An act to amend Section 214.18 of the Revenue and Taxation Code, relating to taxation.
Impact
The bill outlines that properties developed or rehabilitated by community land trusts must be designated for certain types of housing, including single-family dwellings and multifamily units. Additionally, it specifies that improvements made to these properties must be available for use and ownership or rental by qualified persons, ensuring that the aim of providing affordable housing is upheld. This amendment aims to further define the scope of the exemption while maintaining eligibility criteria that align with current housing needs.
Summary
Assembly Bill 2399, introduced by Assembly Member Caloza, seeks to amend Section 214.18 of the Revenue and Taxation Code regarding property tax exemptions for properties owned by community land trusts. This bill primarily focuses on ensuring that properties owned by these trusts that are used for housing purposes can be exempt from property taxes, thereby supporting the development or rehabilitation of affordable housing. Under the current existing law, properties benefiting from this exemption must meet several specified conditions, primarily concerning their development status as owner-occupied or rental housing.
Contention
One notable aspect of AB 2399 is its emphasis on enforceable restrictions tied to property sales and rentals, requiring recorded deed restrictions aimed at maintaining affordable pricing for housing units. This requirement can raise issues concerning the ongoing affordability of housing, and there may be debate regarding how effective these provisions will be in ensuring long-term affordability. Additionally, the bill will expire on January 1, 2027, unless further legislative action is taken to extend its provisions, which could lead to future discussions regarding its efficacy and necessity in the evolving housing market.