California Assembly Bill AB447

California 2021-2022 Regular Session

• Introduced: 2/8/21
• Refer: 2/18/21
• Report Pass: 4/19/21
• Refer: 4/19/21
• Report Pass: 4/28/21
• Engrossed: 5/6/21
• Refer: 5/6/21
• Refer: 5/19/21
• Refer: 6/16/21
• Report Pass: 6/21/21
• Refer: 6/21/21
• Refer: 6/22/21
• Refer: 6/24/21
• Report Pass: 7/1/21
• Refer: 7/1/21
• Report Pass: 7/8/21
• Refer: 7/8/21
• Refer: 8/16/21
• Report Pass: 8/26/21
• Refer: 9/9/21
• Enrolled: 9/10/21
• Chaptered: 9/28/21
• Passed: 9/28/21

Caption

California Debt Limit Allocation Committee: income taxes: low-income housing tax credits.

Impact

The legislative adjustments made by AB 447 are expected to positively impact California's housing landscape, facilitating greater access to affordable housing options. By allowing more flexibility in how tax credits are allocated and how existing structures can be retrofitted for residential use, the bill seeks not only to prevent homelessness but also to support economic development in communities across the state. Specifically, the bill authorizes the California Tax Credit Allocation Committee (CTCAC) and the California Debt Limit Allocation Committee to develop new guidelines that facilitate these objectives, ensuring that resources are directed to where they are needed most.

Summary

Assembly Bill 447, introduced by Assemblymember Grayson, amends provisions related to the California Debt Limit Allocation Committee and low-income housing tax credits in California. The bill aims to enhance the state's capacity to issue private activity bonds and streamline the allocation of low-income housing tax credits to support affordable housing projects. It expands the definition of 'at risk of conversion' to include a broader range of programs that qualify as governmental assistance and requires that at least 50% of units in applicable developments are designated for lower-income households. This legislative change is aimed at better serving vulnerable populations and preserving existing affordable housing.

Sentiment

The overall sentiment surrounding AB 447 appears to be supportive, particularly among advocates for affordable housing and economic development. Stakeholders recognize the urgent need for housing solutions in California, especially given the high cost of living and increasing rates of homelessness. However, some concerns remain regarding the long-term implications of expanded tax credits and whether they will sufficiently address the complexities associated with affordable housing shortages. Advocates are keen on monitoring the implementation of the bill to ensure that it achieves its intended outcomes.

Contention

One notable point of contention during discussions surrounding AB 447 relates to how effectively it will allocate resources to the most disadvantaged communities. While supporters argue that the expanded definitions and provisions will help protect existing affordable housing and create new units, critics worry that the actual increase in affordable housing may not meet the demand. They stress the importance of transparent guidelines that will govern the allocation of tax credits and funding, cautioning against potential inequalities in access to affordable housing programs.