Supportive Housing for Veterans

The Military and Veterans Code, in Division 4, Chapter 6, Article 3.3, provides for supportive housing for veterans in this state that is funded by tax credits and private activity bonds.

Section 987.300 provides that, if a qualified entity is unable to locate, match, or otherwise place a qualified tenant in a qualified unit within 28 days of the qualified unit becoming available, the qualified entity is required to be eligible to match secondary tenants to the qualified units and the California Tax Credit Allocation Committee and the California Debt Limit Allocation Committee must treat secondary tenants as eligible for the qualified unit.

If a qualified unit that is restricted to a qualified tenant with an extremely low income is occupied by a secondary tenant or other tenant who is a veteran experiencing homelessness with an income between 30% and 60% of area median income, that unit is to be redesignated to an area medium income level commensurate with the income level of the secondary tenant and the secondary tenant must pay rent commensurate with their household income’s percentage of the area medium income.

Beginning 12 months after a secondary tenant or other tenant who is a veteran experiencing homelessness has been placed, if a qualified unit that is restricted to a qualified tenant with an extremely low income is occupied by a tenant with an income between 30 and 60 percent of area median income, the next available comparable unit must be rented to a qualified tenant at 30% of the area medium income with the goal of returning the project into compliance with the unit mix required by the project regulatory agreement.

The qualified entity tasked with making referrals to qualified units is required to make a good faith effort to match a qualified tenant with an extremely low income, document these good faith efforts, and make this documentation available to the housing sponsor. Documentation of these good faith efforts must include five specified items.

The California Tax Credit Allocation Committee and the California Debt Limit Allocation Committee may adopt regulations to establish additional documentation standards for demonstrating a good faith effort.

Finally, this section provides definitions for the following terms: “extremely low income,” “homeless,” “qualified entity,” “qualified tenant,” “qualified unit,” “secondary tenants,” “supportive housing unit,” and “veteran.”