BOE accepts informational report on using welfare exemption to support affordable housing
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Summary
The BOE accepted an informational report on using the welfare exemption to incentivize affordable housing and financing, highlighting proposals such as third‑party tenant certification and earlier waivers in financing timelines.
The Board of Equalization on Oct. 21 accepted an informational report on proposals to use the property tax welfare exemption as a tool to support affordable housing development and financing.
Member Vasquez summarized recommendations heard earlier from the UC Berkeley Turner Center and the California Housing Partnership, noting several options could require legislative change. Key ideas discussed in the hearing included authorizing third‑party certification to expedite tenant income verification, starting the welfare‑exemption approval process earlier in development financing to provide certainty to developers and investors, and expanding income limits for full or partial welfare exemptions.
Vasquez told the board these changes "could hold some real promise as the state continues to look for ways to incentivize real affordable housing." He moved to accept the informational hearing report so an official record would be created and distributed to speakers and the public; the motion passed on a voice/roll call vote.
Why it matters: Streamlining application and certification requirements for the welfare exemption can affect project feasibility for nonprofit and public‑benefit housing providers and influence the timing of financing. Some proposals raised at the hearing would require changes to state law.
What’s next: The report is accepted and will be posted; staff and interested parties will use the record for follow‑up outreach and to inform any future policy proposals.