CA AJR3

Legislature supports reducing the tax-exempt bond financing threshold from 50 percent to 25 percent to qualify for full 4 percent low-income housing tax credits.

Lowering the threshold could produce or preserve approximately 1,490,000 additional affordable rental homes over the next 10 years.

Reduced debt financing would allow rents to decrease by $6,000 per month for every $1,000,000 in reduced debt, enabling properties to serve lower-income households.

Legislature urges passage of the federal Affordable Housing Credit Improvement Act of 2023 (S. 1557 and H.R. 3238), which proposes lowering the bond financing threshold.

Chief Clerk will transmit copies of the resolution to the President, Vice President, Speaker of the House, Senate Majority Leader, and all California members of Congress.