HomeMy WebLinkAboutRes 08-17 CA Tax Credit Allocations RegulationsREQUEST:
DATE:
CITY OF PALM DESERT
COMMUNITY SERVICES DEPARTMENT
STAFF REPORT
CONSIDERATION OF LEGISLATIVE REVIEW COMMITTEE ACTION
ON RESOLUTION NO. 08-17
March 27, 2008
CONTENTS: Resolution No. 08-17
RECOMMENDATION:
By Minute Motion, waive further reading and adopt Resolution No. 08-17.
EXECUTIVE SUMMARY:
Adoption of Resolution No. 08-17has been requested by Riverside County advocating change
to the California tax credit allocations regulations.
BACKGROUND:
The Riverside County Economic Development Agency has requested support for their request
to change how affordable tax credits are being allocated in Riverside County so as to allow the
California Tax Credit Allocation Committee greater consistency between the allocation of tax
credits and the regional housing needs assessment. These changes may provide increased
opportunities to fund development of affordable housing projects throughout Riverside County.
At its meeting of February 26, 2008, the Legislative Review Committee reviewed the proposed
wording in the attached resolution and recommend to the City Council to waive further reading
and adopt Resolution No. 08_17 and forward the adopted resolution to the Riverside County
Eco omic Development Agency.
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Original on File withJCity Clerk's Office
ACM/COMMUNITY S
RESOLUTION NO. 08-17
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT,
CALIFORNIA, SUPPORTING REGULATORY CHANGES TO THE LOW
INCOME HOUSING TAX CREDIT PROGRAM CREATING CONSISTENCY
WITH THE REGIONAL HOUSING NEEDS ASSESSMENT
WHEREAS, the California Tax Credit Allocation Committee has established ten
(10) geographic regions and allocated a percentage of available low income housing tax
credits to each region; and
WHEREAS, the counties of Riverside, San Bernardino and Imperial are grouped
together to form one of the ten regions defined as the Inland Empire region; and
WHEREAS, the current Inland Empire population is 4,186,436 residents; and
WHEREAS, the Inland Empire regional population represents 11.5% of the
current statewide population; and
WHEREAS, the Inland Empire region receives only 8% of the geographic credit;
and
WHEREAS, the current regulations of the Low Income Housing Tax Credit
Program unjustly disadvantage the Inland Empire region with a disproportionate
allocation of low income housing tax credits by geographic areas; and
WHEREAS, the United States Census ranks Riverside County with the greatest
numerical increase in population over the past six years; and
WHEREAS, the United States Census ranks Riverside County as within the top
100 fastest growing counties nationwide and with the greatest numerical increase in
population of the same 100 fastest growing counties; and
WHEREAS, every other county in the state of California with a current population
of 2,000,000 or more has a geographic region of its own; and
WHEREAS, the United States Census estimates the current Riverside County
population to be 2,023,803 as of 1 July 2006; and
WHEREAS, the current regulations of the Low Income Housing Tax Credit
Program unjustly disadvantage Riverside County by grouping it within the Inland Empire
region creating competition for the already disproportionately low allocation to the Inland
Empire region; and
WHEREAS, Regional Housing Needs Assessment (RHNA) obligates Riverside
and San Bernardino counties to build the highest per capital quantity of affordable
housing in Southern California; and
WHEREAS, RHNA projects housing demand based on forecasted population
growth within a housing element planning period, while the California Tax Credit
Allocation Committee (TCAC) assigns tax credits based on existing concentration of
poverty; and
WHEREAS, the RHNA housing production obligation and the Low Income
Housing Tax Credit Program allocation formula work in contradiction with each other;
and
WHEREAS, the Riverside County wishes to effort compliance with the RHNA
housing production obligation; and
WHEREAS, the Low Income Housing Tax Credit Program is the most viable
source of primary funding for the production of affordable housing; and
WHEREAS, the City Council of the City of Palm Desert urges local and state
legislators to also support regulatory changes to the Low Income Housing Tax Credit
Program so as to align the allocation of Low Income Housing Tax Credits with the
RHNA requirements for the production of affordable housing.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Palm Desert
as follows:
The City of Palm Desert commits to supporting regulatory changes to Low Income
Housing Tax Credit Program so as to align the allocation of Low Income Housing Tax
Credit with the RHNA requirements for the production of affordable housing.
PASSED, APPROVED, and ADOPTED by the City Council of the City of Palm
Desert, California, on this 27th day of March, 2008, by the following vote, to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
JEAN M. BENSON, MAYOR
CITY OF PALM DESERT, CALIFORNIA
ATTEST:
RACHELLE D. KLASSEN, CITY CLERK
CITY OF PALM DESERT, CALIFORNIA