CA SB592

Excludes from property tax reassessment the transfer of tenant-occupied rental properties to limited-equity housing cooperatives formed by tenants, provided at least 51% of tenants participate in ownership of the acquiring entity

Excludes from property tax reassessment the transfer of tenant-occupied rental properties to community land trusts, which must indicate reliance on this exclusion in filings with the county recorder

Grants limited-equity housing cooperatives a two-year grace period after property transfer to achieve the 51% tenant participation threshold; properties cannot be reassessed during this period if the transferee declares intent to rely on this section

Requires limited-equity housing cooperatives where the property lacks an existing affordability contract to demonstrate that a majority of tenant households qualified as lower income at the time of transfer

Authorizes county assessors to require documentation from limited-equity housing cooperatives claiming this exclusion, including articles of incorporation, bylaws, and stock/membership certificates