Gov’s Budget for FY 2020-2021

Dear Board and Members:  The Gov’s budget summary for FY 2020-2021, effective on July 1, 2020, provides another $500 million in 30% state credit for new construction projects utilizing tax exempt bonds and 4% credits. In addition, the 9% federal credit has another $100 million ($1 billion) for this calendar year for disaster relief counties which include almost all 58 counties.  No decision yet as to how the extra $100 million will be allocated but expect CTCAC to issue guidance on this matter shortly.  No additional money for CalHFA Mixed Income program as the $140 million specified in the attached summary is merely part of the $500 million allocated in the 2019 Gov’s budget but not yet spent/allocated.
How the new $500 million in state credit is to be allocated depends on what the Gov and Legislature do relative to a Trailer Bill later this year and prior the Gov’s May-Revised budget for housing.  We will be discussing this and your concerns at our Board meeting on Tuesday, March 24 at my office in Sacramento.  Political Solutions will be joining us at this meeting to discuss strategies on the budget items.
Thanks and let me know your ideas and concerns by contacting Patrick Sabelhaus at (916) 444-0286.
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