California Assembly Bill AB1445

California 2025-2026 Regular Session

• Introduced: 2/21/25
• Refer: 3/28/25
• Report Pass: 3/28/25
• Refer: 4/1/25
• Report Pass: 4/24/25
• Refer: 4/29/25
• Report Pass: 5/7/25
• Engrossed: 5/23/25
• Refer: 5/23/25
• Refer: 6/4/25
• Report Pass: 7/2/25
• Refer: 7/3/25
• Report Pass: 7/16/25
• Refer: 7/17/25
• Refer: 8/18/25
• Report Pass: 8/29/25
• Enrolled: 9/11/25

Caption

Downtown revitalization and economic recovery financing districts.

Impact

AB 1445 modifies existing laws governing enhanced infrastructure financing districts by allowing more local governments to create specific financing districts aimed at revitalizing downtown areas. Under this bill, districts will be able to opt into a system that allocates tax increments to support residential projects derived from commercial properties. This shift underscores a significant policy change that encourages conversions to address the housing crisis in urban settings and aims to provide substantial benefits to communities by addressing both housing needs and economic development.

Summary

Assembly Bill 1445, introduced by Assembly Member Haney, aims to expand the ability of cities and counties in California, except for San Francisco, to establish downtown revitalization and economic recovery financing districts. This legislation focuses on financing commercial-to-residential conversion projects using incremental tax revenues generated within these districts. By streamlining the process for these conversions, the bill intends to facilitate housing development and address community needs for affordable living spaces.

Sentiment

The sentiment surrounding AB 1445 is contingent on local economic contexts and housing needs. Supporters see this as a proactive measure to promote housing solutions in areas with surplus commercial real estate, thereby benefitting local economies and communities. However, concerns are raised regarding potential oversights in ensuring that these projects genuinely meet the local needs, and there is apprehension about the balance between economic benefits and maintaining community integrity. Stakeholders are keenly evaluating how the incremental tax distribution will be managed and its long-term implications on local revenue streams.

Contention

Key points of contention surrounding AB 1445 include the labor standards applicable to the projects, particularly the shift from San Francisco’s strict requirements to a more generalized standard applicable to other districts, which some argue could undermine worker protections. Additionally, there are debates over the adequacy of tax revenue allocations to ensure these projects truly benefit the community rather than primarily serving developers. The bill's impact on existing local governance frameworks and its alignment with broader state objectives in housing and urban revitalization also come under scrutiny.