California Requiring Applicants To Use State Prevailing Wages

摘要

The California Tax Credit Allocation Committee (TCAC) is requiring low-income housing tax credit applicants to use state prevailing wages to estimate project costs during its first funding cycle despite ongoing questions regarding their applicability, according to Jeanne Peterson, TCAC's executive director. In an April 2 memo to applicants, Peterson said that TCAC decided to proceed with its first funding cycle and an April 15 application deadline. "If you are applying in this round, you should assume that your development will be subject to the payment of state prevailing wages, and your application should reflect this so that we may compare 'like-to-like' cost estimates," Peterson wrote. In January, Peterson said that TCAC might delay the first of two funding rounds for 2004 to give the California Department of Industrial Relations (DIR), which sets and administers state prevailing wages, time to consider whether the state's prevailing wage law applies to tax credit and bond projects. (For background, see Current Developments, Vol. 32, No. CD-1, p. 12.)