AB 1528 – Property Controlled By Housing Authorities Is Exempt From Property Tax

CATEGORY: Nonprofit News
CLIENT TYPE: Nonprofit
DATE: Nov 06, 2023

Upon enactment of a resolution by the county or city declaring that there is need for a housing authority to function, Housing Authorities Law authorizes a housing authority to undertake various specified activities relating to affordable housing.  The Housing Authorities Law specifies that the property and bonds of a housing authority are exempt from taxation.

Assembly Bill 1528 (AB 1528) provides that property held by a nonprofit public benefit corporation that is controlled by a housing authority is exempt from taxation.  A nonprofit public benefit corporation is controlled by a housing authority if: the nonprofit corporation is organized for purposes pursuant to the Housing Authorities Law; is solely directed and managed by directors, officers, or employees of the housing authority; and the nonprofit’s organizational documents contain a dissolution clause requiring all of the nonprofit’s assets revert to ownership by the housing authority if the nonprofit is dissolved.

AB 1528 provides that any outstanding ad valorem tax, interest, or penalty that was levied on the property of a housing authority must be canceled, and any tax, interest, or penalty levied that was paid prior to January 1, 2024, must be refunded.

(AB 1528 amends Section 34400 of the Health and Safety Code.)

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