AB 1294: Real property tax: welfare exemption: moderate-income housing.

Official summary

Legislative Counsel’s Digest (official, as of the latest version). Written by nonpartisan legislative staff; reproduced verbatim.

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. That law provides a partial welfare exemption in the case of residential rental property used for lower income households, as specified, calculated as that percentage of the value of the property that is equal to the percentage that the number of units serving lower income households represents of the total number of residential units.

This bill would, for lien dates commencing on or after January 1, 2027, and before January 1, 2030, provide a partial welfare exemption in the case of certain residential rental property used for low- and moderate-income households. The partial exemption would be equal to the value of the units serving low- and moderate-income households, as defined. The bill would require an owner to make specified certifications relating to the use of the property. The bill would apply the exemption described above for a period of 15 years from the date of the initial filing of the exemption, as specified. By expanding the duties of local tax officials, and by expanding the crime of perjury, the bill would impose a state-mandated local program.

This bill would declare that the above provisions are severable.

Existing law requires any bill authorizing a new tax expenditure to contain, among other things, specific goals, purposes, and objectives that the tax expenditure will achieve, detailed performance indicators, and data collection requirements.

This bill would state that it is the intent of the Legislature to apply those requirements to the above-described exemption and would set forth specified information relating to those requirements.

This bill would make legislative findings and declarations as to the necessity of a special statute for the Counties of Alameda and Sacramento and the City and County of San Francisco.

Sponsors

Sponsors by party (alphabetical): Democratic 3

“Support” is shown only as formal sponsorship recorded by the legislature. Roll-call votes are available on the official bill page.

Recent official actions

1. September 29, 2026Chaptered by Secretary of State - Chapter 778, Statutes of 2026.
2. September 29, 2026Approved by the Governor.
3. September 14, 2026Enrolled and presented to the Governor at 1:30 p.m.
4. August 31, 2026Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 64. Noes 5. Page 6999.).
5. August 30, 2026Ordered to the unfinished business file.
6. August 30, 2026In Assembly.
7. August 30, 2026Ordered to the Assembly.
8. August 27, 2026In Senate. Held at Desk.
9. August 27, 2026Ordered to the Senate.
10. August 27, 2026Action rescinded whereby the bill was re-referred to Com. on REV. & TAX. pursuant to Assembly Rule 77.2.
11. August 27, 2026Re-referred to Com. on REV. & TAX. pursuant to Assembly Rule 77.2.
12. August 27, 2026In Assembly. Concurrence in Senate amendments pending.