CCAH has been closely tracking the implementation of an important state law designed to reduce financial burdens associated with the Welfare Tax Exemption for new affordable housing developments. The legislation allows qualifying new construction projects to receive relief while their initial exemption applications are under review, helping developers avoid unnecessary carrying costs during the approval process.
Over the past year, CCAH Public Policy Manager Paul Shafer has worked alongside a coalition of statewide affordable housing advocates to engage with the California Board of Equalization (BOE) and highlight the need for clear implementation guidance for county assessors. Although the legislation was enacted in 2024, uncertainty around administration and implementation has prevented developers from fully utilizing the benefit.
In July, Paul and representatives from several housing organizations presented before the BOE, emphasizing the need for statewide guidance and recommending steps to reduce administrative burdens associated with obtaining and maintaining the Welfare Tax Exemption. The BOE’s report from that hearing can be found here.
As a result of these advocacy efforts, the BOE has now issued a Letter to Assessors providing guidance on how local jurisdictions should implement the new law. While the guidance does not resolve every issue and additional clarification will likely be needed to ensure a seamless process between county assessors and tax collectors, it represents a significant step toward making this benefit accessible to affordable housing developers throughout California.
As developers begin utilizing this new exemption process, CCAH encourages members to share their experiences and feedback. If you encounter challenges or identify areas where additional clarification would be helpful, please contact Paul Shafer at pshafer@californiacouncil.org. Member feedback will help inform future advocacy efforts and ensure this new law delivers on its promise to reduce administrative burdens and support the development of much-needed affordable housing.