Real property tax: welfare exemption: moderate-income housing.
This bill will modify existing property tax laws, specifically those governing exemptions for religious, charitable, and nonprofit properties. By expanding the definition of qualifying properties to include those serving moderate-income households, SB336 seeks to make more residential units eligible for tax relief, consequently supporting the development of affordable housing. Additionally, by imposing requirements for owners to certify the use of their properties under penalty of perjury, the bill adds a layer of accountability that is expected to enhance compliance and protect the integrity of the welfare exemption system.
Senate Bill No. 336, introduced by Senator Wiener, proposes an amendment to Section 214 of the Revenue and Taxation Code regarding taxation, specifically focusing on the welfare exemption for moderate-income housing. The bill aims to extend the existing partial welfare exemption, which currently applies to residential rental properties serving lower-income households, to also include those that cater to low- and moderate-income households. The exemption would be based on the percentage of units designated for low- and moderate-income usage relative to the total number of units available in the property. This change is intended to incentivize landlords to maintain affordable housing options for lower-income residents, thereby promoting housing stability and access.
A notable point of contention surrounding SB336 is the lack of financial reimbursement provisions for local agencies that may lose property tax revenue as a result of the extended welfare exemption. The bill explicitly states that the state shall not be obligated to compensate local agencies for property tax revenues lost due to the implementation of this act, which could provoke concerns regarding budget impacts on municipalities. Critics may argue that this could strain local resources, especially for communities already facing fiscal challenges while trying to support affordable housing initiatives.