Current through Register 2024 Notice Reg. No. 38, September 20, 2024
(a) A limited partnership in which the
managing general partner is an eligible nonprofit corporation or eligible
limited liability company, meeting the requirements of Regulation 140.1, that
owns low-income housing property for which it will claim the welfare exemption
shall file with the State Board of Equalization an application for a
Supplemental Clearance Certificate for each low-income housing
property.
(b) A Supplemental
Clearance Certificate may be granted only if the managing general partner has
already been granted an Organizational Clearance Certificate by the State Board
of Equalization, as required under Revenue and Taxation Code section
254.6.
(c) In order to qualify for a Supplemental
Clearance Certificate, the general partners of the limited partnership,
including the managing general partner, must certify under penalty of perjury
under the laws of the State of California, that:
(1) The acquisition, construction,
rehabilitation, development, or operation of the property, or any combination
of these factors, is financed with low-income housing tax credits or government
financing, as defined in Regulation 140;
(2) There is an enforceable and verifiable
regulatory agreement or recorded deed restriction, as defined in Regulation
140, that restricts all or a portion of the property's usage for rental to
lower income households and the units designated for use by lower income
households are continuously available to or occupied by lower income households
at rents that do not exceed those prescribed by the terms of a regulatory
agreement or recorded deed restriction, as defined in Regulation 140 or to the
extent that none are provided in the regulatory agreement or recorded deed
restriction, at rents that do not exceed those prescribed by section
50053
of the Health and Safety Code;
(3)
Funds that would have been necessary to pay property taxes are used to maintain
the affordability of, or reduce rents otherwise necessary for, the units to be
occupied by lower income households;
(4) The managing general partner meets the
requirements of Regulation 140.1; and
(5) All of the information provided as part
of the application for the Supplemental Clearance Certificate, including any
accompanying statements or documents, is true, correct, and complete to the
best of the knowledge and belief of the person(s) signing the
application.
(d) The
following information and documents shall be provided in or with the
application for a Supplemental Clearance Certificate:
(1) Legal name of the limited
partnership;
(2) Legal name of the
managing general partner of the limited partnership, its corporate
identification number and mailing address, and the date that it became the
managing general partner of the limited partnership;
(3) Name, title, telephone number, and e-mail
address of person signing the application for the Supplemental Clearance
Certificate;
(4) The Organizational
Clearance Certificate number and the date of issuance to the managing general
partner. If an Organizational Clearance Certificate has not been issued to the
managing general partner, an application for an Organizational Clearance
Certificate must be filed by the managing general partner;
(5) Complete address of the property for
which the limited partnership is seeking the welfare exemption, including the
zip code, and the date the limited partnership acquired the property;
(6) Fiscal year for which the application is
made;
(7) List of any additions or
deletions of general partners in the limited partnership, if any, after its
formation;
(8) For California
limited partnerships, a copy of Secretary of State form LP-1, Certificate of
Limited Partnership, and, if applicable, Secretary of State form LP-2,
Amendment to Certificate of Limited Partnership; for foreign limited
partnerships, a copy of the formation document, and, if applicable, amendment
documents, filed in the state or country of formation;
(9) Copy of the regulatory agreement with a
government agency, or a copy of a recorded deed restriction which verifies or
evidences the receipt of low-income housing tax credits or government
financing, as defined in Regulation 140; and
(10) Copy of the grant deed, or if the land
is not owned by the limited partnership, documents evidencing the limited
partnership's ownership of the improvements.
(e) The limited partnership shall include a
copy of the Supplemental Clearance Certificate with its welfare exemption claim
filed with the assessor of the county in which the property is
located.
(f) In the event that the
general partner designated in the limited partnership agreement no longer meets
the definition of managing general partner, as defined in Regulation 140.1, or
the managing general partner withdraws from the partnership, the limited
partnership shall report such event to the State Board of Equalization and the
assessor of the county in which in property is located no later than the next
succeeding annual filing deadline for the welfare exemption claim.
1. New
section filed 6-23-2006; operative 7-23-2006 (Register 2006, No.
25).
Note: Authority cited: Section
15606,
Government Code. Reference: Sections
214,
214.01,
254.5
and
254.6,
Revenue and Taxation Code.
