AB 2110: Local financing: workforce housing: tax increment financing district.

Existing law authorizes the creation of various infrastructure financing districts, including enhanced infrastructure financing districts for purposes of financing public capital facilities or other specified projects of communitywide significance that provide significant benefits or the surrounding community.

This bill would authorize the establishment of tax increment financing districts for purposes of financing the construction, rehabilitation, repair, and upgrades to workforce housing for public safety, education, health care, or manufacturing personnel. The bill would set forth requirements for membership on the districts governing board, and would require the governing board to direct the preparation of a financing plan for the district, as provided. The bill would require the district to hold public hearings and receive written and oral protests to the financing plan in accordance with specified procedures and would require an election to be called if between 25% and 50% of the combined number of landowners and residents in the area who are at least 18 years of age file a protest. The bill would require, if the election is to be conducted by mail ballot, the identification envelope for return of mail ballots used in landowner elections to contain a declaration, under penalty of perjury, stating that the voter is the owner of record or the authorized representative of the landowner entitled to vote, among other things. The bill would also condition formation of the district and the division of taxes, as described below, on adoption of a resolution approving the financing plan by each affected taxing entity that is proposed to be subject to division of taxes. At the conclusion of the hearings, the bill would authorize the governing board to adopt a resolution proposing adoption of the financing plan.

The bill would authorize the financing plan to contain a provision for the division of taxes levied upon taxable property in the area included within the tax increment financing district, as specified, and would authorize the governing board to issue bonds, subject to approval by ²/₃ of the voters voting on the proposition. The bill would authorize a district formed under these provisions to finance specified types of projects, including the construction of residential housing that meets specified occupancy and affordability criteria, the rehabilitation, repair, or upgrade of any such housing, and related planning and design work. The bill would require that the districts finances be subject to audit by the Controller every 5 years, commencing with the date the district allocates a cumulative total of $1,000,000 in tax increment revenues.

By adding to the duties of local elections officials with respect to administering the above-described provisons, and by expanding the crime of perjury, the bill would impose a state-mandated local program.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that with regard to certain mandates no reimbursement is required by this act for a specified reason.

With regard to any other mandates, this bill would provide that, if the Commission on State Mandates determines that the bill contains costs so mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.