Housing

Existing law establishes a low-income housing tax credit program for which the California Tax Credit Allocation Committee (CTCAC) provides procedures and requirements for the allocation, in modified conformity with federal law, of state insurance, personal income, and corporation tax credit amounts to qualified low-income housing projects that have been allocated, or qualify for, a federal low-income housing tax credit, and farmworker housing. Existing law limits the total annual amount of the state low-income housing credit for which a federal low-income housing credit is required to the sum of $70,000,000, as increased by any percentage increase in the Consumer Price Index for the preceding calendar year, any unused credit for the preceding calendar years, and the amount of housing credit ceiling returned in the calendar year. Existing law governing the taxation of insurers, the Personal Income Tax Law, and the Corporation Tax Law provided an allocation of $500,000,000 for the 2020 calendar year and, for calendar years beginning in 2021, also provides for an additional amount that may be allocated, up to $500,000,000, to specified low-income housing projects that are new buildings that are federally subsidized, as specified. Existing law provides that this additional amount is only available for allocation pursuant to an authorization in the annual Budget Act. Existing law requires specified regulatory action by CTCAC aimed at increasing production and containing costs, including a scoring system that maximizes the efficient use of public subsidy and benefit created through the low-income housing tax credit program, as specified. This bill would require CTCAC to consider amending the regulatory scoring system to establish a housing type for farmworker housing projects, as specified in the existing CTCAC regulation. The bill would also require the CTCAC to consider using the same point allocations provided for rural set-aside projects in assigning points to farmworker housing based on the proximity of amenities to an eligible farmworker housing project. Existing federal immigration law authorizes employment of nonimmigrant agricultural workers, known as H-2A workers, if specified requirements are met, including that the employer furnish housing, as provided. Existing law generally prohibits providing state funding to an employer or its agent who employs an H-2A worker for the purposes of funding housing and requires an employer that receives state funding for that purpose to reimburse the state by that amount, as specified. Existing law defines "state funding" for this purpose to exclude the allocation of federal or state low-income housing tax credits. This bill, for taxable years beginning on or after January 1, 2027, would include the allocation of state low-income housing tax credits within the definition of "state funding" and would prohibit providing low-income housing tax credits for projects to provide farmworker housing used to comply with the above-described H2-A housing requirement. This bill would incorporate additional changes to Sections 12206, 17058, and 23610.5 of the Revenue and Taxation Code proposed by Senate Bill 1072 to be operative only if this bill and Senate Bill 1072 are enacted and this bill is enacted last. This bill would include a change in state statute that would result in a taxpayer paying a higher tax within the meaning of Section 3 of Article XIIIA of the California Constitution, and thus would require for passage the approval of 23 of the membership of each house of the Legislature. This bill would take effect immediately as a tax levy.

Existing law provides that in a civil action brought by a plaintiff to challenge a housing development project that meets or exceeds the requirements for low- or moderate-income housing, a defendant may seek an order requiring the plaintiff to furnish an undertaking as security for costs and damages that may be incurred by the defendant if the bringing of the action would result in preventing or delaying the project, as specified. Existing law authorizes the court to limit the amount of the undertaking or to decline to require the plaintiff to furnish an undertaking if the court determines that, based on evidence submitted by the plaintiff, furnishing an undertaking would cause the plaintiff to suffer undue economic hardship. This bill would make these provisions applicable to a student housing development, as defined. This bill would incorporate additional changes to Section 529.2 of the Code of Civil Procedure proposed by SB 1344 to be operative only if this bill and SB 1344 are enacted and this bill is enacted last.

Existing law, commonly referred to as the Density Bonus Law, requires a city or county to provide a developer that proposes a housing development, as defined, within the city or county with a density bonus, other incentives or concessions, and waivers or reductions of development standards, as specified, if the developer agrees to construct specified units and meets other requirements. Existing law, among other things, requires compliance with certain affordability requirements, including requiring that the applicant agree to ensure, and that the city, county, or city and county ensure, that a for-sale unit that qualified the applicant for the award of the density bonus is either (1) initially sold to and occupied by a person or family of very low, low, or moderate income, as specified, or (2) if the unit is not purchased by an income-qualified person or family within 180 days after the issuance of the certificate of occupancy, the unit is purchased by a qualified nonprofit housing corporation, as provided. This bill would additionally allow the applicant and the city, county, or city and county to comply with the above-described affordability requirements with respect to a for-sale unit by ensuring that the unit is purchased by a nonprofit housing corporation, as specified, for properties to be sold to and occupied by extremely low, very low, or lower income families who participate in a below market interest rate loan program, as described. By adding to the duties of local agencies to implement the Density Bonus Law, this bill would impose a state-mandated local program. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason.

Existing law allows for an eligible person to be excused from jury service only for undue hardship upon themselves or the public, as defined by the Judicial Council. Existing rules of court allow a person with a disability or their representative to seek a permanent medical excuse from jury service and require the individual to submit a written request accompanied by a supporting letter, memo, or note from a treating health care provider, as specified. This bill would, commencing January 1, 2028, authorize a person 80 years of age or older to seek a permanent excuse from jury service due to a medical impairment without providing a supporting letter, memorandum, or note from a treating health care provider. The bill would require the court to permanently excuse a person who seeks the above-described permanent excuse from jury service upon the jury commissioner's receipt of a written attestation stating that the person has an impairment, as specified. The bill would authorize the Judicial Council to adopt or amend a rule of court and publish related judicial forms as necessary to implement these provisions.

Existing law establishes the Department of Housing and Community Development in the California Housing and Homelessness Agency and makes the department responsible for administering various housing programs throughout the state, including, among others, the Multifamily Housing Program, the Housing for a Healthy California Program, and the California Emergency Solutions Grants Program. Existing law also establishes the Homeless Housing, Assistance, and Prevention Program, administered by the department, for the purpose of providing jurisdictions, as defined, with one-time grant funds to support regional coordination and expand or develop local capacity to address homelessness challenges, as specified. This bill would enact the California Housing Justice Act of 2026, which would require the department to create, by August 1, 2030, finance plans to solve homelessness and to solve the housing unaffordability crisis, and related statewide performance metrics. The bill would also require the department to seek public consult in developing those finance plans. This bill would require the agency, on or before October 1, 2030, to report to the Legislature on the finance plans and performance metrics described above, and to publish goals on its internet website and update any progress toward the goals. The bill would also make related findings and declarations. The bill would make its provisions operative upon appropriation by the Legislature.

(1) Existing law, the Joint Exercise of Powers Act, authorizes 2 or more public agencies, by agreement, to form a joint powers authority to exercise any power common to the contracting parties, as specified. Existing law authorizes the agreement to set forth the manner by which the joint powers authority will be exercised. This bill, by January 1, 2028, would require the County of Sacramento, the City of Sacramento, the City of Elk Grove, the City of Rancho Cordova, the City of Citrus Heights, and the City of Folsom to participate in and work together to establish a joint powers authority, pursuant to the Joint Exercise of Powers Act, designed to make a meaningful difference for people experiencing housing insecurity and homelessness across the County of Sacramento. In this regard, the bill would require the above-specified local governments together to, among other things, bring the oversight and functions of the Sacramento City and County Continuum of Care under the jurisdiction of the joint powers authority, while maintaining the federally required composition and integrity of the continuum of care. The bill would require the joint powers authority to, among other things, provide direction to the continuum of care lead agency. The bill would specify that a local jurisdiction retains oversight and accountability over funding decisions, projects, and programs administered by the jurisdiction, including contracting for prevention, outreach, sheltering, and housing. The bill would declare that these provisions are severable. The bill would make findings and declarations relating to its provisions. By requiring the above-described local governments to establish the joint powers authority, this bill would impose a state-mandated local program. This bill would make legislative findings and declarations as to the necessity of a special statute for County of Sacramento. The bill would make additional related findings and declarations. (2) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.

Existing law establishes the Infill Infrastructure Grant Program of 2019 (program) , which requires the Department of Housing and Community Development, upon appropriation of funds by the Legislature, to establish and administer a grant program to allocate those funds to eligible applicants to fund capital improvement projects that are an integral part of, or necessary to facilitate the development of, a qualifying infill project, qualifying infill area, or catalytic qualifying infill area. Existing law requires the department to administer a specified competitive application process for capital improvement projects for large jurisdictions, as defined. For these purposes, existing law defines a qualifying infill project to include a residential or mixed-use residential project located within an urbanized area on a vacant site where at least 75% of the perimeter of the site adjoins parcels that are developed with urban uses. This bill would expand the definition of qualifying infill project to include a residential or mixed-use residential project located within an urbanized area on a vacant site where at least 75% of the perimeter of the site adjoins parcels that have been previously developed with urban uses. Existing law requires the department to administer an over-the-counter application process for grants for capital improvement projects for small jurisdictions, as provided. For these purposes, existing law defines the term "qualifying infill area" as a contiguous area located within an urbanized area that meets one of specified alternative conditions, including that the capital improvement project for which funding is requested is necessary, as specified, to make the area suitable and available for residential development or to allow the area to accommodate housing for additional income levels, and that the area may be included on an inventory of land in the housing element, as specified. This bill would expand the definition of "qualifying infill area" to additionally include a contiguous area located within an urbanized area for which the capital improvement project for which funding is requested under the program, as described above, is necessary and integral to make the area suitable and available for residential development pursuant to the Affordable Housing and High Road Jobs Act of 2022, which subjects a housing development to streamlined, ministerial approval under certain circumstances, as specified. Existing law requires the department, in its review of applications, to rank affected qualifying infill areas and catalytic qualifying infill areas based on specified criteria, including the qualifying infill area's or catalytic qualifying infill area's inclusion of, or proximity to, a train station or major transit stop and the proximity of housing to existing or planned parks, employment or retail centers, schools, or social services. This bill would revise these provisions to require the department to additionally rank applications, as described above, based on the qualifying infill area's inclusion of, or proximity or accessibility to on-demand transit services, as specified, or walkability to essential services or businesses and based on the catalytic qualifying infill area's inclusion of, or proximity or accessibility to walkability to essential services or businesses. The bill would additionally revise these provisions to require the department's ranking to be based on the proximity of housing to services, rather than social services. Existing law requires a qualifying infill project, qualifying infill area, or catalytic qualifying infill area for which a capital improvement project grant can be awarded under the program to meet specified conditions, including, among others, being located in an area designated for mixed-use or residential development, as specified. This bill would additionally allow the project to be located in an area that allows for mixed-use or residential development pursuant to a housing development that is in compliance with certain provisions deeming a housing development an allowable use or subject to streamlined, ministerial approval. Existing law defines various terms for the purposes of the program, including, "capital improvement project," "catalytic qualifying infill area," "eligible applicant," "urbanized area," and "urban uses." This bill would revise these definitions. The bill would additionally define the terms "on-demand transit service," "major transit stop," and "walkability."

The Personal Income Tax Law and the Corporation Tax Law, in conformity with federal income tax law, generally define "gross income" as income from whatever source derived, except as specifically excluded, and provide various exclusions from gross income. This bill would, for taxable years beginning on or after January 1, 2027, and before January 1, 2032, provide an exclusion from gross income for any qualified taxpayer, as defined, for amounts received for costs and losses associated with the 2026 Garden Grove chemical leak, as provided. Existing law requires any bill authorizing a new tax expenditure to contain, among other things, specific goals that the tax expenditure will achieve, detailed performance indicators, and data collection requirements. This bill would include additional information required for any bill authorizing a new tax expenditure. This bill would take effect immediately as a tax levy.

Existing property tax law, pursuant to constitutional authorization, provides for a "welfare exemption" for property used exclusively for religious, hospital, scientific, or charitable purposes and that is owned or operated by certain types of nonprofit entities, if certain qualifying criteria are met. Existing law also provides, until January 1, 2027, that property is within the welfare exemption if that property is owned by a community land trust, as defined, otherwise qualifying for the welfare exemption, and specified conditions are met, including that the property is being or will be developed or rehabilitated as housing, as specified. Existing law, however, makes community land trusts liable for property tax for the years for which the property was exempt from taxation if the property was not developed or rehabilitated, or if the development or rehabilitation is not in the course of construction, by January 1, 2027, for property acquired before January 1, 2022, or within 5 years of the lien date following acquisition of the property, for property acquired on and after January 1, 2022. This bill would extend the operation of these provisions until January 1, 2032. The bill would make various conforming changes, including with respect to the lien dates for which the exemption applies. Existing law requires any bill authorizing a new tax expenditure to contain, among other things, specific goals, purposes, and objectives that the tax expenditure will achieve, detailed performance indicators, and data collection requirements. This bill would state that it is the intent of the Legislature to apply those requirements to the above-described exemption and would set forth specified information relating to those requirements. In that regard, the bill would require the assessor to provide the State Board of Equalization with certain information and would require the assessor to retain that information, as specified. By imposing additional duties on local tax officials, the bill would impose a state-mandated local program. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above. Existing law requires the state to reimburse local agencies annually for certain property tax revenues lost as a result of any exemption or classification of property for purposes of ad valorem property taxation. This bill would provide that, notwithstanding those provisions, no appropriation is made and the state shall not reimburse local agencies for property tax revenues lost by them pursuant to the bill. This bill would take effect immediately as a tax levy.

Existing law, the Mobilehome Residency Law, prescribes various terms and conditions of tenancies in mobilehome parks. The law defines "mobilehome park" for these purposes to mean an area of land where 2 or more mobilehome sites are rented, or held out for rent, to accommodate mobilehomes used for human habitation. The law caps the amount by which management of a qualified mobilehome park may increase the gross rental rate for a tenancy over the course of any 12-month period. The cap is the lower of 5% of the lowest gross rental rate charge for a tenancy at any time during the preceding 12 months or 3% of that amount plus the percentage change in the cost of living. Under that law, a mobilehome park is subject to that cap if it is located within and governed by the jurisdictions of 2 or more incorporated cities. The law repeals these rent cap provisions on January 1, 2030. This bill would additionally make any mobilehome park that is located in the City of Torrance subject to that cap, as specified, and would extend the repeal of these rent cap provisions to January 1, 2036. For a mobilehome park that is located in the City of Torrance, the bill would cap the rent on January 1, 2027, at the amount of rent as of January 5, 2026, plus the maximum permissible increase described above. This bill would make legislative findings and declarations as to the necessity of a special statute for the City of Torrance.