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Committee advances property‑tax exemption for community land trusts, supporters say it’s cost‑effective
Summary
The committee passed AB 672 to Appropriations after authors and CLT leaders testified that modest property‑tax exemptions have enabled permanently affordable housing—examples cited included per‑unit savings under $4,000 and a three‑home project that saved about $13,000.
The California State Senate Committee on Revenue and Taxation voted to pass AB 672, a bill to extend or clarify the property‑tax welfare exemption for community land trusts (CLTs), sending it to the Committee on Appropriations.
Assemblymember Colosa introduced the bill and described it as a simple, straightforward exemption to assist in the making or rehabilitation of low‑income housing through CLTs. Witnesses from CLTs and housing organizations told the committee the exemption has enabled projects that otherwise would not have been financially viable.
Jen Collins, operations and finance director of the Oakland Community Land Trust and a CLT resident, said the tax exemption “is less than $4,000 per unit for permanently affordable housing” when the state subsidy is broken down, and called the model “a lot of bang for the buck.” Gene Diaz, executive director of St. Joseph Community Land Trust in South Lake Tahoe, described a recent project where an exemption of approximately $13,000 for three homes was critical amid pandemic‑related cost increases; those homes were built on land donated by the city and sold to local families.
Multiple CLT representatives and a statewide network representative voiced support. Committee members praised the bill as a practical tool to preserve long‑term affordability; Senator Grayson said CLTs can keep assets “off the speculative market” and expand homeownership opportunities. The committee moved the bill to Appropriations and recorded the vote.
AB 672 will next be considered by Appropriations, where fiscal implications for counties and the state may be discussed further.
