Low-income housing tax credits: lease nonrenewal: good cause.

The bill text was reformatted from a traditional legislative document layout (with line numbers, page breaks, and centered headers) to a web-based display format with navigation links, version history, and structured headings. No changes to the actual statutory language or policy content.

The definition of 'fair market rent' used in the good-cause nonrenewal test was changed from a single county-level figure to the greater of (A) HUD's Fair Market Rent for an equivalent-sized unit in the county or (B) HUD's Small Area Fair Market Rent for an equivalent-sized unit in the ZIP Code, both updated annually. This raises the rent benchmark in expensive areas, making it less likely that 30% of a household's income will exceed the applicable rent threshold.

The bill was renumbered from adding Section 50199.26 to adding Section 50199.28 of the Health and Safety Code, likely to avoid a numbering conflict with another pending or enacted bill.

Senator Caballero was added as a coauthor, reflecting Senate sponsorship of the amended version.

All provisions amending Government Code Section 66342 regarding the separate sale or conveyance of accessory dwelling units as condominiums were removed from the bill entirely, including lienholder consent requirements, consumer notice language, utility provider notification, and association authorization rules.

New subdivision (b) requires an owner to provide written notice within 30 days of any income certification in which a household's income exceeds 140 percent of area median income. The notice must explain that if the threshold is exceeded for two consecutive years and 30 percent of monthly income exceeds fair market rent, the owner may have good cause for nonrenewal.

New subdivision (c) requires an owner electing to not renew a lease based on this good cause to issue a notice at least 90 days before lease expiration, citing the specific section and stating that nonrenewal is for good cause because the household's income has exceeded 140 percent of area median income for two consecutive years and 30 percent of monthly income exceeds fair market rent.

The substantive good-cause provision was moved from Section 50199.26 to new Section 50199.28 of the Health and Safety Code, and percentage symbols were replaced with the word 'percent' throughout.

New Section 50199.26 to the Health and Safety Code specifies that for low-income housing projects where 100% of units are restricted to lower income households, good cause for lease nonrenewal includes cases where the household's income exceeds 140% of area median income for at least 2 consecutive years AND 30% of the household's monthly income exceeds fair market rent for the county. This clarifies when landlords in fully-restricted LIHTC buildings can nonrenew leases due to tenant income growth.

The amendment to Section 88651 of the Education Code (a nonsubstantive change to the sunset/repeal date of the California Community Colleges Economic and Workforce Development Program, set to expire January 1, 2030) was removed from the bill entirely.

The requirement that a safety inspection of the accessory dwelling unit be conducted before recordation of the condominium plan (evidenced by a certificate of occupancy or a HUD-certified housing quality standards report) was removed from Section 66342 of the Government Code, making it easier to separate ADUs as condominiums without a pre-recordation inspection.