AB 323 Summary

• Adds Civil Code Section 714.7 prohibiting developers from selling inclusionary zoning units intended for low-income owner-occupancy to non-qualifying purchasers, except nonprofit housing corporations may purchase unsold units after 180 days of certificate of occupancy issuance.

• Establishes qualified nonprofit housing corporation requirements including IRS 501(c)(3) tax-exempt status, California-based location, California board residency, and primary activity of developing affordable homeownership housing with repurchase options.

• Creates civil enforcement mechanism with maximum penalty of $15,000 per violation, enforced by county counsel or city attorney in civil actions, as exclusive remedy against violators.

• Modifies Government Code Section 65915 (Density Bonus Law) to allow nonprofit purchase of for-sale density bonus units if not sold to income-qualified buyers within 180 days, with affordability restrictions and repurchase requirements lasting at least 45 years.

• Applies to all cities including charter cities as a statewide concern; no state reimbursement required as local agencies may recover costs through service charges or fees.