Laws, Regulations & Annotations

Property Taxes Law Guide – Revision 2017

Revenue and Taxation Code

Property Taxation

Part 2. Assessment

CHAPTER 1. Taxation Base

Article 1. Taxable and Exempt Property

Section 214.16

214.16. Welfare exemption; Century Freeway low income housing projects. (a) Any outstanding tax, interest, or penalty that was levied or imposed upon property that qualifies for an exemption pursuant to Section 214 and satisfies the criteria specified in subparagraph (D) of paragraph (1) of subdivision (g) of Section 214 between January 1, 2002, and January 1, 2009, shall be canceled, provided that the owner of the property certifies that all of the following conditions were met at the time the tax was levied:

(1) The owner was not organized and did not operate for profit.

(2) There was a recorded deed restriction or other legal document that restricted the project's usage and that provided that the units designated for use by lower income households were continuously available to or occupied by lower income households at rents not exceeding those prescribed by Section 50053 of the Health and Safety Code.

(3) The funds that would have been necessary to pay property taxes were used to maintain the affordability of, or reduce rents otherwise necessary for, the units occupied by lower income households.

(b) For purposes of this section, "lower income households" has the same meaning as defined by Section 50079.5 of the Health and Safety Code.

History.—Added by Stats. 2008, Ch. 524 (SB 1284), in effect September 28, 2008.

Note.—Section 1 of Stats. 2008, Ch. 524 (SB 1284) provided that the Legislature finds and declares all of the following: (a) That maintaining the affordability of lower income housing fulfills both of the following: (1) The legal commitment entered into by the Department of Transportation in a consent decree to replace affordable housing stock lost as a result of the construction of the Century Freeway.

(2) Addresses California's serious shortage of decent, safe, and sanitary housing, which persons and families of low or moderate income, including the elderly and handicapped, can afford.

(b) That expanding the criteria for the partial welfare exemption, as provided by this act, extends the application of the partial welfare exemption in a consistent manner to all eligible taxpayers in order to ensure that all eligible and similarly situated taxpayers are treated in a fair and equitable manner.

(c) Therefore, the Legislature finds and declares that this act serves a public purpose of the state.

Section 4 thereof provided that notwithstanding Section 2229 of the Revenue and Taxation Code, no appropriation is made by this act and the state shall not reimburse any local agency for any property tax revenue lost by it pursuant to this act.