CA AB2353

Property owners are exempt from interest and penalties on ad valorem property taxes if they submit evidence of applying for a partial welfare exemption for rental housing under Section 214(g) and have received tax credits from the California Tax Credit Allocation Committee or funds from the Department of Housing and Community Development.

The exemption applies only while facilities are in the course of construction and must be verified annually to the tax collector.

Tax collectors cannot take collection actions on delinquent installments for eligible properties, though routine bills and notices do not constitute collection actions.

The exemption does not apply to delinquent taxes on non-eligible improvements, residential units not restricted as affordable housing, properties the assessor deems ineligible, or properties not developed within four years of filing for exemption.

Provisions apply to property tax installments due December 10, 2025 through April 10, 2031, and impose state-mandated duties on local tax officials.