AB 2553: Vertical housing districts.

Existing law authorizes the legislative body of a city or a county to establish an enhanced infrastructure financing district to finance public capital facilities or other specified projects of communitywide significance, including, but not limited to, the acquisition, construction, or rehabilitation of housing for persons of low and moderate income for rent or purchase.

This bill would authorize an affected taxing entity or entities, as defined, to form a vertical housing district to finance the development of vertical housing zone projects. The bill would authorize the public financing authority of the district to establish a vertical housing zone or zones within the district. a city or county to designate a high-transit area as a vertical housing zone by adopting a resolution to that effect that contains specified information. The bill would authorize a taxing entity to agree to participate in an existing vertical housing zone by adopting a resolution to that effect. The bill would authorize the district to the developer of a multifamily housing project that meets specified requirements located within that zone to submit an application for a housing zone project designation to the city or county or participating taxing entity. The bill would require the city or county to approve any application for designation so submitted if the project meets certain requirements, including that the project has obtained necessary entitlements and that it is not located within specified areas. The bill would provide that a developer that is granted an application pursuant to these provisions is entitled to receive incremental excess property tax revenues from the affected taxing entities and would authorize the public financing authority of the district to provide those funds, pursuant to specified agreements, to vertical housing zone projects that meet specified requirements for a period of 15 or 20 years city or county that formed the district, as well as from any participating taxing entities, for a period of 30 years following completion of the project. project, or for a period of 35 years if the project agrees to offer a specified amount of units at an affordable rate, as provided.