Housing discrimination: nonprofit home-sharing program: eligibility for public social services.

New subsection (c)(1) of Section 10007 requires the State Department of Health Care Services to implement the income exemption for Medi-Cal eligibility no sooner than January 1, 2027.

New subsection (c)(2) conditions Medi-Cal implementation on consistency with federal law, receipt of necessary federal approvals, and confirmation that federal financial participation under Medi-Cal is available and not otherwise jeopardized.

New subsection (c)(3) allows the State Department of Health Care Services to implement the exemption through all-county letters, plan letters, provider bulletins, or similar instructions without taking further regulatory action, bypassing normal rulemaking procedures.

The definition of 'no cost' in the nonprofit home-sharing program requirements was reworded from 'No cost includes, but is not limited to' to 'No cost applies to, but is not limited to,' clarifying that it defines the standard rather than merely listing examples.

Section 10007 was restructured: the former subsection (a)(2) (SSDI waiver-seeking) moved to new subsection (b), definitions moved from (b) to (d), and the new Medi-Cal provisions occupy subsection (c).

The bill text was re-rendered from a formal enrolled document format (with page numbers, clerk/governor signature blocks, and chapter number placeholder) into a web page layout with site navigation, version history sidebar, status timeline, and a digest key showing vote/appropriation/fiscal/local program flags. All substantive legislative language in Sections 1 through 4 is identical.

New subsection (C) added to the definition of 'discrimination' in Government Code Section 12927. Refusing to rent a portion of an owner-occupied single-family house is not considered discrimination if the owner is participating in a nonprofit home-sharing program (as defined in Welfare and Institutions Code Section 10007), rents to no more than two roomers, boarders, or tenants, shares living areas with them, and complies with anti-discrimination notice requirements.

The existing exemption in subsection (A) for owner-occupied single-family houses was narrowed. It now specifically covers roomers and boarders (not tenants generally) and is limited to one person living in the household, rather than the previous language that allowed up to two tenants.

The new exemption cross-references the definition of 'nonprofit home-sharing program' in Section 10007 of the Welfare and Institutions Code, which requires the program to be administered by a nonprofit or governmental entity, provide free services including case management, have leases of at least 30 days, and employ full-time case managers available at least five days per week.

The income tax exclusion for payments received by lower-income households participating as landlords in a nonprofit home-sharing program is now limited to taxable years beginning on or after January 1, 2026, and before January 1, 2031 (a 5-year window). The original version had no expiration date.

Revenue and Taxation Code Section 17131.19 is now described as being both added and repealed, indicating a built-in sunset that will automatically terminate the tax exclusion after the 2030 taxable year.

The state-mandated local program designation was changed from 'no' to 'yes,' acknowledging that expanding public social services eligibility through this bill imposes costs on counties that may require state reimbursement.

A new digest section (6) was added providing that if the Commission on State Mandates determines the bill contains state-mandated costs, reimbursement shall be made to local agencies under existing statutory procedures.

The public social services provision was expanded to specifically name CalWORKs (cash assistance), CalFresh (nutrition assistance), and Medi-Cal (health care) as the programs from which home-sharing income will be excluded for eligibility and benefit amount purposes. The original version used only the general term 'public social services.'

A new digest section (5) was added requiring the bill to include specific goals, purposes, performance indicators, and data collection requirements as mandated for bills authorizing new tax expenditures.

In Section 1946.2(b)(2)(A)(i) of the Civil Code (no-fault just cause for owner occupancy), 'grandparents' was removed from the list of persons whose intent to occupy can trigger a no-fault termination. The original listed 'spouse, domestic partner, children, grandchildren, parents, or grandparents or caregiver'; the amended version lists 'spouse, domestic partner, children, grandchildren, parents, or caregiver.' Grandparents remain in other subclauses of the same section.

The legislative digest title was changed from 'tax credit' to 'income tax credit: exclusion,' more accurately describing the mechanism as an exclusion from gross income rather than a credit against tax liability.

The entire state income tax exclusion (Section 17131.19, Revenue and Taxation Code) was deleted. This provision would have excluded rental income from gross income for lower-income household members participating as landlords in nonprofit home-sharing programs for taxable years 2026 through 2031.

A new requirement was added to Section 10007 of the Welfare and Institutions Code directing the State Department of Social Services to seek all available federal waivers and approvals necessary to exclude home-sharing rental income from household income calculations under CalFresh and SSI/SSP.

The bill's scope narrowed by removing the tax code amendment, reducing the act to amending only Section 12927 of the Government Code and adding Section 10007 to the Welfare and Institutions Code. Sections were renumbered accordingly (former Section 4 became Section 3, former Section 5 became Section 4).

Removed all performance indicators for the tax exclusion (self-reports from participants, tracking increases in participation over time, tracking increases in excluded income) and removed the requirement for the Legislative Analyst's Office to submit an evaluation report to the Assembly Revenue and Taxation Committee and Senate Governance and Finance Committee by May 1, 2030.

Added a statement that 'there is no available data to collect or report with respect to the exclusion added by this section,' effectively eliminating any accountability or evaluation mechanism for the tax expenditure.

Removed the redundant phrase 'lower income household' from before 'qualified taxpayer' in the tax exclusion provision (Section 17131.19), so the text now reads 'a qualified taxpayer' rather than 'a lower income household qualified taxpayer.' The definition of 'qualified taxpayer' as a member of a lower income household remains unchanged.

Corrected the sunset date from 'January, December 1, 2031' to simply 'December 1, 2031,' fixing a drafting error where an incorrect month was left in the text.

Renumbered sections: the Welfare and Institutions Code provision moved from Section 4 to Section 3, and the state mandates reimbursement provision moved from Section 5 to Section 4.

The entire amendment to Civil Code Section 1946.2 was removed. This provision would have added a caregiver's intent to occupy as a no-fault just cause for eviction, required relocation assistance (one month's rent or final month rent waiver) for no-fault terminations, imposed notice requirements, and created civil liability including treble damages for willful violations.

The bill title changed from 'an act to amend Section 1946.2 of, and to repeal Section 1946.5 of, the Civil Code' to simply 'an act to repeal Section 1946.5 of the Civil Code,' reflecting the removal of the just cause eviction amendment.

The public social services provision was reworded from excluding income 'received by an applicant for, or a recipient of, public social services through renting bedrooms or units' to exempting income 'received through renting bedrooms or units as a landlord in a nonprofit home-sharing program from consideration as income or assets for determining eligibility and benefit amounts.' Added language explicitly stating this imposes a state-mandated local program on counties.

The fiscal note changed 'State-mandated local program' from 'no' to 'yes,' acknowledging that the expanded social services eligibility creates new costs for counties that the state must reimburse.

Sections were renumbered (former SEC. 3 became SEC. 2, former SEC. 4 became SEC. 3, etc.) to account for the removal of the Section 1946.2 amendment. Minor typo corrections were made throughout, including 'per months month' to 'per month' and standardizing 'home sharing' to 'home-sharing.'

The bill no longer repeals Civil Code Section 1946.5, which had provided lodgers (roomers in owner-occupied dwellings) with specific notice-based termination rights. Removing this repeal means existing lodger protections remain in place.

The income tax exclusion under Revenue and Taxation Code Section 17131.19 is narrowed from applying to payments received by a 'lower income household' to payments received by a 'qualified taxpayer,' defined as an individual who is a member of a lower income household as defined in Health and Safety Code Section 50079.5. This shifts the exclusion from a household-level concept to an individual taxpayer.

A new finding is added stating that 'there is no available data to collect or report with respect to the exclusion added by this section,' addressing the data collection requirement for bills authorizing new tax expenditures under Section 41 of the Revenue and Taxation Code.

The sunset/repeal date for the tax exclusion section is corrected from 'January, 1, 2031' to 'December 1, 2031,' extending the effective period by one month.