BILL NUMBER: SB 565	INTRODUCED
	BILL TEXT


INTRODUCED BY   Senator Migden

                        FEBRUARY 18, 2005

   An act to amend Section 50199.20 of the Health and Safety Code,
relating to low-income housing.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 565, as introduced, Migden.    Low-income housing tax credit
allocation program.
   Existing law, relating to the program established to provide
low-income tax credits to stimulate the production and rehabilitation
of shelter for lower individuals and families, authorizes, among
other things, the California Tax Credit Allocation Committee to set
aside up to 2% of the available tax credit for small developments as
determined by the committee.
   This bill would increase that amount from 2% to 5%.
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


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


  SECTION 1.  Section 50199.20 of the  Health and Safety Code  is
amended to read:
   50199.20.  (a) Not less than 20 percent of the federal ceiling on
low-income housing tax credits shall be set aside for allocation to
rural areas as defined in Section 50199.21. Any amount of credit set
aside for rural areas remaining after the ranking of credits in the
final cycle of any calendar year shall be available for allocation to
any eligible project. (b) Up to  2   5 
percent of the low-income housing tax credit available under this
chapter and Sections 12206, 17058, and 23610.5 of the Revenue and
Taxation Code may be set aside for small developments as determined
by the committee. Any amount of credit set aside for small
developments remaining after the ranking of projects in the final
cycle of any calendar year shall be available for allocation to any
eligible project.