April 6, 2024 – Public Advocates’ Director of Legislative Affairs, Michelle Pariset, spoke with CalMatters reporter Jeanne Kuang, on new legislation that would put in protections for LIHTC (Low Income Housing Tax Credit) buildings and correcting details on LIHTC and legislation from a former story.
Currently, low-income renters who live in these affordable are not subject to renter protections for neighbors living in market rate housing. On April 3, 2024, the California Tax Credit Allocation Committee passed a rule that new landlords of LIHTC buildings could not raise rents by more than 10%. However, for the millions of renters who currently live in affordable housing, Michelle shared information on a new PA co-sponsored bill, AB 846, “Low-income Housing Credit: Rent Increases” that will cap rents in current LIHTC buildings. The bill has passed through the Assembly and is awaiting committee assignments in the Senate.
“The bill would directly apply the cap to current properties. Michelle Pariset, director of legislative affairs at Public Advocates, which is pushing for the bill, said that’s needed to make sure all property owners comply with the rule.
While for-profit private developers may comply so they can sell the property in the future, Pariset said, that incentive may be weaker for nonprofit affordable housing providers.
“It’s not just people living in for-profit affordable housing that are getting large rent increases,” she said. “We want to make sure everybody’s protected.’ ”
