The entire value of the following types of transfers and sales are taxed at the 0.45% rate, regardless of the value of consideration:
- 100% deed-restricted affordable housing
- First transfer of newly constructed multi-family housing
A taxpayer who is entitled to this reduction must either provide documentation and receive verification of eligibility from the City before the tax is paid or claim a refund by providing documentation of eligibility after the tax is paid.
- Documentation Eligibility Form
The Documentation Eligibility Form will be posted here when available.
Affordable Housing is defined as:
“A transfer of improved real property to a nonprofit corporation, or a limited partnership or limited liability company in which a nonprofit corporation is the managing general partner or managing member, accompanied by a binding agreement or covenant recorded on the property and enforceable by the City to provide all residential units on the property (other than units reserved for on-site property managers) at an affordable rent or affordable housing cost to lower income households as defined in California Health and Safety Code Section 50079.5.”
First transfer of newly constructed multi-family housing is defined as:
“A transfer of real property that contains four or more dwelling units designed for permanent residential occupancy, including accessory dwelling units, and meets all of the following conditions:
- At least one or more of the dwelling units was newly constructed within the last five years prior to the transfer of the real property, based on the date of the issuance of the certificate of occupancy for such newly constructed dwelling units (“newly constructed” shall not include the remodel or renovation of an existing unit);
- The newly constructed dwelling units must have resulted in a net increase in the total number of dwelling units on the real property; and
- The transfer of real property is the first transfer following the issuance of the certificate of occupancy for such newly constructed dwelling units.”