AB 2397: Local government: community facilities districts: financing.

Existing law, the Mello-Roos Community Facilities Act of 1982, authorizes a local agency, as defined, to initiate proceedings to establish a community facilities district as an alternative method of financing certain public capital facilities and services, especially in developing areas undergoing rehabilitation, only if it has first considered and adopted local goals and policies, as prescribed. Existing law authorizes a local agency to take any actions or make any determinations which it determines are necessary or convenient to carry out the purposes of the act and which are not otherwise prohibited by law.

This bill would prohibit the legislative body of a local agency from taking certain actions with respect to a critical housing infrastructure district, as defined, including abandoning the proposed establishment of the district, as specified, unless prior to taking the action it makes findings based upon substantial evidence that, among other things, establishment of the district, levying the special taxes, or incurring bonded indebtedness, as applicable, would would, among other things, have a specific adverse impact upon the public interest. The bill would specify that these provisions do not require or prohibit the legislative body from taking any other action authorized by the act with respect to a critical housing infrastructure district, as specified.

The bill would include findings that changes proposed by this bill address a matter of statewide concern rather than a municipal affair and, therefore, apply to all cities, including charter cities.