Laws, Regulations & Annotations

W

880.0000 WELFARE EXEMPTION

(a) IN GENERAL

Annotation 880.0267

880.0267 Recorded Regulatory Agreement. For purposes of Revenue and Taxation Code section 214(g)(1)(A), properties which have received low-income housing tax credits, whether federal or state, are eligible for exemption for the duration of the regulatory agreement that restricts the property's use for rental to lower income households. Assuming that the terms of the regulatory agreement are consistent with section 214(g) and that the property continues to be used in compliance with those terms, the exemption should apply to the percentage of units used for rental to lower income households as long as the regulatory agreement is in effect, regardless of whether the property continues to receive the credits. Thus, property which received federal low-income housing tax credits for a 15-year period that has expired may continue to receive the exemption if the property is subject to a regulatory agreement that restricts the use of the property for rental to lower income households. C 3/2/2006.