Bill > AB1445

This bill expands the existing downtown revitalization and economic recovery financing district framework, originally established only for San Francisco, to allow other California cities, counties, and cities and counties to create similar districts for converting commercial buildings to residential spaces. The bill establishes specific requirements for these districts, including that proposed commercial-to-residential conversion projects must: be located in areas with at least 75% urban use surrounding them, be in areas with office building vacancy rates of 20% or higher, and be within a transit priority area. Districts must ensure that converted projects provide community-wide benefits, with at least 60% of the project's square footage designated for residential use. The bill mandates affordability requirements, such as setting aside a percentage of units for lower or very low-income households, and requires prevailing wages to be paid for these conversion projects. Projects can receive incremental tax revenues generated by their own conversion for up to 30 years, with specific distribution rules and limitations. The bill also requires annual public reporting on district activities, project progress, and financial performance, and sets a maximum 45-year lifespan for these districts. Notably, the bill provides a sunset date of December 31, 2032, for projects to opt into receiving incremental tax revenues, and includes provisions for labor standards and potential affordable housing requirements.

Budget and Finance, Government Affairs, Housing and Urban Affairs

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