CAL.Regulation
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.
Enrolled text (California Legislative Information) → · Office of the Governor
Key points
- Creates a partial welfare exemption pilot tied to units serving low- and moderate-income households.California Legislative Information
- Limited to newly built or commercially converted units in Alameda, Sacramento, or San Francisco.California Legislative Information
- Requires a 55-year recorded affordability restriction; initial rents below HUD Small Area FMR for the ZIP code.California Legislative Information
- The exemption runs for 15 consecutive lien dates, starting with a lien date on or after January 1, 2027, and before January 1, 2030.California Legislative Information
Sources2 articles across 2 outlets
California Legislative Information
Office of the Governor
Filed under
RegulationCal.AB 1294 — Moderate-Income Housing Welfare Exemption PilotHousingReal estateTaxFor practitionersFor governance