Bill > SB336

This bill amends California's property tax welfare exemption law to provide a partial tax exemption for residential rental properties that serve low- and moderate-income households. Specifically, the bill expands existing tax exemptions for nonprofit-owned housing by allowing a property tax reduction proportional to the number of units rented to low- and moderate-income households. The bill introduces new requirements for property owners seeking this exemption, including mandating that they certify under penalty of perjury that their properties meet specific affordability criteria, such as having enforceable agreements ensuring continuous availability of affordable units for at least 55 years. For properties with newly constructed or converted residential units after January 1, 2026, owners must conduct market studies to verify that initial rents are below fair market rates and restrict future rent increases. The bill defines low- and moderate-income households using existing state health and safety code definitions and allows units to remain classified as affordable even if tenant incomes rise, up to 200 percent of area median income. The legislation is designed to incentivize the development and maintenance of affordable housing by providing a financial benefit to property owners who commit to keeping units accessible to lower-income residents.

Budget and Finance

https://leginfo.legislature.ca.gov/faces/billStatusClient.xhtml?bill_id=202520260SB336