Bill > AB1294

This bill expands the "welfare exemption," a property tax exemption for certain non-profit organizations, to include residential rental properties used for low- and moderate-income households. Specifically, for properties newly constructed or converted from commercial to residential use between January 1, 2027, and January 1, 2030, located in Alameda, Sacramento, or San Francisco counties, a partial exemption will be granted. This exemption will be equal to the value of the units designated for low- and moderate-income households, provided the owner certifies that these units will remain affordable for at least 55 years, with rents below fair market rates and adjusted annually based on median income increases. The exemption will be in effect for 15 years from its initial filing. The bill also includes provisions to streamline housing development applications by creating a standardized application form and clarifies that the state will not reimburse local agencies for any property tax revenue lost due to this exemption.