California Tax Credit Allocation Committee: low-income housing credit: women, minority, disabled veteran, and LGBT business enterprises.
The bill amends Section 50199.15 of the Health and Safety Code and adds Section 50199.23, reinforcing the California Tax Credit Allocation Committee's role in overseeing compliance with these diverse procurement plans. As a consequence, the bill aims to ensure that a fair proportion of total contracts and subcontracts for affordable housing development are awarded to historically underrepresented groups. This legislative change is expected to promote economic equality and diversity within housing development projects across California.
Assembly Bill 2873, sponsored by Jones-Sawyer, aims to enhance participation of women, minority, disabled veteran, and LGBT business enterprises in the low-income housing sector by establishing reporting and participation goals. The bill requires housing sponsors who receive a tax credit allocation post-January 1, 2024, to submit annual reports detailing their procurement plans aimed at increasing involvement of these business enterprises. This initiative acknowledges historical disparities in affordable housing contracts and seeks to remedy them through structured goals and certification requirements.
The reception of AB 2873 has been generally positive, particularly among advocates for minority-owned businesses and equitable economic practices. Supporters view the bill as a significant step towards rectifying past imbalances and empowering underrepresented groups in a vital sector. However, there are concerns regarding the implementation of strict reporting requirements and whether it might overwhelm smaller housing projects that struggle with compliance, potentially facing unintended bureaucratic hurdles.
A point of contention arises from the potential burden placed on housing sponsors, especially those who may not have previously reported such detailed data. Critics worry that these requirements could discourage small or fledgling projects from pursuing low-income housing tax credits due to perceived administrative overreach. Furthermore, the requirement for certification of business enterprises might complicate compliance and create barriers for some firms, especially those who are just starting.