Bill Introduced to Preserve California Affordable Housing

Tuesday, February 4, 2020 - 3:00pm

A group of 19 California state legislators introduced a bill yesterday to create a $500 million affordable housing preservation tax credit. A.B. 2058 would create a tax credit with a cap of $1 million for owners of affordable housing to keep units income restricted, instead of converting them into market-rate housing when current subsidies or deed restrictions expire. The credit would begin Jan. 1, 2021, and expire Dec. 31, 2026. Authors of the legislation say it would allow California to preserve approximately 25,000 affordable apartments over the next five years at a cost of about $20,000 per unit.