CA SB336

Extends California's property tax "welfare exemption" to residential rental properties serving low- and moderate-income households (up to 120% of area median income), not just lower-income households

Requires properties to have deed restrictions or agreements ensuring units remain affordable for at least 55 years and that initial rents are below fair market rent as verified by a market study

Applies only to newly constructed residential units or commercial-to-residential conversions built on or after January 1, 2026, with the exemption taking effect for lien dates on or after January 1, 2026

Calculates the partial exemption as the percentage of property value equal to the percentage of units serving low- and moderate-income households out of total residential units

State will not reimburse local agencies for lost property tax revenues resulting from this exemption, and the bill takes effect immediately as a tax levy