Property taxation: welfare exemption

The law preserves a tax-exemption calculation for certain rent-restricted, low-income housing and lets counties move related filings and tenant-income recertification forms online. It also sets a statewide deadline for counties to provide recertification forms.

What the law does ​

• Extends through fiscal year 2028–29 the rule allowing low-income housing tax-credit units to retain lower-income status when tenants’ incomes rise to no more than 140% of area median income and rents remain restricted.
• Authorizes county assessors to accept electronic signatures for welfare-exemption claims, renewals, and related materials, including annual income verification.
• Requires counties to release tenant-income recertification forms needed for the exemption by November 15 before the forms are due.
• Provides that counties are not liable for late forms when the delay results from the State Board of Equalization or another state entity delaying relevant forms.
• Conditionally adds a 15-year partial exemption for certain newly built or commercial-to-residential affordable projects in Alameda and Sacramento Counties and San Francisco, if AB 1294 also takes effect under the bill’s specified conditions.

Who it affects ​

• Nonprofit and qualifying veteran-owned affordable-rental housing providers claiming the welfare exemption.
• Tenants in rent-restricted low-income housing tax-credit units.
• County assessors and county boards of supervisors.

Context ​

The welfare exemption partially exempts qualifying rental projects based on the share of units serving lower-income households.