California Legislature mandates 99-year lease for community land trust housing

California Assembly Bill 613, introduced on February 13, 2025, aims to enhance affordable housing options for low and moderate-income families by establishing a framework for community land trusts and limited equity housing cooperatives. The bill seeks to address the growing housing crisis in California by ensuring that homes remain affordable over the long term while providing a clear structure for land ownership and use.

Key provisions of AB 613 include the establishment of a 99-year renewable lease for qualified owners of dwellings built on land owned by community land trusts. This arrangement allows families to occupy their homes affordably while ensuring that the land remains under the trust's control. For condominiums and other common interest developments, the bill mandates the sale of units with affordability covenants lasting at least 99 years, further securing long-term affordability.

The bill also introduces a rebuttable presumption that restrictions on land use will not be removed or modified in the foreseeable future, which is crucial for maintaining property values and ensuring that affordable housing remains accessible. This presumption can only be challenged under specific circumstances, such as historical trends in the jurisdiction or indications from relevant parties about potential changes to the restrictions.

Debate surrounding AB 613 has highlighted concerns from property developers and some local governments about the implications of long-term restrictions on land use and property values. Critics argue that such measures could deter investment in housing development, while supporters emphasize the necessity of safeguarding affordable housing in a state where housing costs continue to soar.

The economic implications of AB 613 are significant, as it aims to stabilize housing costs for vulnerable populations while potentially reducing the burden on state and local resources for housing assistance. Socially, the bill is poised to foster community stability by allowing families to build equity in their homes without the fear of sudden price increases or displacement.

As California grapples with its housing crisis, AB 613 represents a proactive step toward creating sustainable, affordable housing solutions. If passed, it could serve as a model for other states facing similar challenges, reinforcing the importance of innovative approaches to housing policy. The bill's progress will be closely monitored as stakeholders assess its potential impact on California's housing landscape.