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<ns0:Id>20250AB__268997AMD</ns0:Id>
<ns0:VersionNum>97</ns0:VersionNum>
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<ns0:ActionText>INTRODUCED</ns0:ActionText>
<ns0:ActionDate>2026-02-20</ns0:ActionDate>
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<ns0:ActionText>AMENDED_ASSEMBLY</ns0:ActionText>
<ns0:ActionDate>2026-03-19</ns0:ActionDate>
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<ns0:ActionText>AMENDED_ASSEMBLY</ns0:ActionText>
<ns0:ActionDate>2026-04-06</ns0:ActionDate>
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<ns0:SessionYear>2025</ns0:SessionYear>
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<ns0:AuthorText authorType="LEAD_AUTHOR">Introduced by Assembly Member Ávila Farías</ns0:AuthorText>
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<ns0:Name>Ávila Farías</ns0:Name>
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<ns0:Title>An act to add Section 50199.26 to the Health and Safety Code, relating to
housing.</ns0:Title>
<ns0:RelatingClause>housing</ns0:RelatingClause>
<ns0:GeneralSubject>
<ns0:Subject>Low-income housing tax credits: lease nonrenewal: good cause.</ns0:Subject>
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<html:p>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. </html:p>
<html:p>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 for the county where they reside. </html:p>
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<ns0:Urgency>NO</ns0:Urgency>
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<ns0:Preamble>The people of the State of California do enact as follows:</ns0:Preamble>
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<ns0:Num>SECTION 1.</ns0:Num>
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Section 50199.26 is added to the
<ns0:DocName>Health and Safety Code</ns0:DocName>
, to read:
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<ns0:Num>50199.26.</ns0:Num>
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<html:p>For purposes of implementing Section 42(h)(6) of the Internal Revenue Code, for any qualified low-income building where 100 percent of the units, except for any manager’s unit, are restricted to lower income households, as defined in Section 50093, by an enforceable regulatory agreement with a government entity, good cause for nonrenewal of a lease shall include cases where both of the following apply:</html:p>
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(a)
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The household’s income exceeds 140% of the area median income for at least two consecutive years.
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(b)
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Thirty percent of the household’s monthly income exceeds the fair market rent for the county where the unit is located.
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