On February 13, 2025, California Assembly Bill 613 was introduced in the California Legislature, aiming to address the pressing issue of affordable housing in the state. The bill seeks to establish a framework for community land trusts to facilitate the creation and preservation of affordable residential housing for low and moderate-income families.

The primary purpose of AB 613 is to implement affordability restrictions on single-family dwellings and units within multifamily dwellings that are leased by qualified owners from community land trusts. These restrictions are designed to ensure that homes remain affordable over time, with specific provisions that include the requirement for homes to be sold or resold only to qualified owners who will occupy them as their principal residence. The sale price of these homes will be determined by a formula aimed at maintaining affordability.

Key provisions of the bill stipulate that a public agency or official must find that the affordability restrictions serve the public interest. This includes endorsements from local housing authorities, county counsels, and city attorneys. Additionally, the bill mandates that contracts related to these affordability restrictions be recorded and provided to the assessor's office.

Notably, the bill includes a rebuttable presumption that the sale or resale price of the dwelling includes both the unit and the leased land, which can only be contested if the assessor provides substantial evidence to the contrary. Furthermore, it allows for corrections of base year values and declines in value due to these restrictions for all lien dates occurring after September 27, 2016.

The introduction of AB 613 has sparked discussions among lawmakers and housing advocates. Proponents argue that the bill is a crucial step toward combating California's housing crisis by ensuring long-term affordability and stability for vulnerable populations. Critics, however, express concerns about the potential limitations on property rights and the effectiveness of community land trusts in addressing the broader housing shortage.

The implications of AB 613 could be significant, as it seeks to create a sustainable model for affordable housing that could be replicated in other regions. Experts suggest that if passed, the bill could lead to increased collaboration between local governments and community organizations, ultimately fostering a more inclusive housing market.

As the legislative process unfolds, stakeholders will be closely monitoring the bill's progress, potential amendments, and the broader impact it may have on California's housing landscape. The next steps will involve committee reviews and discussions, where the bill's provisions will be scrutinized and debated further.