed by operation of law on the following day.
13. Editorial correction of History 11 (Register 93, No. 41).
14. Repealer and new section refiled with new designation of subsection (e) 12-20-93 as an emergency; operative 11-18-93 pursuant to Health and Safety Code section 50199.17 (Register 93, No. 52). A Certificate of Compliance must be transmitted to OAL by 3-18-94 or emergency language will be repealed by operation of law on the following day.
15. Repealer and new section refiled with amendments 5-3-94 as an emergency; operative 1-25-94 pursuant to Health and Safety Code section 50199.17 (Register 94, No. 18). A Certificate of Compliance must be transmitted to OAL by 5-25-94 or emergency language will be repealed by operation of law on the following day.
16. Repealer and new section refiled 6-29-94 as an emergency; operative 5-28-94 pursuant to Health and Safety Code section 50199.17 (Register 94, No. 26).
17. Repealer and new section refiled 10-24-94 as an emergency; operative 9-22-94 pursuant to Health and Safety Code section 50199.17 (Register 94, No. 43). A Certificate of Compliance must be transmitted to OAL by 1-20-95 or emergency language will be repealed by operation of law on the following day.
18. Repealer and new section refiled 1-17-95 as an emergency, including amendment of Note; operative 1-20-95 pursuant to Health and Safety Code section 50199.17 (Register 95, No. 3). A Certificate of Compliance must be transmitted to OAL by 5-22-95 or emergency language will be repealed by operation of law on the following day.
19. Repealer and new section refiled 7-7-95 as an emergency; operative 5-20-95 pursuant to Health and Safety Code section 50199.17 (Register 95, No. 27). A Certificate of Compliance must be transmitted to OAL by 9-17-95 or emergency language will be repealed by operation of law on the following day.
20. New section including amendment of subsection (d)3. refiled 7-17-95 as an emergency; operative 5-25-95 pursuant to Health and Safety Code section 50199.17 (Register 95, No. 29). A Certificate of Compliance must be transmitted to OAL by 9-22-95 or emergency language will be repealed by operation of law on the following day.
21. New section, including amendment of section and Note, refiled 3-18-96 as an emergency; operative 9-22-95 pursuant to Health and Safety Code section 50199.17 (Register 96, No. 12). A Certificate of Compliance must be transmitted to OAL by 1-20-96 or emergency language will be repealed by operation of law on the following day.
22. New section refiled 3-18-96 as an emergency; operative 9-26-95 pursuant to Health and Safety Code section 50199.17 (Register 96, No. 13). A Certificate of Compliance must be transmitted to OAL by 1-24-96 or emergency language will be repealed by operation of law on the following day.
23. New section refiled 3-18-96 as an emergency; operative 10-30-95 pursuant to Health and Safety Code section 50199.17 (Register 96, No. 14). A Certificate of Compliance must be transmitted to OAL by 2-27-96 or emergency language will be repealed by operation of law on the following day.
24. Repealer and new section filed 8-19-97; operative 2-18-97 pursuant to Health and Safety Code section 50199.17 (Register 97, No. 34).
25. Amendment of subsections (a) and (a)(1), repealer of subsection (a)(2), and amendment of subsection (e) filed 7-21-98; operative 11-20-97 and 12-11-97 pursuant to Health and Safety Code section 50199.17 (Register 98, No. 30).
26. Amendment of subsections (a) and (d)(2) filed 7-26-99; operative 6-3-99 pursuant to Health and Safety Code section 50199.17 (Register 99, No. 31).
27. Readoption of emergency action filed 7-26-99, operative 6-3-99; filed 4-3-2000 as an emergency; operative 10-12-99 pursuant to Health and Safety Code section 50199.17 (Register 2000, No. 14).
28. Readoption of emergency action filed 4-3-2000, operative 10-12-99; filed 4-3-2000 as an emergency; operative 2-9-2000 pursuant to Health and Safety Code section 50199.17, with amendment of section (Register 2000, No. 14).
29. Emergency readoption without change filed 9-22-2000 of an action originally filed 4-3-2000; operative 6-9-2000 pursuant to Health and Safety Code section 50199.17 (Register 2000, No. 38).
30. Emergency readoption without change filed 10-23-2000 of an action originally filed 4-3-2000; operative 9-27-2000 pursuant to Health and Safety Code section 50199.17 (Register 2000, No. 43).
31. Emergency amendment effective pursuant to Health and Safety Code section 50199.17 upon adoption by the Committee on February 16, 2001, filed with the Secretary of State on March 5, 2001 (Register 2001, No. 10).
EDITOR'S NOTE: On December 20, 2000, the Committee adopted and made effective an emergency amendment to an earlier version of this regulation; this amendment was superseded by the February 16, 2001 amendment. The December 20, 2000 amendment was filed with the Secretary of State on March 5, 2001; it was not printed in the California Code of Regulations.
32. Emergency readoption without change filed 11-19-2001 of an action most recently filed 3-5-2001; operative 9-17-2001 pursuant to Health and Safety Code section 50199.17 (Register 2001, No. 47).
33. Emergency adoption effective pursuant to Health and Safety Code section 50199.17 upon adoption by the Committee on March 19, 2003, filed with the Secretary of State on 5-8-2003 (Register 2003, No. 19).
EDITOR'S NOTE: These March 19, 2003 emergency regulations supersede prior emergency regulations adopted and made effective by the Committee on January 29, 2003. The January 29 emergency regulations were filed with the Secretary of State on May 8, 2003, but were never printed in the California Code of Regulations.
34. Emergency adoption effective pursuant to Health and Safety Code section 50199.17 upon adoption by the Committee on February 18, 2004, filed with the Secretary of State on 4-26-2004. These February 18, 2004 emergency regulations supersede prior emergency regulations (Register 2004, No. 18).
35. Emergency adoption effective pursuant to Health and Safety Code section 50199.17 upon adoption by the Committee on June 16, 2004, filed with the Secretary of State on 7-19-2004. These June 16, 2004 emergency regulations supersede prior emergency regulations (Register 2004, No. 30).
36. Emergency adoption effective pursuant to Health and Safety Code section 50199.17 upon adoption by the Committee on October 5, 2004, filed with the Secretary of State on 12-16-2004. These October 5, 2004 emergency regulations supersede prior emergency regulations (Register 2004, No. 51).
37. Emergency adoption effective pursuant to Health and Safety Code section 50199.17 upon adoption by the Committee on February 16, 2005, filed with the Secretary of State on 4-4-2005. These February 16, 2005 emergency regulations supersede prior emergency regulations (Register 2005, No. 14).
38. Emergency readoption of action adopted by the Committee 2-16-2005 and filed with the Secretary of State 4-4-2005; refiled 11-1-2005; readopted by the Committee and effective 9-28-2005 pursuant to Health and Safety Code section 50199.17 (Register 2005, No. 44).
39. Emergency adoption filed 3-23-2006; conclusively presumed to be an emergency and effective upon adoption by the Committee on 1-18-2006 pursuant to Health and Safety Code section 50199.17(c) and (d). This filing supercedes prior emergency regulations and is exempt from the Administrative Procedure Act except as provided in Health and Safety Code section 50199.17(a) and (b) (Register 2006, No. 12).
40. New section replacing prior emergency adoption filed 7-22-2010; operative 2-17-2010. Submitted to OAL for printing only pursuant to Health and Safety Code section 50199.17(Register 2010, No. 30).
41. Amendment of subsections (a), (b)-(c) and (e)(1) filed 2-9-2017; operative upon adoption by the Tax Credit Allocation Committee on 12/14/2016 pursuant to Health and Safety Code section 50199.17(c). Submitted to OAL for filing and printing only pursuant to Health and Safety Code section 50199.17(c) (Register 2017, No. 6).
42. Amendment of subsection (c) and new subsection (g) filed 2/22/2018; operative upon adoption by the Tax Credit Allocation Committee on 12-13-2017 pursuant to Health and Safety Code section 50199.17(c). Submitted to OAL for filing and printing only pursuant to Health and Safety Code section 50199.17 (Register 2018, No. 8).
43. Amendment of subsections (a) and (a)(1) and new subsection (a)(2) filed 2-7-2019; operative upon adoption by the California Tax Credit Allocation Committee on 12-12-2018 pursuant to Health and Safety Code section 50199.17(c). Submitted to OAL for filing and printing only pursuant to pursuant to Health and Safety Code section 50199.17 (Register 2019, No. 6).
44. Amendment of subsection (e) filed 5/4/2020; operative upon adoption by the California Tax Credit Allocation Committee on 4-3-2020 pursuant to Health and Safety Code section 50199.17(c). Submitted to OAL for filing and printing only pursuant to Health and Safety Code section 50199.17 (Register 2020, No. 19).
45. Amendment of subsections (a)(1), (e) and (g) and amendment of Note filed 2-26-2021; operative upon adoption by the California Tax Credit Allocation Committee on 12-20-2020 pursuant to Health and Safety Code section 50199.17(c). Submitted to OAL for filing and printing only pursuant to Health and Safety Code section 50199.17 (Register 2021, No. 9).
46. Amendment of subsection (e)(2) filed 3-13-2023; operative upon adoption by the California Tax Credit Allocation Committee on 1-18-2023 pursuant to Health and Safety Code section 50199.17. Submitted to OAL for filing and printing only pursuant to Government Code section 11343.8 (Register 2023, No. 11).
47. Amendment of subsections (d) and (e)(1) filed 6/21/2023; operative upon adoption by the California Tax Credit Allocation Committee on 5-10-2023 pursuant to Health and Safety Code section 50199.17(c). Submitted to OAL for filing and printing only pursuant to Government Code section 11343.8 (Register 2023, No. 25).
48. Editorial correction to subsection (f) (Register 2024, No. 11).
49. Amendment of subsections (a)(1)-(2) and (f) filed 3-12-2024; operative 1/24/2024 upon adoption by the California Tax Credit Allocation Committee pursuant to Health and Safety Code section 50199.17(c). Submitted to OAL for filing and printing only pursuant to Government Code section 11343.8 (Register 2024, No. 11).