Resolution supporting California State Assembly Bill No. 1265, introduced by Assembly Member Matt Haney, which will create a new State Housing Tax Credit program to prohibit the maximum credit amount from exceeding $5,000,000 per taxpayer, no longer allow a 5% credit uplift for specified priority projects, and eliminate the credit set aside for smaller projects.

Summary

This resolution expresses the San Francisco Board of Supervisors' support for California State Assembly Bill No. 1265 (AB 1265), introduced by Assembly Member Matt Haney. AB 1265 aims to create a new State Housing Tax Credit program by extending the existing Historic Tax Credit (HTC) through December 31, 2030. Key changes introduced by AB 1265 include:

• Standardizing the credit rate to 20% for qualified rehabilitation expenses, aligning with the federal program.
• Establishing a maximum credit amount of $5,000,000 per taxpayer, replacing the previous aggregate annual cap and removing the credit set-aside for smaller projects.
• Eliminating the 5% credit uplift previously available for specified priority projects, including affordable housing.
• Removing the residential-only credit and the credit for qualified residences, simplifying the program to apply to all certified historic properties.

The resolution highlights that these changes will improve predictability, increase equity, and benefit projects statewide, particularly in urban areas like San Francisco, by encouraging the adaptive reuse of historic buildings which aligns with the City's goals for density and environmental sustainability.

Citizen Impact

This resolution supports state legislation that modifies a tax credit program for historic building rehabilitation. While the resolution itself does not directly impact residents, the state bill it supports could affect the availability and structure of tax credits for developers, potentially influencing the feasibility and type of historic rehabilitation projects, including affordable housing, undertaken in the city.

Confidence

high