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State treasurer works to ensure 13 counties hit by disasters receive $100 million in new federal tax credits
Lake County is among the 13 listed by Ma as being the recipients of the assistance.
The federal credits, carried by Rep. Mike Thompson, D-Napa, and approved by the federal government in December, are intended to finance housing projects in 13 counties struck by wildfires in 2017 and 2018, including the Camp fire, the Tubbs fire, the Thomas fire and the Mendocino Complex.
In addition to Lake, the counties are Butte, Los Angeles, Mendocino, Napa, Nevada, Orange, San Diego, Santa Barbara, Shasta, Sonoma, Ventura and Yuba.
“We want to make it crystal clear that these tax credits are going to help counties that have been devasted by disasters,” said Treasurer Ma. “I salute the resilience, dedication and creativity of these communities and I’m glad we can help them rebuild.”
State Senator Mike McGuire, D-Santa Rosa, thanked Treasurer Ma for her efforts. McGuire represents Lake County in the State Senate.
“This $100 million in tax credits will be a huge shot in the arm for the rebuilding of our communities and desperately needed affordable housing,” McGuire said. “We’re incredibly grateful to Treasurer Ma for moving so fast and ensuring the tax credits will be spent as intended – in the 13 counties devastated by these massive wildfires. We are also truly appreciative of the leadership of Congressmen Thompson and Huffman, who have been fighting to make this allocation a reality for over a year now.”
“It is critically important that our communities that have been hit hard by wildfires have all of the resources they need to rebuild and recover, which is why I carried legislation to provide $100 million in new federal tax credits to help create much needed affordable housing in disaster-stricken counties,” said Rep. Thompson. “I greatly appreciate Treasurer Ma’s commitment to ensuring that this assistance is allocated as Congress intended so that those displaced by wildfires can have access to affordable housing.”
In response to public comments finding the regulations unclear, CTCAC is revising regulations to give projects in the 13 counties two years to seek credits for housing projects.
Under federal regulations, the credits must be used within two years or lost. If there are any unused credits at the end of 2021, to avoid losing them, the new regulations allow projects seeking to house the homeless to apply.
The revised regulations would exempt communities hit by disaster from the typical 9 percent tax credit rules, which reward projects located close to amenities such as shopping, libraries and parks.
CTCAC is also working to develop regulations to ensure that the disaster areas occurring in large or wealthy counties are not given an unfair advantage over disaster areas in smaller counties or in counties with fewer people.
More information is available here.