California Debt Limit Allocation Committee (CDLAC)

California Debt Limit Allocation Committee (CDLAC)
April 7, 2020 Charly Ligety

California Debt Limit Allocation Committee (CDLAC)


To incentivize private capital to invest in affordable housing development and preservation, the federal government allows a certain amount of private market capital to be exempt from income taxes – though tax credits and tax exemptions – if invested in qualified affordable housing projects. The California Debt Limit Allocation Committee (CDLAC) is a state agency, overseen by the State Treasurer, charged with administering the tax-exempt private activity bond program available annually for California. CDLAC allocates federally tax-exempt bonds – known as 4-Percent Credits – that can be used for multi-family housing development and preservation.

The California Debt Limit Allocation Committee is a three-member body comprised of the State Treasurer as Chair, the Governor, and the State Controller.


Federal law limits how much tax-exempt debt a state can issue in a calendar year for private projects that have a qualified public benefit, such as affordable housing. This cap is determined by a population-based formula. CDLAC was created to set and allocate California’s annual debt ceiling, currently set with a debt ceiling of over $4 billion, based on the state population of approximately 40 million people. CDLAC’s programs are used to finance affordable housing developments using a layer of capital known as 4-Percent Credits.

Similarly, the State’s Tax Credit Allocation Committee (TCAC) administers the federal and state Low-Income Housing Tax Credit Programs, awarding the 9-Percent Credits to developers of affordable housing projects.

Additional background can be found here.


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