Bill Text: CA SB622 | 2009-2010 | Regular Session | Amended

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Bill Title: Low-income housing tax credits.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2010-02-01 - Returned to Secretary of Senate pursuant to Joint Rule 56. [SB622 Detail]

Download: California-2009-SB622-Amended.html

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BILL NUMBER: SB 622	AMENDED
	BILL TEXT

	AMENDED IN SENATE  MAY 21, 2009

INTRODUCED BY   Senator  Cedillo   Lowenthal


                        FEBRUARY 27, 2009

    An act to amend Section 18502 of the Health and Safety
Code, relating to mobilehome parks.   An act to add
Sections 12206.5, 17058.5, and 23610.8 to the Revenue and Taxation
Code, relating to taxation, and declaring the urgency thereof, to
take effect immediately. 



	LEGISLATIVE COUNSEL'S DIGEST


   SB 622, as amended,  Cedillo   Lowenthal
 .  Mobilehome Parks Act: fees.  Low-income
housing tax credits.  
   Existing law establishes a low-income housing tax credit program,
administered by the California Tax Credit Allocation Committee, which
provides procedures and requirements for the allocation of state tax
credit amounts among low-income housing projects based on federal
law  
   Existing law, in the case of a partnership, provides for the
allocation of the state low-income housing tax credits, on or after
January 1, 2009, and before January 1, 2016, to partners based upon
the partnership agreement, regardless of how the federal low-income
housing tax credit, as provided, is allocated to the partners, or
whether the allocation of the credit under the terms of the agreement
has substantial economic effect, as provided. 
   This bill would extend those provisions to a project that receives
a preliminary reservation of the state low-income housing tax credit
during calendar year 2008, as specified.  
   This bill would declare that it is to take effect immediately as
an urgency statute.  
   Under existing law, the Mobilehome Parks Act requires a valid
permit issued by the Department of Housing and Community Development
or a city, county, or city and county that assumes responsibility for
the enforcement of the act for the construction or alteration of a
mobilehome park. The act requires a plan checking fee equal to 1/2 of
the construction, plumbing, mechanical, and electrical permit fees
and establishes a minimum fee of $10.  
   This bill would raise the minimum fee by one dollar to $11.

   Vote:  majority   2/3  . Appropriation:
no. Fiscal committee: yes. State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

   SECTION 1.    Section 12206.5 is added to the 
 Revenue and Taxation Code   , to read:  
   12206.5.  (a) (1) Notwithstanding the dates specified in
subdivision (b) of Section 12206, for a project that receives a
preliminary reservation of the state low-income housing tax credit,
allowed pursuant to subdivision (a) of Section 12206, during calendar
year 2008, the credit shall be allocated to the partners of a
partnership owning the project in accordance with the partnership
agreement, regardless of how the federal low-income housing tax
credit with respect to the project is allocated to the partners, or
whether the allocation of the credit under the terms of the agreement
has substantial economic effect, within the meaning of Section 704
(b) of the Internal Revenue Code.
   (2) To the extent the allocation of the credit to a partner under
this section lacks substantial economic effect, any loss or deduction
otherwise allowable under this part that is attributable to the sale
or other disposition of that partner's partnership interest made
prior to the expiration of the federal credit shall not be allowed in
the taxable year in which the sale or other disposition occurs, but
shall instead be deferred until and treated as if it occurred in the
first taxable year immediately following the taxable year in which
the federal credit period expires for the project described in
paragraph (1).
   (b) This section shall not apply to any state low-income housing
credit reservation for which financial closing has occurred, as
determined by the California Tax Credit Allocation Committee, prior
to the effective date of the act adding this section. 
   SEC. 2.    Section 17058.5 is added to the  
Revenue and Taxation Code   , to read:  
   17058.5.  (a) (1) Notwithstanding the dates specified in
subdivision (b) of Section 17058, for a project that receives a
preliminary reservation of the state low-income housing tax credit,
allowed pursuant to subdivision (a) of Section 17058, during calendar
year 2008, the credit shall be allocated to the partners of a
partnership owning the project in accordance with the partnership
agreement, regardless of how the federal low-income housing tax
credit with respect to the project is allocated to the partners, or
whether the allocation of the credit under the terms of the agreement
has substantial economic effect, within the meaning of Section 704
(b) of the Internal Revenue Code.
   (2) To the extent the allocation of the credit to a partner under
this section lacks substantial economic effect, any loss or deduction
otherwise allowable under this part that is attributable to the sale
or other disposition of that partner's partnership interest made
prior to the expiration of the federal credit shall not be allowed in
the taxable year in which the sale or other disposition occurs, but
shall instead be deferred until and treated as if it occurred in the
first taxable year immediately following the taxable year in which
the federal credit period expires for the project described in
paragraph (1).
   (b) This section shall not apply to any state low-income housing
credit reservation for which financial closing has occurred, as
determined by the California Tax Credit Allocation Committee, prior
to the effective date of the act adding this section. 
   SEC. 3.    Section 23610.8 is added to the  
Revenue and Taxation Code   , to read:  
   23610.8.  (a) (1) Notwithstanding the dates specified in
subdivision (b) of Section 23610.5, for a project that receives a
preliminary reservation of the state low-income housing tax credit,
allowed pursuant to subdivision (a) of Section 23610.5, during
calendar year 2008, the credit shall be allocated to the partners of
a partnership owning the project in accordance with the partnership
agreement, regardless of how the federal low-income housing tax
credit with respect to the project is allocated to the partners, or
whether the allocation of the credit under the terms of the agreement
has substantial economic effect, within the meaning of Section 704
(b) of the Internal Revenue Code.
   (2) To the extent the allocation of the credit to a partner under
this section lacks substantial economic effect, any loss or deduction
otherwise allowable under this part that is attributable to the sale
or other disposition of that partner's partnership interest made
prior to the expiration of the federal credit shall not be allowed in
the taxable year in which the sale or other disposition occurs, but
shall instead be deferred until and treated as if it occurred in the
first taxable year immediately following the taxable year in which
the federal credit period expires for the project described in
paragraph (1).
   (b) This section shall not apply to any state low-income housing
credit reservation for which financial closing has occurred, as
determined by the California Tax Credit Allocation Committee, prior
to the effective date of the act adding this section. 
   SEC. 4.    This act is an urgency statute necessary
for the immediate preservation of the public peace, health, or safety
within the meaning of Article IV of the Constitution and shall go
into immediate effect. The facts constituting the necessity are:
 
   The state low-income housing tax credit is a critical source of
funding for the development of affordable rental housing. Because of
the financial downturn and the disruption of global capital markets,
affordable housing developers who received an award of low-income
housing tax credits in 2008 are having difficulty attracting
investors to contribute equity in exchange for the credits. Allowing
these developers to seek out separate investors for the state and
federal low-income housing tax credits will enhance their ability to
attract investors and increase the amount of private investment per
dollar of credit, thereby keeping shovel-ready projects on trace and
increasing the public benefit from the same level of tax expenditure.
Because these developers face losing their credit awards if they
fail to line up investors prior to January 1, 2010, it is essential
that this bill take effect immediately.  
  SECTION 1.    Section 18502 of the Health and
Safety Code, as amended by Section 4 of Chapter 858 of the Statutes
of 2006, is amended to read:
   18502.  Fees as applicable shall be submitted for permits:
   (a) Fees for a permit to conduct any construction subject to this
part as determined by the schedule of fees adopted by the department.

   (b) Plan checking fees equal to one-half of the construction,
plumbing, mechanical, and electrical permit fees, except that the
minimum fee shall be eleven dollars ($11).
   (c) (1)  An annual operating permit fee of twenty-five dollars
($25) and an additional two dollars ($2) per lot.
   (2) An additional annual fee of four dollars ($4) per lot shall be
paid to the department or the local enforcement agency, as
appropriate, at the time of payment of the annual operating fee. All
revenues derived from this fee shall be used exclusively for the
inspection of mobilehome parks and mobilehomes to determine
compliance with the Mobilehome Parks Act (Part 2.1 (commencing with
Section 18200)) and any regulations adopted pursuant to the act.
   (3) The Legislature hereby finds and declares that the health and
safety of mobilehome park occupants are matters of public interest
and concern and that the fee paid pursuant to paragraph (2) shall be
used exclusively for the inspection of mobilehome parks and
mobilehomes to ensure that the living conditions of mobilehome park
occupants meet the health and safety standards of this part and the
regulations adopted pursuant thereto. Therefore, notwithstanding any
other provisions of law or local ordinance, rule, regulation, or
initiative measure to the contrary, the holder of the permit to
operate the mobilehome park shall be entitled to directly charge
one-half of the per lot additional annual fee specified herein to
each homeowner, as defined in Section 798.9 of the Civil Code. In
that event, the holder of the permit to operate the mobilehome park
shall be entitled to directly charge each homeowner for one-half of
the per lot additional annual fee at the next billing for the rent
and other charges immediately following the payment of the additional
fee to the department or local enforcement agency.
   (d) Change in name fee or transfer of ownership or possession fee
of ten dollars ($10).
   (e) Duplicate permit fee or amended permit fee of ten dollars
($10).
   (f) This section shall remain in effect only until January 1,
2012, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2012, deletes or extends
that date.