California AB 2689 — Low-income housing tax credits: lease nonrenewal: good cause.

California, 20252026. AB 2689: Low-income housing tax credits: lease nonrenewal: good cause.

Plural source record ↗

Official legislative source ↗

Latest action

September 30, 2026 — Chaptered by Secretary of State - Chapter 958, Statutes of 2026.

Summary

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, determined as specified. 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.

Sponsors

• Ávila Farías — primary sponsor
• Caballero

Bill text

AB2689 Read version ↗

02/20/26 - Introduced Read version ↗

03/19/26 - Amended Assembly Read version ↗

04/06/26 - Amended Assembly Read version ↗

04/30/26 - Amended Assembly Read version ↗

06/22/26 - Amended Senate Read version ↗

09/03/26 - Enrolled Read version ↗

09/30/26 - Chaptered Read version ↗

Recorded votes

Legislative history

1. September 30, 2026Chaptered by Secretary of State - Chapter 958, Statutes of 2026.
2. September 30, 2026Approved by the Governor.
3. September 10, 2026Enrolled and presented to the Governor at 3 p.m.
4. August 30, 2026Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 69. Noes 2. Page 6884.).
5. August 28, 2026In Assembly. Concurrence in Senate amendments pending.
6. August 27, 2026Read third time. Passed. Ordered to the Assembly. (Ayes 40. Noes 0. Page 5947.).
7. July 2, 2026Read second time. Ordered to third reading.
8. July 1, 2026From committee: Do pass. (Ayes 11. Noes 0.) (June 30).
9. June 22, 2026From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on JUD.
10. June 17, 2026From committee: Do pass and re-refer to Com. on JUD. with recommendation: To Consent Calendar. (Ayes 10. Noes 0.) (June 16). Re-referred to Com. on JUD.
11. June 10, 2026Referred to Coms. on HOUSING and JUD.
12. June 1, 2026In Senate. Read first time. To Com. on RLS. for assignment.
13. May 28, 2026Read third time. Passed. Ordered to the Senate. (Ayes 68. Noes 1. Page 5549.)
14. May 4, 2026Read second time. Ordered to third reading.
15. April 30, 2026Read second time and amended. Ordered returned to second reading.
16. April 29, 2026From committee: Amend, and do pass as amended. (Ayes 11. Noes 1.) (April 29).
17. April 9, 2026In committee: Hearing postponed by committee.
18. April 7, 2026Re-referred to Com. on H. & C.D.
19. April 6, 2026From committee chair, with author's amendments: Amend, and re-refer to Com. on H. & C.D. Read second time and amended.
20. March 23, 2026Re-referred to Com. on H. & C.D.
21. March 19, 2026From committee chair, with author's amendments: Amend, and re-refer to Com. on H. & C.D. Read second time and amended.
22. March 19, 2026Referred to Coms. on H. & C.D. and L. GOV.
23. February 21, 2026From printer. May be heard in committee March 23.
24. February 20, 2026Read first time. To print.

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