California Enacts Law to Limit Rent Increases on all LIHTC Properties 

A recent Novogradac blog post discusses California’s latest AB 846 legislation. 

California Gov. Gavin Newsom recently signed into law a bill that expands the existing California Tax Credit Allocation Committee (CTCAC) limit on rent increases for tenants in properties financed by low-income housing tax credits (LIHTCs) or private activity bonds (PABs). AB 846 requires CTCAC to establish regulations that will limit rent increases for all LIHTC and PAB properties by June 30, 2025. The current rent increase regulations passed in April limit increases for properties that received an allocation of LIHTCs after April 3, 2024, or that are seeking to transfer ownership within five years. AB 846 will require CTCAC to implement regulations that will apply to limits on rent increase to properties that received an allocation before April 3, 2024.