Existing legislation exempted transfers of certain rent-restricted affordable housing from higher real property transfer tax rates applicable to transfers over $5 million.

The ordinance broadens the exemption to include additional transfers not covered by the original exemption.

This partial exemption aims at maintaining affordable housing stock by reducing transfer tax liabilities and thereby encouraging the maintenance, creation, and transfer of rent-restricted properties.

The changes in the transfer tax policy support affordability criteria, aligned with the mission of the Mayor's Office of Housing and Community Development (MOHCD) to preserve and create affordable rental housing units.

The proposed ordinance has an associated legislative digest and has been presented before the Budget and Finance Committee of the Board of Supervisors for consideration, with scheduled meetings on November 15, 2023, and November 28, 2023.

Provisions include a requirement to obtain a certificate from MOHCD, submit it to the County Recorder, and strict timelines for eligibility. Additionally, revocation clauses and deficiency determinations are included to manage exemption claims effectively.