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HomeMy WebLinkAboutSB873_LtrToBeall_20160720Elks of the Cilty S b• s Obispo4 a r' s C_)13401 r f3 c .' rk t ajl .,Jig s.', f , ._yan w»R. fs .,'.r'. ;¢..T . ,.f £ w) . 4 "2 :.,) i71 4 July 20, 2016 The Honorable Jim Beall State Capitol, Room 5066 Sacramento, CA 95814 Fax: 916-651-4915 RE: SB 873 (Beall) Tax Credits: Low -Income Housing: Sale of Credit NOTICE OF SUPPORT (As introduced) Dear Senator Beall: The City of San Luis Obispo is pleased to support your SB 873 (Beall), which would increase the benefits for private investors who choose to invest in affordable housing. This will ultimately increase the number of affordable housing units in the state. Under current law, private equity investors must become owners of a property to claim tax credits against their state tax liabilities. However, a decrease in an investors' state tax liability triggers an increase in their federal tax liability. SB 873 addresses this issue by allowing an affordable housing developer to sell the credits to an investor without admitting them to an ownership partnership. The challenges of funding affordable housing development have increased significantly with the loss of over $1 billion per year of redevelopment housing funds. While there continues to be a need for a permanent public funding source, SB 873 provides a tool to incentivize private investments in affordable housing. For these reasons, the City of San Luis Obispo supports this legislation. Sincerely, Jan Marx Mayor cc: City Council Community Development Director Chair and Members, Senate Governance and Finance Committee Colin Grinnell, Staff Director, Senate Governance and Finance Doug Yoakam, Housing Consultant, Senate Republican Caucus Senator Bill Monning, fax 916-445-8081 Assembly Member, Katcho Achadjian, fax 916-319-2135 David Mullinax, League of California Cities, d ullinaxCa),cacites.Or Dan Carrigg, League of California Cities, Carrig Cc ;cacit es.or