CaliforniaNew affordable rental homes may qualify for partial property tax relief
Nonprofit and veterans’ housing owners in Alameda, Sacramento, and San Francisco may qualify for a partial exemption on eligible homes built or converted from 2027 through 2029.
What it does
Eligible nonprofit and veterans’ housing owners may get a partial property tax exemption for qualifying affordable homes in three specified areas. They must meet long-term affordability and rent rules.
Local agencies may lose property tax revenue from the exemption, and the state will not repay those losses.
Argument forThe exemption could help eligible owners keep rents affordable because they must use the tax savings to support qualifying homes or reduce rents.
Argument againstLocal agencies could lose property tax revenue from qualifying homes, and the state will not repay those losses, leaving less money for local services.
More detail
Eligible owners may claim a partial property tax exemption for qualifying affordable rental homes. The exemption is for qualifying rental homes owned by eligible nonprofits or veterans’ organizations in Alameda County, Sacramento County, or the City and County of San Francisco. The homes must serve low- or moderate-income households. The owner must meet the welfare exemption rules and certify the required affordability agreements and use of tax savings. A binding agreement or other legal document must keep designated homes available to low- and moderate-income households for at least 55 years. Initial rents must be below the local fair market rent; when that rent is no higher than the rent considered affordable for moderate-income households, initial rent must be at least 10 percent below fair market rent. Later increases are limited. The owner must use the money saved on property taxes to keep homes affordable or reduce rents. Homes must be newly built or converted from commercial use on or after January 1, 2027, and before January 1, 2030. The exemption lasts for 15 consecutive lien dates, beginning with a qualifying lien date in that period.
The state will not repay local agencies for property tax revenue they lose under the act. This applies to local agencies that lose property tax revenue because of the act. This applies to property tax revenue lost under the act.
Where do you stand?
Choose your position
Tell your reps
Take a position to see your representatives and ways to contact them.
Where it stands
- Introduced
- Passed Assembly
- Passed Senate
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Sep 29Chaptered by Secretary of State - Chapter 778, Statutes of 2026.Latest
- Sep 29Approved by the Governor Gavin Newsom.Became Law
- Sep 14Enrolled and presented to the Governor at 1:30 p.m.To Governor
- Aug 31Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 64. Noes 5. Page 6999.).Major
- Vote recorded AB 1294 Haney Concurrence in Senate Amendments. Result: pass.Lower
- Aug 30Ordered to the unfinished business file.
- Aug 30In Assembly.
- Aug 30Ordered to the Assembly.
- Aug 27In Senate. Held at Desk.
- Aug 27Ordered to the Senate.
- Aug 27Action rescinded whereby the bill was re-referred to Com. on REV. & TAX. pursuant to Assembly Rule 77.2.Minor
- Aug 27Re-referred to Com. on REV. & TAX. pursuant to Assembly Rule 77.2.Minor
- Aug 27In Assembly. Concurrence in Senate amendments pending.
- Aug 26Read third time. Passed. Ordered to the Assembly. (Ayes 27. Noes 8.).Passed Senate
- Vote recorded 3rd Reading AB1294 Haney et al. By Arreguín. Result: pass.Upper
- Aug 24Read second time. Ordered to third reading.Minor
- Aug 21Read third time and amended. Ordered to second reading.Major
- Aug 13Read second time. Ordered to third reading.Minor
- Vote recorded Do pass. Result: pass.Upper
- Aug 13From committee: Do pass. (Ayes 5. Noes 0.) (August 13).Minor
- Aug 10In committee: Referred to APPR. suspense file.Minor
- Vote recorded Placed on suspense file. Result: pass.Upper
- Aug 5From committee: Do pass and re-refer to Com. on APPR. (Ayes 3. Noes 0.) (August 5). Re-referred to Com. on APPR.Minor
- Vote recorded Do pass, but first be re-referred to the Committee on [Appropriations]. Result: pass.Upper
- Jun 22Re-referred to Com. on REV. & TAX.Minor
- Jun 15Re-referred to Com. on RLS.Minor
- Jun 15Withdrawn from committee.Major
- Jun 15From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on L. GOV.Major
- Jun 4In committee: Hearing postponed by committee.
- Apr 28From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on L. GOV.Major
- 2025
- Jul 3Read second time and amended. Re-referred to Com. on L. GOV.Major
- Jul 2From committee: Amend, and do pass as amended and re-refer to Com. on L. GOV. (Ayes 10. Noes 0.) (July 1).Major
- Jul 1
- Vote recorded Do pass as amended, but first amend, and re-refer to the Committee on [Local Government]. Result: pass.Upper
- Jun 12From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on HOUSING.Major
- Jun 11Referred to Coms. on HOUSING and L. GOV.Minor
- Jun 3In Senate. Read first time. To Com. on RLS. for assignment.Minor
- Vote recorded AB 1294 Haney Assembly Third Reading. Result: pass.Lower
- Jun 2Read third time. Passed. Ordered to the Senate. (Ayes 78. Noes 0. Page 1885.)Passed Assembly
- May 27Read second time. Ordered to third reading.Minor
- May 23From committee: Do pass. (Ayes 14. Noes 0.) (May 23).Minor
- Vote recorded Do pass. Result: pass.Lower
- May 14In committee: Set, first hearing. Referred to APPR. suspense file.Minor
- May 1From committee: Do pass and re-refer to Com. on APPR. (Ayes 10. Noes 0.) (April 30). Re-referred to Com. on APPR.Minor
- Apr 30
- Vote recorded Do pass and be re-referred to the Committee on [Appropriations]. Result: pass.Lower
- Apr 23Re-referred to Com. on L. GOV.Minor
- Apr 22From committee chair, with author's amendments: Amend, and re-refer to Com. on L. GOV. Read second time and amended.Major
- Apr 9From committee: Do pass and re-refer to Com. on L. GOV. with recommendation: To Consent Calendar. (Ayes 12. Noes 0.) (April 9). Re-referred to Com. on L. GOV.Minor
- Vote recorded Do pass and be re-referred to the Committee on [Local Government] with recommendation: To Consent Calendar. Result: pass.Lower
- Apr 9Coauthors revised.
- Mar 18Re-referred to Com. on H. & C.D.Minor
- Mar 17From committee chair, with author's amendments: Amend, and re-refer to Com. on H. & C.D. Read second time and amended.Major
- Mar 17Referred to Coms. on H. & C.D. and L. GOV.Minor
- Feb 24Read first time.Minor
- Feb 22From printer. May be heard in committee March 24.
- Feb 21Introduced. To print.Introduced
HousingTaxes & BudgetGovernment & Ethics