Bill > AB797

This bill establishes the Community Stabilization Act, a program designed to help stabilize property values in disaster-affected areas, specifically targeting regions impacted by wildfires in Los Angeles and Ventura Counties starting on January 7, 2025. The California Infrastructure and Economic Development Bank (I-Bank) will develop and administer a program to issue tradable securities that allow qualified investors (primarily banks) to purchase and invest in residential land damaged by disasters. The program aims to prevent predatory land acquisitions and help homeowners recover their equity by enabling qualifying investment entities (such as nonprofit organizations or local public entities) to purchase properties at fair market value, minus insurance payouts. The securities will be funded through the Community Reinvestment Act and will provide returns to investors when properties are sold or refinanced within seven years. Profits from land investments will be distributed with 90% going to investors, 5% to the I-Bank, and 5% to the investment entities as administrative fees. The bill requires transparency through annual disclosures and a final report to be submitted by January 1, 2034, and is designed as an urgent measure to support rapid housing recovery in disaster-stricken communities.

Budget and Finance, Business and Industry, Justice

https://leginfo.legislature.ca.gov/faces/billStatusClient.xhtml?bill_id=202520260AB797