Plain English Breakdown
The official text does not specify an effective date for this law.
Rules for Not Renewing Leases in Low-Income Tax Credit Housing
This law defines specific income-based reasons that allow landlords to not renew a lease for tenants living in certain low-income housing projects.
What This Bill Does
- Defines 'good cause' as a reason to end a lease when a household earns more than 140% of the area median income for at least 2 consecutive years and pays less than fair market rent relative to their income.
- Requires owners to tell tenants they might face nonrenewal if an income check shows their earnings exceed 140% of the area median income.
- Mandates that owners give a written notice at least 90 days before a lease ends if they choose not to renew it based on these rules.
Who It Names or Affects
- Owners of housing projects where all units, except manager units, must be for lower-income households under the low-income tax credit program.
- Tenants living in those specific affordable housing units whose income has increased over time.
Terms To Know
- Good cause
- A legal reason required by law to end a lease or evict someone from their home.
- Area median income
- The middle point of all incomes in a specific geographic area, used as a standard for housing programs.
- Fair market rent
- The average price landlords charge to rent similar homes in the same county or region.
Limits and Unknowns
- This law only applies to buildings where every unit, except manager units, must be for lower-income households.
- It does not change rules for evictions based on other reasons like breaking lease terms or nonpayment of rent.
- The text does not state a specific date when this new rule will officially begin.