CA SB588

Removes the $20 million assessed value exemption cap for rental housing properties serving lower income households for fiscal years 2024–25 through 2028–29, if the property meets specified conditions.

Requires claimants seeking the expanded exemption to own and operate the property through an eligible nonprofit corporation and submit an affidavit under penalty of perjury that tax savings will be used for construction or rehabilitation of residential units.

Makes claimants liable for back property taxes if residential units are not constructed or rehabilitated by January 1, 2029 (for properties acquired before January 1, 2024) or within five years of acquisition (for properties acquired on or after January 1, 2024).

Requires at least 90 percent of units to be continuously available to or occupied by lower income households at regulated rents, and requires deed restrictions recorded against the property.

Directs the State Board of Equalization to collect and report data annually on the exemption's effectiveness to specified legislative committees through July 1, 2030, and exempts the state from reimbursing local agencies for lost property tax revenues.