SB 196 - NYU Furman Center

State Land Use Enacted Legislation

Bill #	State	Year	Party	Topic
SB 196	CA	2019	D	Affordable housing incentives and financing

Provided by Furman

Summary

Modifies California property tax law to support Community Land Trusts (CLTs) in providing permanent affordable housing. The bill introduces two primary changes regarding how CLT-owned properties are valued and exempted from taxes.
For owner-occupied homes on CLT land (typically held under 99-year ground leases), the bill creates a rebuttable presumption that the sale price of the home includes the value of the leased land. This prevents assessors from adding separate land value to the home’s price, which often led to inflated tax bills that undermined affordability.
The bill allows CLTs to claim the welfare tax exemption on land intended for low-income housing, even before construction begins. This exemption lasts for up to five lien dates.
If a CLT fails to begin rehabilitation or construction within five years (or by January 1, 2025, for older acquisitions), the trust becomes liable for the back taxes exempted during that period.
Applies valuation corrections and decline-in-value adjustments retroactively to all lien dates after September 27, 2016.

Provided by lawmakers