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California’s New Tools for Non-Profit Affordable Housing Development

California's New Tools for Non-Profit Affordable Housing Development

Here in Los Angeles, the need for affordable housing solutions is ever-present. ADU Concepts, as a strong advocate for accessible housing options, is excited to share some recent positive developments in California aimed at bolstering the efforts of non-profit organizations in creating much-needed affordable housing.
While there haven’t been any recent laws specifically targeting the use of public land for affordable housing development, 2023 saw the introduction of two key pieces of legislation that empower non-profit organizations to contribute significantly to the solution:
1. The Affordable Housing on Faith Lands Act (SB 4): This act, also known as “YIGBY,” allows faith-based organizations and non-profit colleges to expedite the development of 100% affordable housing on their surplus land. By streamlining the permitting and environmental review processes, YIGBY facilitates a faster and more cost-effective approach for these entities to contribute to addressing the housing shortage. It’s important to note, however, that YIGBY only applies to projects initiated before January 1, 2024.
2. Assembly Bill 430 (AB 430): This bill specifically focuses on supporting community land trusts (CLTs), non-profit organizations dedicated to developing and managing affordable housing. AB 430 ensures the long-term affordability of CLT-managed units by allowing them to retain their tax-exempt status even if the income of the occupants increases slightly. This critical support helps CLTs maintain their mission of providing accessible housing options for low-income residents.
While these laws directly address non-profit land use, it’s valuable to acknowledge broader efforts in California aimed at increasing housing production:
  • SB 35 and SB 423: These laws streamline the approval process for specific housing developments near transit hubs and in job-rich areas.
  • AB 1633: This bill expands the scope of the Housing Accountability Act, potentially making it easier to challenge local government decisions that hinder affordable housing development.
These combined efforts represent a significant step forward in creating a more favorable landscape for affordable housing development in Los Angeles and throughout California.
ADU Concepts applauds these developments and looks forward to their positive impact on our communities.
Contact us today for a free consultation and learn how an ADU can contribute to your housing goals and potentially generate rental income.
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