Low-income housing tax credits: lease nonrenewal: good cause.
Vote required
Majority
Fiscal committee
No
Appropriation
No
Current location
Passed
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Progress
Where this bill stands in the legislative process.
- Introduced
- Passed Assembly
- Passed Senate
- To Governor
- Became Law
Overview
This bill modifies California’s low-income housing tax credit program to clarify the criteria for lease nonrenewal in qualifying affordable housing projects. Specifically, it defines ‘good cause’ for nonrenewal as situations where a household’s income exceeds 140% of the area median income for at least two consecutive years and 30% of their monthly income exceeds the fair market rent. The bill requires landlords to provide advance notice to tenants if these income thresholds are met and to specify the basis for nonrenewal at least 90 days before the lease expires.
Key provisions
- Defines ‘good cause’ for lease nonrenewal in low-income housing projects.
- Establishes income thresholds: 140% of area median income for at least two consecutive years and 30% of monthly income exceeding fair market rent.
- Requires landlords to provide 30-day written notice of income threshold exceedance.
- Mandates a 90-day notice of nonrenewal with a citation to the bill's provisions.
- Uses HUD’s Fair Market Rent as the benchmark for determining fair market rent.
- Applies to projects with 100% of units restricted to lower-income households.
- Aligns with federal income tax laws regarding low-income housing tax credits.
- Specifies the process for determining good cause based on household income and rent.
Who is affected
- Landlords of low-income housing projects
- Tenants in low-income housing projects
Bill text
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Sponsors
Official sponsors from legislative records.
2 on record
Primary sponsor
Ávila Farías
Cosponsor
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