SB 1500 Summary

• Applies only to Los Angeles City and County where HUD granted a waiver effective August 17, 2024 allowing income verification after lease signing for unhoused populations in federal housing projects.

• Prohibits state entities from taking negative actions (negative points, IRS Form 8823 filings, financial penalties) against property owners/managers if they cure noncompliance within 24 months and coordinate with housing authorities to relocate income-ineligible tenants within 24 months.

• Deems tenants to satisfy 30 percent area median income requirements during a 24-month period if they were previously homeless, self-certified at 30 percent AMI, have verified income at or below 50 percent AMI, and have income fully verified within 90 days of move-in.

• Requires at least 50 percent of restricted units to remain occupied by verified income-eligible households and mandates owners stop using the waiver if more than 50 percent of 30 percent AMI units house income-ineligible tenants.

• Sunsets July 31, 2025 or upon expiration of the federal waiver, whichever is later, and applies to multiple state housing programs including low-income tax credits, farmworker housing, and veterans housing assistance.