Section 214.18.
Cal. Revenue and Taxation Code - RTC § 214.18.
in effect(a)
Property is within the exemption provided by Sections 4 and 5 of Article XIII of the California Constitution if the property is owned by a community land trust, otherwise qualifying for exemption under Section 214, and all of the following conditions are met:
(1)
The property is being or will be developed or rehabilitated as any of the following:
(A)
An owner-occupied single-family dwelling.
(B)
As an owner-occupied unit in a multifamily dwelling.
(C)
As a member-occupied unit in a limited equity housing
cooperative.
(D)
As a rental housing development.
(2)
Improvements on the property are or will be available for use and ownership or for rent by qualified persons.
(3)
(A)
A deed restriction or other instrument, requiring a contract or contracts serving as an enforceable restriction on the sale or resale value of owner-occupied units or on the affordability of rental units is recorded on or before the lien date following the acquisition of the property by the community land trust.
(B)
For purposes of this section:
(i)
“A contract or contracts serving as an enforceable
restriction on the sale or resale value of owner-occupied units” means a contract described in paragraph (11) of subdivision (a) of Section 402.1.
(ii)
“A contract or contracts serving as an enforceable restriction on the affordability of rental units” means an enforceable and verifiable agreement with a public agency, a recorded deed restriction, or other legal document described in subparagraph (A) of paragraph (2) of subdivision (g) of Section 214.
(C)
A copy of the deed restriction or other instrument shall be provided to the assessor.
(b)
(1)
Subject to subdivision (d), the exemption provided by subdivision (a) shall not be denied to a property on the basis that the property does not
currently contain a single-family dwelling, a unit in a multifamily dwelling, a unit in a limited equity housing cooperative, or a rental housing development that is in the course of construction.
(2)
Once property that is a rental housing development is in the course of construction, the property shall be deemed to qualify for the exemption provided under Section 214 and on subsequent lien dates the property shall qualify for exemption pursuant to Section 214.
(c)
For purposes of this section, all of the following definitions shall apply:
(1)
“Community land trust” has the same meaning as that term is defined in clause (ii) of subparagraph (C) of paragraph (11) of subdivision (a) of Section 402.1.
(2)
“Course of construction” has the same meaning as the term “facilities in the course of construction,” as used and defined in Sections 214.1 and 214.2.
(3)
“Limited equity housing cooperative” has the same meaning as that term is defined in Section 817 of the Civil Code.
(4)
“Persons and families of low income” has the same meaning as the term “lower income households,” as defined in Section 50079.5 of the Health and Safety Code.
(5)
“Persons and families of low or moderate income” has the same meaning as that term is defined in Section 50093 of the Health and Safety Code.
(6)
“Qualified persons”
means the following:
(A)
In the case of property developed for owner-occupied housing, as described in subparagraphs (A), (B), and (C) of paragraph (1) of subdivision (a), persons and families of low or moderate income, including persons and families of low or moderate income that own a dwelling or unit collectively as member occupants or resident shareholders of a limited equity
housing cooperative.
(B)
In the case of property developed for rental housing, as described in subparagraph (D) of paragraph (1) of subdivision (a), persons and families of low income.
(7)
“Rental housing development” means a rental housing development in which all of the residential units in the development, other than units provided to property managers, are required to be rented to, and occupied by, persons and families of low or moderate income, at rents that do not exceed an affordable rent as described in Section 50053 of the Health and Safety Code.
(d)
(1)
Notwithstanding any other law, the community land trust shall be liable for property tax for the years for which the property
was exempt from taxation pursuant to this section if the property was not developed or rehabilitated, or if the development or rehabilitation is not in the course of construction, in accordance with paragraph (1) of subdivision (a) as follows:
(A)
In the case of property acquired by the community land trust before January 1, 2022, by January 1, 2027.
(B)
In the case of property acquired by the community land trust on and after January 1, 2022,
and before January 1, 2027, within
five years of the lien date following the acquisition of the property by the community land trust.
(2)
The community land trust shall notify the assessor of the county in which the property is located if property owned by the community land trust granted an exemption pursuant to this section is not in the course of construction by the dates specified in paragraph (1).
(e)
Property shall be eligible for exemption pursuant to this section as follows:
(1)
In the case of property acquired by the community land trust before January 1,
2022,
for lien dates occurring on and after January 1, 2020, and before January 1, 2027.
(2)
(A)
In the case of property acquired by the community land trust on and after January 1, 2022, and before January 1, 2027, for the first five lien dates following the acquisition of the property by the community land trust.
(B)
Property shall be eligible for exemption for the lien dates specified in subparagraph
(A) regardless of the repeal of this section.
(f)
This section shall remain in effect only until January 1, 2027, and as of that date is repealed.
References
referencesCal. Civil Code - CIV § 817.
referencesCal. Health and Safety Code - HSC § 50079.5.
referencesCal. Health and Safety Code - HSC § 50093.
referencesCal. Health and Safety Code - HSC § 50053.
referencesCal. Revenue and Taxation Code - RTC § 4.
referencesCal. Revenue and Taxation Code - RTC § 214.
referencesCal. Revenue and Taxation Code - RTC § 402.1.
referencesCal. Revenue and Taxation Code - RTC § 214.1.
Source: CA Legislative Counsel Bulk DataURL: https://downloads.leginfo.legislature.ca.gov/pubinfo_2025.zipFetched: 6/27/2026