HomeMy WebLinkAboutLegislative Review - SB 565 (Migden) Low Income HousingCITY OF PALM DESERT
COMMUNITY SERVICES DEPARTMENT
STAFF REPORT
REQUEST: CONSIDERATION OF LEGISLATIVE REVIEW COMMITTEE ACTION ON SB
565 (MIGDEN) AT ITS MEETING OF MARCH 22, 2005
DATE: April 14, 2005
CONTENTS: SB 565 Language
Recommendation:
By Minute Motion, concur with the action taken by the Legislative Review Committee at its meeting
of March 22, 2005, and direct staff to prepare a letter of support for the Mayor's signature with regard
to SB 565 (Migden) relative to low income housing.
Executive Summary:
Passage of SB 565 would increase the low-income tax credits from 2% to 5% for the low-income
housing tax credit allocation program.
Background:
Current law, relating to the program established to provide low-income tax credits to stimulate the
production and rehabilitation of shelter for lower income individuals and families, authorizes the
California Tax Credit Allocation Committee to set aside up to 2% of available tax credits for small
developments. SB 565 would increase the tax credit from 2% to 5%.
Programs that are established to stimulate affordable housing deserve every consideration to ensure
their long term success and increasing the allowable tax credits should assist in this regard.
Therefore, the Legislative Review Committee recommends that the City Council support SB 565 and
direct staff to prepare a letter stating that position to appropriate legislators for the Mayor's signature.
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PATRICIA SCULLY, CFEE
IOR MANA1EMENT ANALYST
!SHEILA R. GILL
NAN-
PAUL S. GIBSON
DIR OF FINANCE/CITY TREASURER
CARLOS L. O6 TEGA
ASSISTANT CITY MAN A R/PIO CITY MANAGER
SB 565 Senate Bill - INTRODUCED
Page 1 of 1
BILL NUMBER: SB 565 INTRODUCED
BILL TEXT
INTRODUCED BY Senator Migden
FEBRUARY 18, 2005
An act to amend Section 50199.20 of the Health and Safety Code,
relating to low-income housing.
LEGISLATIVE COUNSEL'S DIGEST
SB 565, as introduced, Migden. Low-income housing tax credit
allocation program.
Existing law, relating to the program established to provide
low-income tax credits to stimulate the production and rehabilitation
of shelter for lower individuals and families, authorizes, among
other things, the California Tax Credit Allocation Committee to set
aside up to 2% of the available tax credit for small developments as
determined by the committee.
This bill would increase that amount from 2% to 5%.
Vote: majority. Appropriation: no. Fiscal committee: no.
State -mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 50199.20 of the Health and Safety Code is
amended to read:
50199.20. (a) Not less than 20 percent of the federal ceiling on
low-income housing tax credits shall be set aside for allocation to
rural areas as defined in Section 50199.21. Any amount of credit set
aside for rural areas remaining after the ranking of credits in the
final cycle of any calendar year shall be available for allocation to
any eligible project. (b) Up to -a- 5
percent of the low-income housing tax credit available under this
chapter and Sections 12206, 17058, and 23610.5 of the Revenue and
Taxation Code may be set aside for small developments as determined
by the committee. Any amount of credit set aside for small
developments remaining after the ranking of projects in the final
cycle of any calendar year shall be available for allocation to any
eligible project.
http://info.sen.ca.gov/pub/bill/sen/sb_0551-0600/sb_565 bill 20050218 introduced.html 2/21/2005