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City of Pleasanton Legislative Platform 2016 <br /> 000 <br /> �� LEAGUES <br /> i I I <:,t I I I t t¢N I n 1400 K Street,Suite 400•Sacramento,California 95814 <br /> CITIES Phone:916.658.8200 Fax:916.658.8240 <br /> www.cacities.org <br /> March 30,2016 <br /> The Honorable Jim Beall <br /> State Capitol,Room 5066 <br /> Sacramento,CA 95814 <br /> RE: SB 873(Beall)Tax Credits:Low-Income Housing:Sale of Credit <br /> NOTICE OF SUPPORT(As introduced) <br /> Dear Senator Beall: <br /> The League of California Cities is pleased to support your SB 873(Beall),which would increase <br /> the benefits for private investors who choose to invest in affordable housing. This will ultimately <br /> increase the number of affordable housing units in the state. <br /> Under current law,private equity investors must become owners of a property to claim tax credits <br /> against their state tax liabilities. However,a decrease in an investors'state tax liability triggers an <br /> increase in their federal tax liability. SB 873 addresses this issue by allowing an affordable <br /> housing developer to sell the credits to an investor without admitting them to an ownership <br /> partnership. <br /> The League has longstanding policy supporting additional state funding for affordable housing. <br /> The challenges of funding affordable housing development,however,have increased significantly <br /> with the loss of over$1 billion per year of redevelopment housing funds. While there continues <br /> to be a need for a permanent public funding source,SB 873 provides a tool to incentivize private <br /> investments in affordable housing. <br /> For these reasons,the League of California Cities supports this legislation. If you have any <br /> questions regarding the League's position on this bill,please call me at(916)658-8222 or Kendra <br /> Harris,Legislative Representative at(916)658-8250. <br /> Sincerely, <br /> Dan Carrigg <br /> Senior Director,Legislative Affairs <br /> cc: Chair and Members,Senate Governance and Finance Committee <br /> Colin Grinnell,Staff Director,Senate Governance and Finance <br /> Doug Yoakam,Housing Consultant,Senate Republican Caucus <br /> 19 I Page <br />