California pilots partial property-tax exemption for moderate-income rental housing
Governor Gavin Newsom signed AB 1294 on September 29, 2026. It adds subdivision (h) to Revenue and Taxation Code section 214, a pilot partial welfare exemption equal to the value of rental units serving low- and moderate-income households. It covers properties in Alameda County, Sacramento County or San Francisco where units are newly built, or converted from commercial use, between January 1, 2027, and January 1, 2030.