AB 2689: Low-income housing tax credits: lease nonrenewal: good cause.

Official summary

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

Existing law, in modified conformity with federal income tax laws, establishes a low-income housing tax credit program through which the California Tax Credit Allocation Committee allocates low-income housing tax credits aimed at providing affordable low-income housing within and throughout the state. Existing federal law sets limitations and guidelines regarding what projects are eligible for credits, including a requirement that an extended low-income housing commitment is in effect, and a prohibition against eviction except for good cause.

This bill would specify, for housing projects where the low-income housing commitment requires 100% of the units, not including any manager’s units, to be restricted to lower income households, as defined, that good cause for nonrenewal of a lease includes cases where the nonrenewal relates to a household whose income exceeds 140% of the area median income for at least 2 consecutive years and 30% of the household’s monthly income exceeds the fair market rent, determined as specified. The bill would require an owner to provide notice of the potential of good cause for nonrenewal described above if the household’s income exceeds 140% of the area median income during any income certification, as specified. The bill would also require an owner electing to not renew a lease as described above to issue a notice of nonrenewal describing the basis of good cause for nonrenewal at least 90 days prior to the expiration of the lease, as specified.

Sponsors

Sponsors by party (alphabetical): Democratic 2

“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 30, 2026Chaptered by Secretary of State - Chapter 958, Statutes of 2026.
2. September 30, 2026Approved by the Governor.
3. September 10, 2026Enrolled and presented to the Governor at 3 p.m.
4. August 30, 2026Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 69. Noes 2. Page 6884.).
5. August 28, 2026In Assembly. Concurrence in Senate amendments pending.
6. August 27, 2026Read third time. Passed. Ordered to the Assembly. (Ayes 40. Noes 0.).
7. July 2, 2026Read second time. Ordered to third reading.
8. July 1, 2026From committee: Do pass. (Ayes 11. Noes 0.) (June 30).
9. June 22, 2026From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on JUD.
10. June 17, 2026From committee: Do pass and re-refer to Com. on JUD. with recommendation: To Consent Calendar. (Ayes 10. Noes 0.) (June 16). Re-referred to Com. on JUD.
11. June 10, 2026Referred to Coms. on HOUSING and JUD.
12. June 1, 2026In Senate. Read first time. To Com. on RLS. for assignment.