The Board of Equalization on Oct. 21 accepted an informational hearing report exploring options to use the welfare exemption to incentivize and streamline affordable housing financing.

Member Vasquez summarized proposals heard during a prior August hearing, including (1) authorizing third-party certification to speed tenant income verification, (2) permitting earlier start of the welfare-exemption approval process during financing to give developers certainty, and (3) expanding income limits eligible for full or partial exemptions. Vasquez said the recommendations would require legislative changes in some cases but could help produce more affordable housing.

Member Vasquez moved to accept the report; Vice Chair Lieber seconded. The board called the roll and approved the measure. The accepted report will be made part of the official record and distributed to hearing participants and the public.

Why it matters: The welfare exemption can reduce operating costs for nonprofit or government-owned affordable housing that serves low-income residents. Streamlining administration or expanding eligibility are policy options that could affect development finance and local welfare-exemption workloads.

Next steps: The board accepted the report into the record. Any legislative action required by the recommendations would need to originate with the Legislature.