CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION Assembly Bill No. 1933Introduced by Assembly Member FriedmanFebruary 10, 2022 An act to add Section 214.15.1 to the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy. LEGISLATIVE COUNSEL'S DIGESTAB 1933, as introduced, Friedman. Property taxation: welfare exemption: nonprofit corporation: low and moderate income families.Existing property tax law, in accordance with the California Constitution, 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 property tax law states that property is within that welfare exemption if the property is owned and operated by a nonprofit corporation, otherwise qualifying for the welfare exemption, that is organized and operated for the specific and primary purpose of building and rehabilitating single or multifamily residences for sale at cost to low-income families, with financing in the form of a zero interest rate loan and without regard to religion, race, national origin, or the sex of the head of household.This bill would also provide that property is fully exempt from property taxation and is also within that welfare exemption if that property is owned and operated by a nonprofit corporation, as described, that is organized and operated for the specific and primary purpose of building and rehabilitating single or multifamily residential units and the units meet specified requirements. The bill would prohibit the denial of this exemption for property not previously designated as open space on the basis that the property does not currently include a single or multifamily residential unit, as described, or a single or multifamily residential unit, as described, that is in the course of construction. The bill would require a nonprofit corporation that utilizes this welfare exemption to be subject to an annual independent audit and to make the audit available to specified entities. By adding to the duties of 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.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: YES Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 214.15.1 is added to the Revenue and Taxation Code, to read:214.15.1. (a) Property shall be fully exempt from property taxation and is within the exemption provided by Sections 4 and 5 of Article XIII of the California Constitution if that property is owned and operated by a nonprofit corporation, otherwise qualifying for exemption under Section 214, that is organized and operated for the specific and primary purpose of building and rehabilitating single or multifamily residential units and if the units are subject to a 45-year recorded agreement with the appropriate local agency and the agreement requires all of the following:(1) All units shall be sold only to and purchased only by first-time homebuyers that are low-income or moderate-income families.(2) Requires all purchases from the nonprofit corporation to include a first-right-to-buy-back provision that provides the nonprofit corporation the first right to repurchase the home when the occupants are prepared to sell the unit and that requires the nonprofit corporation, if it repurchases the home, to rerecord a deed that meets the requirements of this paragraph against that property.(3) Requires the initial downpayment on the units to be 5 percent or less of the market value of the unit at the time of purchase.(4) Requires the units to be made at an affordable housing cost to buyers.(b) The units for which the exemption under this section is sought may be related to a larger, mixed-income development project where a portion of the units may be available to above-moderate income families. However, only the units that meet the requirements under subdivision (a) may receive the exemption.(c) (1) In the case of property not previously designated as open space, the exemption specified by subdivision (a) may not be denied to a property on the basis that the property does not currently include a single or multifamily residential unit as described in that subdivision, or a single or multifamily residential unit as so described that is in the course of construction.(2) With regard to paragraph (1), the Legislature finds and declares all of the following:(A) The exempt activities of a nonprofit corporation as described in subdivision (a) qualitatively differ from the exempt activities of other nonprofit entities that provide housing in that the exempt purpose of a nonprofit corporation as described in subdivision (a) is not to own and operate a housing project on an ongoing basis, but is instead to make housing, and the land reasonably necessary for the use of that housing, available for prompt sale to low-income or moderate-income residents.(B) In light of this distinction, the holding of real property by a nonprofit corporation as described in subdivision (a), for the future construction on that property of a single or multifamily residence as described in that same subdivision, is central to that corporations exempt purposes and activities.(C) In light of the factors set forth in subparagraphs (A) and (B), the holding of real property by a nonprofit corporation described in subdivision (a), for the future construction on that property of a single or multifamily residence as described in that same subdivision, constitutes the exclusive use of that property for a charitable purpose within the meaning of subdivision (b) of Section 4 of Article XIII of the California Constitution.(d) For purposes of this section, all of the following definitions apply:(1) Above moderate-income families means persons and families whose income does not exceed 150 percent of area median income.(2) Affordable housing cost with respect to low-income families may not exceed 30 percent of gross income and with respect to moderate-income families may not exceed 35 percent of gross income.(3) First-time homebuyer has the same meaning as that term is defined in Section 92.2 of Part 24 of the Code of Federal Regulations, as that section read on January 1, 2022.(4) Low-income or moderate-income families has the same meaning as persons and families of low or moderate income as defined in Section 50093 of the Health and Safety Code, as that section read on January 1, 2022.(e) The nonprofit corporation that utilizes the exemption in this section shall be subject to an annual independent audit to ensure that the buyers of the units meet the requirements of this section. The nonprofit corporation shall make the audit available upon request to the city, county, and county assessor where the unit is located and to the Department of Housing and Community Development.SEC. 2. If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.SEC. 3. Notwithstanding Section 2229 of the Revenue and Taxation Code, no appropriation is made by this act and the state shall not reimburse any local agency for any property tax revenues lost by it pursuant to this act.SEC. 4. This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect.
CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION Assembly Bill No. 1933Introduced by Assembly Member FriedmanFebruary 10, 2022 An act to add Section 214.15.1 to the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy. LEGISLATIVE COUNSEL'S DIGESTAB 1933, as introduced, Friedman. Property taxation: welfare exemption: nonprofit corporation: low and moderate income families.Existing property tax law, in accordance with the California Constitution, 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 property tax law states that property is within that welfare exemption if the property is owned and operated by a nonprofit corporation, otherwise qualifying for the welfare exemption, that is organized and operated for the specific and primary purpose of building and rehabilitating single or multifamily residences for sale at cost to low-income families, with financing in the form of a zero interest rate loan and without regard to religion, race, national origin, or the sex of the head of household.This bill would also provide that property is fully exempt from property taxation and is also within that welfare exemption if that property is owned and operated by a nonprofit corporation, as described, that is organized and operated for the specific and primary purpose of building and rehabilitating single or multifamily residential units and the units meet specified requirements. The bill would prohibit the denial of this exemption for property not previously designated as open space on the basis that the property does not currently include a single or multifamily residential unit, as described, or a single or multifamily residential unit, as described, that is in the course of construction. The bill would require a nonprofit corporation that utilizes this welfare exemption to be subject to an annual independent audit and to make the audit available to specified entities. By adding to the duties of 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.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: YES
CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION
Assembly Bill
No. 1933
Introduced by Assembly Member FriedmanFebruary 10, 2022
Introduced by Assembly Member Friedman
February 10, 2022
An act to add Section 214.15.1 to the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.
LEGISLATIVE COUNSEL'S DIGEST
## LEGISLATIVE COUNSEL'S DIGEST
AB 1933, as introduced, Friedman. Property taxation: welfare exemption: nonprofit corporation: low and moderate income families.
Existing property tax law, in accordance with the California Constitution, 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 property tax law states that property is within that welfare exemption if the property is owned and operated by a nonprofit corporation, otherwise qualifying for the welfare exemption, that is organized and operated for the specific and primary purpose of building and rehabilitating single or multifamily residences for sale at cost to low-income families, with financing in the form of a zero interest rate loan and without regard to religion, race, national origin, or the sex of the head of household.This bill would also provide that property is fully exempt from property taxation and is also within that welfare exemption if that property is owned and operated by a nonprofit corporation, as described, that is organized and operated for the specific and primary purpose of building and rehabilitating single or multifamily residential units and the units meet specified requirements. The bill would prohibit the denial of this exemption for property not previously designated as open space on the basis that the property does not currently include a single or multifamily residential unit, as described, or a single or multifamily residential unit, as described, that is in the course of construction. The bill would require a nonprofit corporation that utilizes this welfare exemption to be subject to an annual independent audit and to make the audit available to specified entities. By adding to the duties of 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 property tax law, in accordance with the California Constitution, 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 property tax law states that property is within that welfare exemption if the property is owned and operated by a nonprofit corporation, otherwise qualifying for the welfare exemption, that is organized and operated for the specific and primary purpose of building and rehabilitating single or multifamily residences for sale at cost to low-income families, with financing in the form of a zero interest rate loan and without regard to religion, race, national origin, or the sex of the head of household.
This bill would also provide that property is fully exempt from property taxation and is also within that welfare exemption if that property is owned and operated by a nonprofit corporation, as described, that is organized and operated for the specific and primary purpose of building and rehabilitating single or multifamily residential units and the units meet specified requirements. The bill would prohibit the denial of this exemption for property not previously designated as open space on the basis that the property does not currently include a single or multifamily residential unit, as described, or a single or multifamily residential unit, as described, that is in the course of construction. The bill would require a nonprofit corporation that utilizes this welfare exemption to be subject to an annual independent audit and to make the audit available to specified entities. By adding to the duties of 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.
## Digest Key
## Bill Text
The people of the State of California do enact as follows:SECTION 1. Section 214.15.1 is added to the Revenue and Taxation Code, to read:214.15.1. (a) Property shall be fully exempt from property taxation and is within the exemption provided by Sections 4 and 5 of Article XIII of the California Constitution if that property is owned and operated by a nonprofit corporation, otherwise qualifying for exemption under Section 214, that is organized and operated for the specific and primary purpose of building and rehabilitating single or multifamily residential units and if the units are subject to a 45-year recorded agreement with the appropriate local agency and the agreement requires all of the following:(1) All units shall be sold only to and purchased only by first-time homebuyers that are low-income or moderate-income families.(2) Requires all purchases from the nonprofit corporation to include a first-right-to-buy-back provision that provides the nonprofit corporation the first right to repurchase the home when the occupants are prepared to sell the unit and that requires the nonprofit corporation, if it repurchases the home, to rerecord a deed that meets the requirements of this paragraph against that property.(3) Requires the initial downpayment on the units to be 5 percent or less of the market value of the unit at the time of purchase.(4) Requires the units to be made at an affordable housing cost to buyers.(b) The units for which the exemption under this section is sought may be related to a larger, mixed-income development project where a portion of the units may be available to above-moderate income families. However, only the units that meet the requirements under subdivision (a) may receive the exemption.(c) (1) In the case of property not previously designated as open space, the exemption specified by subdivision (a) may not be denied to a property on the basis that the property does not currently include a single or multifamily residential unit as described in that subdivision, or a single or multifamily residential unit as so described that is in the course of construction.(2) With regard to paragraph (1), the Legislature finds and declares all of the following:(A) The exempt activities of a nonprofit corporation as described in subdivision (a) qualitatively differ from the exempt activities of other nonprofit entities that provide housing in that the exempt purpose of a nonprofit corporation as described in subdivision (a) is not to own and operate a housing project on an ongoing basis, but is instead to make housing, and the land reasonably necessary for the use of that housing, available for prompt sale to low-income or moderate-income residents.(B) In light of this distinction, the holding of real property by a nonprofit corporation as described in subdivision (a), for the future construction on that property of a single or multifamily residence as described in that same subdivision, is central to that corporations exempt purposes and activities.(C) In light of the factors set forth in subparagraphs (A) and (B), the holding of real property by a nonprofit corporation described in subdivision (a), for the future construction on that property of a single or multifamily residence as described in that same subdivision, constitutes the exclusive use of that property for a charitable purpose within the meaning of subdivision (b) of Section 4 of Article XIII of the California Constitution.(d) For purposes of this section, all of the following definitions apply:(1) Above moderate-income families means persons and families whose income does not exceed 150 percent of area median income.(2) Affordable housing cost with respect to low-income families may not exceed 30 percent of gross income and with respect to moderate-income families may not exceed 35 percent of gross income.(3) First-time homebuyer has the same meaning as that term is defined in Section 92.2 of Part 24 of the Code of Federal Regulations, as that section read on January 1, 2022.(4) Low-income or moderate-income families has the same meaning as persons and families of low or moderate income as defined in Section 50093 of the Health and Safety Code, as that section read on January 1, 2022.(e) The nonprofit corporation that utilizes the exemption in this section shall be subject to an annual independent audit to ensure that the buyers of the units meet the requirements of this section. The nonprofit corporation shall make the audit available upon request to the city, county, and county assessor where the unit is located and to the Department of Housing and Community Development.SEC. 2. If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.SEC. 3. Notwithstanding Section 2229 of the Revenue and Taxation Code, no appropriation is made by this act and the state shall not reimburse any local agency for any property tax revenues lost by it pursuant to this act.SEC. 4. This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect.
The people of the State of California do enact as follows:
## The people of the State of California do enact as follows:
SECTION 1. Section 214.15.1 is added to the Revenue and Taxation Code, to read:214.15.1. (a) Property shall be fully exempt from property taxation and is within the exemption provided by Sections 4 and 5 of Article XIII of the California Constitution if that property is owned and operated by a nonprofit corporation, otherwise qualifying for exemption under Section 214, that is organized and operated for the specific and primary purpose of building and rehabilitating single or multifamily residential units and if the units are subject to a 45-year recorded agreement with the appropriate local agency and the agreement requires all of the following:(1) All units shall be sold only to and purchased only by first-time homebuyers that are low-income or moderate-income families.(2) Requires all purchases from the nonprofit corporation to include a first-right-to-buy-back provision that provides the nonprofit corporation the first right to repurchase the home when the occupants are prepared to sell the unit and that requires the nonprofit corporation, if it repurchases the home, to rerecord a deed that meets the requirements of this paragraph against that property.(3) Requires the initial downpayment on the units to be 5 percent or less of the market value of the unit at the time of purchase.(4) Requires the units to be made at an affordable housing cost to buyers.(b) The units for which the exemption under this section is sought may be related to a larger, mixed-income development project where a portion of the units may be available to above-moderate income families. However, only the units that meet the requirements under subdivision (a) may receive the exemption.(c) (1) In the case of property not previously designated as open space, the exemption specified by subdivision (a) may not be denied to a property on the basis that the property does not currently include a single or multifamily residential unit as described in that subdivision, or a single or multifamily residential unit as so described that is in the course of construction.(2) With regard to paragraph (1), the Legislature finds and declares all of the following:(A) The exempt activities of a nonprofit corporation as described in subdivision (a) qualitatively differ from the exempt activities of other nonprofit entities that provide housing in that the exempt purpose of a nonprofit corporation as described in subdivision (a) is not to own and operate a housing project on an ongoing basis, but is instead to make housing, and the land reasonably necessary for the use of that housing, available for prompt sale to low-income or moderate-income residents.(B) In light of this distinction, the holding of real property by a nonprofit corporation as described in subdivision (a), for the future construction on that property of a single or multifamily residence as described in that same subdivision, is central to that corporations exempt purposes and activities.(C) In light of the factors set forth in subparagraphs (A) and (B), the holding of real property by a nonprofit corporation described in subdivision (a), for the future construction on that property of a single or multifamily residence as described in that same subdivision, constitutes the exclusive use of that property for a charitable purpose within the meaning of subdivision (b) of Section 4 of Article XIII of the California Constitution.(d) For purposes of this section, all of the following definitions apply:(1) Above moderate-income families means persons and families whose income does not exceed 150 percent of area median income.(2) Affordable housing cost with respect to low-income families may not exceed 30 percent of gross income and with respect to moderate-income families may not exceed 35 percent of gross income.(3) First-time homebuyer has the same meaning as that term is defined in Section 92.2 of Part 24 of the Code of Federal Regulations, as that section read on January 1, 2022.(4) Low-income or moderate-income families has the same meaning as persons and families of low or moderate income as defined in Section 50093 of the Health and Safety Code, as that section read on January 1, 2022.(e) The nonprofit corporation that utilizes the exemption in this section shall be subject to an annual independent audit to ensure that the buyers of the units meet the requirements of this section. The nonprofit corporation shall make the audit available upon request to the city, county, and county assessor where the unit is located and to the Department of Housing and Community Development.
SECTION 1. Section 214.15.1 is added to the Revenue and Taxation Code, to read:
### SECTION 1.
214.15.1. (a) Property shall be fully exempt from property taxation and is within the exemption provided by Sections 4 and 5 of Article XIII of the California Constitution if that property is owned and operated by a nonprofit corporation, otherwise qualifying for exemption under Section 214, that is organized and operated for the specific and primary purpose of building and rehabilitating single or multifamily residential units and if the units are subject to a 45-year recorded agreement with the appropriate local agency and the agreement requires all of the following:(1) All units shall be sold only to and purchased only by first-time homebuyers that are low-income or moderate-income families.(2) Requires all purchases from the nonprofit corporation to include a first-right-to-buy-back provision that provides the nonprofit corporation the first right to repurchase the home when the occupants are prepared to sell the unit and that requires the nonprofit corporation, if it repurchases the home, to rerecord a deed that meets the requirements of this paragraph against that property.(3) Requires the initial downpayment on the units to be 5 percent or less of the market value of the unit at the time of purchase.(4) Requires the units to be made at an affordable housing cost to buyers.(b) The units for which the exemption under this section is sought may be related to a larger, mixed-income development project where a portion of the units may be available to above-moderate income families. However, only the units that meet the requirements under subdivision (a) may receive the exemption.(c) (1) In the case of property not previously designated as open space, the exemption specified by subdivision (a) may not be denied to a property on the basis that the property does not currently include a single or multifamily residential unit as described in that subdivision, or a single or multifamily residential unit as so described that is in the course of construction.(2) With regard to paragraph (1), the Legislature finds and declares all of the following:(A) The exempt activities of a nonprofit corporation as described in subdivision (a) qualitatively differ from the exempt activities of other nonprofit entities that provide housing in that the exempt purpose of a nonprofit corporation as described in subdivision (a) is not to own and operate a housing project on an ongoing basis, but is instead to make housing, and the land reasonably necessary for the use of that housing, available for prompt sale to low-income or moderate-income residents.(B) In light of this distinction, the holding of real property by a nonprofit corporation as described in subdivision (a), for the future construction on that property of a single or multifamily residence as described in that same subdivision, is central to that corporations exempt purposes and activities.(C) In light of the factors set forth in subparagraphs (A) and (B), the holding of real property by a nonprofit corporation described in subdivision (a), for the future construction on that property of a single or multifamily residence as described in that same subdivision, constitutes the exclusive use of that property for a charitable purpose within the meaning of subdivision (b) of Section 4 of Article XIII of the California Constitution.(d) For purposes of this section, all of the following definitions apply:(1) Above moderate-income families means persons and families whose income does not exceed 150 percent of area median income.(2) Affordable housing cost with respect to low-income families may not exceed 30 percent of gross income and with respect to moderate-income families may not exceed 35 percent of gross income.(3) First-time homebuyer has the same meaning as that term is defined in Section 92.2 of Part 24 of the Code of Federal Regulations, as that section read on January 1, 2022.(4) Low-income or moderate-income families has the same meaning as persons and families of low or moderate income as defined in Section 50093 of the Health and Safety Code, as that section read on January 1, 2022.(e) The nonprofit corporation that utilizes the exemption in this section shall be subject to an annual independent audit to ensure that the buyers of the units meet the requirements of this section. The nonprofit corporation shall make the audit available upon request to the city, county, and county assessor where the unit is located and to the Department of Housing and Community Development.
214.15.1. (a) Property shall be fully exempt from property taxation and is within the exemption provided by Sections 4 and 5 of Article XIII of the California Constitution if that property is owned and operated by a nonprofit corporation, otherwise qualifying for exemption under Section 214, that is organized and operated for the specific and primary purpose of building and rehabilitating single or multifamily residential units and if the units are subject to a 45-year recorded agreement with the appropriate local agency and the agreement requires all of the following:(1) All units shall be sold only to and purchased only by first-time homebuyers that are low-income or moderate-income families.(2) Requires all purchases from the nonprofit corporation to include a first-right-to-buy-back provision that provides the nonprofit corporation the first right to repurchase the home when the occupants are prepared to sell the unit and that requires the nonprofit corporation, if it repurchases the home, to rerecord a deed that meets the requirements of this paragraph against that property.(3) Requires the initial downpayment on the units to be 5 percent or less of the market value of the unit at the time of purchase.(4) Requires the units to be made at an affordable housing cost to buyers.(b) The units for which the exemption under this section is sought may be related to a larger, mixed-income development project where a portion of the units may be available to above-moderate income families. However, only the units that meet the requirements under subdivision (a) may receive the exemption.(c) (1) In the case of property not previously designated as open space, the exemption specified by subdivision (a) may not be denied to a property on the basis that the property does not currently include a single or multifamily residential unit as described in that subdivision, or a single or multifamily residential unit as so described that is in the course of construction.(2) With regard to paragraph (1), the Legislature finds and declares all of the following:(A) The exempt activities of a nonprofit corporation as described in subdivision (a) qualitatively differ from the exempt activities of other nonprofit entities that provide housing in that the exempt purpose of a nonprofit corporation as described in subdivision (a) is not to own and operate a housing project on an ongoing basis, but is instead to make housing, and the land reasonably necessary for the use of that housing, available for prompt sale to low-income or moderate-income residents.(B) In light of this distinction, the holding of real property by a nonprofit corporation as described in subdivision (a), for the future construction on that property of a single or multifamily residence as described in that same subdivision, is central to that corporations exempt purposes and activities.(C) In light of the factors set forth in subparagraphs (A) and (B), the holding of real property by a nonprofit corporation described in subdivision (a), for the future construction on that property of a single or multifamily residence as described in that same subdivision, constitutes the exclusive use of that property for a charitable purpose within the meaning of subdivision (b) of Section 4 of Article XIII of the California Constitution.(d) For purposes of this section, all of the following definitions apply:(1) Above moderate-income families means persons and families whose income does not exceed 150 percent of area median income.(2) Affordable housing cost with respect to low-income families may not exceed 30 percent of gross income and with respect to moderate-income families may not exceed 35 percent of gross income.(3) First-time homebuyer has the same meaning as that term is defined in Section 92.2 of Part 24 of the Code of Federal Regulations, as that section read on January 1, 2022.(4) Low-income or moderate-income families has the same meaning as persons and families of low or moderate income as defined in Section 50093 of the Health and Safety Code, as that section read on January 1, 2022.(e) The nonprofit corporation that utilizes the exemption in this section shall be subject to an annual independent audit to ensure that the buyers of the units meet the requirements of this section. The nonprofit corporation shall make the audit available upon request to the city, county, and county assessor where the unit is located and to the Department of Housing and Community Development.
214.15.1. (a) Property shall be fully exempt from property taxation and is within the exemption provided by Sections 4 and 5 of Article XIII of the California Constitution if that property is owned and operated by a nonprofit corporation, otherwise qualifying for exemption under Section 214, that is organized and operated for the specific and primary purpose of building and rehabilitating single or multifamily residential units and if the units are subject to a 45-year recorded agreement with the appropriate local agency and the agreement requires all of the following:(1) All units shall be sold only to and purchased only by first-time homebuyers that are low-income or moderate-income families.(2) Requires all purchases from the nonprofit corporation to include a first-right-to-buy-back provision that provides the nonprofit corporation the first right to repurchase the home when the occupants are prepared to sell the unit and that requires the nonprofit corporation, if it repurchases the home, to rerecord a deed that meets the requirements of this paragraph against that property.(3) Requires the initial downpayment on the units to be 5 percent or less of the market value of the unit at the time of purchase.(4) Requires the units to be made at an affordable housing cost to buyers.(b) The units for which the exemption under this section is sought may be related to a larger, mixed-income development project where a portion of the units may be available to above-moderate income families. However, only the units that meet the requirements under subdivision (a) may receive the exemption.(c) (1) In the case of property not previously designated as open space, the exemption specified by subdivision (a) may not be denied to a property on the basis that the property does not currently include a single or multifamily residential unit as described in that subdivision, or a single or multifamily residential unit as so described that is in the course of construction.(2) With regard to paragraph (1), the Legislature finds and declares all of the following:(A) The exempt activities of a nonprofit corporation as described in subdivision (a) qualitatively differ from the exempt activities of other nonprofit entities that provide housing in that the exempt purpose of a nonprofit corporation as described in subdivision (a) is not to own and operate a housing project on an ongoing basis, but is instead to make housing, and the land reasonably necessary for the use of that housing, available for prompt sale to low-income or moderate-income residents.(B) In light of this distinction, the holding of real property by a nonprofit corporation as described in subdivision (a), for the future construction on that property of a single or multifamily residence as described in that same subdivision, is central to that corporations exempt purposes and activities.(C) In light of the factors set forth in subparagraphs (A) and (B), the holding of real property by a nonprofit corporation described in subdivision (a), for the future construction on that property of a single or multifamily residence as described in that same subdivision, constitutes the exclusive use of that property for a charitable purpose within the meaning of subdivision (b) of Section 4 of Article XIII of the California Constitution.(d) For purposes of this section, all of the following definitions apply:(1) Above moderate-income families means persons and families whose income does not exceed 150 percent of area median income.(2) Affordable housing cost with respect to low-income families may not exceed 30 percent of gross income and with respect to moderate-income families may not exceed 35 percent of gross income.(3) First-time homebuyer has the same meaning as that term is defined in Section 92.2 of Part 24 of the Code of Federal Regulations, as that section read on January 1, 2022.(4) Low-income or moderate-income families has the same meaning as persons and families of low or moderate income as defined in Section 50093 of the Health and Safety Code, as that section read on January 1, 2022.(e) The nonprofit corporation that utilizes the exemption in this section shall be subject to an annual independent audit to ensure that the buyers of the units meet the requirements of this section. The nonprofit corporation shall make the audit available upon request to the city, county, and county assessor where the unit is located and to the Department of Housing and Community Development.
214.15.1. (a) Property shall be fully exempt from property taxation and is within the exemption provided by Sections 4 and 5 of Article XIII of the California Constitution if that property is owned and operated by a nonprofit corporation, otherwise qualifying for exemption under Section 214, that is organized and operated for the specific and primary purpose of building and rehabilitating single or multifamily residential units and if the units are subject to a 45-year recorded agreement with the appropriate local agency and the agreement requires all of the following:
(1) All units shall be sold only to and purchased only by first-time homebuyers that are low-income or moderate-income families.
(2) Requires all purchases from the nonprofit corporation to include a first-right-to-buy-back provision that provides the nonprofit corporation the first right to repurchase the home when the occupants are prepared to sell the unit and that requires the nonprofit corporation, if it repurchases the home, to rerecord a deed that meets the requirements of this paragraph against that property.
(3) Requires the initial downpayment on the units to be 5 percent or less of the market value of the unit at the time of purchase.
(4) Requires the units to be made at an affordable housing cost to buyers.
(b) The units for which the exemption under this section is sought may be related to a larger, mixed-income development project where a portion of the units may be available to above-moderate income families. However, only the units that meet the requirements under subdivision (a) may receive the exemption.
(c) (1) In the case of property not previously designated as open space, the exemption specified by subdivision (a) may not be denied to a property on the basis that the property does not currently include a single or multifamily residential unit as described in that subdivision, or a single or multifamily residential unit as so described that is in the course of construction.
(2) With regard to paragraph (1), the Legislature finds and declares all of the following:
(A) The exempt activities of a nonprofit corporation as described in subdivision (a) qualitatively differ from the exempt activities of other nonprofit entities that provide housing in that the exempt purpose of a nonprofit corporation as described in subdivision (a) is not to own and operate a housing project on an ongoing basis, but is instead to make housing, and the land reasonably necessary for the use of that housing, available for prompt sale to low-income or moderate-income residents.
(B) In light of this distinction, the holding of real property by a nonprofit corporation as described in subdivision (a), for the future construction on that property of a single or multifamily residence as described in that same subdivision, is central to that corporations exempt purposes and activities.
(C) In light of the factors set forth in subparagraphs (A) and (B), the holding of real property by a nonprofit corporation described in subdivision (a), for the future construction on that property of a single or multifamily residence as described in that same subdivision, constitutes the exclusive use of that property for a charitable purpose within the meaning of subdivision (b) of Section 4 of Article XIII of the California Constitution.
(d) For purposes of this section, all of the following definitions apply:
(1) Above moderate-income families means persons and families whose income does not exceed 150 percent of area median income.
(2) Affordable housing cost with respect to low-income families may not exceed 30 percent of gross income and with respect to moderate-income families may not exceed 35 percent of gross income.
(3) First-time homebuyer has the same meaning as that term is defined in Section 92.2 of Part 24 of the Code of Federal Regulations, as that section read on January 1, 2022.
(4) Low-income or moderate-income families has the same meaning as persons and families of low or moderate income as defined in Section 50093 of the Health and Safety Code, as that section read on January 1, 2022.
(e) The nonprofit corporation that utilizes the exemption in this section shall be subject to an annual independent audit to ensure that the buyers of the units meet the requirements of this section. The nonprofit corporation shall make the audit available upon request to the city, county, and county assessor where the unit is located and to the Department of Housing and Community Development.
SEC. 2. If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.
SEC. 2. If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.
SEC. 2. If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.
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SEC. 3. Notwithstanding Section 2229 of the Revenue and Taxation Code, no appropriation is made by this act and the state shall not reimburse any local agency for any property tax revenues lost by it pursuant to this act.
SEC. 3. Notwithstanding Section 2229 of the Revenue and Taxation Code, no appropriation is made by this act and the state shall not reimburse any local agency for any property tax revenues lost by it pursuant to this act.
SEC. 3. Notwithstanding Section 2229 of the Revenue and Taxation Code, no appropriation is made by this act and the state shall not reimburse any local agency for any property tax revenues lost by it pursuant to this act.
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SEC. 4. This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect.
SEC. 4. This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect.
SEC. 4. This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect.
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