CA AB2897

Eliminates specified lease agreement requirements for community land trust units to maintain welfare property tax exemption status, allowing units to continue qualifying even if occupants' income increases to 140% of area median income through fiscal year 2027–28.

Expands the definition of "community land trust" to include wholly owned subsidiaries that are solely directed and managed by the trust, and allows land to be either leased for 99 years or sold to qualified owners subject to affordability restrictions.

Applies the updated community land trust definition across multiple housing programs including the CalHome Program, Foreclosure Intervention Housing Preservation Program, and Los Angeles County Affordable Housing Solutions Agency.

Makes conforming amendments to property tax assessment law to recognize community land trusts and their subsidiaries in evaluating land use restrictions and affordability covenants.

Authorizes reimbursement to local agencies and school districts for state-mandated costs through existing statutory procedures if the Commission on State Mandates determines the bill imposes such costs.