CA AB 430

Title: Community land trusts: welfare exemption: assessment: foreclosure sales: financial assistance.
Author: Steve Bennett

Summary
AB 430, as amended, Bennett. Community land trusts: welfare exemption: assessment: foreclosure sales: financial assistance. (1) 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. For the 2022–23 fiscal year through the 2027–28 fiscal year, in the case of an owner of property that is a community land trust, as defined, existing property tax law requires that a unit continue to be treated as occupied by a lower income household for these purposes if the occupants were lower income households on the lien date in the fiscal year in which their occupancy of the unit commenced and the unit continues to be rent restricted, notwithstanding an increase in the income of the occupants of the unit to 140% of area median income, adjusted for family size. Existing law requires that a lease between a community land trust and a lower income household satisfy specified requirements in order for these provisions to apply, including being a renewable 99-year ground lease and a public agency or official must make a finding that the contract serves the public interest of creating or preserving affordable housing, as provided. This bill would eliminate specified requirements of a lease agreement between a lower income household and a community land trust in order for the unit to continue to be treated as occupied by a lower income household, as described above.(2) Existing property tax law requires the assessor to consider in the assessment of land the effect of any enforceable restrictions to which the use of the land may be subjected, including, among others, a renewable 99-year ground lease between a community land trust and the qualified owner, as defined, of an owner-occupied single-family dwelling or an owner-occupied unit in a multifamily dwelling that meets certain other conditions. Existing property tax law defines the term “community land trust” for these and other purposes to mean a nonprofit corporation that satisfies specified requirements, including a requirement that all dwellings and units located on property owned by the nonprofit are either sold to a qualified owner, as defined, or leased to low- or moderate-income persons or families, and the land owned by the nonprofit corporation, on which a dwelling or unit sold to a qualified owner is situated, is leased by the nonprofit corporation to the qualified owner for the convenient occupation and use of that dwelling or unit for a renewable term of 99 years.This bill would amend the definition of community land trust to extend these requirements to a wholly owned subsidiary of the trust that is solely directed and managed by the trust.(3) Existing law prescribes various requirements to be satisfied before the exercise of a power of sale under a mortgage or deed of trust and prescribes a procedure for the exercise of that power. Existing law prescribes certain requirements that apply in the case of sales of real property containing one to 4 residential units, inclusive, that is acquired through foreclosure under a mortgage or deed of trust by an institution or that is acquired at a foreclosure sale by an institution, as defined, including requiring that the institution only accept offers from eligible bidders during the first 30 days after the property is listed for sale. Existing law defines “eligible bidder” for the purposes to include, among others, a community land trust, defined by reference to the above-described provisions relating to the assessment of real property for taxation.Existing law creates the Foreclosure Intervention Housing Preservation Program, administered by the Department of Housing and Community Development, for the purpose of preserving affordable housing and promoting resident ownership or nonprofit organizatio

Status
In committee: Held under submission.

Bill Documents
CA AB 430 - 07/10/23 - Amended Senate
07/10/23 - CA AB 430 (07/10/23 - Amended Senate)