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Board of Equalization urged to issue guidance after nonprofits, assessors cite multi‑year delays implementing AB 2353
Summary
At a July 22 informational hearing, assessors and affordable‑housing developers urged the Board of Equalization to publish concrete guidance on AB 2353, standardize documentation, and coordinate outreach to lenders and county tax collectors to stop projects from bearing multi‑year carrying costs.
Chair Lieber opened the Board of Equalization's informational hearing on item 14 by framing the issue as central to housing production: "I'm so honored to have so many qualified experts here to talk with us today about affordable housing and the welfare tax exemption," she said.
Panelists told the board that AB 2353, which was intended to allow nonprofit developers to withhold tax payments while exemption applications are processed, has not worked as designed in practice. "Developers are waiting 1 to 3 years to secure welfare tax exemption approval," said Taisha Watts, associate policy director at the California Housing Partnership. That delay, panelists said, forces organizations to carry large financing costs, divert staff time to administrative follow‑up, and in some cases lose the ability to recover refunds because statutes of limitation expire.
Kristin DePaul, Modoc County assessor and president of the California Assessors Association, urged a systems view: "The welfare exemption is co‑administered by the Board of Equalization and County Assessors," she said, adding that coordination with applicants, lenders and tax collectors is essential. Assessors and nonprofit advocates set out four core requests for the BOE: issue guidance on AB 2353 compliance (including model language and a BOE confirmation certificate), promote faster county qualification timelines, clarify minimum and maximum documentation requirements, and partner on targeted outreach to counties where practices are breaking down.
Board members pressed for statutory clarity and next steps. Several assessors noted that the statute waives interest and penalties while a property is under review but does not itself force lenders or title companies to honor a tax hold; Jared Gregory, Santa Clara County exemption supervisor, said the largest operational delay is "an application filled out incorrectly or incompletely," which triggers repeated back‑and‑forth that slows every case. Chair Lieber committed to convening assessors, tax collectors, and stakeholders and to pursue confidential outreach to identify counties with recurrent problems.
The hearing did not produce a formal vote. The BOE staff said it is developing an electronic exemption filing portal and recommended checklists and clearer guidance as immediate administrative steps while the portal is built.
