MCC Program

Applications are now being accepted for Santa Clara County's Mortgage Credit Certificate (MCC) Program.

On March 20, 2019, the California Debt Limit Allocation Committee (CDLAC),  approved the transfer of $12,951,459, in State Private Activity Bonds to be used to issued $3,237,864 (4:1 conversion) in Mortgage Credit Certificates.  

December 2021 Update: The estimated number of MCCs to be issued from the March 20, 2019, allocation is 11. ​

Applications for the Reissued MCC (RMCC) Program are also being accepted.

The MCC Program Application Package includes all forms needed to submit an MCC Application.


The RMCC Program application package includes all forms needed to submit the RMCC Application.  The RMCC Program is available only through Participating RMCC Lenders.  To be eligible to obtain a reissued MCC the RMCC Application must be submitted to the County within one-year of refinancing the mortgage/loan associated with a qualified MCC or a qualified existing RMCC. 

The RMCC Program Application package includes all forms needed to submit the RMCC Application. 

MCC Application Package 2019.pdf​​​

‘Borrower’ Eligibility

  • Be a first-time homebuyer.  The only exception to being a first-time homebuyer is if the home is located in a federally Designated Target Area.
  • Obtain your first loan using a current eligible participating MCC
  • Meet the income limits for target areas/non-target areas

‘Property’ Eligibility

An MCC can be used for the purchase of new or existing single-family homes including single-family detached homes, condominiums and townhouses in Santa Clara County

  • The sale price of the home must be less than the allowable sales price limit
  • The home must be a single family residence, Condominium or a Townhome.
  • The home can be a detached unit, or a condominium or attached unit within a planned unit development (PUD).
  • The property must meet the purchase price limit for target area/non-target areas

2019 MCC Maximum Income Limits (Effective April 1, 2019):

​​Household Size ​​Non-target Area Income Limits ​​Target-Area Income Limits
​​1-2 persons household ​​$159,600 ​​$159,600
​3+ persons household​ ​$186,200 ​$186,200

2018 MCC Maximum Purchase Price Limits:

Type of Property​ ​​Non-Target Areas Purchase Price Limits ​Target Areas Purchase Price Limits
​Existing (Resale) Property ​​$975,000 ​​$1,191,671
​New Construction Property​ ​​$975,000 ​​$1,191,671


The County does not issue mortgage loans.  An eligible homebuyer will go through the normal process of selecting a Realtor, finding a home, and arranging financing with one of the County’s MCC Participating Lenders​.  The lender will determine the eligibility of the homebuyer and will send the MCC application forms to the County. 

Recapture Tax:

If a person sells or disposes of a home associated with an MCC during the first nine years from the date of purchase, a part or all of the MCC benefit may be ‘recaptured’. The recapture would lead to an increase in the person’s federal income tax for the year in which the home is sold. However, the recapture applies only if the home is sold at a gain and if the income of the person increases above the maximum income levels for MCC.
For more information on recapture tax refer the following:

  • Notice of potential Recapture Tax (MCC-015) 
  • Method to compute Recapture Tax (MCC-016)
  • IRS Form 8828 Recapture of Mortgage Subsidy
  • IRS Form 8828 Instructions
  • Adjusted Qualifying Income (AQI) Tables 1994-2016 

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