10/05/2026
It’s called AB 1294, and Governor Newsom just signed it into law.
Here’s the simple version.
California is testing a new way to make certain rental housing more affordable for moderate-income workers — think teachers, nurses, firefighters and other people who may earn too much for traditional affordable housing, but still struggle with California rents.
Under AB 1294, qualifying nonprofit-owned, deed-restricted rental properties can receive a partial property-tax exemption.
But here’s the part you need to know:
This is not statewide.
The pilot applies to Alameda County, Sacramento County and San Francisco.
So if you own a typical home in Santa Clara, Santa Cruz or Monterey County, this law does not suddenly change your property taxes.
Why am I talking about it?
Because California housing laws keep changing, and what happens with programs like this can help shape the housing conversation going forward.
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