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LIHTC Market Study Requirements in California

What California Tax Credit Allocation Committee (CTCAC) requires in a Low-Income Housing Tax Credit (Section 42) market study — current as of the Market Study Guidelines = December 2024 edition (re-posted Oct 2025; no newer substantive edition). 2026 application cycle active cycle.

Updated July 2026 · Reference for affordable-housing analysts

The agency & primary document

Allocating agency
California Tax Credit Allocation Committee (CTCAC)
QAP / guidelines
https://www.treasurer.ca.gov/ctcac/current-year/application
Governing document
Market Study Guidelines, December 2024 edition (the 2025-10 file path is a re-post, not a new edition)
Methodology
Agency-specific standalone methodology

Required market study sections

California uses its own standalone market study methodology rather than the NCHMA Model Content Standards. Agency-specific methodology — CTCAC publishes its own standalone guidelines. Do not apply NCHMA standards.

Key California rules

Staleness window
All market studies must be prepared or updated within 180 days (~6 months) of submission, with a defined update mechanism (executive summary, demographic/income trends, comparables, absorption, demand estimate)
Absorption / occupancy
Stabilized occupancy/absorption: SRO & Special Needs 90% within 6 months (90% within 1 yr if >150 units); Large Family 95% within 6 months (95% within 1 yr if >150 units); all Senior 95% within 1 year; absorption analysis estimates time to 95%

California-specific overlays

Required companion documents

Things analysts miss in California

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Frequently asked questions

Who reviews LIHTC market studies in California?

California Tax Credit Allocation Committee (CTCAC) sets the market study requirements and reviews submissions for California Low-Income Housing Tax Credit applications.

How current must a California LIHTC market study be?

All market studies must be prepared or updated within 180 days (~6 months) of submission, with a defined update mechanism (executive summary, demographic/income trends, comparables, absorption, demand estimate)

Does California follow NCHMA standards?

Agency-specific methodology — CTCAC publishes its own standalone guidelines. Do not apply NCHMA standards.

What absorption/occupancy does California expect?

Stabilized occupancy/absorption: SRO & Special Needs 90% within 6 months (90% within 1 yr if >150 units); Large Family 95% within 6 months (95% within 1 yr if >150 units); all Senior 95% within 1 year; absorption analysis estimates time to 95%

Other states

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This summary is for general reference and reflects California Tax Credit Allocation Committee (CTCAC)'s published guidance as understood by StudyScribe; it is not legal or compliance advice. Always confirm requirements against the current QAP / market study guidelines before submission.