Bill > SB423

This bill introduces two main provisions related to housing and property transfer taxes. First, it allows state or local agencies administering affordable housing programs to enter into or modify regulatory agreements to cure events of default under specific conditions. This means agencies can adjust certain aspects of affordable housing agreements, such as subordination to first lien capital, resale restrictions, income or rent limits, and regulatory restriction periods, while maintaining affordability requirements. The bill specifies that these modifications must keep rents affordable and maintain a minimum 55-year regulatory restriction period. The bill also exempts these modified agreements from conflicting land use restrictions. Second, the bill places specific restrictions on documentary transfer taxes in the City of Los Angeles, limiting the tax rate on recently constructed properties (within 15 years of first certificate of occupancy) and providing exceptions for certain types of properties, such as single-family homes rebuilt after a disaster. The bill includes provisions that make these changes operative only under certain conditions, such as the withdrawal or failure of specific ballot initiatives. Additionally, the bill declares that preserving affordable housing is a matter of statewide concern and applies to all cities, including charter cities.

Agriculture and Natural Resources, Budget and Finance, Government Affairs, Justice

https://leginfo.legislature.ca.gov/faces/billStatusClient.xhtml?bill_id=202520260SB423