AB-2689 • 2026

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

Housing Taxes

Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor: Ávila Farías
Last action: 2026-06-10
Official status: Referred to Coms. on HOUSING and JUD.
Effective date: Not listed

Plain English Breakdown

Using official source text because the generated explanation was unavailable or could not be confirmed against the official bill text.

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

AB 2689, as amended, Ávila Farías.

What This Bill Does

AB 2689, as amended, Ávila Farías.
Low-income housing tax credits: lease nonrenewal: good cause.
Existing law, in modified conformity with federal income tax laws, establishes a low-income housing tax credit program through which the California Tax Credit Allocation Committee allocates low-income housing tax credits aimed at providing affordable low-income housing within and throughout the state.
Existing federal law sets limitations and guidelines regarding what projects are eligible for credits, including a requirement that an extended low-income housing commitment is in effect, and a prohibition against eviction except for good cause.

Limits and Unknowns

This entry is temporarily using official source text because the generated explanation could not be confirmed against the official bill text during the last sync.

Bill History

2026-06-10 California Legislative Information
Referred to Coms. on HOUSING and JUD.
2026-06-01 California Legislative Information
In Senate. Read first time. To Com. on RLS. for assignment.
2026-05-28 California Legislative Information
Read third time. Passed. Ordered to the Senate. (Ayes 68. Noes 1.)
2026-05-04 California Legislative Information
Read second time. Ordered to third reading.
2026-04-30 California Legislative Information
Read second time and amended. Ordered returned to second reading.
2026-04-29 California Legislative Information
From committee: Amend, and do pass as amended. (Ayes 11. Noes 1.) (April 29).
2026-04-09 California Legislative Information
In committee: Hearing postponed by committee.
2026-04-07 California Legislative Information
Re-referred to Com. on H. & C.D.
2026-04-06 California Legislative Information
From committee chair, with author's amendments: Amend, and re-refer to Com. on H. & C.D. Read second time and amended.
2026-03-23 California Legislative Information
Re-referred to Com. on H. & C.D.
2026-03-19 California Legislative Information
From committee chair, with author's amendments: Amend, and re-refer to Com. on H. & C.D. Read second time and amended.
2026-03-19 California Legislative Information
Referred to Coms. on H. & C.D. and L. GOV.
2026-02-21 California Legislative Information
From printer. May be heard in committee March 23.
2026-02-20 California Legislative Information
Read first time. To print.

Official Summary Text

AB 2689, as amended, Ávila Farías.
Low-income housing tax credits: lease nonrenewal: good cause.
Existing law, in modified conformity with federal income tax laws, establishes a low-income housing tax credit program through which the California Tax Credit Allocation Committee allocates low-income housing tax credits aimed at providing affordable low-income housing within and throughout the state. Existing federal law sets limitations and guidelines regarding what projects are eligible for credits, including a requirement that an extended low-income housing commitment is in effect, and a prohibition against eviction except for good cause.
This bill would specify, for housing projects where the low-income housing commitment requires 100% of the units, not including any manager’s units, to be restricted to lower income households, as defined, that good cause for nonrenewal of a lease includes cases where the
nonrenewal relates to a household whose income exceeds 140% of the area median income for at least 2 consecutive years and 30% of the household’s monthly income exceeds the fair market rent for the county where they reside.
The bill would require an owner to provide notice of the potential of good cause for nonrenewal described above if the household’s income exceeds 140%
of the area median income during any income certification, as specified. The bill would also require an owner electing to not renew a lease as described above to issue a notice of nonrenewal describing the basis of good cause for nonrenewal at least 90 days prior to the expiration of the lease, as specified.

Current Bill Text

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