Bill Text: CA AB672 | 2025-2026 | Regular Session | Amended

California Assembly Bill 672

Bill Title: Real property tax: welfare exemption: community land trusts.

Sponsorship: Partisan Bill (Democrat 1)

Status: (Engrossed) 2026-06-22 - In committee: Referred to APPR. suspense file. [AB672 Detail]

Download: California-2025-AB672-Amended.html

Amended IN Senate April 28, 2026

Amended IN Senate June 18, 2025

CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION

Assembly Bill

No. 672

Introduced by Assembly Member Caloza

February 14, 2025

An act to ~~add~~ amend Section ~~71639.7 to, and to add Chapter 12.7 (commencing with Section 3599.90) to Division 4 of Title 1 of, the Government Code, relating to public employees.~~ 214.18 of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.

LEGISLATIVE COUNSEL'S DIGEST

AB 672, as amended, Caloza. ~~Public employment: notifications and right of intervention.~~ Real property tax: welfare exemption: community land trusts.

Existing property tax law, pursuant to constitutional authorization, provides for a “welfare exemption” for property used exclusively for religious, hospital, scientific, or charitable purposes and that is owned or operated by certain types of nonprofit entities, if certain qualifying criteria are met.
Existing law also provides, until January 1, 2027, that property is within the welfare exemption if that property is owned by a community land trust, as defined, otherwise qualifying for the welfare exemption, and specified conditions are met, including that the property is being or will be developed or rehabilitated as housing, as specified. Existing law, however, makes community land trusts liable for property tax for the years for which the property was exempt from taxation if the property was not developed or rehabilitated, or if the development or rehabilitation is not in the course of construction, by January 1, 2027, for property acquired before January 1, 2022, or within 5 years of the lien date following acquisition of the property, for property acquired on and after January 1, 2022.
This bill would extend the operation of these provisions until January 1, 2032. The bill would make various conforming changes, including with respect to the lien dates for which the exemption applies. By imposing additional duties on local tax officials, the bill would impose a state-mandated local program.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.
Existing law requires the state to reimburse local agencies annually for certain property tax revenues lost as a result of any exemption or classification of property for purposes of ad valorem property taxation.
This bill would provide that, notwithstanding those provisions, no appropriation is made and the state shall not reimburse local agencies for property tax revenues lost by them pursuant to the bill.
This bill would take effect immediately as a tax levy.
(1)Existing law establishes the Public Employment Relations Board (PERB) in state government as a means of resolving disputes and enforcing the statutory duties and rights of specified public employers and employees under various acts regulating collective bargaining. Under existing law, PERB has the power and duty to investigate an unfair practice charge and to determine whether the charge is justified and the appropriate remedy for the unfair practice.
This bill would require a plaintiff or petitioner filing a civil action seeking injunctive relief against a strike, work stoppage, or other labor action by public employees whose labor relations are regulated by PERB, if PERB is not a party to the action, to serve a copy of the petition or complaint by electronic mail on the general counsel of PERB, in accordance with certain procedures. The bill would also require a plaintiff or petitioner that intends to apply to a superior court for a temporary restraining order to enjoin a strike, work stoppage, or other labor action by public employees whose labor relations are regulated by PERB, if PERB is not a party to the action, to give notice by electronic mail to the general counsel of PERB of the application when the plaintiff or petitioner provides that notice to the defendant or respondent. The bill would specify that the above-described provisions do not authorize a plaintiff or petitioner to seek relief in court without first exhausting administrative remedies before PERB when exhaustion is required by statute, regulation, or case law.
This bill would grant PERB the right, upon timely application, to intervene in a civil action arising from a labor dispute that involves public employees whose labor relations are regulated by PERB and that PERB claims implicate the constitutionality, interpretation, or enforcement of a statute administered by PERB.
(2)Existing law, the Trial Court Employment Protection and Governance Act, establishes procedures regulating, among other matters, court employee classification and compensation, labor relations, and employment protection. Existing law requires the Judicial Council to adopt rules of court that provide a mechanism for the establishment of a panel of court of appeal justices who are qualified to hear certain petitions relating to arbitration and writ applications and from which a single justice is required to be assigned to hear the matter in the superior court, as prescribed.
This bill would require the Judicial Council to adopt rules of court that provide a mechanism for the establishment of a panel of court of appeal justices who would be qualified to hear actions that seek to enjoin strikes, work stoppages, or other labor activity by trial court employees, from which a single justice would be assigned to hear the matter in the superior court in accordance with certain procedures.

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

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

SECTION 1.

Section 214.18 of the Revenue and Taxation Code is amended to read:

214.18.

(a) Property is within the exemption provided by Sections 4 and 5 of Article XIII of the California Constitution if the property is owned by a community land trust, otherwise qualifying for exemption under Section 214, and all of the following conditions are met:

(1) The property is being or will be developed or rehabilitated as any of the following:

(A) An owner-occupied single-family dwelling.

(B) As an owner-occupied unit in a multifamily dwelling.

(D) As a rental housing development.

(2) Improvements on the property are or will be available for use and ownership or for rent by qualified persons.

(3) (A) A deed restriction or other instrument, requiring a contract or contracts serving as an enforceable restriction on the sale or resale value of owner-occupied units or on the affordability of rental units is recorded on or before the lien date following the acquisition of the property by the community land trust.

(B) For purposes of this section:

(i) “A contract or contracts serving as an enforceable restriction on the sale or resale value of owner-occupied units” means a contract described in paragraph (11) of subdivision (a) of Section 402.1.

(ii) “A contract or contracts serving as an enforceable restriction on the affordability of rental units” means an enforceable and verifiable agreement with a public agency, a recorded deed restriction, or other legal document described in subparagraph (A) of paragraph (2) of subdivision (g) of Section 214.

(b) (1) Subject to subdivision (d), the exemption provided by subdivision (a) shall not be denied to a property on the basis that the property does not currently contain a single-family dwelling, a unit in a multifamily dwelling, a unit in a limited equity housing cooperative, or a rental housing development that is in the course of construction.

(2) Once property that is a rental housing development is in the course of construction, the property shall be deemed to qualify for the exemption provided under Section 214 and on subsequent lien dates the property shall qualify for exemption pursuant to Section 214.

(1) “Community land trust” has the same meaning as that term is defined in clause (ii) of subparagraph (C) of paragraph (11) of subdivision (a) of Section 402.1.

(2) “Course of construction” has the same meaning as the term “facilities in the course of construction,” as used and defined in Sections 214.1 and 214.2.

(3) “Limited equity housing cooperative” has the same meaning as that term is defined in Section 817 of the Civil Code.

(4) “Persons and families of low income” has the same meaning as the term “lower income households,” as defined in Section 50079.5 of the Health and Safety Code.

(5) “Persons and families of low or moderate income” has the same meaning as that term is defined in Section 50093 of the Health and Safety Code.

(6) “Qualified persons” means the following:

(A) In the case of property developed for owner-occupied housing, as described in subparagraphs (A), (B), and (C) of paragraph (1) of subdivision (a), persons and families of low or moderate income, including persons and families of low or moderate income that own a dwelling or unit collectively as member occupants or resident shareholders of a limited equity housing cooperative.

(B) In the case of property developed for rental housing, as described in subparagraph (D) of paragraph (1) of subdivision (a), persons and families of low income.

(7) “Rental housing development” means a rental housing development in which all of the residential units in the development, other than units provided to property managers, are required to be rented to, and occupied by, persons and families of low or moderate income, at rents that do not exceed an affordable rent as described in Section 50053 of the Health and Safety Code.

(d) (1) Notwithstanding any other law, the community land trust shall be liable for property tax for the years for which the property was exempt from taxation pursuant to this section if the property was not developed or rehabilitated, or if the development or rehabilitation is not in the course of construction, in accordance with paragraph (1) of subdivision (a) as follows:

(A) In the case of property acquired by the community land trust before January 1, 2022, by January 1, 2027.

(B) In the case of property acquired by the community land trust on and after January 1, 2022, and before January 1, ~~2027,~~ 2032, within five years of the lien date following the acquisition of the property by the community land trust.

(2) The community land trust shall notify the assessor of the county in which the property is located if property owned by the community land trust granted an exemption pursuant to this section is not in the course of construction by the dates specified in paragraph (1).

(e) Property shall be eligible for exemption pursuant to this section as follows:

(1) In the case of property acquired by the community land trust before January 1, 2022, for lien dates occurring on and after January 1, 2020, and before January 1, 2027.

(2) (A) In the case of property acquired by the community land trust on and after January 1, 2022, and before January 1, ~~2027,~~ 2032, for the first five lien dates following the acquisition of the property by the community land trust.

(B) Property shall be eligible for exemption for the lien dates specified in subparagraph (A) regardless of the repeal of this section.

(f) This section shall remain in effect only until January 1, ~~2027,~~ 2032, and as of that date is repealed.

SEC. 2.
If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.

SEC. 3.
Notwithstanding Section 2229 of the Revenue and Taxation Code, no appropriation is made by this act and the state shall not reimburse any local agency for any property tax revenues lost by it pursuant to this act.

SEC. 4.
This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect.

SECTION 1.Chapter 12.7 (commencing with Section 3599.90) is added to Division 4 of Title 1 of the Government Code, to read:
12.7.Notification of Civil Actions and Right of Intervention
3599.90.
(a)A plaintiff or petitioner filing a civil action seeking injunctive relief against a strike, work stoppage, or other labor action by public employees whose labor relations are regulated by the Public Employment Relations Board shall, if the board is not a party to the action, serve a copy of the petition or complaint by electronic mail on the general counsel of the board. Service of the complaint or petition shall be made on the same day the petition or complaint is filed. Proof of service on the general counsel shall be filed promptly in the civil action.
(b)A plaintiff or petitioner that intends to apply to a superior court for a temporary restraining order to enjoin a strike, work stoppage, or other labor action by public employees whose labor relations are regulated by the board shall, if the board is not a party to the action, give notice, by electronic mail to the general counsel of the board, of the application when the plaintiff or petitioner provides that notice to the defendant or respondent.
(c)This section does not authorize a plaintiff or petitioner to seek relief in court without first exhausting administrative remedies before the board when exhaustion is required by a statute, regulation, or case law.
3599.91.
The board shall have the right, upon timely application, to intervene in any civil action arising from a labor dispute that involves public employees whose labor relations are regulated by the board and that the board claims implicates the constitutionality, interpretation, or enforcement of a statute administered by the board.
SEC. 2.Section 71639.7 is added to the Government Code, to read:
71639.7.
The Judicial Council shall adopt rules of court that shall provide a mechanism for the establishment of a panel of court of appeal justices who shall be qualified to hear actions that seek to enjoin strikes, work stoppages, or other labor activity by trial court employees, from which a single justice shall be assigned to hear the matter in the superior court. The rules of court shall provide that these matters shall be heard in the superior court, and to the extent permitted by law, shall provide that any justice assigned to hear the matter in the superior court shall not be from the court of appeal district in which the action is filed, and shall further provide that appeals in these matters shall be heard in the court of appeal district where the matter was filed.