Bill > AB1445

This bill expands the existing framework for downtown revitalization and economic recovery financing districts, originally established only for San Francisco, to now include other cities, counties, and cities and counties in California. The bill allows local governments to create districts that can finance commercial-to-residential conversion projects using incremental property tax revenues. To qualify, these projects must meet specific criteria, such as being located in areas with high commercial office building vacancy rates (20% or greater), being in transit priority areas, and having at least 75% of their perimeter adjoining urban-use parcels. The bill requires that at least 60% of converted spaces be designated for residential use, with provisions for affordable housing, such as setting aside a percentage of units for lower or moderate-income households. Projects that opt into receiving tax increment revenues must comply with specific labor standards, including prevailing wage requirements and additional labor standards based on project size and building height. The district must establish a process for projects to opt in, conduct annual public hearings, prepare annual reports, and limit administrative costs to 5% of tax revenues. The tax increment financing can support a project for up to 30 years or until the district ceases to exist, with the primary goal of incentivizing the conversion of underutilized commercial spaces into residential housing.

Budget and Finance, Government Affairs, Housing and Urban Affairs

https://leginfo.legislature.ca.gov/faces/billStatusClient.xhtml?bill_id=202520260AB1445