SR 11-27-2018 13C 13.C
November 27, 2018
Council Meeting: November 27, 2018 Santa Monica, California
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CITY CLERK’S OFFICE - MEMORANDUM
To: Mayor and City Council
From: Denise Anderson-Warren, City Clerk, Records & Elections Services
Department
Date: November 27, 2018
13.C Request of Mayor Ted Winterer to review the request from Community
Corporation of Santa Monica to consider whether to adopt emergency
regulations waiving the City’s various affordable housing eligibility
requirements for victims of the Woolsey Fire, to permit them priority and
access to vacant affordable housing units in Santa Monica (attached).
Considerations that could be evaluated by staff include but are not limited
to: duration of any emergency regulation, who should be prioritized among
the fire victims (families with children in Malibu-based SMMUSD schools?),
what class of units should be subject to this program, length of tenancy
and number of units to be offered as part of this program.
MEMBERS
JOHN CHIANG, CHAIRMAN
State Treasurer
BETTY YEE
State Controller
KEELY MARTIN BOSLER
Director of Finance
EXECUTIVE DIRECTOR
Mark Stivers
915 Capitol Mall, Suite 485
S acramento, CA 95814
p (916) 654-6340
f (916) 654-6033
www.treasurer.ca.gov/ctcac
CALIFORNIA TAX CREDIT ALLOCATION COMMITTEE
REVISED
DATE: November 19, 2018
TO: Property Owners of Tax Credit Properties
FROM: Mark Stivers, Executive Director
RE: Relief from Certain Low-Income Housing Credit Requirements in Response to
Major Disasters
Internal Revenue Service (IRS) Revenue Procedure 2014-49 provides temporary relief from certain
requirements of Section 42 of the Internal Revenue Code for Housing Credit Agencies and Project
Owners. This revenue procedure also provides emergency housing relief for individuals who are
displaced by a Major Disaster from their principal residences in certain Major Disaster Areas.
Sections 12, 13 and 14 of the Revenue Procedure contain the requirements and restrictions for
Emergency Housing Relief. In accordance with Section 12.02 of the Revenue Procedure, this
memorandum serves as “Agency Approval” from the California Tax Credit Allocation Committee
(CTCAC) permitting the Owners of California Low-Income Housing Tax Credit projects to make
vacant units available as temporary housing to individuals displaced by the federally declared Major
Disaster. The Temporary Housing Period ends November 8, 2019 for those displaced due to the
California Wildfires.
Many of the Housing Tax Credit properties in California have long waiting lists with few vacancies
and may not be able to provide emergency housing.
If an owner chooses to provide Emergency Housing Relief to a Displaced Individual that cannot
establish eligibility for Section 42, it may disregard the income of the Displaced Individual’s
household during the Temporary Housing Period and the unit retains the status it had prior to
occupancy by the Displaced Individual (see Section 13.04 regarding treatment of units in the first
year of the credit period). However, the rent cannot exceed the applicable Section 42 rent limit and
owner must obtain a statement signed by the Displaced Individual under penalties of perjury
containing the information noted in Item 3 below. In order to suspend income limitations the project
owner must meet all of the following requirements:
1. The Displaced Individual must have resided in one of the counties designated for individual
assistance by Federal Emergency Management Agency (FEMA) as a result of the California
Wildfires.
2. The project owner must observe a temporary housing period, to extend no later than
November 8, 2019 for those displaced due to the California Wildfires, for each project that
suspends income limitations. CTCAC hereby determines that the project’s temporary
housing period is appropriate so long as it does not to extend beyond the specified time
period and the project owner is in compliance with the Notice and CTCAC directives.
3. To comply with the requirements of Internal Revenue Code Section 1.42-5, project owners
must maintain and certify certain information concerning each Displaced Individual
temporarily housed in the project. Specifically, the project owner must obtain and maintain
a separate file designated for each Displaced Individual that contains the following
information:
• The name of the Displaced Individual (including the names of all household
members);
• The address of the principal residence at the time of the Major Disaster of the
Displaced Individual;
• The Displaced Individual’s social security number;
• A statement signed under penalties of perjury by the Displaced Individual stating
that he or she was displaced from his or her principal residence as a result of a Major
Disaster and that his or her principal residence was located in a city, county, or other
local jurisdiction that is covered by the President’s declaration of a Major Disaster
and that is designated as eligible for Individual Assistance by FEMA because of the
Major Disaster; and
• Certification by the project owner certifying the date the individual began occupancy
and the date the project will discontinue providing temporary housing, if applicable,
not to extend beyond November 8, 2019 for those displaced due to the California
Wildfires.
• The Owner must maintain a record both of the Agency’s approval of the Project’s
use for Displaced Individuals and of the approved Temporary Housing Period. The
Owner must report to TCAC at the end of the Temporary Housing Period a list of
the names of the Displaced Individuals and the dates the Displaced Individuals
began occupancy. The Owner must also provide any dates Displaced Individuals
ceased occupancy and, if applicable, the date each unit occupied by a Displaced
Individual becomes occupied by a subsequent tenant.
The Owner must maintain the records described above as part of the annual compliance
monitoring process with CTCAC imposed by Section 42 and provide this information to the
IRS upon request.
4. Rent for the low-income units housing Displaced Individuals must not exceed the existing
rent-restricted rates for the low-income units established in the project’s recorded
Regulatory Agreement.
5. Existing tenants in occupied low-income housing tax credit units may not be evicted or have
their tenancy otherwise terminated solely to provide emergency housing relief for a
Displaced Individual.
6. The occupancy of a unit in a Project by a Displaced Individual during the Temporary
Housing Period is treated as satisfying the non-transient use requirement under Section
42(i)(3)(B)(i).
7. Project owners must submit a CTCAC Temporary Housing Report with the Annual Owner
Certification due March 18, 2019. A template of the Report is available on the TCAC
website at http://www.treasurer.ca.gov/ctcac/.
If a Displaced Individual wishes to continue to occupy a low-income unit after the end of the
Temporary Housing Period, the household must be initially qualified for Section 42 and all
documentation rules apply. Owner must complete a full and complete initial Tenant Income
Certification and Annual Student Certification. The effective date must be no later than the day
following the end of the above-identified Temporary Housing Period.
This memorandum is intended to highlight key points addressed in the Revenue Procedure 2014-
49 and provide some degree of guidance. Project owners must refer to Revenue Procedure 2014-
49 or contact the IRS directly for specifics concerning suspension of income-limitation and non-
transient requirements. If you have questions concerning this memorandum, contact Anthony Zeto
or Rose Guerrero of my staff at (916) 653-6340.