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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