Bill Text: CA AB846 | 2023-2024 | Regular Session | Amended

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

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Bill Title: Housing programs: rent increases.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Passed) 2024-09-27 - Chaptered by Secretary of State - Chapter 674, Statutes of 2024. [AB846 Detail]

Download: California-2023-AB846-Amended.html

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Amended  IN  Assembly  March 09, 2023

CALIFORNIA LEGISLATURE— 2023–2024 REGULAR SESSION

Assembly Bill

No. 846

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Introduced by Assembly Member Bonta

February 14, 2023

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An act to amend Section 50199.7 of add Section 50199.19 to the Health and Safety Code, relating to low-income housing.

LEGISLATIVE COUNSEL'S DIGEST

AB 846, as amended, Bonta. Low-income housing credit. credit: rent increases.

Existing law establishes a low-income housing tax credit program, through which the California Tax Credit Allocation Committee, chaired by the Treasurer, allocates low-income housing tax credits aimed at providing affordable low-income housing within and throughout the state. Existing law sets forth procedures and criteria under the program for housing credit applicants, who are owners, sponsors, or developers of qualifying low-income buildings or projects, as specified. Existing law requires the committee, when allocating the tax credit, to prefer specified projects, including projects that serve lowest income tenants at rents affordable to those tenants.

This bill would make a technical, nonsubstantive change to a provision that lists definitions of terms relating to the program.

This bill would prohibit a project assisted by the low-income housing tax credit from increasing rent for a unit in excess of the amount permitted by the program as a result of an increase in the area median gross income, or a unspecified amount, whichever is less.

Digest Key

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

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Bill Text

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

SECTION 1.

 Section 50199.19 is added to the Health and Safety Code, to read:

50199.19.

 An owner of a project assisted by a credit pursuant to this chapter shall not, in a calendar year, increase rent for a unit in excess of the amount permitted by this chapter as a result of an increase in the area median gross income or ____ percent, whichever is less.

SECTION 1.Section 50199.7 of the Health and Safety Code is amended to read:

50199.7.

As used in this chapter, the following definitions apply:

(a)“Committee” means the Mortgage Bond and Tax Credit Allocation Committee, which is renamed the California Tax Credit Allocation Committee. All references to “committee” shall mean the California Tax Credit Allocation Committee.

(b)“Household” has the same meaning as defined in Section 7602 of Title 25 of the California Code of Regulations.

(c)“Housing credit” means the tax credit for low-income rental housing provided under Section 42 of the federal Internal Revenue Code (26 U.S.C. Sec. 42).

(d)“Housing credit applicant” means any owner, sponsor, or developer of a qualifying low-income building or project who applies to the committee for either of the following:

(1)An allocation of a portion of the current state housing credit ceiling.

(2)A reservation of a portion of the anticipated state housing credit ceiling of a subsequent year.

(e)“Housing credit ceiling” means the amount specified in Section 42(h)(3)(C) of the federal Internal Revenue Code (26 U.S.C. Sec. 42(h)(3)(C)).

(f)“Qualified low-income building” or “project” has the meaning specified in Section 42(c)(2) of the federal Internal Revenue Code (26 U.S.C. Sec. 42(c)(2)).

(g)“Agricultural worker” or “farmworker” shall have the same meaning as specified in subdivision (b) of Section 1140.4 of the Labor Code.

(h)(1)Before January 1, 2018, “farmworker housing” means housing for agricultural workers that is available to, and occupied by, only farmworkers and their households. The committee may permit an owner to temporarily house nonfarmworkers in vacant units in the event of a disaster or other critical occurrence. However, such emergency shelter shall only be permitted if there are no pending qualified farmworker household applications for residency.

(2)On and after January 1, 2018, “farmworker housing” means housing in which at least 50 percent of the units are available to, and occupied by, farmworkers and their households. The committee may permit an owner to temporarily house nonfarmworkers in vacant units in the event of a disaster or other critical occurrence. However, such emergency shelter shall only be permitted if there are no pending qualified farmworker household applications for residency.