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

Senator Wiener's property tax legislation expands California's welfare exemption to include housing serving moderate-income residents. The measure allows nonprofit organizations and qualifying entities that own rental properties to receive partial property tax exemptions based on the percentage of units designated for low- and moderate-income households.

Property owners must certify that their developments maintain enforceable restrictions ensuring units remain available to qualifying households. The certification must verify that funds saved through tax exemptions directly support affordability or reduce necessary rents for these units. To qualify, owners must claim the exemption within five years of receiving building permits for new residential construction.

The bill modifies local government obligations by establishing that the state will not reimburse agencies for property tax revenue reductions resulting from these expanded exemptions. While the measure creates additional administrative duties for local tax officials who must verify compliance with the new requirements, it specifies that certain implementation costs do not require state reimbursement under California's constitution.

Taking effect immediately as a tax levy, the legislation aims to increase the supply of housing accessible to both low- and moderate-income households, as defined by state housing law, by reducing property tax burdens on qualifying developments while maintaining local verification of eligibility criteria.