Amended IN Assembly January 25, 2024 Amended IN Assembly March 09, 2023 CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION Assembly Bill No. 846Introduced by Assembly Member BontaFebruary 14, 2023An act to add Section 50199.19 50199.24 to the Health and Safety Code, relating to low-income housing.LEGISLATIVE COUNSEL'S DIGESTAB 846, as amended, Bonta. Low-income housing credit: rent increases.Existing law establishes a low-income housing tax credit program, through which the California Tax Credit Allocation Committee, chaired by the Treasurer, Committee allocates low-income housing tax credits aimed at providing affordable low-income housing within and throughout the state. Existing law authorizes the committee to undertake specified responsibilities in allocating the tax credit, including entering into regulatory agreements relating to projects that are allocated the tax credit. Existing law requires the committee, when allocating the tax credit, to prefer specified projects, including projects that serve lowest income tenants at rents affordable to those tenants. Existing law, the Costa-Hawkins Rental Housing Act, authorizes an owner of residential real property to establish rental rates for a dwelling or unit that meets specified conditions.This bill would prohibit a project assisted by the an owner of a project that received an allocation of the low-income housing tax credit and is subject to a regulatory agreement from increasing rent rent, over the course of any 12-month period, for a unit in excess of more than the lesser of the amount permitted by the program as a result of an increase in the area median gross income, or a unspecified amount, whichever is less. 5% plus the percentage change in the cost of living, as defined, or 10% of the lowest rental rate charged for that unit at any time during the 12 months prior to the effective date of the increase. Notwithstanding these provisions, the bill would authorize an owner of a project to increase the rent up to 30% of the monthly income of the household occupying the unit. The bill would not apply when the committee or the Department of Housing and Community Development allows for a rent increase, as specified. The bill would specify that it does not authorize a local government to establish limitations on any rental rate increase not otherwise permissible under the Costa-Hawkins Rental Housing Act or affect the authority of a local government to adopt or maintain rent controls consistent with that act.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: NOYES Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 50199.24 is added to the Health and Safety Code, immediately following Section 50199.23, to read:50199.24. (a) For the purposes of this section, percentage change in the cost of living means the same as in paragraph (3) of subdivision (g) of Section 1947.12 of the Civil Code.(b) An owner of a project that received an allocation of housing credit pursuant to this chapter or Section 12206, 17058, or 23610.5 of the Revenue and Taxation Code and that is subject to a regulatory agreement shall not, over the course of any 12-month period, increase rent for a unit more than the lesser of the following:(1) The amount permitted by this chapter as a result of an increase in the area median gross income.(2) Five percent plus the percentage change in the cost of living. (3) Ten percent of the lowest rental rate charged for that unit at any time during the 12 months prior to the effective date of the increase.(c) Notwithstanding subdivision (b), an owner of a project may increase the rent up to 30 percent of the monthly income of the household occupying the unit.(d) This section shall not apply when the committee or the department allows for a rent increase due to the termination or exhaustion of project-based rental assistance or operating subsidy or to ensure financial stability, as determined by the committee, or fiscal integrity, as determined by the department.(e) Nothing in this section authorizes a local government to establish limitations on any rental rate increases not otherwise permissible under Chapter 2.7 (commencing with Section 1954.50) of Title 5 of Part 4 of Division 3 of the Civil Code, or affects the existing authority of a local government to adopt or maintain rent controls or price controls consistent with that chapter.SECTION 1.Section 50199.19 is added to the Health and Safety Code, to read:50199.19.An owner of a project assisted by a credit pursuant to this chapter shall not, in a calendar year, increase rent for a unit in excess of the amount permitted by this chapter as a result of an increase in the area median gross income or ____ percent, whichever is less.
Amended IN Assembly January 25, 2024 Amended IN Assembly March 09, 2023 CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION Assembly Bill No. 846Introduced by Assembly Member BontaFebruary 14, 2023An act to add Section 50199.19 50199.24 to the Health and Safety Code, relating to low-income housing.LEGISLATIVE COUNSEL'S DIGESTAB 846, as amended, Bonta. Low-income housing credit: rent increases.Existing law establishes a low-income housing tax credit program, through which the California Tax Credit Allocation Committee, chaired by the Treasurer, Committee allocates low-income housing tax credits aimed at providing affordable low-income housing within and throughout the state. Existing law authorizes the committee to undertake specified responsibilities in allocating the tax credit, including entering into regulatory agreements relating to projects that are allocated the tax credit. Existing law requires the committee, when allocating the tax credit, to prefer specified projects, including projects that serve lowest income tenants at rents affordable to those tenants. Existing law, the Costa-Hawkins Rental Housing Act, authorizes an owner of residential real property to establish rental rates for a dwelling or unit that meets specified conditions.This bill would prohibit a project assisted by the an owner of a project that received an allocation of the low-income housing tax credit and is subject to a regulatory agreement from increasing rent rent, over the course of any 12-month period, for a unit in excess of more than the lesser of the amount permitted by the program as a result of an increase in the area median gross income, or a unspecified amount, whichever is less. 5% plus the percentage change in the cost of living, as defined, or 10% of the lowest rental rate charged for that unit at any time during the 12 months prior to the effective date of the increase. Notwithstanding these provisions, the bill would authorize an owner of a project to increase the rent up to 30% of the monthly income of the household occupying the unit. The bill would not apply when the committee or the Department of Housing and Community Development allows for a rent increase, as specified. The bill would specify that it does not authorize a local government to establish limitations on any rental rate increase not otherwise permissible under the Costa-Hawkins Rental Housing Act or affect the authority of a local government to adopt or maintain rent controls consistent with that act.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: NOYES Local Program: NO
Amended IN Assembly January 25, 2024 Amended IN Assembly March 09, 2023
Amended IN Assembly January 25, 2024
Amended IN Assembly March 09, 2023
CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION
Assembly Bill
No. 846
Introduced by Assembly Member BontaFebruary 14, 2023
Introduced by Assembly Member Bonta
February 14, 2023
An act to add Section 50199.19 50199.24 to the Health and Safety Code, relating to low-income housing.
LEGISLATIVE COUNSEL'S DIGEST
## LEGISLATIVE COUNSEL'S DIGEST
AB 846, as amended, Bonta. Low-income housing credit: rent increases.
Existing law establishes a low-income housing tax credit program, through which the California Tax Credit Allocation Committee, chaired by the Treasurer, Committee allocates low-income housing tax credits aimed at providing affordable low-income housing within and throughout the state. Existing law authorizes the committee to undertake specified responsibilities in allocating the tax credit, including entering into regulatory agreements relating to projects that are allocated the tax credit. Existing law requires the committee, when allocating the tax credit, to prefer specified projects, including projects that serve lowest income tenants at rents affordable to those tenants. Existing law, the Costa-Hawkins Rental Housing Act, authorizes an owner of residential real property to establish rental rates for a dwelling or unit that meets specified conditions.This bill would prohibit a project assisted by the an owner of a project that received an allocation of the low-income housing tax credit and is subject to a regulatory agreement from increasing rent rent, over the course of any 12-month period, for a unit in excess of more than the lesser of the amount permitted by the program as a result of an increase in the area median gross income, or a unspecified amount, whichever is less. 5% plus the percentage change in the cost of living, as defined, or 10% of the lowest rental rate charged for that unit at any time during the 12 months prior to the effective date of the increase. Notwithstanding these provisions, the bill would authorize an owner of a project to increase the rent up to 30% of the monthly income of the household occupying the unit. The bill would not apply when the committee or the Department of Housing and Community Development allows for a rent increase, as specified. The bill would specify that it does not authorize a local government to establish limitations on any rental rate increase not otherwise permissible under the Costa-Hawkins Rental Housing Act or affect the authority of a local government to adopt or maintain rent controls consistent with that act.
Existing law establishes a low-income housing tax credit program, through which the California Tax Credit Allocation Committee, chaired by the Treasurer, Committee allocates low-income housing tax credits aimed at providing affordable low-income housing within and throughout the state. Existing law authorizes the committee to undertake specified responsibilities in allocating the tax credit, including entering into regulatory agreements relating to projects that are allocated the tax credit. Existing law requires the committee, when allocating the tax credit, to prefer specified projects, including projects that serve lowest income tenants at rents affordable to those tenants. Existing law, the Costa-Hawkins Rental Housing Act, authorizes an owner of residential real property to establish rental rates for a dwelling or unit that meets specified conditions.
This bill would prohibit a project assisted by the an owner of a project that received an allocation of the low-income housing tax credit and is subject to a regulatory agreement from increasing rent rent, over the course of any 12-month period, for a unit in excess of more than the lesser of the amount permitted by the program as a result of an increase in the area median gross income, or a unspecified amount, whichever is less. 5% plus the percentage change in the cost of living, as defined, or 10% of the lowest rental rate charged for that unit at any time during the 12 months prior to the effective date of the increase. Notwithstanding these provisions, the bill would authorize an owner of a project to increase the rent up to 30% of the monthly income of the household occupying the unit. The bill would not apply when the committee or the Department of Housing and Community Development allows for a rent increase, as specified. The bill would specify that it does not authorize a local government to establish limitations on any rental rate increase not otherwise permissible under the Costa-Hawkins Rental Housing Act or affect the authority of a local government to adopt or maintain rent controls consistent with that act.
## Digest Key
## Bill Text
The people of the State of California do enact as follows:SECTION 1. Section 50199.24 is added to the Health and Safety Code, immediately following Section 50199.23, to read:50199.24. (a) For the purposes of this section, percentage change in the cost of living means the same as in paragraph (3) of subdivision (g) of Section 1947.12 of the Civil Code.(b) An owner of a project that received an allocation of housing credit pursuant to this chapter or Section 12206, 17058, or 23610.5 of the Revenue and Taxation Code and that is subject to a regulatory agreement shall not, over the course of any 12-month period, increase rent for a unit more than the lesser of the following:(1) The amount permitted by this chapter as a result of an increase in the area median gross income.(2) Five percent plus the percentage change in the cost of living. (3) Ten percent of the lowest rental rate charged for that unit at any time during the 12 months prior to the effective date of the increase.(c) Notwithstanding subdivision (b), an owner of a project may increase the rent up to 30 percent of the monthly income of the household occupying the unit.(d) This section shall not apply when the committee or the department allows for a rent increase due to the termination or exhaustion of project-based rental assistance or operating subsidy or to ensure financial stability, as determined by the committee, or fiscal integrity, as determined by the department.(e) Nothing in this section authorizes a local government to establish limitations on any rental rate increases not otherwise permissible under Chapter 2.7 (commencing with Section 1954.50) of Title 5 of Part 4 of Division 3 of the Civil Code, or affects the existing authority of a local government to adopt or maintain rent controls or price controls consistent with that chapter.SECTION 1.Section 50199.19 is added to the Health and Safety Code, to read:50199.19.An owner of a project assisted by a credit pursuant to this chapter shall not, in a calendar year, increase rent for a unit in excess of the amount permitted by this chapter as a result of an increase in the area median gross income or ____ percent, whichever is less.
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 50199.24 is added to the Health and Safety Code, immediately following Section 50199.23, to read:50199.24. (a) For the purposes of this section, percentage change in the cost of living means the same as in paragraph (3) of subdivision (g) of Section 1947.12 of the Civil Code.(b) An owner of a project that received an allocation of housing credit pursuant to this chapter or Section 12206, 17058, or 23610.5 of the Revenue and Taxation Code and that is subject to a regulatory agreement shall not, over the course of any 12-month period, increase rent for a unit more than the lesser of the following:(1) The amount permitted by this chapter as a result of an increase in the area median gross income.(2) Five percent plus the percentage change in the cost of living. (3) Ten percent of the lowest rental rate charged for that unit at any time during the 12 months prior to the effective date of the increase.(c) Notwithstanding subdivision (b), an owner of a project may increase the rent up to 30 percent of the monthly income of the household occupying the unit.(d) This section shall not apply when the committee or the department allows for a rent increase due to the termination or exhaustion of project-based rental assistance or operating subsidy or to ensure financial stability, as determined by the committee, or fiscal integrity, as determined by the department.(e) Nothing in this section authorizes a local government to establish limitations on any rental rate increases not otherwise permissible under Chapter 2.7 (commencing with Section 1954.50) of Title 5 of Part 4 of Division 3 of the Civil Code, or affects the existing authority of a local government to adopt or maintain rent controls or price controls consistent with that chapter.
SECTION 1. Section 50199.24 is added to the Health and Safety Code, immediately following Section 50199.23, to read:
### SECTION 1.
50199.24. (a) For the purposes of this section, percentage change in the cost of living means the same as in paragraph (3) of subdivision (g) of Section 1947.12 of the Civil Code.(b) An owner of a project that received an allocation of housing credit pursuant to this chapter or Section 12206, 17058, or 23610.5 of the Revenue and Taxation Code and that is subject to a regulatory agreement shall not, over the course of any 12-month period, increase rent for a unit more than the lesser of the following:(1) The amount permitted by this chapter as a result of an increase in the area median gross income.(2) Five percent plus the percentage change in the cost of living. (3) Ten percent of the lowest rental rate charged for that unit at any time during the 12 months prior to the effective date of the increase.(c) Notwithstanding subdivision (b), an owner of a project may increase the rent up to 30 percent of the monthly income of the household occupying the unit.(d) This section shall not apply when the committee or the department allows for a rent increase due to the termination or exhaustion of project-based rental assistance or operating subsidy or to ensure financial stability, as determined by the committee, or fiscal integrity, as determined by the department.(e) Nothing in this section authorizes a local government to establish limitations on any rental rate increases not otherwise permissible under Chapter 2.7 (commencing with Section 1954.50) of Title 5 of Part 4 of Division 3 of the Civil Code, or affects the existing authority of a local government to adopt or maintain rent controls or price controls consistent with that chapter.
50199.24. (a) For the purposes of this section, percentage change in the cost of living means the same as in paragraph (3) of subdivision (g) of Section 1947.12 of the Civil Code.(b) An owner of a project that received an allocation of housing credit pursuant to this chapter or Section 12206, 17058, or 23610.5 of the Revenue and Taxation Code and that is subject to a regulatory agreement shall not, over the course of any 12-month period, increase rent for a unit more than the lesser of the following:(1) The amount permitted by this chapter as a result of an increase in the area median gross income.(2) Five percent plus the percentage change in the cost of living. (3) Ten percent of the lowest rental rate charged for that unit at any time during the 12 months prior to the effective date of the increase.(c) Notwithstanding subdivision (b), an owner of a project may increase the rent up to 30 percent of the monthly income of the household occupying the unit.(d) This section shall not apply when the committee or the department allows for a rent increase due to the termination or exhaustion of project-based rental assistance or operating subsidy or to ensure financial stability, as determined by the committee, or fiscal integrity, as determined by the department.(e) Nothing in this section authorizes a local government to establish limitations on any rental rate increases not otherwise permissible under Chapter 2.7 (commencing with Section 1954.50) of Title 5 of Part 4 of Division 3 of the Civil Code, or affects the existing authority of a local government to adopt or maintain rent controls or price controls consistent with that chapter.
50199.24. (a) For the purposes of this section, percentage change in the cost of living means the same as in paragraph (3) of subdivision (g) of Section 1947.12 of the Civil Code.(b) An owner of a project that received an allocation of housing credit pursuant to this chapter or Section 12206, 17058, or 23610.5 of the Revenue and Taxation Code and that is subject to a regulatory agreement shall not, over the course of any 12-month period, increase rent for a unit more than the lesser of the following:(1) The amount permitted by this chapter as a result of an increase in the area median gross income.(2) Five percent plus the percentage change in the cost of living. (3) Ten percent of the lowest rental rate charged for that unit at any time during the 12 months prior to the effective date of the increase.(c) Notwithstanding subdivision (b), an owner of a project may increase the rent up to 30 percent of the monthly income of the household occupying the unit.(d) This section shall not apply when the committee or the department allows for a rent increase due to the termination or exhaustion of project-based rental assistance or operating subsidy or to ensure financial stability, as determined by the committee, or fiscal integrity, as determined by the department.(e) Nothing in this section authorizes a local government to establish limitations on any rental rate increases not otherwise permissible under Chapter 2.7 (commencing with Section 1954.50) of Title 5 of Part 4 of Division 3 of the Civil Code, or affects the existing authority of a local government to adopt or maintain rent controls or price controls consistent with that chapter.
50199.24. (a) For the purposes of this section, percentage change in the cost of living means the same as in paragraph (3) of subdivision (g) of Section 1947.12 of the Civil Code.
(b) An owner of a project that received an allocation of housing credit pursuant to this chapter or Section 12206, 17058, or 23610.5 of the Revenue and Taxation Code and that is subject to a regulatory agreement shall not, over the course of any 12-month period, increase rent for a unit more than the lesser of the following:
(1) The amount permitted by this chapter as a result of an increase in the area median gross income.
(2) Five percent plus the percentage change in the cost of living.
(3) Ten percent of the lowest rental rate charged for that unit at any time during the 12 months prior to the effective date of the increase.
(c) Notwithstanding subdivision (b), an owner of a project may increase the rent up to 30 percent of the monthly income of the household occupying the unit.
(d) This section shall not apply when the committee or the department allows for a rent increase due to the termination or exhaustion of project-based rental assistance or operating subsidy or to ensure financial stability, as determined by the committee, or fiscal integrity, as determined by the department.
(e) Nothing in this section authorizes a local government to establish limitations on any rental rate increases not otherwise permissible under Chapter 2.7 (commencing with Section 1954.50) of Title 5 of Part 4 of Division 3 of the Civil Code, or affects the existing authority of a local government to adopt or maintain rent controls or price controls consistent with that chapter.
An owner of a project assisted by a credit pursuant to this chapter shall not, in a calendar year, increase rent for a unit in excess of the amount permitted by this chapter as a result of an increase in the area median gross income or ____ percent, whichever is less.