Downtown revitalization and economic recovery financing districts.
Impact
The bill significantly enhances the capacity of local governments to manage and finance the transformation of commercial properties into residential units. This initiative is positioned to contribute to housing supply, particularly in urban areas facing housing shortages. While existing law limited the establishment of such districts to San Francisco, AB 1445 expands this authority statewide, potentially accelerating housing development in various communities and promoting economic recovery from downturns.
Summary
Assembly Bill 1445 aims to allow cities and counties in California, excluding the City and County of San Francisco, to establish downtown revitalization and economic recovery financing districts. These districts would be charged with financing commercial-to-residential conversion projects utilizing incremental tax revenues generated within the districts. The bill modifies existing laws concerning the formation and financing of these districts, particularly focusing on labor standards and fiscal allocations related to commercial-to-residential conversions.
Sentiment
The sentiment surrounding AB 1445 is mixed among stakeholders. Proponents argue the bill is essential for revitalizing underutilized commercial spaces and addressing housing demands in urban centers. Supporters perceive it as a timely response to economic recovery needs, emphasizing local government flexibility and innovation in addressing housing shortages. Conversely, critics raise concerns regarding the legislation's implications for labor standards and the potential for inadequate oversight in project financing, asserting that it may compromise community protections.
Contention
Notable contention exists regarding the bill's impact on labor standards for projects opting to receive incremental tax revenues. AB 1445 proposes to loosen some existing labor compliance requirements specifically for projects outside San Francisco, which has elicited disapproval from labor groups and advocates who fear a decrease in labor rights protections. The debate continues around balancing economic incentives for development while ensuring adequate worker rights and community interests are preserved.
Real property development: San Francisco: downtown revitalization zone: welfare tax exemption and California Environmental Quality Act exemption and streamlining.
Local government: infrastructure financing districts: Reinvestment in Infrastructure for a Sustainable and Equitable California (RISE) districts: housing development: restrictive covenants.
Real property development: San Francisco: downtown revitalization zone: welfare tax exemption and California Environmental Quality Act exemption and streamlining.
Individual income and corporate franchise taxes, property taxes, local government aids, sales and use taxes, tax increment financing, special local taxes, and other various taxes and tax-related provisions modified; various tax refunds and credits modified; reports required; and money appropriated.