Bill > SB5529

This bill amends existing property tax law to expand a tax exemption program for accessory dwelling units (ADUs) to additional counties, specifically targeting those with populations between 900,000 and 1,500,000 residents. The bill allows county or city legislative authorities in these counties to exempt the value of an ADU from property taxation if certain conditions are met, such as renting the unit to a low-income household (defined as households earning at most 60% of the county's median income), filing proper documentation, and ensuring the rent does not exceed 30% of the tenant's monthly income. The exemption applies for three assessment years and cannot be claimed more than once in a five-year period. For counties with populations over 1,500,000, existing rules continue to apply, allowing more flexibility in implementation. The bill requires legislative authorities to establish policies to support tenants when an exemption expires and mandates an independent review by the joint legislative audit and review committee to assess the program's effectiveness in increasing affordable housing. The tax preference is designed to incentivize homeowners to create and rent accessory dwelling units to low-income households, with the ultimate goal of expanding affordable housing options. The bill includes provisions for annual application, potential administrative fees, and includes an expiration date of January 1, 2034.