AMCAL Receives Over $16 Million in CTCAC Funding
- Aug 26, 2011
Agoura Hills, Calif.—The California Tax Credit Allocation Committee (“CTCAC”) was awarded nearly $16.3 million to AMCAL Multi-Housing Inc., a builder of affordable and low-income housing. The funding was provided to help build three new communities across California.
The state legislature, in order to help with the high California taxes, authorized a state low-income housing tax credit program. This credit is only available to a project currently receiving an allocation of federal credits. CTCAC administers two low-income housing tax credit programs, including a federal program and a state program. Both programs were authorized to encourage private investment in affordable rental housing for low-income households.
According to the CTCAC website, in 2010 the annual federal credits awarded equaled $79,964,641, and the total state credits awarded was $31,372,828.
AMCAL attributes its achievement in obtaining the CTATC funding by staying competitive.
“Our success in receiving these awards stems from our ability to receive adequate soft funding, which made our applications competitive and demonstrated a readiness to proceed with the project,” Percy Vaz, AMCAL CEO, says in a statement. “We have also been able to secure equity investors and permanent lenders enabling us to move forward, whereas with the economy and the reduction in equity pricing, other developers without strong backgrounds and investor relationships have had to give up their allocations.”
The AMCAL-developed communities that will benefit from the CTCAC funding include MacArthur, a mixed-use development in Oakland; Park Place, a LEED Silver Certified-family apartment development in Lynwood; and Avenida Villas, a special-needs apartment community in Anaheim.
MacArthur and Avenida will have MHSA units reserved for homeless families, those who are at-risk of homelessness, and those who have a family member who suffers from a mental illness.
Additionally, there will be complimentary social services provided by LifeSTEPS offered for residents of these three communities. Some of these services include computer training, ESL classes, career training and parent classes.
AMCAL is also current under construction on five new tax-credit developments that were awarded between 2009 and 2011.