This ordinance exempts certain transfers of rent-restricted affordable housing valued at $5 million or more from increased transfer tax rates, effective from January 1, 2021. It also confirms the Planning Department's compliance with environmental regulations.
Ordinance amending the Business and Tax Regulations Code to exempt certain transfers of rent-restricted affordable housing occurring on or after January 1, 2021, from the increased transfer tax rates when the consideration or value of the interest or property conveyed equals or exceeds $5,000,000; and affirming the Planning Department’s determination under the California Environmental Quality Act.
How it got here
The legislation originated from a need to address the increased transfer tax rates on affordable housing transactions following the passage of Proposition I in 2020.
Supervisor Dean Preston introduced the ordinance to amend the Business and Tax Regulations Code to exempt certain transfers of rent-restricted affordable housing from increased transfer tax rates.
The ordinance was transmitted to the Planning Department for environmental review, affirming compliance with the California Environmental Quality Act.
The Planning Department completed its review and determined that the ordinance would not result in a direct or indirect physical change in the environment.
The Budget and Finance Committee recommended the ordinance for passage, highlighting its potential to reduce transfer taxes for affordable housing transactions.
The Board of Supervisors passed the ordinance on first reading, moving it closer to final approval.
The Board of Supervisors finally passed the ordinance, solidifying the exemption for certain transfers of rent-restricted affordable housing.
The Mayor approved the ordinance, officially enacting the changes to the Business and Tax Regulations Code.
Reconstructed from attached documents & the official record
