Bill Text: CA AB1528 | 2023-2024 | Regular Session | Amended

California Assembly Bill 1528

NOTE: There are more recent revisions of this legislation. Read Latest Draft

Bill Title: Housing authorities: property taxation.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Passed) 2023-10-11 - Chaptered by Secretary of State - Chapter 766, Statutes of 2023. [AB1528 Detail]

Download: California-2023-AB1528-Amended.html

Amended IN Assembly March 23, 2023

CALIFORNIA LEGISLATURE— 2023–2024 REGULAR SESSION

Assembly Bill

No. 1528

Introduced by Assembly Member Gipson

February 17, 2023

An act to amend Section ~~17053~~ 34400 of the Health and Safety Code, relating to housing.

LEGISLATIVE COUNSEL'S DIGEST

AB 1528, as amended, Gipson. ~~Employee housing.~~ Housing authorities: property taxation.

The California Constitution provides that all property is taxable and requires property to be taxed in proportion to its full value. The California Constitution exempts certain property from property taxation, including property owned by a local government, as specified. The California Constitution authorizes the Legislature to exempt from taxation, in whole or in part, property that is used exclusively for religious, hospital, or charitable purposes, and is owned or held in trust by a nonprofit entity.
The Housing Authorities Law establishes a public body corporate and politic, known as a housing authority, within each county and city. Upon enactment of a resolution by the county or city declaring that there is need for a housing authority to function, existing law authorizes the authority to undertake various specified activities relating to affordable housing. Existing law specifies that the property and bonds of a housing authority are exempt from taxation.
This bill would specify that property held by a nonprofit public benefit corporation that is controlled by a housing authority, as described, is exempt from taxation.
Existing law, the Employee Housing Act, among other things, requires that buildings used for human habitation, and buildings accessory thereto, comply with the building standards in the California Building Standards Code relating to employee housing, as defined. That act requires the Department of Housing and Community Development to maintain a file of complaints and other significant information in relation to the maintenance and operation of employee housing and requires the information to be available to local agencies, district attorneys, and the Attorney General.
~~This bill would make a nonsubstantive change to those provisions.~~

Vote: MAJORITY Appropriation: NO Fiscal Committee: NO Local Program: NO

The people of the State of California do enact as follows:

SECTION 1.

Section 34400 of the Health and Safety Code is amended to read:

34400.

~~It has been found and declared~~ (a) The Legislature has found and declared all of the following in the Housing Authorities Law (Chapter 1 (commencing with Section 34200)) and the Housing Cooperation ~~Law (a) that there~~ Law (Chapter 2 (commencing with Section 34500)):

(1) There exist in the ~~State~~ state housing conditions which constitute a menace to the health, safety, morals and welfare of the residents of the ~~State; (b) that these~~ state.

(2) These conditions necessitate excessive and disproportionate expenditures of public funds for crime prevention and punishment, public health and safety, fire and accident prevention, and other public services ~~and facilities; (c) that the~~ and facilities.

(3) The public interest requires the remedying of these conditions by the creation of housing authorities to undertake projects for slum clearance and for providing safe and sanitary dwelling accommodations for persons who lack sufficient income to enable them to live in decent, safe and sanitary dwellings without ~~overcrowding; and (d) that such housing~~ overcrowding.

(4) These housing projects are for public uses and purposes and are governmental functions of state concern. As

(b) (1) As a matter of legislative determination, it is hereby found and declared that the property and bonds of a housing authority are of such character as shall be exempt from taxation.

(2) Property held by a nonprofit public benefit corporation that is controlled by a housing authority shall be included in the exemption from taxation described in paragraph (1).
(c) For purposes of this section, a nonprofit public benefit corporation shall be deemed to be controlled by a housing authority if both of the following conditions are met:
(1) The nonprofit public benefit corporation is organized for purposes pursuant to the Housing Authorities Law and is solely directed and managed by directors, officers, or employees of the housing authority.
(2) The organizational documents of the nonprofit public benefit corporation contain provisions that in the event of the liquidation, dissolution, or winding up of the nonprofit public benefit corporation, all assets of the nonprofit public benefit corporation revert to ownership by the housing authority.

SECTION 1.Section 17053 of the Health and Safety Code is amended to read:
17053.
The department shall maintain a file of any reports of complaint or other significant information regarding employee housing maintenance and operation. Each file and information shall be available to local enforcement agencies, district attorneys, and the Attorney General. This material shall be a matter of public record.