BILL NUMBER: AB 841	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 13, 2009

INTRODUCED BY   Assembly Member Fuentes

                        FEBRUARY 26, 2009

   An act  to add Section 50199.25 to the Health and Safety Code,
  relating to taxation.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 841, as amended, Fuentes. Low-income housing tax 
credits.   credits: City of Los Angeles. 
   Existing law requires the California Tax Credit Allocation
Committee to allocate specified insurance, income, and corporation
tax credits for purposes of low-income housing projects.
   This bill would  declare the Legislature's intent to enact
legislation that would  require the committee to allocate a
portion of the credits to the City of Los Angeles  , as provided
 . 
   This bill would state the findings and declarations of the
Legislature concerning the need for special legislation.  
   The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.  
   This bill would provide that, if the Commission on State Mandates
determines that the bill contains costs mandated by the state,
reimbursement for those costs shall be made pursuant to these
statutory provisions. 
   Vote: majority. Appropriation: no. Fiscal committee:  no
  yes  . State-mandated local program:  no
  yes  .


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

   SECTION 1.    Section 50199.25 is added to the 
 Health and Safety Code   , to read:  
   50199.25.  Notwithstanding any other provision in this chapter to
the contrary, the California Tax Credit Allocation Committee shall,
to the extent possible, allocate a portion of the California
low-income housing tax credit to the City of Los Angeles in
accordance with the following:
   (a) The Los Angeles Housing Department shall annually establish a
local qualified allocation plan for purposes of allocating the
California low-income housing tax credit within the City of Los
Angeles.
   (b) The local qualified allocation plan shall provide for the
allocation of the housing tax credits in accordance with the same
criteria and requirements used in allocating the credits by Section
42 of the Internal Revenue Code and by the California Tax Credit
Allocation Committee.
   (c) The local qualified allocation plan shall provide for annual
housing priorities and needs, and one or more annual competitive
application cycles for the tax credits.
   (d) The Los Angeles Housing Department shall review the
applications for completeness, feasibility, and the extent to which
the projects meet the threshold and competitive selection criteria
contained in the state's qualified allocation plan and local
qualified allocation plan, issue determinations, and maintain a
waitlist, if necessary. The review shall include, but not be limited
to, the following:
   (1) Evaluation of compliance with threshold criteria.
   (2) Project and sponsor underwriting.
   (3) Scoring applications for an award of housing tax credits based
upon California Tax Credit Allocation Committee program guidelines.
   (e) The awarding of housing tax credits to the projects shall be
subject to approval by the Mayor and the Council of the City of Los
Angeles, and, upon that approval, a list of those projects shall be
forwarded to the California Tax Credit Allocation Committee for the
actual awarding of the housing tax credits in accordance with the
requirements of this chapter.
   (f) The California Tax Credit Allocation Committee shall adopt all
rules and regulations necessary to implement this section in a
manner that ensures compliance with all requirements used in
allocating the federal tax credit pursuant to this chapter. 
   SEC. 2.    If the Commission on State Mandates
determines that this act contains costs mandated by the state,
reimbursement to local agencies and school districts for those costs
shall be made pursuant to Part 7 (commencing with Section 17500) of
Division 4 of Title 2 of the Government Code. 
   SEC. 3.    The Legislature finds and declares that,
because of the unique circumstances applicable only to the City of
Los Angeles, a statute of general applicability cannot be enacted
within the meaning of subdivision (b) of Section 16 of Article IV of
the California Constitution. Therefore, this special statute is
necessary.  
  SECTION 1.    The Legislature declares its intent
to enact legislation that would require the California Tax Credit
Allocation Committee to allocate a portion of low-income housing tax
credits to the City of Los Angeles.