CA SB423

Allows local agencies administering affordable housing programs to modify regulatory agreements regarding default curing provisions, including subordination to first lien capital, resale restrictions, income/rent limits, and target population requirements, while maintaining rent limits consistent with California Tax Credit Allocation Committee standards

Requires any amended regulatory restriction term to be at least 55 years from the initial recording date, with rents not exceeding affordable rates for lower income households

Prohibits the City of Los Angeles from imposing a documentary transfer tax greater than $7.50 per $500 of property value on real property that received its first certificate of occupancy within the previous 15 years

Exempts from the tax limitation buildings over 85 feet tall that did not meet specified labor standards, and allows the higher tax rate on single-family properties unless the dwelling was destroyed by a declared local emergency disaster and rebuilt within five years after the emergency

Makes the documentary transfer tax provisions operative only if three specified ballot initiatives (25-0004A1, 25-0005A1, and 25-0006A1) are either withdrawn by January 1, 2026, or fail to qualify for the November 2026 ballot