Legislation to Establish Major New Incentive for Affordable Housing in Opportunity Zones Clears Key Committee

Unanimous Bipartisan Support For Legislation that would address concerns from the 2017 federal tax overhaul and build on Governor Newsom’s call for California to direct investments in low income census tracts

(From Press Release) – Yesterday, the Assembly Revenue and Taxation Committee voted unanimously to advance legislation by Assemblymember Jesse Gabriel (D – San Fernando Valley) that would provide a major new incentive for the production and preservation of affordable housing in low income census tracts known as “Opportunity Zones.”  The legislation—Assembly Bill (AB) 791—would provide $200 million in new tax credits for the construction of affordable housing in Opportunity Zones, and $100 million in new tax credits to preserve affordable housing stock in Opportunity Zones.

“We have a unique opportunity to dramatically increase private investment in some of California’s most economically distressed communities,” said Assemblymember Gabriel.  “But without action by the state, there is no guarantee that new investments will benefit low income communities or the broader public.  Our legislation would direct new capital into affordable housing and help ensure that Opportunity Zones are part of the solution to California’s housing crisis.”