SB 772: Infill Infrastructure Grant Program of 2019: applications: eligibility.
- Session Year: 2025-2026
- House: Senate
- Latest Version Date: 2026-09-29
Current Status:
Passed
(2026-09-29: Chaptered by Secretary of State. Chapter 804, Statutes of 2026.)
Introduced
In Committee
Awaiting First Chamber Vote
Passed First Chamber
In Committee
Awaiting Second Chamber Vote
Passed Second Chamber
Enacted
Existing law establishes the Infill Infrastructure Grant Program of 2019 (program), which requires the Department of Housing and Community Development, upon appropriation of funds by the Legislature, to establish and administer a grant program to allocate those funds to eligible applicants to fund capital improvement projects that are an integral part of, or necessary to facilitate the development of, a qualifying infill project, qualifying infill area, or catalytic qualifying infill area. Existing law requires the department to administer a specified competitive application process for capital improvement projects for large jurisdictions, as defined. For these purposes, existing law defines a qualifying infill project to include a residential or mixed-use residential project located within an urbanized area on a vacant site where at least 75% of the perimeter of the site adjoins parcels that are developed with urban uses.
This bill would expand the definition of qualifying infill project to include a residential or mixed-use residential project located within an urbanized area on a vacant site where at least 75% of the perimeter of the site adjoins parcels that have been previously developed with urban uses.
Existing law requires the department to administer an over-the-counter application process for grants for capital improvement projects for small jurisdictions, as provided. For these purposes, existing law defines the term qualifying infill area as a contiguous area located within an urbanized area that meets one of specified alternative conditions, including that the capital improvement project for which funding is requested is necessary, as specified, to make the area suitable and available for residential development or to allow the area to accommodate housing for additional income levels, and that the area may be included on an inventory of land in the housing element, as specified.
This bill would expand the definition of qualifying infill area to additionally include a contiguous area located within an urbanized area for which the capital improvement project for which funding is requested under the program, as described above, is necessary and integral to make the area suitable and available for residential development pursuant to the Affordable Housing and High Road Jobs Act of 2022, which subjects a housing development to streamlined, ministerial approval under certain circumstances, as specified.
Existing law requires the department, in its review of applications, to rank affected qualifying infill areas and catalytic qualifying infill areas based on specified criteria, including the qualifying infill areas or catalytic qualifying infill areas inclusion of, or proximity to, a train station or major transit stop and the proximity of housing to existing or planned parks, employment or retail centers, schools, or social services.
This bill would revise these provisions to require the department to additionally rank applications, as described above, based on the qualifying infill areas inclusion of, or proximity or accessibility to on-demand transit services, as specified, or walkability to essential services or businesses and based on the catalytic qualifying infill areas inclusion of, or proximity or accessibility to walkability to essential services or businesses. The bill would additionally revise these provisions to require the departments ranking to be based on the proximity of housing to services, rather than social services.
Existing law requires a qualifying infill project, qualifying infill area, or catalytic qualifying infill area for which a capital improvement project grant can be awarded under the program to meet specified conditions, including, among others, being located in an area designated for mixed-use or residential development, as specified.
This bill would additionally allow the project to be located in an area that allows for mixed-use or residential development pursuant to a housing development that is in compliance with certain provisions deeming a housing development an allowable use or subject to streamlined, ministerial approval.
Existing law defines various terms for the purposes of the program, including, capital improvement project, catalytic qualifying infill area, eligible applicant, urbanized area, and urban uses.
This bill would revise these definitions. The bill would additionally define the terms on-demand transit service, major transit stop, and walkability.
Existing law establishes the Infill Infrastructure Grant Program of 2019 (program), which requires the Department of Housing and Community Development, upon appropriation of funds by the Legislature, to establish and administer a grant program to allocate those funds to eligible applicants to fund capital improvement projects that are an integral part of, or necessary to facilitate the development of, a qualifying infill project, qualifying infill area, or catalytic qualifying infill area. Existing law requires the department to administer a specified competitive application process for capital improvement projects for large jurisdictions, as defined. For these purposes, existing law defines a qualifying infill project to include a residential or mixed-use residential project located within an urbanized area on a vacant site where at least 75% of the perimeter of the site adjoins parcels that are developed with urban uses.
This bill would expand the definition of qualifying infill project to include a residential or mixed-use residential project located within an urbanized area on a vacant site where at least 75% of the perimeter of the site adjoins parcels that have been previously developed with urban uses.
Existing law requires the department to administer an over-the-counter application process for grants for capital improvement projects for small jurisdictions, as provided. For these purposes, existing law defines the term qualifying infill area as a contiguous area located within an urbanized area that meets one of specified alternative conditions, including that the capital improvement project for which funding is requested is necessary, as specified, to make the area suitable and available for residential development or to allow the area to accommodate housing for additional income levels, and that the area may be included on an inventory of land in the housing element, as specified.
This bill would expand the definition of qualifying infill area to additionally include a contiguous area located within an urbanized area for which the capital improvement project for which funding is requested under the program, as described above, is necessary and integral to make the area suitable and available for residential development pursuant to the Affordable Housing and High Road Jobs Act of 2022, which subjects a housing development to streamlined, ministerial approval under certain circumstances, as specified.
Existing law requires the department, in its review of applications, to rank affected qualifying infill areas and catalytic qualifying infill areas based on specified criteria, including the qualifying infill areas or catalytic qualifying infill areas inclusion of, or proximity to, a train station or major transit stop and the proximity of housing to existing or planned parks, employment or retail centers, schools, or social services.
This bill would revise these provisions to require the department to additionally rank applications, as described above, based on the qualifying infill areas inclusion of, or proximity or accessibility to on-demand transit services, as specified, or walkability to essential services or businesses and based on the catalytic qualifying infill areas inclusion of, or proximity or accessibility to walkability to essential services or businesses. The bill would additionally revise these provisions to require the departments ranking to be based on the proximity of housing to services, rather than social services.
Existing law requires a qualifying infill project, qualifying infill area, or catalytic qualifying infill area for which a capital improvement project grant can be awarded under the program to meet specified conditions, including, among others, being located in an area designated for mixed-use or residential development, as specified.
This bill would additionally allow the project to be located in an area that allows for mixed-use or residential development pursuant to a housing development that is in compliance with certain provisions deeming a housing development an allowable use or subject to streamlined, ministerial approval.
Existing law defines various terms for the purposes of the program, including, capital improvement project, catalytic qualifying infill area, eligible applicant, urbanized area, and urban uses.
This bill would revise these definitions. The bill would additionally define the terms on-demand transit service, major transit stop, and walkability.
Existing law establishes the Infill Infrastructure Grant Program of 2019 (program), which requires the Department of Housing and Community Development, upon appropriation of funds by the Legislature, to establish and administer a grant program to allocate those funds to eligible applicants to fund capital improvement projects that are an integral part of, or necessary to facilitate the development of, a qualifying infill project, qualifying infill area, or catalytic qualifying infill area. Existing law requires the department to administer a specified competitive application process for capital improvement projects for large jurisdictions, as defined. For these purposes, existing law defines a qualifying infill project to include a residential or mixed-use residential project located within an urbanized area on a vacant site where at least 75% of the perimeter of the site adjoins parcels that are developed with urban uses.
This bill would expand the definition of qualifying infill project to include a residential or mixed-use residential project located within an urbanized area on a vacant site where at least 75% of the perimeter of the site adjoins parcels that have been previously developed with urban uses.
Existing law requires the department to administer an over-the-counter application process for grants for capital improvement projects for small jurisdictions, as provided. For these purposes, existing law defines the term qualifying infill area as a contiguous area located within an urbanized area that meets one of specified alternative conditions, including that the capital improvement project for which funding is requested is necessary, as specified, to make the area suitable and available for residential development or to allow the area to accommodate housing for additional income levels, and that the area may be included on an inventory of land in the housing element, as specified.
This bill would expand the definition of qualifying infill area to additionally include a contiguous area located within an urbanized area for which the capital improvement project for which funding is requested under the program, as described above, is necessary and integral to make the area suitable and available for residential development pursuant to the Affordable Housing and High Road Jobs Act of 2022, which subjects a housing development to streamlined, ministerial approval under certain circumstances, as specified.
Existing law requires the department, in its review of applications, to rank affected qualifying infill areas and catalytic qualifying infill areas based on specified criteria, including the qualifying infill areas or catalytic qualifying infill areas inclusion of, or proximity to, a train station or major transit stop and the proximity of housing to existing or planned parks, employment or retail centers, schools, or social services.
This bill would revise these provisions to require the department to rank applications, as described above, based on the qualifying infill areas inclusion of, or proximity or accessibility to, a transit station or major transit stop, on-demand transit services, as specified, or walkability to essential services or businesses and based on the catalytic qualifying infill areas inclusion of, or proximity or accessibility to, a transit station or major transit stop or walkability to essential services or businesses. The bill would additionally revise these provisions to require the departments ranking to be based on the proximity of housing to services, rather than social services.
Existing law requires a qualifying infill project, qualifying infill area, or catalytic qualifying infill area for which a capital improvement project grant can be awarded under the program to meet specified conditions, including, among others, being located in an area designated for mixed-use or residential development, as specified.
This bill would additionally allow the project to be located in an area that allows for mixed-use or residential development pursuant to a housing development that is in compliance with certain provisions deeming a housing development an allowable use or subject to streamlined, ministerial approval.
Existing law defines various terms for the purposes of the program, including, capital improvement project, catalytic qualifying infill area, eligible applicant, urbanized area, and urban uses.
This bill would revise these definitions. The bill would additionally define the terms on-demand transit service, shovel-ready, major transit stop, and walkability.
Existing law establishes the Infill Infrastructure Grant Program of 2019 (program), which requires the Department of Housing and Community Development, upon appropriation of funds by the Legislature, to establish and administer a grant program to allocate those funds to eligible applicants to fund capital improvement projects that are an integral part of, or necessary to facilitate the development of, a qualifying infill project, qualifying infill area, or catalytic qualifying infill area. Existing law requires the department to administer a specified competitive application process for capital improvement projects for large jurisdictions, as defined. For these purposes, existing law defines a qualifying infill project to include a residential or mixed-use residential project located within an urbanized area on a vacant site where at least 75% of the perimeter of the site adjoins parcels that are developed with urban uses.
This bill would expand the definition of qualifying infill project to include a residential or mixed-use residential project located within an urbanized area on a vacant site where at least 75% of the perimeter of the site adjoins parcels that have been previously developed with urban uses.
Existing law requires the department to administer an over-the-counter application process for grants for capital improvement projects for small jurisdictions, as provided. For these purposes, existing law defines the term qualifying infill area as a contiguous area located within an urbanized area that meets one of specified alternative conditions, including that the capital improvement project for which funding is requested is necessary, as specified, to make the area suitable and available for residential development or to allow the area to accommodate housing for additional income levels, and that the area may be included on an inventory of land in the housing element, as specified.
This bill would expand the definition of qualifying infill area to additionally include a contiguous area located within an urbanized area for which the capital improvement project for which funding is requested under the program, as described above, is necessary and integral to make the area suitable and available for residential development pursuant to the Affordable Housing and High Road Jobs Act of 2022, which subjects a housing development to streamlined, ministerial approval under certain circumstances, as specified.
Existing law requires the department, in its review of applications, to rank affected qualifying infill areas and catalytic qualifying infill areas based on specified criteria, including the qualifying infill areas or catalytic qualifying infill areas inclusion of, or proximity to, a train station or major transit stop and the proximity of housing to existing or planned parks, employment or retail centers, schools, or social services.
This bill would revise these provisions to require the department to rank applications, as described above, based on the qualifying infill areas or inclusion of, or proximity or accessibility to, a transit station or major transit stop, on-demand transit services, as specified, or walkability to essential services or businesses and based on the catalytic qualifying infill areas inclusion of, or proximity or accessibility to, a transit station or major transit stop or walkability to essential services or businesses. The bill would additionally revise these provisions to require the departments ranking to be based on the proximity of housing to services, rather than social services.
Existing law requires a qualifying infill project, qualifying infill area, or catalytic qualifying infill area for which a capital improvement project grant can be awarded under the program to meet specified conditions, including, among others, being located in an area designated for mixed-use or residential development, as specified.
This bill would additionally allow the project to be located in an area that allows for mixed-use or residential development pursuant to a housing development that is in compliance with certain provisions deeming a housing development an allowable use or subject to streamlined, ministerial approval.
Existing law defines various terms for the purposes of the program, including, capital improvement project, catalytic qualifying infill area, eligible applicant, urbanized area, and urban uses.
This bill would revise these definitions. The bill would additionally define the terms on-demand transit service, shovel-ready, major transit stop stop, and walkability.
Existing law establishes the Infill Infrastructure Grant Program of 2019 (program), which requires the Department of Housing and Community Development, upon appropriation of funds by the Legislature, to establish and administer a grant program to allocate those funds to eligible applicants to fund capital improvement projects that are an integral part of, or necessary to facilitate the development of, a qualifying infill project, qualifying infill area, or catalytic qualifying infill area. Existing law requires the department to administer a specified competitive application process for capital improvement projects for large jurisdictions, as defined. For these purposes, existing law defines a qualifying infill project to include a residential or mixed-use residential project located within an urbanized area on a vacant site where at least 75% of the perimeter of the site adjoins parcels that are developed with urban uses. For catalytic qualifying infill areas, existing law requires grants be provided using a selection process that, among other things, requires eligible applicants to submit documentation of all necessary entitlements and permits, and a certification that the project is shovel ready, except as provided. Existing law requires a qualifying infill project, qualifying infill area, or catalytic qualifying infill area for which a capital improvement project grant may be awarded to meet specified criteria, including that the project include not less than 15% affordable units meaning, for these purposes, that a unit is made available at an affordable rent to a household earning no more than 60% of the area median income, or at an affordable cost, as specified.
This bill would expand the definition of qualifying infill project to include a residential or mixed-use residential project located within an urbanized area on a vacant site where at least 75% of the perimeter of the site adjoins parcels that have been previously developed with urban uses. For catalytic qualifying infill areas, the bill would instead require eligible applicants to submit documentation of approval of necessary entitlement and building permits, except as provided. This bill would change the definition of affordable unit as described above to, instead mean that a unit is made available at an affordable rent to a household earning no more than 80% of the area median income or at an affordable cost, as specified.
Existing law requires the department, in its review of applications, to rank affected qualifying infill areas and catalytic qualifying infill areas based on specified criteria, including the qualifying infill areas or catalytic qualifying infill areas inclusion of, or proximity to, a train station or major transit stop and the proximity of housing to existing or planned parks, employment or retail centers, schools, or social services.
This bill would revise these provisions to require the department to rank applications, as described above, based on the qualifying infill areas or catalytic qualifying infill areas inclusion of, or proximity or accessibility to, a transit station or major transit stop or walkability to essential services or businesses. The bill would additionally revise these provisions to require the departments ranking to be based on the proximity of housing to services, rather than social services.
Existing law requires the department to administer an over-the-counter application process for specified grants under the program for capital improvement projects for small jurisdictions, as provided. Among other things, existing law requires eligible applicants to submit documentation of all necessary entitlement and permits, and a certification that the project is shovel ready, except as provided. For these purposes, existing law defines the term qualifying infill area as a contiguous area located within an urbanized area that meets one of specified alternative conditions, including that the capital improvement project for which funding is requested is necessary, as specified, to make the area suitable and available for residential development or to allow the area to accommodate housing for additional income levels, and the area may be included on an inventory of land in the housing element, as specified.This bill would instead require eligible applicants to submit documentation of approval of necessary entitlement and building permits, except as provided. The bill would expand the definition of qualifying infill area to additionally include a contiguous area located within an urbanized area for which the capital improvement project for which funding is requested under the program, as described above, is necessary, as provided, to make the area suitable and available for residential development pursuant to the Affordable Housing and High Road Jobs Act of 2022, which subjects a housing development to streamlined, ministerial approval under certain circumstances, as specified.Existing law requires a qualifying infill project, qualifying infill area, or catalytic qualifying infill area for which a capital improvement project grant can be awarded under the program to meet specified conditions, including, among others, inclusion of not less than 15% of affordable units, as specified, and being located in an area designated for mixed-use or residential development, as specified.
This bill, as an alternative to including at least 15% of affordable units, would allow a project under the program that is a by-right site and in compliance with certain provisions deeming a housing development an allowable use or subject to streamlined, ministerial approval, as specified, to meet the affordability requirements under those provisions. TheThis bill would additionally allow the project to be located in an area that allows for mixed-use or residential development pursuant to a housing development that is in compliance with those certain provisions deeming a housing development an allowable use or subject to streamlined, ministerial approval, as specified. approval.
Existing law defines various terms for the purposes of the program, including, capital improvement project, catalytic qualifying infill area, eligible applicant, urbanized area, and urban uses.
This bill would revise these definitions. The bill would additionally define the terms major transit stop and walkability.
Existing law establishes the Infill Infrastructure Grant Program of 2019 (program), which requires the Department of Housing and Community Development, upon appropriation of funds by the Legislature, to establish and administer a grant program to allocate those funds to eligible applicants to fund capital improvement projects that are an integral part of, or necessary to facilitate the development of, a qualifying infill project, qualifying infill area, or catalytic qualifying infill area. Existing law requires the department to administer a specified competitive application process for capital improvement projects for large jurisdictions, as defined. For these purposes, existing law defines a qualifying infill project to include a residential or mixed-use residential project located within an urbanized area on a vacant site where at least 75% of the perimeter of the site adjoins parcels that are developed with urban uses. For catalytic qualifying infill areas, existing law requires grants be provided using a selection process that, among other things, requires eligible applicants to submit documentation of all necessary entitlements and permits, and a certification that the project is shovel ready, except as provided. Existing law requires a qualifying infill project, qualifying infill area, or catalytic qualifying infill area for which a capital improvement project grant may be awarded to meet specified criteria, including that the project include not less than 15% affordable units meaning, for these purposes, that a unit is made available at an affordable rent to a household earning no more than 60% of the area median income, or at an affordable cost, as specified.
This bill would expand the definition of qualifying infill project to include a residential or mixed-use residential project located within an urbanized area on a vacant site where at least 75% of the perimeter of the site adjoins parcels that have been previously with urban uses. For catalytic qualifying infill areas, the bill would instead require eligible applicants to submit documentation of approval of necessary entitlement and building permits, except as provided. This bill would change the definition of affordable unit as described above to, instead mean that a unit is made available at an affordable rent to a household earning no more than 80% of the area median income or at an affordable cost, as specified.
Existing law requires the department, in its review of applications, to rank affected qualifying infill areas and catalytic qualifying infill areas based on specified criteria, including the qualifying infill areas or catalytic qualifying infill areas inclusion of, or proximity to, a train station or major transit stop and the proximity of housing to existing or planned parks, employment or retail centers, schools, or social services.
This bill would revise these provisions to require the department to rank applications, as described above, based on the qualifying infill areas or catalytic qualifying infill areas inclusion of, or proximity or accessibility to, a transit station or major transit stop or walkability to essential services or businesses. The bill would additionally revise these provisions to require the departments ranking to be based on the proximity of housing to services, rather than social services.
Existing law requires the department to administer an over-the-counter application process for specified grants under the program for capital improvement projects for small jurisdictions, as provided. Among other things, existing law requires eligible applicants to submit documentation of all necessary entitlement and permits, and a certification that the project is shovel-ready, shovel ready, except as provided. For these purposes, existing law defines the term qualifying infill area as a contiguous area located within an urbanized area that meets one of specified alternative conditions, including that the capital improvement project for which funding is requested is necessary, as specified, to make the area suitable and available for residential development or to allow the area to accommodate housing for additional income levels, and the area may be included on an inventory of land in the housing element, as specified.
This bill would instead require eligible applicants to submit documentation of approval of necessary entitlement and building permits, except as provided. The bill would expand the definition of qualifying infill area to additionally include a contiguous area located within an urbanized area for which the capital improvement project for which funding is requested under the program, as described above, is necessary, as provided, to make the area suitable and available for residential development pursuant to the Affordable Housing and High Road Jobs Act of 2022, which subjects a housing development to streamlined, ministerial approval under certain circumstances, as specified.
Existing law requires a qualifying infill project, qualifying infill area, or catalytic qualifying infill area for which a capital improvement project grant can be awarded under the program to meet specified conditions, including, among others, inclusion of not less than 15% of affordable units, as specified, and being located in an area designated for mixed-use or residential development, as specified.
This bill, as an alternative to including at least 15% of affordable units, would allow a project under the program that is a by-right site and in compliance with certain provisions deeming a housing development an allowable use or subject to streamlined, ministerial approval, as specified, to meet the affordability requirements under those provisions. The bill would additionally allow the project to be located in an area that allows for mixed-use or residential development pursuant to a housing development that is in compliance with those provisions deeming a housing development an allowable use or subject to streamlined, ministerial approval, as specified.
Existing law defines various terms for the purposes of the program, including, capital improvement project, catalytic qualifying infill area, eligible applicant, urbanized area, and urban uses.
This bill would revise these definitions. The bill would additionally define the terms major transit stop and walkability.
Existing law establishes the Infill Infrastructure Grant Program of 2019 (program), which requires the Department of Housing and Community Development, upon appropriation of funds by the Legislature, to establish and administer a grant program to allocate those funds to eligible applicants to fund capital improvement projects that are an integral part of, or necessary to facilitate the development of, a qualifying infill project, qualifying infill area, or catalytic qualifying infill area. Existing Existing law requires the department to administer a specified competitive application process for capital improvement projects for large jurisdictions, as defined. For these purposes, existing law defines a qualifying infill project to include a residential or mixed-use residential project located within an urbanized area on a vacant site where at least 75% of the perimeter of the site adjoins parcels that are developed with urban uses. For catalytic qualifying infill areas, existing law requires grants be provided using a selection process that, among other things, requires eligible applicants to submit documentation of all necessary entitlements and permits, and a certification that the project is shovel ready, except as provided.
This bill would expand the definition of qualifying infill project to include a residential or mixed-use residential project located within an urbanized area on a vacant site where at least 75% of the perimeter of the site adjoins parcels that have been previously with urban uses. For catalytic qualifying infill areas, the bill would instead require eligible applicants to submit documentation of approval of necessary entitlement and building permits, except as provided.
Existing law requires the department, in its review of applications, to rank affected qualifying infill projects areas and catalytic qualifying infill areas based on specified criteria, including the qualifying infill areas or catalytic qualifying infill areas inclusion of, or proximity to, a train station or major transit stop and the proximity of housing to existing or planned parks, employment or retail centers, schools, or social services.
This bill would revise these provisions to require the department to rank applications, as described above, based on the qualifying infill areas or catalytic qualifying infill areas inclusion of, or proximity or accessibility to, a transit station or major transit stop or walkability to essential services or businesses. The bill would additionally revise these provisions to require the departments ranking to be based on the proximity of housing to services, rather than social services.
Existing law requires the department to administer an over-the-counter application process for specified grants under the program for capital improvement projects for small jurisdictions, as provided. Among other things, existing law requires eligible applicants to submit documentation of all necessary entitlement and permits, and a certification that the project is shovel-ready, except as provided. For these purposes, existing law defines the term qualifying infill area as a contiguous area located within an urbanized area that meets one of specified alternative conditions, including that the capital improvement project for which funding is requested is necessary, as specified, to make the area suitable and available for residential development or to allow the area to accommodate housing for additional income levels, and the area may be included on an inventory of land in the housing element, as specified.
This bill would expand the definition of qualifying infill area to additionally include a contiguous area located within an urbanized area for which the capital improvement project for which funding is requested under the program, as described above, is necessary, as provided, to make the area suitable and available for residential development pursuant to the Affordable Housing and High Road Jobs Act of 2022, which subjects a housing development to streamlined, ministerial approval under certain circumstances, as specified. instead require eligible applicants to submit documentation of approval of necessary entitlement and building permits, except as provided.
Existing law requires a qualifying infill project, qualifying infill area, or catalytic qualifying infill area for which a capital improvement project grant can be awarded under the program to meet specified conditions, including, among others, inclusion of not less than 15% of affordable units, as specified, and being located in an area designated for mixed-use or residential development, as specified.This bill, as an alternative to including at least 15% of affordable units, would allow a project under the program that is a by-right site and in compliance with certain provisions deeming a housing development an allowable use or subject to streamlined, ministerial approval, as specified, to meet the affordability requirements under those provisions. The bill would additionally allow the project to be located in an area that allows for mixed-use or residential development pursuant to a housing development that is in compliance with those provisions deeming a housing development an allowable use or subject to streamlined, ministerial approval, as specified.Existing law, for the purposes of the program, defines the term capital improvement project to include, among other things, streets, roads, or transit linkages or facilities, including, but not limited to, related access plazas or pathways, bus or transit shelters, or facilities that support pedestrian or bicycle transit. Existing law also defines the term urbanized area as an incorporated city or, for sites in an unincorporated area, within a designated urban service area, as specified.This bill would revise the definition of capital improvement project to require that streets or roads funded under the program be publicly maintained and open to use of the public for purposes of vehicle travel and serve as a connector within a qualifying infill project or qualifying infill area. The bill would also expand the definition of capital improvement project to expressly include nature-based solutions that are proven to reduce the risk from climate change, as specified. The bill would also revise the definition of urbanized area to instead mean an incorporated city or an urbanized area as defined by the United States Census Bureau. The bill would additionally define the term major transit stop for purposes of the program to mean a site containing an existing rail or bus rapid transit station, a ferry terminal served by either a bus or rail transit service, or the intersection of 2 or more major bus routes that meet specified frequency criteria, including major transit stops that are included in the applicable regional transportation plan, as provided.Existing law defines various terms for the purposes of the program, including, capital improvement project, catalytic qualifying infill area, eligible applicant, urbanized area, and urban uses.
This bill would revise these definitions. The bill would additionally define the terms major transit stop and walkability.
Existing law establishes the Infill Infrastructure Grant Program of 2019 (program), which requires the Department of Housing and Community Development, upon appropriation of funds by the Legislature, to establish and administer a grant program to allocate those funds to eligible applicants to fund capital improvement projects that are an integral part of, or necessary to facilitate the development of, a qualifying infill project, qualifying infill area, or catalytic qualifying infill area. Existing law requires the department, in its review of applications, to rank affected qualifying infill projects and catalytic qualifying infill areas based on specified criteria, including the qualifying infill areas or catalytic qualifying infill areas inclusion of, or proximity to, a train station or major transit stop and the proximity of housing to existing or planned parks, employment or retail centers, schools, or social services.
This bill would revise these provisions to require the department to rank applications, as described above, based on the qualifying infill areas or catalytic qualifying infill areas inclusion of, or proximity or accessibility to, a transit station or major transit stop or walkability to essential services or businesses. The bill would additionally revise these provisions to require the departments ranking to be based on the proximity of housing to services, rather than social services.
Existing law requires the department to administer an over-the-counter application process for specified grants under the program for capital improvement projects for small jurisdictions, as provided. For these purposes, existing law defines the term qualifying infill area as a contiguous area located within an urbanized area that meets one of specified alternative conditions, including that the capital improvement project for which funding is requested is necessary, as specified, to make the area suitable and available for residential development or to allow the area to accommodate housing for additional income levels, and the area may be included on an inventory of land in the housing element, as specified.
This bill would expand the definition of qualifying infill area to additionally include a contiguous area located within an urbanized area for which the capital improvement project for which funding is requested under the program, as described above, is necessary, as provided, to make the area suitable and available for residential development pursuant to the Affordable Housing and High Road Jobs Act of 2022, which subjects a housing development to streamlined, ministerial approval under certain circumstances, as specified.
Existing law requires a qualifying infill project, qualifying infill area, or catalytic qualifying infill area for which a capital improvement project grant can be awarded under the program to meet specified conditions, including, among others, inclusion of not less than 15% of affordable units, as specified, and being located in an area designated for mixed-use or residential development, as specified.
This bill, as an alternative to including at least 15% of affordable units, would allow a project under the program that is a by-right site and in compliance with certain provisions deeming a housing development an allowable use or subject to streamlined, ministerial approval, as specified, to meet the affordability requirements under those provisions. The bill would additionally allow the project to be located in an area that allows for mixed-use or residential development pursuant to a housing development that is in compliance with those provisions deeming a housing development an allowable use or subject to streamlined, ministerial approval, as specified.
Existing law, for the purposes of the program, defines the term capital improvement project to include, among other things, streets, roads, or transit linkages or facilities, including, but not limited to, related access plazas or pathways, bus or transit shelters, or facilities that support pedestrian or bicycle transit. Existing law also defines the term urbanized area as an incorporated city or, for sites in an unincorporated area, within a designated urban service area, as specified.
This bill would revise the definition of capital improvement project to require that streets or roads funded under the program be publicly maintained and open to use of the public for purposes of vehicle travel and serve as a connector within a qualifying infill project or qualifying infill area. The bill would also expand the definition of capital improvement project to expressly include nature-based solutions that are proven to reduce the risk from climate change, as specified. The bill would also revise the definition of urbanized area to instead mean an incorporated city or an urbanized area as defined by the United States Census Bureau. The bill would additionally define the term major transit stop for purposes of the program to mean a site containing an existing rail or bus rapid transit station, a ferry terminal served by either a bus or rail transit service, or the intersection of 2 or more major bus routes that meet specified frequency criteria, including major transit stops that are included in the applicable regional transportation plan, as provided.
(a)The Infill Infrastructure Grant Program of 2019 is hereby established to be administered by the department.
(b)Upon appropriation by the Legislature of funds for purposes of this part, the department shall establish and administer a grant program to allocate those funds to selected capital improvement projects that are an integral part of, or necessary to facilitate the development of, a qualifying infill project, qualifying infill area, or catalytic qualifying infill area pursuant to the requirements of this section. The department shall determine amounts, if any, to be made available for qualifying infill projects, qualifying infill areas, or catalytic qualifying infill areas.
(c)(1)Except for funds appropriated or set aside for small jurisdictions for grants pursuant to subdivision (e), the department shall administer a competitive application process for capital improvement projects for large jurisdictions pursuant to this subdivision.
(2)Except for grants for qualifying infill areas or catalytic qualifying infill areas, the department shall do all of the following for grants made pursuant to this subdivision:
(A)Make program funds available at the same time it makes funds, if any, available under the Multifamily Housing Program (Chapter 6.7 (commencing with Section 50675) of Part 2).
(B)Rate and rank applications in a manner consistent with the Multifamily Housing Program (Chapter 6.7 (commencing with Section 50675) of Part 2), except that the department may establish additional point categories for the purposes of rating and ranking applications that seek funding pursuant to this part in addition to those used in the Multifamily Housing Program.
(C)Administer funds in a manner consistent with the Multifamily Housing Program (Chapter 6.7 (commencing with Section 50675) of Part 2).
(D)For purposes of awarding grants pursuant to the competitive application process required by this subdivision, qualifying infill project means a residential or mixed-use residential project located within an urbanized area on a site that has been previously developed, or on a vacant site where at least 75 percent of the perimeter of the site adjoins parcels that are developed or have been previously developed with urban uses.
(d)(1)In its review and ranking of applications for the award of capital improvement project grants, the department shall rank the affected qualifying infill areas based on the following priorities:
(A)Project readiness, which shall include all of the following:
(i)A demonstration that the area development can complete environmental review and secure necessary entitlements from the local jurisdiction within a reasonable period of time following the submission of a grant application.
(ii)A demonstration that the eligible applicant can secure sufficient funding commitments derived from sources other than this part for the timely development of a qualifying infill area.
(B)The depth and duration of the affordability of the housing proposed for a qualifying infill area.
(C)The extent to which the average residential densities on the parcels to be developed exceed the density standards contained in paragraph (3) of subdivision (g).
(D)The qualifying infill areas inclusion of, or proximity or accessibility to, any of the following:
(i)A transit station or major transit stop.
(ii)On-demand transit services that provide or support new, restored, or expanded routes.
(iii)Walkability to essential services or businesses.
(E)The proximity of housing to parks, employment or retail centers, schools, or services.
(F)The qualifying infill area locations consistency with an adopted sustainable communities strategy pursuant to Section 65080 of the Government Code, alternative planning strategy pursuant to Section 65450 of the Government Code, or other adopted regional growth plan intended to foster efficient land use.
(G)For qualifying infill areas, in awarding funds under the program, the department shall provide additional points or preference to projects located in jurisdictions that are designated prohousing pursuant to subdivision (c) of Section 65589.9 of the Government Code, in the manner determined by the department pursuant to subdivision (d) of Section 65589.9 of the Government Code.
(2)In allocating funds pursuant to this subdivision, the department, to the maximum extent feasible, shall ensure a reasonable geographic distribution of funds.
(3)For purposes of awarding grants pursuant to the competitive application process required by this subdivision or subparagraph (B) of paragraph (2) of subdivision (c), qualifying infill area means a contiguous area located within an urbanized area (i) that has been previously developed, or where at least 75 percent of the perimeter of the area adjoins parcels that are developed with urban uses, and (ii) in which at least one development application has been approved or is pending approval for a residential or mixed-use residential project that meets the definition and criteria in this section for a qualifying infill project.
(e)(1)The department shall administer an over-the-counter application process for grants funded by the allocation specified in the appropriation or paragraph (2) of subdivision (a) of Section 53559.2 for capital improvement projects for small jurisdictions, pursuant to this subdivision.
(2)Eligible applicants shall submit the following information in the application request for funding:
(A)A complete description of the qualifying infill project or qualifying infill area and documentation of how the infill project or infill area meets the requirements of this section.
(B)A complete description of the capital improvement project and requested grant funding for the project, how the project is necessary to support the development of housing, and how it meets the criteria of this section.
(C)Documentation that specifies how the application meets all of the requirements of subdivision (g).
(D)(i)Except as provided in clause (ii), a financial document that shows the gap financing needed for the project.
(ii)For a qualifying infill project located in the unincorporated area of the county, the department shall allow an applicant to meet the requirement described in clause (i) by submitting copies of an application or applications for other sources of state or federal funding for a qualifying infill project.
(E)(i)Except as provided by clause (ii), documentation of all necessary entitlement and permits, and a certification from the applicant that the project is shovel-ready.
(ii)For a qualifying infill project located in the unincorporated area of the county, the department shall allow the applicant to meet the requirement described in clause (i) by submitting a letter of intent from a willing affordable housing developer that has previously completed at least one comparable housing project, certifying that the developer is willing to submit an application to the county for approval by the county of a qualifying infill project within the area in the event that the funding requested pursuant to this subdivision is awarded.
(3)The department may establish a per-unit formula to determine the amount of funds awarded pursuant to this subdivision.
(4)For purposes of awarding grants pursuant to the over-the-counter application process required by this subdivision:
(A)Qualifying infill area means a contiguous area located within an urbanized area that meets one of the following criteria:
(i)The area contains sites included on the inventory of land suitable and available for residential development in the housing element of the applicable city or county general plan pursuant to paragraph (3) of subdivision (a) of Section 65583 of the Government Code, and at least 50 percent of the perimeter of the area shall adjoin parcels that are developed with urban uses.
(ii)The capital improvement project for which funding is requested is necessary, as documented by an environmental review or some other adopted planning document, to make the area suitable and available for residential development, or to allow the area to accommodate housing for additional income levels, and the area otherwise meets the requirements for inclusion on the inventory of land suitable and available for residential development in the housing element of the applicable city or county general plan pursuant to paragraph (3) of subdivision (a) of Section 65583 of the Government Code. At least 50 percent of the perimeter of the area shall adjoin parcels that are developed with urban uses.
(iii)The capital improvement project for which funding is requested is necessary and integral to make the area suitable and available for residential development pursuant to Chapter 4.1 (commencing with Section 65912.100) of Division 1 of Title 7 of the Government Code.
(B)Qualifying infill project means a residential or mixed-use residential project located within an urbanized area on a site that has been previously developed, or on a vacant site where at least 50 percent of the perimeter of the site adjoins parcels that are developed with urban uses.
(f)(1)For catalytic qualifying infill areas, grants for small jurisdictions and large jurisdictions shall be provided using a selection process established by the department that meets all of the following requirements:
(A)Applicants shall meet both of the following minimum threshold requirements:
(i)Readiness, which includes both of the following:
(I)A demonstration that the catalytic qualifying infill area development can complete environmental review and secure necessary entitlements from the local jurisdiction within a reasonable period of time following the submission of a grant application.
(II)A demonstration that the eligible applicant has a viable plan to secure sufficient funding, derived from sources other than this part for the timely development of housing within a catalytic qualifying infill area.
(ii)A demonstration of the catalytic qualifying infill area locations consistency with an adopted sustainable communities strategy or alternative planning strategy pursuant to Section 65080 of the Government Code.
(B)The department shall, at a minimum, rank the affected catalytic qualifying infill areas applications for small jurisdictions and large jurisdictions based on the following:
(i)The number of housing units, including affordable units as required in paragraph (2) of subdivision (g) to be developed within the catalytic qualifying infill area.
(ii)The depth and duration of the affordability of the housing proposed for within the catalytic qualifying infill area.
(iii)The extent to which the average residential densities on the parcel or parcels to be developed exceed the density standards contained in paragraph (3) of subdivision (g).
(iv)The catalytic qualifying infill areas inclusion of, or proximity or accessibility to, a transit station, major transit stop, or other areas yielding significant reductions in vehicle miles traveled, or walkability to essential services and businesses.
(v)The proximity of planned housing within the catalytic qualifying infill area used in the calculation of the eligible grant amount to existing or planned parks, employment or retail centers, schools, or services.
(vi)Existing or planned ordinances and other zoning or building provisions that facilitate adaptive reuse, including, but not limited to, demonstration that, if the existing commercial, office, or retail structure intended for reuse as housing does not occupy the entirety of the underlying parcel, the adaptive reuse project will be permitted to add to the existing building or structure provided that the addition is consistent with the existing or planned zoning of the parcel.
(vii)The extent to which local strategies or programs are in place to prevent the direct or indirect displacement of local community residents and businesses from the area within and surrounding the catalytic qualifying infill area.
(viii)The level of community outreach and engagement in project planning, including efforts to involve disadvantaged communities and low-income residents, particularly local community residents and businesses from the area within and surrounding the catalytic qualifying infill area.
(ix)Inclusion of any publicly owned lands within the designated catalytic qualifying infill area.
(x)Streamlining provisions related to the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code), including, but not limited to, establishment of streamlined, program-level California Environmental Quality Act analysis and certification of general plans, community plans, specific plans with accompanying environmental impact reports, and related documents and streamlining proposed projects, such as enabling a by-right approval process or by utilizing statutory and categorical exemptions as authorized by applicable law.
(C)Eligible applicants shall submit the following information in the application request for funding:
(i)A complete description of the catalytic qualifying infill area and documentation of how the catalytic qualifying infill area meets the requirements of this section.
(ii)A complete description of the capital improvement project and requested grant funding, how the capital improvement project is necessary to support the development of housing, and how it meets the criteria of this section.
(iii)Documentation that specifies how the application meets all of the requirements of subdivision (g).
(iv)(I)Except as provided in subclause (II), a financial document that shows the gap financing needed for the project.
(II)For a qualifying infill project within a catalytic qualifying infill area located in the unincorporated area of the county, the department shall allow an applicant to meet the requirement described in subclause (I) by submitting copies of an application or applications for other sources of state or federal funding for a qualifying infill project.
(v)(I)Except as provided by subclause (II), documentation of all necessary entitlement and permits, and a certification from the applicant that the capital improvement project is shovel-ready.
(II)For a qualifying infill project within a catalytic qualifying infill area located in the unincorporated area of the county, the department shall allow the applicant to meet the requirement described in subclause (I) by submitting a letter of intent from a willing affordable housing developer that has previously completed at least one comparable housing project, certifying that the developer is willing to submit an application to the county for approval by the county of a qualifying infill project within the area in the event that the funding requested pursuant to this subdivision is awarded.
(2)In allocating funds pursuant to this subdivision, the department, to the maximum extent feasible, shall ensure a reasonable distribution of funds, including consideration of differing population sizes of localities and geographic location. Applications shall be considered and ranked against applications of localities of similar size and scope. For the purposes of this paragraph, the population of a county shall be the population in the unincorporated area.
(3)The department shall report the following information in its annual report due in 2024, as required by Section 50408:
(A)Specific uses of the funds for capital improvement projects.
(B)Locations of awarded catalytic qualifying infill area grants, including both of the following:
(i)Number of awards by geography, including urban and rural.
(ii)The types of buildings adapted to residential use.
(C)Total units to be created within the awarded qualifying infill areas, including anticipated affordability levels.
(D)Data on catalytic qualifying infill area projects funded, such as project sizes, adaptive reuse ordinances adopted, and by-right sites.
(g)A qualifying infill project, qualifying infill area, or catalytic qualifying infill area for which a capital improvement project grant may be awarded pursuant to paragraph (2) of subdivision (c), subdivision (d), subdivision (e), or subdivision (f) shall meet all of the following conditions:
(1)A qualifying infill area or catalytic qualifying infill area shall be located in a city, county, or city and county in which the general plan of the city, county, or city and county has an adopted housing element that has been found by the department, pursuant to Section 65585 of the Government Code, to be in compliance with the requirements of Article 10.6 (commencing with Section 65580) of Chapter 3 of Division 1 of Title 7 of the Government Code. This paragraph does not apply to a qualifying infill project.
(2)Include not less than 15 percent of affordable units, as follows:
(A)For projects that contain both rental and ownership units, units of either or both product types may be included in the calculation of the affordability criteria.
(B)(i)To the extent included in a project grant application, for the purpose of calculating the percentage of affordable units, the department may consider the entire master development in which the development seeking grant funding is included.
(ii)Where applicable, an applicant may include a replacement housing plan to ensure that dwelling units housing persons and families of low or moderate income are not removed from the low- and moderate-income housing market. Residential units to be replaced shall not be counted toward meeting the affordability threshold required for eligibility for funding under this section.
(C)For the purposes of this subdivision, affordable unit means a unit that is made available at an affordable rent, as defined in Section 50053, to a household earning no more than 60 percent of the area median income or at an affordable housing cost, as defined in Section 50052.5, to a household earning no more than 120 percent of the area median income. Rental units shall be subject to a recorded covenant that ensures affordability for at least 55 years. Ownership units shall initially be sold to and occupied by a qualified household, and shall be subject to a recorded covenant that includes either a resale restriction for at least 30 years or equity sharing upon resale.
(3)Include average residential densities on the parcels to be developed that are equal to or greater than the densities described in subparagraph (B) of paragraph (3) of subdivision (c) of Section 65583.2 of the Government Code, except that a project located in a rural area as defined in Section 50199.21 shall include average residential densities on the parcels to be developed of at least 10 units per acre.
(4)Be located in an area that allows for mixed-use or residential development pursuant to one of the following:
(A)A general plan adopted pursuant to Section 65300 of the Government Code.
(B)A sustainable communities strategy adopted pursuant to Section 65080 of the Government Code.
(C)A specific plan adopted pursuant to Section 65450 of the Government Code.
(D)A Workforce Housing Opportunity Zone established pursuant to Section 65620 of the Government Code.
(E)A housing sustainability district established pursuant to Section 66201 of the Government Code.
(F)A housing development that is in compliance with Section 65913.4 of the Government Code, or Chapter 4.1 (commencing with Section 65912.100) of Division 1 of Title 7 of the Government Code.
(h)Funds awarded pursuant to this section shall supplement, not supplant, other available funding.
(i)The department shall adopt guidelines for the operation of the grant program. The guidelines shall include performance standards and authorize the reversion of grant awards if the awardee has not substantially met the performance standards.
(1)Performance standards shall include timelines for commencement of construction of a capital improvement project, completion of a capital improvement project, and commencement and completion of associated housing development on an identified infill site, as identified in the qualifying infill project, qualifying infill area, or catalytic qualifying infill area application.
(2)Catalytic qualifying infill area awards may be conditioned upon the local jurisdiction completing any actions to expedite housing development rezoning to accommodate density, completing environmental reviews to support ministerial approvals of housing, and granting fee waivers or other incentives to expedite housing development that were used in qualifying for an award.
(j)The department shall require recipients of funds to report on progress of capital improvement projects, including, but not limited to, substantiation of grant expenditures and housing outcomes, including levels of affordability as provided in the application.
(k)The guidelines may also provide for recapture of grants awarded, but for which development of the related housing units has not progressed in a reasonable period of time from the date of the grant award, as determined by the department. The guidelines shall not be subject to the requirements of Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code.
(l)For each fiscal year within the duration of the grant program, the department shall include within the report to the Governor and the Legislature, required by Section 50408, information on its activities relating to the grant program activities related to qualifying infill projects and qualifying infill areas, including small jurisdiction funding activities. The report shall include, but is not limited to, the following information:
(1)A summary of the projects that received grants under the program for each fiscal year that grants were awarded.
(2)The description, location, and estimated date of completion for each project that received a grant award under the program.
(3)An update on the status of each project that received a grant award under the program, and the number of housing units created or facilitated by the program.
(m)Notwithstanding paragraph (3) of subdivision (g), a city with a population greater than 100,000 in a standard metropolitan statistical area or a population of less than 2,000,000 may petition the department for, and the department may grant, an exception to the jurisdictions classification pursuant to subdivisions (d) to (f), inclusive, of Section 65583.2 of the Government Code, if the city believes it is unable to meet the density requirements specified in paragraph (3) of subdivision (g). The city shall submit the petition with its application and shall include the reasons why the city believes the exception is warranted. The city shall provide information supporting the need for the exception, including, but not limited to, any limitations that the city may encounter in meeting the density requirements specified in paragraph (3) of subdivision (g). Any exception shall be for the purposes of this section only. This subdivision shall become inoperative on January 1, 2026.
SEC. 2.Section 53559.1 of the Health and Safety Code is amended to read:53559.1.For the purposes of this part, the following definitions apply:
(a)Adaptive reuse means the repurposing of building structures for residential purposes, such as former office use, commercial use, or business parks. When referring to building structures, adaptive reuse means retrofitting and repurposing of existing buildings that create new residential rental units, and expressly excludes a project that involves rehabilitation of any construction affecting existing residential units that are, or have been, recently occupied.
(b)Capital improvement project means the construction, rehabilitation, demolition, relocation, preservation, acquisition, or other physical improvement of a capital asset, as defined in subdivision (a) of Section 16727 of the Government Code, that is an integral part of, or necessary to facilitate the development of, a qualifying infill project or qualifying infill area. Capital improvement projects that may be funded under the grant program established by this part include, but are not limited to, those related to the following:
(1)The creation, development, or rehabilitation of parks or open space.
(2)Water, sewer, or other utility service improvements.
(3)Transit linkages or facilities, including, but not limited to, related access plazas or pathways, or bus or transit shelters.
(4)Facilities that support pedestrian or bicycle transit.
(5)Traffic mitigation.
(6)Streets or roads that are publicly maintained and open to the use of the public for purposes of vehicular travel and that will serve as a connector within a qualifying infill project or qualifying infill area.
(7)Sidewalk or streetscape improvements, including, but not limited to, the reconstruction or resurfacing of sidewalks and streets or the installation of lighting, signage, or other related amenities.
(8)Adaptive reuse.
(9)Site preparation or demolition related to the capital improvement project or planned housing development used in calculating the eligible grant amount.
(10)Natural infrastructure solutions that reduce the risk from climate change-driven natural disasters like wildfire, flooding, heat, and sea level rise, or provide other societal benefits. For purposes of this paragraph, natural infrastructure solutions means improvements that result in the preservation or restoration of ecological systems, or utilization of engineered systems that use ecological processes, to increase resiliency to climate change or manage other environmental problems, including, but not limited to, street trees and greenspace for water catchment; infiltration and surface cooling; wetlands preservation; water treatment facilities that utilize ecologically functioning wetlands; bioswales; flood mitigation systems that utilize the natural floodplain; community gardens; and stable shorelines used in tandem with constructed flood barriers.
(c)Catalytic qualifying infill area means a contiguous area or multiple noncontiguous parcels located within an urbanized area that meet all of the following requirements:
(1)The contiguous area or noncontiguous parcels have been previously developed, or at least 75 percent of the perimeter of each parcel or area adjoins parcels that are developed or have been previously developed with urban uses, provided that, for small jurisdiction applicants, the perimeter requirements in clause (i) of subparagraph (A) of paragraph (4) of subdivision (e) of Section 53559 shall apply. For purposes of this paragraph, perimeters of a parcel bordering navigable bodies of water shall not be included in the calculation determining if 75 percent of the perimeter adjoins parcels that are developed or have been previously developed with urban uses.
(2)No parcel within or adjoining the area is classified as agricultural or natural and working lands.
(3)The area or areas constitute a large catalytic investment in land that will accommodate a mix of uses, including affordable or mixed-income housing.
(d)(1)Disadvantaged communities means any of the following:
(A)Concentrated areas of poverty.
(B)Areas of high segregation and poverty and areas of low to moderate access to opportunity, as identified in opportunity area maps developed by the department and the California Tax Credit Allocation Committee.
(C)Communities of concern, disadvantaged communities identified pursuant to Section 39711, and low-income communities as defined in subdivision (d) of Section 39713.
(D)Areas of high housing cost burdens.
(E)Areas with high vulnerability of displacement; areas related to tribal entities.
(F)Any other areas experiencing disproportionate impacts of Californias housing and climate crisis.
(2)Applicants may propose alternative definitions to disadvantaged communities in consultation with the department.
(e)Eligible applicant means any of the following:
(1)A nonprofit or for-profit developer of a qualifying infill project.
(2)A city, county, city and county, or public housing authority that has jurisdiction over a qualifying infill area or catalytic qualifying infill area. A city, county, or city and county applying for funds for a qualifying infill area or a catalytic qualifying infill area shall not be required to have a developer coapplicant. A metropolitan planning organization may participate as a coapplicant.
(3)The duly constituted governing body of an Indian reservation or rancheria that has jurisdiction over a qualifying infill area or a tribally designated housing entity as defined in Section 4103 of Title 25 of the United States Code and Section 50104.6.5 that is the developer of a qualifying infill project.
(A)A tribal entity may apply as a small jurisdiction or large jurisdiction, but may only apply as one or the other for any single qualifying infill project or qualifying infill area.
(B)The department may modify or waive requirements of this paragraph consistent with the intent of paragraphs (1) and (2) of subdivision (p) of Section 50406 to allow tribal entities to access funding.
(f)Locality means a city, county, or city and county where a county means the unincorporated areas of that county.
(g)On-demand transit service includes shuttles, vans, circulators, paratransit services, and private sector transit solutions, commonly referred to as microtransit, that are operated or contracted by a public entity. The transit service must serve the general public and be demand responsive and capable of serving multiple riders simultaneously, not only a single rider service. For the purposes of this subdivision, demand responsive means a route or frequency of service is dispatched in real time based on customer demand.
(h)Small jurisdiction means a county with a population of less than 250,000 as of January 1, 2019, or any city within that county.
(i)Large jurisdiction means a county that is not a small jurisdiction, or any city within that county.
(j)Major transit stop has the same meaning as defined in Section 21064.3 of the Public Resources Code, including major transit stops that are planned for in the applicable regional transportation plan.
(k)Urbanized area means an incorporated city or urbanized area as defined by the United States Census Bureau.
(l)Urban uses means any improved park, residential, commercial, industrial, public institutional, transit or transportation passenger facility, or retail use, or any combination of those uses.
(m)Walkability means the parcels or parcel where the development will occur is within one mile of six or more of any of the following amenities:
(1)A supermarket, grocery store, or other stores that sells groceries.
(2)A public park.
(3)A community center.
(4)A pharmacy or drugstore.
(5)A medical clinic or hospital.
(6)A public library.
(7)A school that maintains a kindergarten or any of grades 1 to 12, inclusive.
(8)A food bank.
(9)A licensed childcare facility as identified by the State Department of Social Services.
(10)A community or recreation center accessible to the general public.
(11)A bank or credit union.
(12)A post office.
(13)A laundry service.
(a)The Infill Infrastructure Grant Program of 2019 is hereby established to be administered by the department.
(b)Upon appropriation by the Legislature of funds for purposes of this part, the department shall establish and administer a grant program to allocate those funds to selected capital improvement projects that are an integral part of, or necessary to facilitate the development of, a qualifying infill project, qualifying infill area, or catalytic qualifying infill area pursuant to the requirements of this section. The department shall determine amounts, if any, to be made available for qualifying infill projects, qualifying infill areas, or catalytic qualifying infill areas.
(c)(1)Except for funds appropriated or set aside for small jurisdictions for grants pursuant to subdivision (e), the department shall administer a competitive application process for capital improvement projects for large jurisdictions pursuant to this subdivision.
(2)Except for grants for qualifying infill areas or catalytic qualifying infill areas, the department shall do all of the following for grants made pursuant to this subdivision:
(A)Make program funds available at the same time it makes funds, if any, available under the Multifamily Housing Program (Chapter 6.7 (commencing with Section 50675) of Part 2).
(B)Rate and rank applications in a manner consistent with the Multifamily Housing Program (Chapter 6.7 (commencing with Section 50675) of Part 2), except that the department may establish additional point categories for the purposes of rating and ranking applications that seek funding pursuant to this part in addition to those used in the Multifamily Housing Program.
(C)Administer funds in a manner consistent with the Multifamily Housing Program (Chapter 6.7 (commencing with Section 50675) of Part 2).
(D)For purposes of awarding grants pursuant to the competitive application process required by this subdivision, qualifying infill project means a residential or mixed-use residential project located within an urbanized area on a site that has been previously developed, or on a vacant site where at least 75 percent of the perimeter of the site adjoins parcels that are developed or have been previously developed with urban uses.
(d)(1)In its review and ranking of applications for the award of capital improvement project grants, the department shall rank the affected qualifying infill areas based on the following priorities:
(A)Project readiness, which shall include all of the following:
(i)A demonstration that the area development can complete environmental review and secure necessary entitlements from the local jurisdiction within a reasonable period of time following the submission of a grant application.
(ii)A demonstration that the eligible applicant can secure sufficient funding commitments derived from sources other than this part for the timely development of a qualifying infill area.
(B)The depth and duration of the affordability of the housing proposed for a qualifying infill area.
(C)The extent to which the average residential densities on the parcels to be developed exceed the density standards contained in paragraph (3) of subdivision (g).
(D)The qualifying infill areas inclusion of, or proximity or accessibility to, any of the following:
(i)A transit station or major transit stop.
(ii)On-demand transit services that provide or support new, restored, or expanded routes.
(iii)Walkability to essential services or businesses.
(E)The proximity of housing to parks, employment or retail centers, schools, or services.
(F)The qualifying infill area locations consistency with an adopted sustainable communities strategy pursuant to Section 65080 of the Government Code, alternative planning strategy pursuant to Section 65450 of the Government Code, or other adopted regional growth plan intended to foster efficient land use.
(G)For qualifying infill areas, in awarding funds under the program, the department shall provide additional points or preference to projects located in jurisdictions that are designated prohousing pursuant to subdivision (c) of Section 65589.9 of the Government Code, in the manner determined by the department pursuant to subdivision (d) of Section 65589.9 of the Government Code.
(2)In allocating funds pursuant to this subdivision, the department, to the maximum extent feasible, shall ensure a reasonable geographic distribution of funds.
(3)For purposes of awarding grants pursuant to the competitive application process required by this subdivision or subparagraph (B) of paragraph (2) of subdivision (c), qualifying infill area means a contiguous area located within an urbanized area (i) that has been previously developed, or where at least 75 percent of the perimeter of the area adjoins parcels that are developed with urban uses, and (ii) in which at least one development application has been approved or is pending approval for a residential or mixed-use residential project that meets the definition and criteria in this section for a qualifying infill project.
(e)(1)The department shall administer an over-the-counter application process for grants funded by the allocation specified in the appropriation or paragraph (2) of subdivision (a) of Section 53559.2 for capital improvement projects for small jurisdictions, pursuant to this subdivision.
(2)Eligible applicants shall submit the following information in the application request for funding:
(A)A complete description of the qualifying infill project or qualifying infill area and documentation of how the infill project or infill area meets the requirements of this section.
(B)A complete description of the capital improvement project and requested grant funding for the project, how the project is necessary to support the development of housing, and how it meets the criteria of this section.
(C)Documentation that specifies how the application meets all of the requirements of subdivision (g).
(D)(i)Except as provided in clause (ii), a financial document that shows the gap financing needed for the project.
(ii)For a qualifying infill project located in the unincorporated area of the county, the department shall allow an applicant to meet the requirement described in clause (i) by submitting copies of an application or applications for other sources of state or federal funding for a qualifying infill project.
(E)(i)Except as provided by clause (ii), documentation of all necessary entitlement and permits, and a certification from the applicant that the project is shovel-ready.
(ii)For a qualifying infill project located in the unincorporated area of the county, the department shall allow the applicant to meet the requirement described in clause (i) by submitting a letter of intent from a willing affordable housing developer that has previously completed at least one comparable housing project, certifying that the developer is willing to submit an application to the county for approval by the county of a qualifying infill project within the area in the event that the funding requested pursuant to this subdivision is awarded.
(3)The department may establish a per-unit formula to determine the amount of funds awarded pursuant to this subdivision.
(4)For purposes of awarding grants pursuant to the over-the-counter application process required by this subdivision:
(A)Qualifying infill area means a contiguous area located within an urbanized area that meets one of the following criteria:
(i)The area contains sites included on the inventory of land suitable and available for residential development in the housing element of the applicable city or county general plan pursuant to paragraph (3) of subdivision (a) of Section 65583 of the Government Code, and at least 50 percent of the perimeter of the area shall adjoin parcels that are developed with urban uses.
(ii)The capital improvement project for which funding is requested is necessary, as documented by an environmental review or some other adopted planning document, to make the area suitable and available for residential development, or to allow the area to accommodate housing for additional income levels, and the area otherwise meets the requirements for inclusion on the inventory of land suitable and available for residential development in the housing element of the applicable city or county general plan pursuant to paragraph (3) of subdivision (a) of Section 65583 of the Government Code. At least 50 percent of the perimeter of the area shall adjoin parcels that are developed with urban uses.
(iii)The capital improvement project for which funding is requested is necessary and integral to make the area suitable and available for residential development pursuant to Chapter 4.1 (commencing with Section 65912.100) of Division 1 of Title 7 of the Government Code.
(B)Qualifying infill project means a residential or mixed-use residential project located within an urbanized area on a site that has been previously developed, or on a vacant site where at least 50 percent of the perimeter of the site adjoins parcels that are developed with urban uses.
(f)(1)For catalytic qualifying infill areas, grants for small jurisdictions and large jurisdictions shall be provided using a selection process established by the department that meets all of the following requirements:
(A)Applicants shall meet both of the following minimum threshold requirements:
(i)Readiness, which includes both of the following:
(I)A demonstration that the catalytic qualifying infill area development can complete environmental review and secure necessary entitlements from the local jurisdiction within a reasonable period of time following the submission of a grant application.
(II)A demonstration that the eligible applicant has a viable plan to secure sufficient funding, derived from sources other than this part for the timely development of housing within a catalytic qualifying infill area.
(ii)A demonstration of the catalytic qualifying infill area locations consistency with an adopted sustainable communities strategy or alternative planning strategy pursuant to Section 65080 of the Government Code.
(B)The department shall, at a minimum, rank the affected catalytic qualifying infill areas applications for small jurisdictions and large jurisdictions based on the following:
(i)The number of housing units, including affordable units as required in paragraph (2) of subdivision (g) to be developed within the catalytic qualifying infill area.
(ii)The depth and duration of the affordability of the housing proposed for within the catalytic qualifying infill area.
(iii)The extent to which the average residential densities on the parcel or parcels to be developed exceed the density standards contained in paragraph (3) of subdivision (g).
(iv)The catalytic qualifying infill areas inclusion of, or proximity or accessibility to, a transit station, major transit stop, or other areas yielding significant reductions in vehicle miles traveled, or walkability to essential services and businesses.
(v)The proximity of planned housing within the catalytic qualifying infill area used in the calculation of the eligible grant amount to existing or planned parks, employment or retail centers, schools, or services.
(vi)Existing or planned ordinances and other zoning or building provisions that facilitate adaptive reuse, including, but not limited to, demonstration that, if the existing commercial, office, or retail structure intended for reuse as housing does not occupy the entirety of the underlying parcel, the adaptive reuse project will be permitted to add to the existing building or structure provided that the addition is consistent with the existing or planned zoning of the parcel.
(vii)The extent to which local strategies or programs are in place to prevent the direct or indirect displacement of local community residents and businesses from the area within and surrounding the catalytic qualifying infill area.
(viii)The level of community outreach and engagement in project planning, including efforts to involve disadvantaged communities and low-income residents, particularly local community residents and businesses from the area within and surrounding the catalytic qualifying infill area.
(ix)Inclusion of any publicly owned lands within the designated catalytic qualifying infill area.
(x)Streamlining provisions related to the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code), including, but not limited to, establishment of streamlined, program-level California Environmental Quality Act analysis and certification of general plans, community plans, specific plans with accompanying environmental impact reports, and related documents and streamlining proposed projects, such as enabling a by-right approval process or by utilizing statutory and categorical exemptions as authorized by applicable law.
(C)Eligible applicants shall submit the following information in the application request for funding:
(i)A complete description of the catalytic qualifying infill area and documentation of how the catalytic qualifying infill area meets the requirements of this section.
(ii)A complete description of the capital improvement project and requested grant funding, how the capital improvement project is necessary to support the development of housing, and how it meets the criteria of this section.
(iii)Documentation that specifies how the application meets all of the requirements of subdivision (g).
(iv)(I)Except as provided in subclause (II), a financial document that shows the gap financing needed for the project.
(II)For a qualifying infill project within a catalytic qualifying infill area located in the unincorporated area of the county, the department shall allow an applicant to meet the requirement described in subclause (I) by submitting copies of an application or applications for other sources of state or federal funding for a qualifying infill project.
(v)(I)Except as provided by subclause (II), documentation of all necessary entitlement and permits, and a certification from the applicant that the capital improvement project is shovel-ready.
(II)For a qualifying infill project within a catalytic qualifying infill area located in the unincorporated area of the county, the department shall allow the applicant to meet the requirement described in subclause (I) by submitting a letter of intent from a willing affordable housing developer that has previously completed at least one comparable housing project, certifying that the developer is willing to submit an application to the county for approval by the county of a qualifying infill project within the area in the event that the funding requested pursuant to this subdivision is awarded.
(2)In allocating funds pursuant to this subdivision, the department, to the maximum extent feasible, shall ensure a reasonable distribution of funds, including consideration of differing population sizes of localities and geographic location. Applications shall be considered and ranked against applications of localities of similar size and scope. For the purposes of this paragraph, the population of a county shall be the population in the unincorporated area.
(3)The department shall report the following information in its annual report due in 2024, as required by Section 50408:
(A)Specific uses of the funds for capital improvement projects.
(B)Locations of awarded catalytic qualifying infill area grants, including both of the following:
(i)Number of awards by geography, including urban and rural.
(ii)The types of buildings adapted to residential use.
(C)Total units to be created within the awarded qualifying infill areas, including anticipated affordability levels.
(D)Data on catalytic qualifying infill area projects funded, such as project sizes, adaptive reuse ordinances adopted, and by-right sites.
(g)A qualifying infill project, qualifying infill area, or catalytic qualifying infill area for which a capital improvement project grant may be awarded pursuant to paragraph (2) of subdivision (c), subdivision (d), subdivision (e), or subdivision (f) shall meet all of the following conditions:
(1)A qualifying infill area or catalytic qualifying infill area shall be located in a city, county, or city and county in which the general plan of the city, county, or city and county has an adopted housing element that has been found by the department, pursuant to Section 65585 of the Government Code, to be in compliance with the requirements of Article 10.6 (commencing with Section 65580) of Chapter 3 of Division 1 of Title 7 of the Government Code. This paragraph does not apply to a qualifying infill project.
(2)Include not less than 15 percent of affordable units, as follows:
(A)For projects that contain both rental and ownership units, units of either or both product types may be included in the calculation of the affordability criteria.
(B)(i)To the extent included in a project grant application, for the purpose of calculating the percentage of affordable units, the department may consider the entire master development in which the development seeking grant funding is included.
(ii)Where applicable, an applicant may include a replacement housing plan to ensure that dwelling units housing persons and families of low or moderate income are not removed from the low- and moderate-income housing market. Residential units to be replaced shall not be counted toward meeting the affordability threshold required for eligibility for funding under this section.
(C)For the purposes of this subdivision, affordable unit means a unit that is made available at an affordable rent, as defined in Section 50053, to a household earning no more than 60 percent of the area median income or at an affordable housing cost, as defined in Section 50052.5, to a household earning no more than 120 percent of the area median income. Rental units shall be subject to a recorded covenant that ensures affordability for at least 55 years. Ownership units shall initially be sold to and occupied by a qualified household, and shall be subject to a recorded covenant that includes either a resale restriction for at least 30 years or equity sharing upon resale.
(3)Include average residential densities on the parcels to be developed that are equal to or greater than the densities described in subparagraph (B) of paragraph (3) of subdivision (c) of Section 65583.2 of the Government Code, except that a project located in a rural area as defined in Section 50199.21 shall include average residential densities on the parcels to be developed of at least 10 units per acre.
(4)Be located in an area that allows for mixed-use or residential development pursuant to one of the following:
(A)A general plan adopted pursuant to Section 65300 of the Government Code.
(B)A sustainable communities strategy adopted pursuant to Section 65080 of the Government Code.
(C)A specific plan adopted pursuant to Section 65450 of the Government Code.
(D)A Workforce Housing Opportunity Zone established pursuant to Section 65620 of the Government Code.
(E)A housing sustainability district established pursuant to Section 66201 of the Government Code.
(F)A housing development that is in compliance with Section 65913.4 of the Government Code, or Chapter 4.1 (commencing with Section 65912.100) of Division 1 of Title 7 of the Government Code.
(h)Funds awarded pursuant to this section shall supplement, not supplant, other available funding.
(i)The department shall adopt guidelines for the operation of the grant program. The guidelines shall include performance standards and authorize the reversion of grant awards if the awardee has not substantially met the performance standards.
(1)Performance standards shall include timelines for commencement of construction of a capital improvement project, completion of a capital improvement project, and commencement and completion of associated housing development on an identified infill site, as identified in the qualifying infill project, qualifying infill area, or catalytic qualifying infill area application.
(2)Catalytic qualifying infill area awards may be conditioned upon the local jurisdiction completing any actions to expedite housing development rezoning to accommodate density, completing environmental reviews to support ministerial approvals of housing, and granting fee waivers or other incentives to expedite housing development that were used in qualifying for an award.
(j)The department shall require recipients of funds to report on progress of capital improvement projects, including, but not limited to, substantiation of grant expenditures and housing outcomes, including levels of affordability as provided in the application.
(k)The guidelines may also provide for recapture of grants awarded, but for which development of the related housing units has not progressed in a reasonable period of time from the date of the grant award, as determined by the department. The guidelines shall not be subject to the requirements of Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code.
(l)For each fiscal year within the duration of the grant program, the department shall include within the report to the Governor and the Legislature, required by Section 50408, information on its activities relating to the grant program activities related to qualifying infill projects and qualifying infill areas, including small jurisdiction funding activities. The report shall include, but is not limited to, the following information:
(1)A summary of the projects that received grants under the program for each fiscal year that grants were awarded.
(2)The description, location, and estimated date of completion for each project that received a grant award under the program.
(3)An update on the status of each project that received a grant award under the program, and the number of housing units created or facilitated by the program.
(m)Notwithstanding paragraph (3) of subdivision (g), a city with a population greater than 100,000 in a standard metropolitan statistical area or a population of less than 2,000,000 may petition the department for, and the department may grant, an exception to the jurisdictions classification pursuant to subdivisions (d) to (f), inclusive, of Section 65583.2 of the Government Code, if the city believes it is unable to meet the density requirements specified in paragraph (3) of subdivision (g). The city shall submit the petition with its application and shall include the reasons why the city believes the exception is warranted. The city shall provide information supporting the need for the exception, including, but not limited to, any limitations that the city may encounter in meeting the density requirements specified in paragraph (3) of subdivision (g). Any exception shall be for the purposes of this section only. This subdivision shall become inoperative on January 1, 2026.
SEC. 2.Section 53559.1 of the Health and Safety Code is amended to read:53559.1.For the purposes of this part, the following definitions apply:
(a)Adaptive reuse means the repurposing of building structures for residential purposes, such as former office use, commercial use, or business parks. When referring to building structures, adaptive reuse means retrofitting and repurposing of existing buildings that create new residential rental units, and expressly excludes a project that involves rehabilitation of any construction affecting existing residential units that are, or have been, recently occupied.
(b)Capital improvement project means the construction, rehabilitation, demolition, relocation, preservation, acquisition, or other physical improvement of a capital asset, as defined in subdivision (a) of Section 16727 of the Government Code, that is an integral part of, or necessary to facilitate the development of, a qualifying infill project or qualifying infill area. Capital improvement projects that may be funded under the grant program established by this part include, but are not limited to, those related to the following:
(1)The creation, development, or rehabilitation of parks or open space.
(2)Water, sewer, or other utility service improvements.
(3)Transit linkages or facilities, including, but not limited to, related access plazas or pathways, or bus or transit shelters.
(4)Facilities that support pedestrian or bicycle transit.
(5)Traffic mitigation.
(6)Streets or roads that are publicly maintained and open to the use of the public for purposes of vehicular travel and that will serve as a connector within a qualifying infill project or qualifying infill area.
(7)Sidewalk or streetscape improvements, including, but not limited to, the reconstruction or resurfacing of sidewalks and streets or the installation of lighting, signage, or other related amenities.
(8)Adaptive reuse.
(9)Site preparation or demolition related to the capital improvement project or planned housing development used in calculating the eligible grant amount.
(10)Natural infrastructure solutions that reduce the risk from climate change-driven natural disasters like wildfire, flooding, heat, and sea level rise, or provide other societal benefits. For purposes of this paragraph, natural infrastructure solutions means improvements that result in the preservation or restoration of ecological systems, or utilization of engineered systems that use ecological processes, to increase resiliency to climate change or manage other environmental problems, including, but not limited to, street trees and greenspace for water catchment; infiltration and surface cooling; wetlands preservation; water treatment facilities that utilize ecologically functioning wetlands; bioswales; flood mitigation systems that utilize the natural floodplain; community gardens; and stable shorelines used in tandem with constructed flood barriers.
(c)Catalytic qualifying infill area means a contiguous area or multiple noncontiguous parcels located within an urbanized area that meet all of the following requirements:
(1)The contiguous area or noncontiguous parcels have been previously developed, or at least 75 percent of the perimeter of each parcel or area adjoins parcels that are developed or have been previously developed with urban uses, provided that, for small jurisdiction applicants, the perimeter requirements in clause (i) of subparagraph (A) of paragraph (4) of subdivision (e) of Section 53559 shall apply. For purposes of this paragraph, perimeters of a parcel bordering navigable bodies of water shall not be included in the calculation determining if 75 percent of the perimeter adjoins parcels that are developed or have been previously developed with urban uses.
(2)No parcel within or adjoining the area is classified as agricultural or natural and working lands.
(3)The area or areas constitute a large catalytic investment in land that will accommodate a mix of uses, including affordable or mixed-income housing.
(d)(1)Disadvantaged communities means any of the following:
(A)Concentrated areas of poverty.
(B)Areas of high segregation and poverty and areas of low to moderate access to opportunity, as identified in opportunity area maps developed by the department and the California Tax Credit Allocation Committee.
(C)Communities of concern, disadvantaged communities identified pursuant to Section 39711, and low-income communities as defined in subdivision (d) of Section 39713.
(D)Areas of high housing cost burdens.
(E)Areas with high vulnerability of displacement; areas related to tribal entities.
(F)Any other areas experiencing disproportionate impacts of Californias housing and climate crisis.
(2)Applicants may propose alternative definitions to disadvantaged communities in consultation with the department.
(e)Eligible applicant means any of the following:
(1)A nonprofit or for-profit developer of a qualifying infill project.
(2)A city, county, city and county, or public housing authority that has jurisdiction over a qualifying infill area or catalytic qualifying infill area. A city, county, or city and county applying for funds for a qualifying infill area or a catalytic qualifying infill area shall not be required to have a developer coapplicant. A metropolitan planning organization may participate as a coapplicant.
(3)The duly constituted governing body of an Indian reservation or rancheria that has jurisdiction over a qualifying infill area or a tribally designated housing entity as defined in Section 4103 of Title 25 of the United States Code and Section 50104.6.5 that is the developer of a qualifying infill project.
(A)A tribal entity may apply as a small jurisdiction or large jurisdiction, but may only apply as one or the other for any single qualifying infill project or qualifying infill area.
(B)The department may modify or waive requirements of this paragraph consistent with the intent of paragraphs (1) and (2) of subdivision (p) of Section 50406 to allow tribal entities to access funding.
(f)Locality means a city, county, or city and county where a county means the unincorporated areas of that county.
(g)On-demand transit service includes shuttles, vans, circulators, paratransit services, and private sector transit solutions, commonly referred to as microtransit, that are operated or contracted by a public entity. The transit service must serve the general public and be demand responsive and capable of serving multiple riders simultaneously, not only a single rider service. For the purposes of this subdivision, demand responsive means a route or frequency of service is dispatched in real time based on customer demand.
(h)Small jurisdiction means a county with a population of less than 250,000 as of January 1, 2019, or any city within that county.
(i)Large jurisdiction means a county that is not a small jurisdiction, or any city within that county.
(j)Major transit stop has the same meaning as defined in Section 21064.3 of the Public Resources Code, including major transit stops that are planned for in the applicable regional transportation plan.
(k)Urbanized area means an incorporated city or urbanized area as defined by the United States Census Bureau.
(l)Urban uses means any improved park, residential, commercial, industrial, public institutional, transit or transportation passenger facility, or retail use, or any combination of those uses.
(m)Walkability means the parcels or parcel where the development will occur is within one mile of six or more of any of the following amenities:
(1)A supermarket, grocery store, or other stores that sells groceries.
(2)A public park.
(3)A community center.
(4)A pharmacy or drugstore.
(5)A medical clinic or hospital.
(6)A public library.
(7)A school that maintains a kindergarten or any of grades 1 to 12, inclusive.
(8)A food bank.
(9)A licensed childcare facility as identified by the State Department of Social Services.
(10)A community or recreation center accessible to the general public.
(11)A bank or credit union.
(12)A post office.
(13)A laundry service.
(a)The Infill Infrastructure Grant Program of 2019 is hereby established to be administered by the department.
(b)Upon appropriation by the Legislature of funds for purposes of this part, the department shall establish and administer a grant program to allocate those funds to selected capital improvement projects that are an integral part of, or necessary to facilitate the development of, a qualifying infill project, qualifying infill area, or catalytic qualifying infill area pursuant to the requirements of this section. The department shall determine amounts, if any, to be made available for qualifying infill projects, qualifying infill areas, or catalytic qualifying infill areas.
(c)(1)Except for funds appropriated or set aside for small jurisdictions for grants pursuant to subdivision (e), the department shall administer a competitive application process for capital improvement projects for large jurisdictions pursuant to this subdivision.
(2)Except for grants for qualifying infill areas or catalytic qualifying infill areas, the department shall do all of the following for grants made pursuant to this subdivision:
(A)Make program funds available at the same time it makes funds, if any, available under the Multifamily Housing Program (Chapter 6.7 (commencing with Section 50675) of Part 2).
(B)Rate and rank applications in a manner consistent with the Multifamily Housing Program (Chapter 6.7 (commencing with Section 50675) of Part 2), except that the department may establish additional point categories for the purposes of rating and ranking applications that seek funding pursuant to this part in addition to those used in the Multifamily Housing Program.
(C)Administer funds in a manner consistent with the Multifamily Housing Program (Chapter 6.7 (commencing with Section 50675) of Part 2).
(D)For purposes of awarding grants pursuant to the competitive application process required by this subdivision, qualifying infill project means a residential or mixed-use residential project located within an urbanized area on a site that has been previously developed, or on a vacant site where at least 75 percent of the perimeter of the site adjoins parcels that are developed or have been previously developed with urban uses.
(d)(1)In its review and ranking of applications for the award of capital improvement project grants, the department shall rank the affected qualifying infill areas based on the following priorities:
(A)Project readiness, which shall include all of the following:
(i)A demonstration that the area development can complete environmental review and secure necessary entitlements from the local jurisdiction within a reasonable period of time following the submission of a grant application.
(ii)A demonstration that the eligible applicant can secure sufficient funding commitments derived from sources other than this part for the timely development of a qualifying infill area.
(B)The depth and duration of the affordability of the housing proposed for a qualifying infill area.
(C)The extent to which the average residential densities on the parcels to be developed exceed the density standards contained in paragraph (3) of subdivision (g).
(D)The qualifying infill areas inclusion of, or proximity or accessibility to, any of the following:
(i)A transit station or major transit stop.
(ii)On-demand transit services that provide or support new, restored, or expanded routes.
(iii)Walkability to essential services or businesses.
(E)The proximity of housing to parks, employment or retail centers, schools, or services.
(F)The qualifying infill area locations consistency with an adopted sustainable communities strategy pursuant to Section 65080 of the Government Code, alternative planning strategy pursuant to Section 65450 of the Government Code, or other adopted regional growth plan intended to foster efficient land use.
(G)For qualifying infill areas, in awarding funds under the program, the department shall provide additional points or preference to projects located in jurisdictions that are designated prohousing pursuant to subdivision (c) of Section 65589.9 of the Government Code, in the manner determined by the department pursuant to subdivision (d) of Section 65589.9 of the Government Code.
(2)In allocating funds pursuant to this subdivision, the department, to the maximum extent feasible, shall ensure a reasonable geographic distribution of funds.
(3)For purposes of awarding grants pursuant to the competitive application process required by this subdivision or subparagraph (B) of paragraph (2) of subdivision (c), qualifying infill area means a contiguous area located within an urbanized area (i) that has been previously developed, or where at least 75 percent of the perimeter of the area adjoins parcels that are developed with urban uses, and (ii) in which at least one development application has been approved or is pending approval for a residential or mixed-use residential project that meets the definition and criteria in this section for a qualifying infill project.
(e)(1)The department shall administer an over-the-counter application process for grants funded by the allocation specified in the appropriation or paragraph (2) of subdivision (a) of Section 53559.2 for capital improvement projects for small jurisdictions, pursuant to this subdivision.
(2)Eligible applicants shall submit the following information in the application request for funding:
(A)A complete description of the qualifying infill project or qualifying infill area and documentation of how the infill project or infill area meets the requirements of this section.
(B)A complete description of the capital improvement project and requested grant funding for the project, how the project is necessary to support the development of housing, and how it meets the criteria of this section.
(C)Documentation that specifies how the application meets all of the requirements of subdivision (g).
(D)(i)Except as provided in clause (ii), a financial document that shows the gap financing needed for the project.
(ii)For a qualifying infill project located in the unincorporated area of the county, the department shall allow an applicant to meet the requirement described in clause (i) by submitting copies of an application or applications for other sources of state or federal funding for a qualifying infill project.
(E)(i)Except as provided by clause (ii), documentation of all necessary entitlement and permits, and a certification from the applicant that the project is shovel-ready.
(ii)For a qualifying infill project located in the unincorporated area of the county, the department shall allow the applicant to meet the requirement described in clause (i) by submitting a letter of intent from a willing affordable housing developer that has previously completed at least one comparable housing project, certifying that the developer is willing to submit an application to the county for approval by the county of a qualifying infill project within the area in the event that the funding requested pursuant to this subdivision is awarded.
(3)The department may establish a per-unit formula to determine the amount of funds awarded pursuant to this subdivision.
(4)For purposes of awarding grants pursuant to the over-the-counter application process required by this subdivision:
(A)Qualifying infill area means a contiguous area located within an urbanized area that meets one of the following criteria:
(i)The area contains sites included on the inventory of land suitable and available for residential development in the housing element of the applicable city or county general plan pursuant to paragraph (3) of subdivision (a) of Section 65583 of the Government Code, and at least 50 percent of the perimeter of the area shall adjoin parcels that are developed with urban uses.
(ii)The capital improvement project for which funding is requested is necessary, as documented by an environmental review or some other adopted planning document, to make the area suitable and available for residential development, or to allow the area to accommodate housing for additional income levels, and the area otherwise meets the requirements for inclusion on the inventory of land suitable and available for residential development in the housing element of the applicable city or county general plan pursuant to paragraph (3) of subdivision (a) of Section 65583 of the Government Code. At least 50 percent of the perimeter of the area shall adjoin parcels that are developed with urban uses.
(iii)The capital improvement project for which funding is requested is necessary and integral to make the area suitable and available for residential development pursuant to Chapter 4.1 (commencing with Section 65912.100) of Division 1 of Title 7 of the Government Code.
(B)Qualifying infill project means a residential or mixed-use residential project located within an urbanized area on a site that has been previously developed, or on a vacant site where at least 50 percent of the perimeter of the site adjoins parcels that are developed with urban uses.
(f)(1)For catalytic qualifying infill areas, grants for small jurisdictions and large jurisdictions shall be provided using a selection process established by the department that meets all of the following requirements:
(A)Applicants shall meet both of the following minimum threshold requirements:
(i)Readiness, which includes both of the following:
(I)A demonstration that the catalytic qualifying infill area development can complete environmental review and secure necessary entitlements from the local jurisdiction within a reasonable period of time following the submission of a grant application.
(II)A demonstration that the eligible applicant has a viable plan to secure sufficient funding, derived from sources other than this part for the timely development of housing within a catalytic qualifying infill area.
(ii)A demonstration of the catalytic qualifying infill area locations consistency with an adopted sustainable communities strategy or alternative planning strategy pursuant to Section 65080 of the Government Code.
(B)The department shall, at a minimum, rank the affected catalytic qualifying infill areas applications for small jurisdictions and large jurisdictions based on the following:
(i)The number of housing units, including affordable units as required in paragraph (2) of subdivision (g) to be developed within the catalytic qualifying infill area.
(ii)The depth and duration of the affordability of the housing proposed for within the catalytic qualifying infill area.
(iii)The extent to which the average residential densities on the parcel or parcels to be developed exceed the density standards contained in paragraph (3) of subdivision (g).
(iv)The catalytic qualifying infill areas inclusion of, or proximity or accessibility to, a transit station, major transit stop, or other areas yielding significant reductions in vehicle miles traveled, or walkability to essential services and businesses.
(v)The proximity of planned housing within the catalytic qualifying infill area used in the calculation of the eligible grant amount to existing or planned parks, employment or retail centers, schools, or services.
(vi)Existing or planned ordinances and other zoning or building provisions that facilitate adaptive reuse, including, but not limited to, demonstration that, if the existing commercial, office, or retail structure intended for reuse as housing does not occupy the entirety of the underlying parcel, the adaptive reuse project will be permitted to add to the existing building or structure provided that the addition is consistent with the existing or planned zoning of the parcel.
(vii)The extent to which local strategies or programs are in place to prevent the direct or indirect displacement of local community residents and businesses from the area within and surrounding the catalytic qualifying infill area.
(viii)The level of community outreach and engagement in project planning, including efforts to involve disadvantaged communities and low-income residents, particularly local community residents and businesses from the area within and surrounding the catalytic qualifying infill area.
(ix)Inclusion of any publicly owned lands within the designated catalytic qualifying infill area.
(x)Streamlining provisions related to the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code), including, but not limited to, establishment of streamlined, program-level California Environmental Quality Act analysis and certification of general plans, community plans, specific plans with accompanying environmental impact reports, and related documents and streamlining proposed projects, such as enabling a by-right approval process or by utilizing statutory and categorical exemptions as authorized by applicable law.
(C)Eligible applicants shall submit the following information in the application request for funding:
(i)A complete description of the catalytic qualifying infill area and documentation of how the catalytic qualifying infill area meets the requirements of this section.
(ii)A complete description of the capital improvement project and requested grant funding, how the capital improvement project is necessary to support the development of housing, and how it meets the criteria of this section.
(iii)Documentation that specifies how the application meets all of the requirements of subdivision (g).
(iv)(I)Except as provided in subclause (II), a financial document that shows the gap financing needed for the project.
(II)For a qualifying infill project within a catalytic qualifying infill area located in the unincorporated area of the county, the department shall allow an applicant to meet the requirement described in subclause (I) by submitting copies of an application or applications for other sources of state or federal funding for a qualifying infill project.
(v)(I)Except as provided by subclause (II), documentation of all necessary entitlement and permits, and a certification from the applicant that the capital improvement project is shovel-ready.
(II)For a qualifying infill project within a catalytic qualifying infill area located in the unincorporated area of the county, the department shall allow the applicant to meet the requirement described in subclause (I) by submitting a letter of intent from a willing affordable housing developer that has previously completed at least one comparable housing project, certifying that the developer is willing to submit an application to the county for approval by the county of a qualifying infill project within the area in the event that the funding requested pursuant to this subdivision is awarded.
(2)In allocating funds pursuant to this subdivision, the department, to the maximum extent feasible, shall ensure a reasonable distribution of funds, including consideration of differing population sizes of localities and geographic location. Applications shall be considered and ranked against applications of localities of similar size and scope. For the purposes of this paragraph, the population of a county shall be the population in the unincorporated area.
(3)The department shall report the following information in its annual report due in 2024, as required by Section 50408:
(A)Specific uses of the funds for capital improvement projects.
(B)Locations of awarded catalytic qualifying infill area grants, including both of the following:
(i)Number of awards by geography, including urban and rural.
(ii)The types of buildings adapted to residential use.
(C)Total units to be created within the awarded qualifying infill areas, including anticipated affordability levels.
(D)Data on catalytic qualifying infill area projects funded, such as project sizes, adaptive reuse ordinances adopted, and by-right sites.
(g)A qualifying infill project, qualifying infill area, or catalytic qualifying infill area for which a capital improvement project grant may be awarded pursuant to paragraph (2) of subdivision (c), subdivision (d), subdivision (e), or subdivision (f) shall meet all of the following conditions:
(1)A qualifying infill area or catalytic qualifying infill area shall be located in a city, county, or city and county in which the general plan of the city, county, or city and county has an adopted housing element that has been found by the department, pursuant to Section 65585 of the Government Code, to be in compliance with the requirements of Article 10.6 (commencing with Section 65580) of Chapter 3 of Division 1 of Title 7 of the Government Code. This paragraph does not apply to a qualifying infill project.
(2)Include not less than 15 percent of affordable units, as follows:
(A)For projects that contain both rental and ownership units, units of either or both product types may be included in the calculation of the affordability criteria.
(B)(i)To the extent included in a project grant application, for the purpose of calculating the percentage of affordable units, the department may consider the entire master development in which the development seeking grant funding is included.
(ii)Where applicable, an applicant may include a replacement housing plan to ensure that dwelling units housing persons and families of low or moderate income are not removed from the low- and moderate-income housing market. Residential units to be replaced shall not be counted toward meeting the affordability threshold required for eligibility for funding under this section.
(C)For the purposes of this subdivision, affordable unit means a unit that is made available at an affordable rent, as defined in Section 50053, to a household earning no more than 60 percent of the area median income or at an affordable housing cost, as defined in Section 50052.5, to a household earning no more than 120 percent of the area median income. Rental units shall be subject to a recorded covenant that ensures affordability for at least 55 years. Ownership units shall initially be sold to and occupied by a qualified household, and shall be subject to a recorded covenant that includes either a resale restriction for at least 30 years or equity sharing upon resale.
(3)Include average residential densities on the parcels to be developed that are equal to or greater than the densities described in subparagraph (B) of paragraph (3) of subdivision (c) of Section 65583.2 of the Government Code, except that a project located in a rural area as defined in Section 50199.21 shall include average residential densities on the parcels to be developed of at least 10 units per acre.
(4)Be located in an area that allows for mixed-use or residential development pursuant to one of the following:
(A)A general plan adopted pursuant to Section 65300 of the Government Code.
(B)A sustainable communities strategy adopted pursuant to Section 65080 of the Government Code.
(C)A specific plan adopted pursuant to Section 65450 of the Government Code.
(D)A Workforce Housing Opportunity Zone established pursuant to Section 65620 of the Government Code.
(E)A housing sustainability district established pursuant to Section 66201 of the Government Code.
(F)A housing development that is in compliance with Section 65913.4 of the Government Code, or Chapter 4.1 (commencing with Section 65912.100) of Division 1 of Title 7 of the Government Code.
(h)Funds awarded pursuant to this section shall supplement, not supplant, other available funding.
(i)The department shall adopt guidelines for the operation of the grant program. The guidelines shall include performance standards and authorize the reversion of grant awards if the awardee has not substantially met the performance standards.
(1)Performance standards shall include timelines for commencement of construction of a capital improvement project, completion of a capital improvement project, and commencement and completion of associated housing development on an identified infill site, as identified in the qualifying infill project, qualifying infill area, or catalytic qualifying infill area application.
(2)Catalytic qualifying infill area awards may be conditioned upon the local jurisdiction completing any actions to expedite housing development rezoning to accommodate density, completing environmental reviews to support ministerial approvals of housing, and granting fee waivers or other incentives to expedite housing development that were used in qualifying for an award.
(j)The department shall require recipients of funds to report on progress of capital improvement projects, including, but not limited to, substantiation of grant expenditures and housing outcomes, including levels of affordability as provided in the application.
(k)The guidelines may also provide for recapture of grants awarded, but for which development of the related housing units has not progressed in a reasonable period of time from the date of the grant award, as determined by the department. The guidelines shall not be subject to the requirements of Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code.
(l)For each fiscal year within the duration of the grant program, the department shall include within the report to the Governor and the Legislature, required by Section 50408, information on its activities relating to the grant program activities related to qualifying infill projects and qualifying infill areas, including small jurisdiction funding activities. The report shall include, but is not limited to, the following information:
(1)A summary of the projects that received grants under the program for each fiscal year that grants were awarded.
(2)The description, location, and estimated date of completion for each project that received a grant award under the program.
(3)An update on the status of each project that received a grant award under the program, and the number of housing units created or facilitated by the program.
(m)Notwithstanding paragraph (3) of subdivision (g), a city with a population greater than 100,000 in a standard metropolitan statistical area or a population of less than 2,000,000 may petition the department for, and the department may grant, an exception to the jurisdictions classification pursuant to subdivisions (d) to (f), inclusive, of Section 65583.2 of the Government Code, if the city believes it is unable to meet the density requirements specified in paragraph (3) of subdivision (g). The city shall submit the petition with its application and shall include the reasons why the city believes the exception is warranted. The city shall provide information supporting the need for the exception, including, but not limited to, any limitations that the city may encounter in meeting the density requirements specified in paragraph (3) of subdivision (g). Any exception shall be for the purposes of this section only. This subdivision shall become inoperative on January 1, 2026.
SEC. 2.Section 53559.1 of the Health and Safety Code is amended to read:53559.1.For the purposes of this part, the following definitions apply:
(a)Adaptive reuse means the repurposing of building structures for residential purposes, such as former office use, commercial use, or business parks. When referring to building structures, adaptive reuse means retrofitting and repurposing of existing buildings that create new residential rental units, and expressly excludes a project that involves rehabilitation of any construction affecting existing residential units that are, or have been, recently occupied.
(b)Capital improvement project means the construction, rehabilitation, demolition, relocation, preservation, acquisition, or other physical improvement of a capital asset, as defined in subdivision (a) of Section 16727 of the Government Code, that is an integral part of, or necessary to facilitate the development of, a qualifying infill project or qualifying infill area. Capital improvement projects that may be funded under the grant program established by this part include, but are not limited to, those related to the following:
(1)The creation, development, or rehabilitation of parks or open space.
(2)Water, sewer, or other utility service improvements.
(3)Transit linkages or facilities, including, but not limited to, related access plazas or pathways, or bus or transit shelters.
(4)Facilities that support pedestrian or bicycle transit.
(5)Traffic mitigation.
(6)Streets or roads that are publicly maintained and open to the use of the public for purposes of vehicular travel and that will serve as a connector within a qualifying infill project or qualifying infill area.
(7)Sidewalk or streetscape improvements, including, but not limited to, the reconstruction or resurfacing of sidewalks and streets or the installation of lighting, signage, or other related amenities.
(8)Adaptive reuse.
(9)Site preparation or demolition related to the capital improvement project or planned housing development used in calculating the eligible grant amount.
(10)Natural infrastructure solutions that reduce the risk from climate change-driven natural disasters like wildfire, flooding, heat, and sea level rise, or provide other societal benefits. For purposes of this paragraph, natural infrastructure solutions means improvements that result in the preservation or restoration of ecological systems, or utilization of engineered systems that use ecological processes, to increase resiliency to climate change or manage other environmental problems, including, but not limited to, street trees and greenspace for water catchment; infiltration and surface cooling; wetlands preservation; water treatment facilities that utilize ecologically functioning wetlands; bioswales; flood mitigation systems that utilize the natural floodplain; community gardens; and stable shorelines used in tandem with constructed flood barriers.
(c)Catalytic qualifying infill area means a contiguous area or multiple noncontiguous parcels located within an urbanized area that meet all of the following requirements:
(1)The contiguous area or noncontiguous parcels have been previously developed, or at least 75 percent of the perimeter of each parcel or area adjoins parcels that are developed or have been previously developed with urban uses, provided that, for small jurisdiction applicants, the perimeter requirements in clause (i) of subparagraph (A) of paragraph (4) of subdivision (e) of Section 53559 shall apply. For purposes of this paragraph, perimeters of a parcel bordering navigable bodies of water shall not be included in the calculation determining if 75 percent of the perimeter adjoins parcels that are developed or have been previously developed with urban uses.
(2)No parcel within or adjoining the area is classified as agricultural or natural and working lands.
(3)The area or areas constitute a large catalytic investment in land that will accommodate a mix of uses, including affordable or mixed-income housing.
(d)(1)Disadvantaged communities means any of the following:
(A)Concentrated areas of poverty.
(B)Areas of high segregation and poverty and areas of low to moderate access to opportunity, as identified in opportunity area maps developed by the department and the California Tax Credit Allocation Committee.
(C)Communities of concern, disadvantaged communities identified pursuant to Section 39711, and low-income communities as defined in subdivision (d) of Section 39713.
(D)Areas of high housing cost burdens.
(E)Areas with high vulnerability of displacement; areas related to tribal entities.
(F)Any other areas experiencing disproportionate impacts of Californias housing and climate crisis.
(2)Applicants may propose alternative definitions to disadvantaged communities in consultation with the department.
(e)Eligible applicant means any of the following:
(1)A nonprofit or for-profit developer of a qualifying infill project.
(2)A city, county, city and county, or public housing authority that has jurisdiction over a qualifying infill area or catalytic qualifying infill area. A city, county, or city and county applying for funds for a qualifying infill area or a catalytic qualifying infill area shall not be required to have a developer coapplicant. A metropolitan planning organization may participate as a coapplicant.
(3)The duly constituted governing body of an Indian reservation or rancheria that has jurisdiction over a qualifying infill area or a tribally designated housing entity as defined in Section 4103 of Title 25 of the United States Code and Section 50104.6.5 that is the developer of a qualifying infill project.
(A)A tribal entity may apply as a small jurisdiction or large jurisdiction, but may only apply as one or the other for any single qualifying infill project or qualifying infill area.
(B)The department may modify or waive requirements of this paragraph consistent with the intent of paragraphs (1) and (2) of subdivision (p) of Section 50406 to allow tribal entities to access funding.
(f)Locality means a city, county, or city and county where a county means the unincorporated areas of that county.
(g)On-demand transit service includes shuttles, vans, circulators, paratransit services, and private sector transit solutions, commonly referred to as microtransit, that are operated or contracted by a public entity. The transit service must serve the general public and be demand responsive and capable of serving multiple riders simultaneously, not only a single rider service. For the purposes of this subdivision, demand responsive means a route or frequency of service is dispatched in real time based on customer demand.
(h)Small jurisdiction means a county with a population of less than 250,000 as of January 1, 2019, or any city within that county.
(i)Shovel-ready means that the project has a letter or other document evidencing, to the satisfaction of the department, a commitment of funds or a reservation of funds by a project-funding source for construction or permanent financing, including, but not limited to, the following:(1)Private financing from a lender other than a mortgage broker, the applicant, or an entity with an identity of interest with the applicant, unless the applicant is a lending institution actively and regularly engaged in residential lending. (2)Deferred-payment financing, residual receipts payment financing, grants, and subsidies from public agencies.(3)Funds awarded by another department program.(4)A land donation in fee for no other consideration that is supported by an appraisal or purchase and sale agreement or a local fee waiver resulting in quantifiable cost savings. A local fee waiver shall be considered a funding commitment.(5)Owner equity contributions or developer funds.(j)(i)Large jurisdiction means a county that is not a small jurisdiction, or any city within that county.
(k)(j)Major transit stop has the same meaning as defined in Section 21064.3 of the Public Resources Code, including major transit stops that are planned for in the applicable regional transportation plan.
(l)(k)Urbanized area means an incorporated city or urbanized area as defined by the United States Census Bureau.
(m)(l)Urban uses means any improved park, residential, commercial, industrial, public institutional, transit or transportation passenger facility, or retail use, or any combination of those uses.
(n)(m)Walkability means the parcels or parcel where the development will occur is within one mile of six or more of any of the following amenities:
(1)A supermarket, grocery store, or other stores that sells groceries.
(2)A public park.
(3)A community center.
(4)A pharmacy or drugstore.
(5)A medical clinic or hospital.
(6)A public library.
(7)A school that maintains a kindergarten or any of grades 1 to 12, inclusive.
(8)A food bank.
(9)A licensed childcare facility as identified by the State Department of Social Services.
(10)A community or recreation center accessible to the general public.
(11)A bank or credit union.
(12)A post office.
(13)A laundry service.
(a)The Infill Infrastructure Grant Program of 2019 is hereby established to be administered by the department.
(b)Upon appropriation by the Legislature of funds for purposes of this part, the department shall establish and administer a grant program to allocate those funds to selected capital improvement projects that are an integral part of, or necessary to facilitate the development of, a qualifying infill project, qualifying infill area, or catalytic qualifying infill area pursuant to the requirements of this section. The department shall determine amounts, if any, to be made available for qualifying infill projects, qualifying infill areas, or catalytic qualifying infill areas.
(c)(1)Except for funds appropriated or set aside for small jurisdictions for grants pursuant to subdivision (e), the department shall administer a competitive application process for capital improvement projects for large jurisdictions pursuant to this subdivision.
(2)Except for grants for qualifying infill areas or catalytic qualifying infill areas, the department shall do all of the following for grants made pursuant to this subdivision:
(A)Make program funds available at the same time it makes funds, if any, available under the Multifamily Housing Program (Chapter 6.7 (commencing with Section 50675) of Part 2).
(B)Rate and rank applications in a manner consistent with the Multifamily Housing Program (Chapter 6.7 (commencing with Section 50675) of Part 2), except that the department may establish additional point categories for the purposes of rating and ranking applications that seek funding pursuant to this part in addition to those used in the Multifamily Housing Program.
(C)Administer funds in a manner consistent with the Multifamily Housing Program (Chapter 6.7 (commencing with Section 50675) of Part 2).
(D)For purposes of awarding grants pursuant to the competitive application process required by this subdivision, qualifying infill project means a residential or mixed-use residential project located within an urbanized area on a site that has been previously developed, or on a vacant site where at least 75 percent of the perimeter of the site adjoins parcels that are developed or have been previously developed with urban uses.
(d)(1)In its review and ranking of applications for the award of capital improvement project grants, the department shall rank the affected qualifying infill areas based on the following priorities:
(A)Project readiness, which shall include all of the following:
(i)A demonstration that the area development can complete environmental review and secure necessary entitlements from the local jurisdiction within a reasonable period of time following the submission of a grant application.
(ii)A demonstration that the eligible applicant can secure sufficient funding commitments derived from sources other than this part for the timely development of a qualifying infill area.
(B)The depth and duration of the affordability of the housing proposed for a qualifying infill area.
(C)The extent to which the average residential densities on the parcels to be developed exceed the density standards contained in paragraph (3) of subdivision (g).
(D)The qualifying infill areas inclusion of, or proximity or accessibility to, a any of the following:
(i)A transit station or major transit stop or walkability stop.
(ii)On-demand transit services that provide or support new, restored, or expanded routes.
(iii)Walkability to essential services or businesses.
(E)The proximity of housing to parks, employment or retail centers, schools, or services.
(F)The qualifying infill area locations consistency with an adopted sustainable communities strategy pursuant to Section 65080 of the Government Code, alternative planning strategy pursuant to Section 65450 of the Government Code, or other adopted regional growth plan intended to foster efficient land use.
(G)For qualifying infill areas, in awarding funds under the program, the department shall provide additional points or preference to projects located in jurisdictions that are designated prohousing pursuant to subdivision (c) of Section 65589.9 of the Government Code, in the manner determined by the department pursuant to subdivision (d) of Section 65589.9 of the Government Code.
(2)In allocating funds pursuant to this subdivision, the department, to the maximum extent feasible, shall ensure a reasonable geographic distribution of funds.
(3)For purposes of awarding grants pursuant to the competitive application process required by this subdivision or subparagraph (B) of paragraph (2) of subdivision (c), qualifying infill area means a contiguous area located within an urbanized area (i) that has been previously developed, or where at least 75 percent of the perimeter of the area adjoins parcels that are developed with urban uses, and (ii) in which at least one development application has been approved or is pending approval for a residential or mixed-use residential project that meets the definition and criteria in this section for a qualifying infill project.
(e)(1)The department shall administer an over-the-counter application process for grants funded by the allocation specified in the appropriation or paragraph (2) of subdivision (a) of Section 53559.2 for capital improvement projects for small jurisdictions, pursuant to this subdivision.
(2)Eligible applicants shall submit the following information in the application request for funding:
(A)A complete description of the qualifying infill project or qualifying infill area and documentation of how the infill project or infill area meets the requirements of this section.
(B)A complete description of the capital improvement project and requested grant funding for the project, how the project is necessary to support the development of housing, and how it meets the criteria of this section.
(C)Documentation that specifies how the application meets all of the requirements of subdivision (g).
(D)(i)Except as provided in clause (ii), a financial document that shows the gap financing needed for the project.
(ii)For a qualifying infill project located in the unincorporated area of the county, the department shall allow an applicant to meet the requirement described in clause (i) by submitting copies of an application or applications for other sources of state or federal funding for a qualifying infill project.
(E)(i)Except as provided by clause (ii), documentation of all necessary entitlement and permits, and a certification from the applicant that the project is shovel-ready.
(ii)For a qualifying infill project located in the unincorporated area of the county, the department shall allow the applicant to meet the requirement described in clause (i) by submitting a letter of intent from a willing affordable housing developer that has previously completed at least one comparable housing project, certifying that the developer is willing to submit an application to the county for approval by the county of a qualifying infill project within the area in the event that the funding requested pursuant to this subdivision is awarded.
(3)The department may establish a per-unit formula to determine the amount of funds awarded pursuant to this subdivision.
(4)For purposes of awarding grants pursuant to the over-the-counter application process required by this subdivision:
(A)Qualifying infill area means a contiguous area located within an urbanized area that meets either one of the following criteria:
(i)The area contains sites included on the inventory of land suitable and available for residential development in the housing element of the applicable city or county general plan pursuant to paragraph (3) of subdivision (a) of Section 65583 of the Government Code, and at least 50 percent of the perimeter of the area shall adjoin parcels that are developed with urban uses.
(ii)The capital improvement project for which funding is requested is necessary, as documented by an environmental review or some other adopted planning document, to make the area suitable and available for residential development, or to allow the area to accommodate housing for additional income levels, and the area otherwise meets the requirements for inclusion on the inventory of land suitable and available for residential development in the housing element of the applicable city or county general plan pursuant to paragraph (3) of subdivision (a) of Section 65583 of the Government Code. At least 50 percent of the perimeter of the area shall adjoin parcels that are developed with urban uses.
(iii)The capital improvement project for which funding is requested is necessary and integral to make the area suitable and available for residential development pursuant to Chapter 4.1 (commencing with Section 65912.100) of Division 1 of Title 7 of the Government Code.
(B)Qualifying infill project means a residential or mixed-use residential project located within an urbanized area on a site that has been previously developed, or on a vacant site where at least 50 percent of the perimeter of the site adjoins parcels that are developed with urban uses.
(f)(1)For catalytic qualifying infill areas, grants for small jurisdictions and large jurisdictions shall be provided using a selection process established by the department that meets all of the following requirements:
(A)Applicants shall meet both of the following minimum threshold requirements:
(i)Readiness, which includes both of the following:
(I)A demonstration that the catalytic qualifying infill area development can complete environmental review and secure necessary entitlements from the local jurisdiction within a reasonable period of time following the submission of a grant application.
(II)A demonstration that the eligible applicant has a viable plan to secure sufficient funding, derived from sources other than this part for the timely development of housing within a catalytic qualifying infill area.
(ii)A demonstration of the catalytic qualifying infill area locations consistency with an adopted sustainable communities strategy or alternative planning strategy pursuant to Section 65080 of the Government Code.
(B)The department shall, at a minimum, rank the affected catalytic qualifying infill areas applications for small jurisdictions and large jurisdictions based on the following:
(i)The number of housing units, including affordable units as required in paragraph (2) of subdivision (g) to be developed within the catalytic qualifying infill area.
(ii)The depth and duration of the affordability of the housing proposed for within the catalytic qualifying infill area.
(iii)The extent to which the average residential densities on the parcel or parcels to be developed exceed the density standards contained in paragraph (3) of subdivision (g).
(iv)The catalytic qualifying infill areas inclusion of, or proximity or accessibility to, a transit station, major transit stop, or other areas yielding significant reductions in vehicle miles traveled, or walkability to essential services and businesses.
(v)The proximity of planned housing within the catalytic qualifying infill area used in the calculation of the eligible grant amount to existing or planned parks, employment or retail centers, schools, or services.
(vi)Existing or planned ordinances and other zoning or building provisions that facilitate adaptive reuse, including, but not limited to, demonstration that, if the existing commercial, office, or retail structure intended for reuse as housing does not occupy the entirety of the underlying parcel, the adaptive reuse project will be permitted to add to the existing building or structure provided that the addition is consistent with the existing or planned zoning of the parcel.
(vii)The extent to which local strategies or programs are in place to prevent the direct or indirect displacement of local community residents and businesses from the area within and surrounding the catalytic qualifying infill area.
(viii)The level of community outreach and engagement in project planning, including efforts to involve disadvantaged communities and low-income residents, particularly local community residents and businesses from the area within and surrounding the catalytic qualifying infill area.
(ix)Inclusion of any publicly owned lands within the designated catalytic qualifying infill area.
(x)Streamlining provisions related to the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code), including, but not limited to, establishment of streamlined, program-level California Environmental Quality Act analysis and certification of general plans, community plans, specific plans with accompanying environmental impact reports, and related documents and streamlining proposed projects, such as enabling a by-right approval process or by utilizing statutory and categorical exemptions as authorized by applicable law.
(C)Eligible applicants shall submit the following information in the application request for funding:
(i)A complete description of the catalytic qualifying infill area and documentation of how the catalytic qualifying infill area meets the requirements of this section.
(ii)A complete description of the capital improvement project and requested grant funding, how the capital improvement project is necessary to support the development of housing, and how it meets the criteria of this section.
(iii)Documentation that specifies how the application meets all of the requirements of subdivision (g).
(iv)(I)Except as provided in subclause (II), a financial document that shows the gap financing needed for the project.
(II)For a qualifying infill project within a catalytic qualifying infill area located in the unincorporated area of the county, the department shall allow an applicant to meet the requirement described in subclause (I) by submitting copies of an application or applications for other sources of state or federal funding for a qualifying infill project.
(v)(I)Except as provided by subclause (II), documentation of all necessary entitlement and permits, and a certification from the applicant that the capital improvement project is shovel-ready.
(II)For a qualifying infill project within a catalytic qualifying infill area located in the unincorporated area of the county, the department shall allow the applicant to meet the requirement described in subclause (I) by submitting a letter of intent from a willing affordable housing developer that has previously completed at least one comparable housing project, certifying that the developer is willing to submit an application to the county for approval by the county of a qualifying infill project within the area in the event that the funding requested pursuant to this subdivision is awarded.
(2)In allocating funds pursuant to this subdivision, the department, to the maximum extent feasible, shall ensure a reasonable distribution of funds, including consideration of differing population sizes of localities and geographic location. Applications shall be considered and ranked against applications of localities of similar size and scope. For the purposes of this paragraph, the population of a county shall be the population in the unincorporated area.
(3)The department shall report the following information in its annual report due in 2024, as required by Section 50408:
(A)Specific uses of the funds for capital improvement projects.
(B)Locations of awarded catalytic qualifying infill area grants, including both of the following:
(i)Number of awards by geography, including urban and rural.
(ii)The types of buildings adapted to residential use.
(C)Total units to be created within the awarded qualifying infill areas, including anticipated affordability levels.
(D)Data on catalytic qualifying infill area projects funded, such as project sizes, adaptive reuse ordinances adopted, and by-right sites.
(g)A qualifying infill project, qualifying infill area, or catalytic qualifying infill area for which a capital improvement project grant may be awarded pursuant to paragraph (2) of subdivision (c), subdivision (d), subdivision (e), or subdivision (f) shall meet all of the following conditions:
(1)A qualifying infill area or catalytic qualifying infill area shall be located in a city, county, or city and county in which the general plan of the city, county, or city and county has an adopted housing element that has been found by the department, pursuant to Section 65585 of the Government Code, to be in compliance with the requirements of Article 10.6 (commencing with Section 65580) of Chapter 3 of Division 1 of Title 7 of the Government Code. This paragraph does not apply to a qualifying infill project.
(2)Include not less than 15 percent of affordable units, as follows:
(A)For projects that contain both rental and ownership units, units of either or both product types may be included in the calculation of the affordability criteria.
(B)(i)To the extent included in a project grant application, for the purpose of calculating the percentage of affordable units, the department may consider the entire master development in which the development seeking grant funding is included.
(ii)Where applicable, an applicant may include a replacement housing plan to ensure that dwelling units housing persons and families of low or moderate income are not removed from the low- and moderate-income housing market. Residential units to be replaced shall not be counted toward meeting the affordability threshold required for eligibility for funding under this section.
(C)For the purposes of this subdivision, affordable unit means a unit that is made available at an affordable rent, as defined in Section 50053, to a household earning no more than 60 percent of the area median income or at an affordable housing cost, as defined in Section 50052.5, to a household earning no more than 120 percent of the area median income. Rental units shall be subject to a recorded covenant that ensures affordability for at least 55 years. Ownership units shall initially be sold to and occupied by a qualified household, and shall be subject to a recorded covenant that includes either a resale restriction for at least 30 years or equity sharing upon resale.
(3)Include average residential densities on the parcels to be developed that are equal to or greater than the densities described in subparagraph (B) of paragraph (3) of subdivision (c) of Section 65583.2 of the Government Code, except that a project located in a rural area as defined in Section 50199.21 shall include average residential densities on the parcels to be developed of at least 10 units per acre.
(4)Be located in an area that allows for mixed-use or residential development pursuant to one of the following:
(A)A general plan adopted pursuant to Section 65300 of the Government Code.
(B)A sustainable communities strategy adopted pursuant to Section 65080 of the Government Code.
(C)A specific plan adopted pursuant to Section 65450 of the Government Code.
(D)A Workforce Housing Opportunity Zone established pursuant to Section 65620 of the Government Code.
(E)A housing sustainability district established pursuant to Section 66201 of the Government Code.
(F)A housing development that is in compliance with Section 65913.4 of the Government Code, or Chapter 4.1 (commencing with Section 65912.100) of Division 1 of Title 7 of the Government Code.
(h)Funds awarded pursuant to this section shall supplement, not supplant, other available funding.
(i)The department shall adopt guidelines for the operation of the grant program. The guidelines shall include performance standards and authorize the reversion of grant awards if the awardee has not substantially met the performance standards.
(1)Performance standards shall include timelines for commencement of construction of a capital improvement project, completion of a capital improvement project, and commencement and completion of associated housing development on an identified infill site, as identified in the qualifying infill project, qualifying infill area, or catalytic qualifying infill area application.
(2)Catalytic qualifying infill area awards may be conditioned upon the local jurisdiction completing any actions to expedite housing development rezoning to accommodate density, completing environmental reviews to support ministerial approvals of housing, and granting fee waivers or other incentives to expedite housing development that were used in qualifying for an award.
(j)The department shall require recipients of funds to report on progress of capital improvement projects, including, but not limited to, substantiation of grant expenditures and housing outcomes, including levels of affordability as provided in the application.
(k)The guidelines may also provide for recapture of grants awarded, but for which development of the related housing units has not progressed in a reasonable period of time from the date of the grant award, as determined by the department. The guidelines shall not be subject to the requirements of Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code.
(l)For each fiscal year within the duration of the grant program, the department shall include within the report to the Governor and the Legislature, required by Section 50408, information on its activities relating to the grant program activities related to qualifying infill projects and qualifying infill areas, including small jurisdiction funding activities. The report shall include, but is not limited to, the following information:
(1)A summary of the projects that received grants under the program for each fiscal year that grants were awarded.
(2)The description, location, and estimated date of completion for each project that received a grant award under the program.
(3)An update on the status of each project that received a grant award under the program, and the number of housing units created or facilitated by the program.
(m)Notwithstanding paragraph (3) of subdivision (g), a city with a population greater than 100,000 in a standard metropolitan statistical area or a population of less than 2,000,000 may petition the department for, and the department may grant, an exception to the jurisdictions classification pursuant to subdivisions (d) to (f), inclusive, of Section 65583.2 of the Government Code, if the city believes it is unable to meet the density requirements specified in paragraph (3) of subdivision (g). The city shall submit the petition with its application and shall include the reasons why the city believes the exception is warranted. The city shall provide information supporting the need for the exception, including, but not limited to, any limitations that the city may encounter in meeting the density requirements specified in paragraph (3) of subdivision (g). Any exception shall be for the purposes of this section only. This subdivision shall become inoperative on January 1, 2026.
SEC. 2.Section 53559.1 of the Health and Safety Code is amended to read:53559.1.For the purposes of this part, the following definitions apply:
(a)Adaptive reuse means the repurposing of building structures for residential purposes, such as former office use, commercial use, or business parks. When referring to building structures, adaptive reuse means retrofitting and repurposing of existing buildings that create new residential rental units, and expressly excludes a project that involves rehabilitation of any construction affecting existing residential units that are, or have been, recently occupied.
(b)Capital improvement project means the construction, rehabilitation, demolition, relocation, preservation, acquisition, or other physical improvement of a capital asset, as defined in subdivision (a) of Section 16727 of the Government Code, that is an integral part of, or necessary to facilitate the development of, a qualifying infill project or qualifying infill area. Capital improvement projects that may be funded under the grant program established by this part include, but are not limited to, those related to the following:
(1)The creation, development, or rehabilitation of parks or open space.
(2)Water, sewer, or other utility service improvements.
(3)Transit linkages or facilities, including, but not limited to, related access plazas or pathways, or bus or transit shelters.
(4)Facilities that support pedestrian or bicycle transit.
(5)Traffic mitigation.
(6)Streets or roads that are publicly maintained and open to the use of the public for purposes of vehicular travel and that will serve as a connector within a qualifying infill project or qualifying infill area.
(7)Sidewalk or streetscape improvements, including, but not limited to, the reconstruction or resurfacing of sidewalks and streets or the installation of lighting, signage, or other related amenities.
(8)Adaptive reuse.
(9)Site preparation or demolition related to the capital improvement project or planned housing development used in calculating the eligible grant amount.
(10)Nature-based solutions that are proven to reduce the risk from climate change-driven natural disasters and risks like wildfire, flooding, heat, and sea level rise. For purposes of this paragraph, nature-based solutions means sustainable planning, design, environmental management, and engineering practices that weave natural features or processes into the built environment to promote adaptation and resilience.(10)Natural infrastructure solutions that reduce the risk from climate change-driven natural disasters like wildfire, flooding, heat, and sea level rise, or provide other societal benefits. For purposes of this paragraph, natural infrastructure solutions means improvements that result in the preservation or restoration of ecological systems, or utilization of engineered systems that use ecological processes, to increase resiliency to climate change or manage other environmental problems, including, but not limited to, street trees and greenspace for water catchment; infiltration and surface cooling; wetlands preservation; water treatment facilities that utilize ecologically functioning wetlands; bioswales; flood mitigation systems that utilize the natural floodplain; community gardens; and stable shorelines used in tandem with constructed flood barriers.
(c)Catalytic qualifying infill area means a contiguous area or multiple noncontiguous parcels located within an urbanized area that meet all of the following requirements:
(1)The contiguous area or noncontiguous parcels have been previously developed, or at least 75 percent of the perimeter of each parcel or area adjoins parcels that are developed or have been previously developed with urban uses, provided that, for small jurisdiction applicants, the perimeter requirements in clause (i) of subparagraph (A) of paragraph (4) of subdivision (e) of Section 53559 shall apply. For purposes of this paragraph, perimeters of a parcel bordering navigable bodies of water shall not be included in the calculation determining if 75 percent of the perimeter adjoins parcels that are developed or have been previously developed with urban uses.
(2)No parcel within or adjoining the area is classified as agricultural or natural and working lands.
(3)The area or areas constitute a large catalytic investment in land that will accommodate a mix of uses, including affordable or mixed-income housing.
(d)(1)Disadvantaged communities means any of the following:
(A)Concentrated areas of poverty.
(B)Areas of high segregation and poverty and areas of low to moderate access to opportunity, as identified in opportunity area maps developed by the department and the California Tax Credit Allocation Committee.
(C)Communities of concern, disadvantaged communities identified pursuant to Section 39711, and low-income communities as defined in subdivision (d) of Section 39713.
(D)Areas of high housing cost burdens.
(E)Areas with high vulnerability of displacement; areas related to tribal entities.
(F)Any other areas experiencing disproportionate impacts of Californias housing and climate crisis.
(2)Applicants may propose alternative definitions to disadvantaged communities in consultation with the department.
(e)Eligible applicant means any of the following:
(1)A nonprofit or for-profit developer of a qualifying infill project.
(2)A city, county, city and county, or public housing authority that has jurisdiction over a qualifying infill area or catalytic qualifying infill area. A city, county, or city and county applying for funds for a qualifying infill area or a catalytic qualifying infill area shall not be required to have a developer coapplicant. A metropolitan planning organization may participate as a coapplicant.
(3)The duly constituted governing body of an Indian reservation or rancheria that has jurisdiction over a qualifying infill area or a tribally designated housing entity as defined in Section 4103 of Title 25 of the United States Code and Section 50104.6.5 that is the developer of a qualifying infill project.
(A)A tribal entity may apply as a small jurisdiction or large jurisdiction, but may only apply as one or the other for any single qualifying infill project or qualifying infill area.
(B)The department may modify or waive requirements of this paragraph consistent with the intent of paragraphs (1) and (2) of subdivision (p) of Section 50406 to allow tribal entities to access funding.
(f)Locality means a city, county, or city and county where a county means the unincorporated areas of that county.
(g)On-demand transit service includes shuttles, vans, circulators, paratransit services, and private sector transit solutions, commonly referred to as microtransit, that are operated or contracted by a public entity. The transit service must serve the general public and be demand responsive and capable of serving multiple riders simultaneously, not only a single rider service. For the purposes of this subdivision, demand responsive means a route or frequency of service is dispatched in real time based on customer demand.
(g)(h)Small jurisdiction means a county with a population of less than 250,000 as of January 1, 2019, or any city within that county.
(i)Shovel-ready means that the project has a letter or other document evidencing, to the satisfaction of the department, a commitment of funds or a reservation of funds by a project-funding source for construction or permanent financing, including, but not limited to, the following:
(1)Private financing from a lender other than a mortgage broker, the applicant, or an entity with an identity of interest with the applicant, unless the applicant is a lending institution actively and regularly engaged in residential lending.
(2)Deferred-payment financing, residual receipts payment financing, grants, and subsidies from public agencies.
(3)Funds awarded by another department program.
(4)A land donation in fee for no other consideration that is supported by an appraisal or purchase and sale agreement or a local fee waiver resulting in quantifiable cost savings. A local fee waiver shall be considered a funding commitment.
(5)Owner equity contributions or developer funds.
(h)(j)Large jurisdiction means a county that is not a small jurisdiction, or any city within that county.
(i)(k)Major transit stop has the same meaning as defined in subdivision (b) of Section 21155 Section 21064.3 of the Public Resources Code. Code, including major transit stops that are planned for in the applicable regional transportation plan.
(j)(l)Urbanized area means an incorporated city or urbanized area as defined by the United States Census Bureau.
(k)(m)Urban uses means any improved park, residential, commercial, industrial, public institutional, transit or transportation passenger facility, or retail use, or any combination of those uses.
(l)(n)Walkability means the parcels or parcel where the development will occur is within one mile of six or more of any of the following amenities:
(1)A supermarket or supermarket, grocery store. store, or other stores that sells groceries.
(2)A public park.
(3)A community center.
(4)A pharmacy or drugstore.
(5)A medical clinic or hospital.
(6)A public library.
(7)A school that maintains a kindergarten or any of grades 1 to 12, inclusive.
(8)A food bank.
(9)A licensed childcare facility as identified by the State Department of Social Services.
(10)A community or recreation center accessible to the general public.
(11)A bank or credit union.
(12)A post office.
(13)A laundry service.
(a)The Infill Infrastructure Grant Program of 2019 is hereby established to be administered by the department.
(b)Upon appropriation by the Legislature of funds for purposes of this part, the department shall establish and administer a grant program to allocate those funds to selected capital improvement projects that are an integral part of, or necessary to facilitate the development of, a qualifying infill project, qualifying infill area, or catalytic qualifying infill area pursuant to the requirements of this section. The department shall determine amounts, if any, to be made available for qualifying infill projects, qualifying infill areas, or catalytic qualifying infill areas.
(c)(1)Except for funds appropriated or set aside for small jurisdictions for grants pursuant to subdivision (e), the department shall administer a competitive application process for capital improvement projects for large jurisdictions pursuant to this subdivision.
(2)Except for grants for qualifying infill areas or catalytic qualifying infill areas, the department shall do all of the following for grants made pursuant to this subdivision:
(A)Make program funds available at the same time it makes funds, if any, available under the Multifamily Housing Program (Chapter 6.7 (commencing with Section 50675) of Part 2).
(B)Rate and rank applications in a manner consistent with the Multifamily Housing Program (Chapter 6.7 (commencing with Section 50675) of Part 2), except that the department may establish additional point categories for the purposes of rating and ranking applications that seek funding pursuant to this part in addition to those used in the Multifamily Housing Program.
(C)Administer funds in a manner consistent with the Multifamily Housing Program (Chapter 6.7 (commencing with Section 50675) of Part 2).
(D)For purposes of awarding grants pursuant to the competitive application process required by this subdivision, qualifying infill project means a residential or mixed-use residential project located within an urbanized area on a site that has been previously developed, or on a vacant site where at least 75 percent of the perimeter of the site adjoins parcels that are developed or have been previously developed with urban uses.
(d)(1)In its review and ranking of applications for the award of capital improvement project grants, the department shall rank the affected qualifying infill areas based on the following priorities:
(A)Project readiness, which shall include all of the following:
(i)A demonstration that the area development can complete environmental review and secure necessary entitlements from the local jurisdiction within a reasonable period of time following the submission of a grant application.
(ii)A demonstration that the eligible applicant can secure sufficient funding commitments derived from sources other than this part for the timely development of a qualifying infill area.
(B)The depth and duration of the affordability of the housing proposed for a qualifying infill area.
(C)The extent to which the average residential densities on the parcels to be developed exceed the density standards contained in paragraph (3) of subdivision (g).
(D)The qualifying infill areas inclusion of, or proximity or accessibility to, a transit station or major transit stop or walkability to essential services or businesses.
(E)The proximity of housing to parks, employment or retail centers, schools, or services.
(F)The qualifying infill area locations consistency with an adopted sustainable communities strategy pursuant to Section 65080 of the Government Code, alternative planning strategy pursuant to Section 65450 of the Government Code, or other adopted regional growth plan intended to foster efficient land use.
(G)For qualifying infill areas, in awarding funds under the program, the department shall provide additional points or preference to projects located in jurisdictions that are designated prohousing pursuant to subdivision (c) of Section 65589.9 of the Government Code, in the manner determined by the department pursuant to subdivision (d) of Section 65589.9 of the Government Code.
(2)In allocating funds pursuant to this subdivision, the department, to the maximum extent feasible, shall ensure a reasonable geographic distribution of funds.
(3)For purposes of awarding grants pursuant to the competitive application process required by this subdivision or subparagraph (B) of paragraph (2) of subdivision (c), qualifying infill area means a contiguous area located within an urbanized area (i) that has been previously developed, or where at least 75 percent of the perimeter of the area adjoins parcels that are developed with urban uses, and (ii) in which at least one development application has been approved or is pending approval for a residential or mixed-use residential project that meets the definition and criteria in this section for a qualifying infill project.
(e)(1)The department shall administer an over-the-counter application process for grants funded by the allocation specified in the appropriation or paragraph (2) of subdivision (a) of Section 53559.2 for capital improvement projects for small jurisdictions, pursuant to this subdivision.
(2)Eligible applicants shall submit the following information in the application request for funding:
(A)A complete description of the qualifying infill project or qualifying infill area and documentation of how the infill project or infill area meets the requirements of this section.
(B)A complete description of the capital improvement project and requested grant funding for the project, how the project is necessary to support the development of housing, and how it meets the criteria of this section.
(C)Documentation that specifies how the application meets all of the requirements of subdivision (g).
(D)(i)Except as provided in clause (ii), a financial document that shows the gap financing needed for the project.
(ii)For a qualifying infill project located in the unincorporated area of the county, the department shall allow an applicant to meet the requirement described in clause (i) by submitting copies of an application or applications for other sources of state or federal funding for a qualifying infill project.
(E)(i)Except as provided by clause (ii), documentation of approval of all necessary entitlement and building permits. permits, and a certification from the applicant that the project is shovel-ready.
(ii)For a qualifying infill project located in the unincorporated area of the county, the department shall allow the applicant to meet the requirement described in clause (i) by submitting a letter of intent from a willing affordable housing developer that has previously completed at least one comparable housing project, certifying that the developer is willing to submit an application to the county for approval by the county of a qualifying infill project within the area in the event that the funding requested pursuant to this subdivision is awarded.
(3)The department may establish a per-unit formula to determine the amount of funds awarded pursuant to this subdivision.
(4)For purposes of awarding grants pursuant to the over-the-counter application process required by this subdivision:
(A)Qualifying infill area means a contiguous area located within an urbanized area that meets one either of the following criteria:
(i)The area contains sites included on the inventory of land suitable and available for residential development in the housing element of the applicable city or county general plan pursuant to paragraph (3) of subdivision (a) of Section 65583 of the Government Code, and at least 50 percent of the perimeter of the area shall adjoin parcels that are developed with urban uses.
(ii)The capital improvement project for which funding is requested is necessary, as documented by an environmental review or some other adopted planning document, to make the area suitable and available for residential development, or to allow the area to accommodate housing for additional income levels, and the area otherwise meets the requirements for inclusion on the inventory of land suitable and available for residential development in the housing element of the applicable city or county general plan pursuant to paragraph (3) of subdivision (a) of Section 65583 of the Government Code. At least 50 percent of the perimeter of the area shall adjoin parcels that are developed with urban uses.
(iii)The capital improvement project for which funding is requested is necessary, as adopted by a planning document, to make the area suitable and available for residential development pursuant to Chapter 4.1 (commencing with Section 65912.100) of Division 1 of Title 7 of the Government Code.(B)Qualifying infill project means a residential or mixed-use residential project located within an urbanized area on a site that has been previously developed, or on a vacant site where at least 50 percent of the perimeter of the site adjoins parcels that are developed with urban uses.
(f)(1)For catalytic qualifying infill areas, grants for small jurisdictions and large jurisdictions shall be provided using a selection process established by the department that meets all of the following requirements:
(A)Applicants shall meet both of the following minimum threshold requirements:
(i)Readiness, which includes both of the following:
(I)A demonstration that the catalytic qualifying infill area development can complete environmental review and secure necessary entitlements from the local jurisdiction within a reasonable period of time following the submission of a grant application.
(II)A demonstration that the eligible applicant has a viable plan to secure sufficient funding, derived from sources other than this part for the timely development of housing within a catalytic qualifying infill area.
(ii)A demonstration of the catalytic qualifying infill area locations consistency with an adopted sustainable communities strategy or alternative planning strategy pursuant to Section 65080 of the Government Code.
(B)The department shall, at a minimum, rank the affected catalytic qualifying infill areas applications for small jurisdictions and large jurisdictions based on the following:
(i)The number of housing units, including affordable units as required in paragraph (2) of subdivision (g) to be developed within the catalytic qualifying infill area.
(ii)The depth and duration of the affordability of the housing proposed for within the catalytic qualifying infill area.
(iii)The extent to which the average residential densities on the parcel or parcels to be developed exceed the density standards contained in paragraph (3) of subdivision (g).
(iv)The catalytic qualifying infill areas inclusion of, or proximity or accessibility to, a transit station, major transit stop, or other areas yielding significant reductions in vehicle miles traveled, or walkability to essential services and businesses.
(v)The proximity of planned housing within the catalytic qualifying infill area used in the calculation of the eligible grant amount to existing or planned parks, employment or retail centers, schools, or services.
(vi)Existing or planned ordinances and other zoning or building provisions that facilitate adaptive reuse, including, but not limited to, demonstration that, if the existing commercial, office, or retail structure intended for reuse as housing does not occupy the entirety of the underlying parcel, the adaptive reuse project will be permitted to add to the existing building or structure provided that the addition is consistent with the existing or planned zoning of the parcel.
(vii)The extent to which local strategies or programs are in place to prevent the direct or indirect displacement of local community residents and businesses from the area within and surrounding the catalytic qualifying infill area.
(viii)The level of community outreach and engagement in project planning, including efforts to involve disadvantaged communities and low-income residents, particularly local community residents and businesses from the area within and surrounding the catalytic qualifying infill area.
(ix)Inclusion of any publicly owned lands within the designated catalytic qualifying infill area.
(x)Streamlining provisions related to the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code), including, but not limited to, establishment of streamlined, program-level California Environmental Quality Act analysis and certification of general plans, community plans, specific plans with accompanying environmental impact reports, and related documents and streamlining proposed projects, such as enabling a by-right approval process or by utilizing statutory and categorical exemptions as authorized by applicable law.
(C)Eligible applicants shall submit the following information in the application request for funding:
(i)A complete description of the catalytic qualifying infill area and documentation of how the catalytic qualifying infill area meets the requirements of this section.
(ii)A complete description of the capital improvement project and requested grant funding, how the capital improvement project is necessary to support the development of housing, and how it meets the criteria of this section.
(iii)Documentation that specifies how the application meets all of the requirements of subdivision (g).
(iv)(I)Except as provided in subclause (II), a financial document that shows the gap financing needed for the project.
(II)For a qualifying infill project within a catalytic qualifying infill area located in the unincorporated area of the county, the department shall allow an applicant to meet the requirement described in subclause (I) by submitting copies of an application or applications for other sources of state or federal funding for a qualifying infill project.
(v)(I)Except as provided by subclause (II), documentation of all necessary entitlement and building permits. permits, and a certification from the applicant that the capital improvement project is shovel-ready.
(II)For a qualifying infill project within a catalytic qualifying infill area located in the unincorporated area of the county, the department shall allow the applicant to meet the requirement described in subclause (I) by submitting a letter of intent from a willing affordable housing developer that has previously completed at least one comparable housing project, certifying that the developer is willing to submit an application to the county for approval by the county of a qualifying infill project within the area in the event that the funding requested pursuant to this subdivision is awarded.
(2)In allocating funds pursuant to this subdivision, the department, to the maximum extent feasible, shall ensure a reasonable distribution of funds, including consideration of differing population sizes of localities and geographic location. Applications shall be considered and ranked against applications of localities of similar size and scope. For the purposes of this paragraph, the population of a county shall be the population in the unincorporated area.
(3)The department shall report the following information in its annual report due in 2024, as required by Section 50408:
(A)Specific uses of the funds for capital improvement projects.
(B)Locations of awarded catalytic qualifying infill area grants, including both of the following:
(i)Number of awards by geography, including urban and rural.
(ii)The types of buildings adapted to residential use.
(C)Total units to be created within the awarded qualifying infill areas, including anticipated affordability levels.
(D)Data on catalytic qualifying infill area projects funded, such as project sizes, adaptive reuse ordinances adopted, and by-right sites.
(g)A qualifying infill project, qualifying infill area, or catalytic qualifying infill area for which a capital improvement project grant may be awarded pursuant to paragraph (2) of subdivision (c), subdivision (d), subdivision (e), or subdivision (f) shall meet all of the following conditions:
(1)A qualifying infill area or catalytic qualifying infill area shall be located in a city, county, or city and county in which the general plan of the city, county, or city and county has an adopted housing element that has been found by the department, pursuant to Section 65585 of the Government Code, to be in compliance with the requirements of Article 10.6 (commencing with Section 65580) of Chapter 3 of Division 1 of Title 7 of the Government Code. This paragraph does not apply to a qualifying infill project.
(2)The project meets one of the following:(A)Includes(2)Include not less than 15 percent of affordable units, as follows:
(i)(A)For projects that contain both rental and ownership units, units of either or both product types may be included in the calculation of the affordability criteria.
(ii)(I)(B)(i)To the extent included in a project grant application, for the purpose of calculating the percentage of affordable units, the department may consider the entire master development in which the development seeking grant funding is included.
(II)(ii)Where applicable, an applicant may include a replacement housing plan to ensure that dwelling units housing persons and families of low or moderate income are not removed from the low- and moderate-income housing market. Residential units to be replaced shall not be counted toward meeting the affordability threshold required for eligibility for funding under this section.
(iii)(C)For the purposes of this subparagraph, subdivision, affordable unit means a unit that is made available at an affordable rent, as defined in Section 50053, to a household earning no more than 80 60 percent of the area median income or at an affordable housing cost, as defined in Section 50052.5, to a household earning no more than 120 percent of the area median income. Rental units shall be subject to a recorded covenant that ensures affordability for at least 55 years. Ownership units shall initially be sold to and occupied by a qualified household, and shall be subject to a recorded covenant that includes either a resale restriction for at least 30 years or equity sharing upon resale.
(B)If the project is a by-right site and is in compliance with Section 65913.4 of the Government Code, or Chapter 4.1 (commencing with Section 65912.100) of Division 1 of Title 7 of the Government Code, the project meets the affordability requirements outlined in those sections, as applicable.(3)Include average residential densities on the parcels to be developed that are equal to or greater than the densities described in subparagraph (B) of paragraph (3) of subdivision (c) of Section 65583.2 of the Government Code, except that a project located in a rural area as defined in Section 50199.21 shall include average residential densities on the parcels to be developed of at least 10 units per acre.
(4)Be located in an area that allows for mixed-use or residential development pursuant to one of the following:
(A)A general plan adopted pursuant to Section 65300 of the Government Code.
(B)A sustainable communities strategy adopted pursuant to Section 65080 of the Government Code.
(C)A specific plan adopted pursuant to Section 65450 of the Government Code.
(D)A Workforce Housing Opportunity Zone established pursuant to Section 65620 of the Government Code.
(E)A housing sustainability district established pursuant to Section 66201 of the Government Code.
(F)A housing development that is in compliance with Section 65913.4 of the Government Code, or Chapter 4.1 (commencing with Section 65912.100) of Division 1 of Title 7 of the Government Code.
(h)Funds awarded pursuant to this section shall supplement, not supplant, other available funding.
(i)The department shall adopt guidelines for the operation of the grant program. The guidelines shall include performance standards and authorize the reversion of grant awards if the awardee has not substantially met the performance standards.
(1)Performance standards shall include timelines for commencement of construction of a capital improvement project, completion of a capital improvement project, and commencement and completion of associated housing development on an identified infill site, as identified in the qualifying infill project, qualifying infill area, or catalytic qualifying infill area application.
(2)Catalytic qualifying infill area awards may be conditioned upon the local jurisdiction completing any actions to expedite housing development rezoning to accommodate density, completing environmental reviews to support ministerial approvals of housing, and granting fee waivers or other incentives to expedite housing development that were used in qualifying for an award.
(j)The department shall require recipients of funds to report on progress of capital improvement projects, including, but not limited to, substantiation of grant expenditures and housing outcomes, including levels of affordability as provided in the application.
(k)The guidelines may also provide for recapture of grants awarded, but for which development of the related housing units has not progressed in a reasonable period of time from the date of the grant award, as determined by the department. The guidelines shall not be subject to the requirements of Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code.
(l)For each fiscal year within the duration of the grant program, the department shall include within the report to the Governor and the Legislature, required by Section 50408, information on its activities relating to the grant program activities related to qualifying infill projects and qualifying infill areas, including small jurisdiction funding activities. The report shall include, but is not limited to, the following information:
(1)A summary of the projects that received grants under the program for each fiscal year that grants were awarded.
(2)The description, location, and estimated date of completion for each project that received a grant award under the program.
(3)An update on the status of each project that received a grant award under the program, and the number of housing units created or facilitated by the program.
(m)Notwithstanding paragraph (3) of subdivision (g), a city with a population greater than 100,000 in a standard metropolitan statistical area or a population of less than 2,000,000 may petition the department for, and the department may grant, an exception to the jurisdictions classification pursuant to subdivisions (d) to (f), inclusive, of Section 65583.2 of the Government Code, if the city believes it is unable to meet the density requirements specified in paragraph (3) of subdivision (g). The city shall submit the petition with its application and shall include the reasons why the city believes the exception is warranted. The city shall provide information supporting the need for the exception, including, but not limited to, any limitations that the city may encounter in meeting the density requirements specified in paragraph (3) of subdivision (g). Any exception shall be for the purposes of this section only. This subdivision shall become inoperative on January 1, 2026.
SEC. 2.Section 53559.1 of the Health and Safety Code is amended to read:53559.1.For the purposes of this part, the following definitions apply:
(a)Adaptive reuse means the repurposing of building structures for residential purposes, such as former office use, commercial use, or business parks. When referring to building structures, adaptive reuse means retrofitting and repurposing of existing buildings that create new residential rental units, and expressly excludes a project that involves rehabilitation of any construction affecting existing residential units that are, or have been, recently occupied.
(b)Capital improvement project means the construction, rehabilitation, demolition, relocation, preservation, acquisition, or other physical improvement of a capital asset, as defined in subdivision (a) of Section 16727 of the Government Code, that is an integral part of, or necessary to facilitate the development of, a qualifying infill project or qualifying infill area. Capital improvement projects that may be funded under the grant program established by this part include, but are not limited to, those related to the following:
(1)The creation, development, or rehabilitation of parks or open space.
(2)Water, sewer, or other utility service improvements.
(3)Transit linkages or facilities, including, but not limited to, related access plazas or pathways, or bus or transit shelters.
(4)Facilities that support pedestrian or bicycle transit.
(5)Traffic mitigation.
(6)Streets or roads that are publicly maintained and open to the use of the public for purposes of vehicular travel and that will serve as a connector within a qualifying infill project or qualifying infill area.
(7)Sidewalk or streetscape improvements, including, but not limited to, the reconstruction or resurfacing of sidewalks and streets or the installation of lighting, signage, or other related amenities.
(8)Adaptive reuse.
(9)Site preparation or demolition related to the capital improvement project or planned housing development used in calculating the eligible grant amount.
(10)Nature-based solutions that are proven to reduce the risk from climate change-driven natural disasters and risks like wildfire, flooding, heat, and sea level rise. For purposes of this paragraph, nature-based solutions means sustainable planning, design, environmental management, and engineering practices that weave natural features or processes into the built environment to promote adaptation and resilience.
(c)Catalytic qualifying infill area means a contiguous area or multiple noncontiguous parcels located within an urbanized area that meet all of the following requirements:
(1)The contiguous area or noncontiguous parcels have been previously developed, or at least 75 percent of the perimeter of each parcel or area adjoins parcels that are developed or have been previously developed with urban uses, provided that, for small jurisdiction applicants, the perimeter requirements in clause (i) of subparagraph (A) of paragraph (4) of subdivision (e) of Section 53559 shall apply. For purposes of this paragraph, perimeters of a parcel bordering navigable bodies of water shall not be included in the calculation determining if 75 percent of the perimeter adjoins parcels that are developed or have been previously developed with urban uses.
(2)No parcel within or adjoining the area is classified as agricultural or natural and working lands.
(3)The area or areas constitute a large catalytic investment in land that will accommodate a mix of uses, including affordable or mixed-income housing.
(d)(1)Disadvantaged communities means any of the following:
(A)Concentrated areas of poverty.
(B)Areas of high segregation and poverty and areas of low to moderate access to opportunity, as identified in opportunity area maps developed by the department and the California Tax Credit Allocation Committee.
(C)Communities of concern, disadvantaged communities identified pursuant to Section 39711, and low-income communities as defined in subdivision (d) of Section 39713.
(D)Areas of high housing cost burdens.
(E)Areas with high vulnerability of displacement; areas related to tribal entities.
(F)Any other areas experiencing disproportionate impacts of Californias housing and climate crisis.
(2)Applicants may propose alternative definitions to disadvantaged communities in consultation with the department.
(e)Eligible applicant means any of the following:
(1)A nonprofit or for-profit developer of a qualifying infill project.
(2)A city, county, city and county, or public housing authority that has jurisdiction over a qualifying infill area or catalytic qualifying infill area. A city, county, or city and county applying for funds for a qualifying infill area or a catalytic qualifying infill area shall not be required to have a developer coapplicant. A metropolitan planning organization may participate as a coapplicant.
(3)The duly constituted governing body of an Indian reservation or rancheria that has jurisdiction over a qualifying infill area or a tribally designated housing entity as defined in Section 4103 of Title 25 of the United States Code and Section 50104.6.5 that is the developer of a qualifying infill project.
(A)A tribal entity may apply as a small jurisdiction or large jurisdiction, but may only apply as one or the other for any single qualifying infill project or qualifying infill area.
(B)The department may modify or waive requirements of this paragraph consistent with the intent of paragraphs (1) and (2) of subdivision (p) of Section 50406 to allow tribal entities to access funding.
(f)Locality means a city, county, or city and county where a county means the unincorporated areas of that county.
(g)Small jurisdiction means a county with a population of less than 250,000 as of January 1, 2019, or any city within that county.
(h)Large jurisdiction means a county that is not a small jurisdiction, or any city within that county.
(i)Major transit stop has the same meaning as defined in subdivision (b) of Section 21155 of the Public Resources Code.
(j)Urbanized area means an incorporated city or urbanized area as defined by the United States Census Bureau.
(k)Urban uses means any improved park, residential, commercial, industrial, public institutional, transit or transportation passenger facility, or retail use, or any combination of those uses.
(l)Walkability means the parcels or parcel where the development will occur is within one mile of six or more of any of the following amenities:
(1)A supermarket or grocery store.
(2)A public park.
(3)A community center.
(4)A pharmacy or drugstore.
(5)A medical clinic or hospital.
(6)A public library.
(7)A school that maintains a kindergarten or any of grades 1 to 12, inclusive.
(a)The Infill Infrastructure Grant Program of 2019 is hereby established to be administered by the department.
(b)Upon appropriation by the Legislature of funds for purposes of this part, the department shall establish and administer a grant program to allocate those funds to selected capital improvement projects that are an integral part of, or necessary to facilitate the development of, a qualifying infill project, qualifying infill area, or catalytic qualifying infill area pursuant to the requirements of this section. The department shall determine amounts, if any, to be made available for qualifying infill projects, qualifying infill areas, or catalytic qualifying infill areas.
(c)(1)Except for funds appropriated or set aside for small jurisdictions for grants pursuant to subdivision (e), the department shall administer a competitive application process for capital improvement projects for large jurisdictions pursuant to this subdivision.
(2)Except for grants for qualifying infill areas or catalytic qualifying infill areas, the department shall do all of the following for grants made pursuant to this subdivision:
(A)Make program funds available at the same time it makes funds, if any, available under the Multifamily Housing Program (Chapter 6.7 (commencing with Section 50675) of Part 2).
(B)Rate and rank applications in a manner consistent with the Multifamily Housing Program (Chapter 6.7 (commencing with Section 50675) of Part 2), except that the department may establish additional point categories for the purposes of rating and ranking applications that seek funding pursuant to this part in addition to those used in the Multifamily Housing Program.
(C)Administer funds in a manner consistent with the Multifamily Housing Program (Chapter 6.7 (commencing with Section 50675) of Part 2).
(D)For purposes of awarding grants pursuant to the competitive application process required by this subdivision, qualifying infill project means a residential or mixed-use residential project located within an urbanized area on a site that has been previously developed, or on a vacant site where at least 75 percent of the perimeter of the site adjoins parcels that are developed or have been previously developed with urban uses.
(d)(1)In its review and ranking of applications for the award of capital improvement project grants, the department shall rank the affected qualifying infill areas based on the following priorities:
(A)Project readiness, which shall include all of the following:
(i)A demonstration that the area development can complete environmental review and secure necessary entitlements from the local jurisdiction within a reasonable period of time following the submission of a grant application.
(ii)A demonstration that the eligible applicant can secure sufficient funding commitments derived from sources other than this part for the timely development of a qualifying infill area.
(B)The depth and duration of the affordability of the housing proposed for a qualifying infill area.
(C)The extent to which the average residential densities on the parcels to be developed exceed the density standards contained in paragraph (3) of subdivision (g).
(D)The qualifying infill areas inclusion of, or proximity or accessibility to, a transit station or major transit stop or walkability to essential services or businesses.
(E)The proximity of housing to parks, employment or retail centers, schools, or services.
(F)The qualifying infill area locations consistency with an adopted sustainable communities strategy pursuant to Section 65080 of the Government Code, alternative planning strategy pursuant to Section 65450 of the Government Code, or other adopted regional growth plan intended to foster efficient land use.
(G)For qualifying infill areas, in awarding funds under the program, the department shall provide additional points or preference to projects located in jurisdictions that are designated prohousing pursuant to subdivision (c) of Section 65589.9 of the Government Code, in the manner determined by the department pursuant to subdivision (d) of Section 65589.9 of the Government Code.
(2)In allocating funds pursuant to this subdivision, the department, to the maximum extent feasible, shall ensure a reasonable geographic distribution of funds.
(3)For purposes of awarding grants pursuant to the competitive application process required by this subdivision or subparagraph (B) of paragraph (2) of subdivision (c), qualifying infill area means a contiguous area located within an urbanized area (i) that has been previously developed, or where at least 75 percent of the perimeter of the area adjoins parcels that are developed with urban uses, and (ii) in which at least one development application has been approved or is pending approval for a residential or mixed-use residential project that meets the definition and criteria in this section for a qualifying infill project.
(e)(1)The department shall administer an over-the-counter application process for grants funded by the allocation specified in the appropriation or paragraph (2) of subdivision (a) of Section 53559.2 for capital improvement projects for small jurisdictions, pursuant to this subdivision.
(2)Eligible applicants shall submit the following information in the application request for funding:
(A)A complete description of the qualifying infill project or qualifying infill area and documentation of how the infill project or infill area meets the requirements of this section.
(B)A complete description of the capital improvement project and requested grant funding for the project, how the project is necessary to support the development of housing, and how it meets the criteria of this section.
(C)Documentation that specifies how the application meets all of the requirements of subdivision (g).
(D)(i)Except as provided in clause (ii), a financial document that shows the gap financing needed for the project.
(ii)For a qualifying infill project located in the unincorporated area of the county, the department shall allow an applicant to meet the requirement described in clause (i) by submitting copies of an application or applications for other sources of state or federal funding for a qualifying infill project.
(E)(i)Except as provided by clause (ii), documentation of approval of necessary entitlement and building permits.
(ii)For a qualifying infill project located in the unincorporated area of the county, the department shall allow the applicant to meet the requirement described in clause (i) by submitting a letter of intent from a willing affordable housing developer that has previously completed at least one comparable housing project, certifying that the developer is willing to submit an application to the county for approval by the county of a qualifying infill project within the area in the event that the funding requested pursuant to this subdivision is awarded.
(3)The department may establish a per-unit formula to determine the amount of funds awarded pursuant to this subdivision.
(4)For purposes of awarding grants pursuant to the over-the-counter application process required by this subdivision:
(A)Qualifying infill area means a contiguous area located within an urbanized area that meets either one of the following criteria:
(i)The area contains sites included on the inventory of land suitable and available for residential development in the housing element of the applicable city or county general plan pursuant to paragraph (3) of subdivision (a) of Section 65583 of the Government Code, and at least 50 percent of the perimeter of the area shall adjoin parcels that are developed with urban uses.
(ii)The capital improvement project for which funding is requested is necessary, as documented by an environmental review or some other adopted planning document, to make the area suitable and available for residential development, or to allow the area to accommodate housing for additional income levels, and the area otherwise meets the requirements for inclusion on the inventory of land suitable and available for residential development in the housing element of the applicable city or county general plan pursuant to paragraph (3) of subdivision (a) of Section 65583 of the Government Code. At least 50 percent of the perimeter of the area shall adjoin parcels that are developed with urban uses.
(iii)The capital improvement project for which funding is requested is necessary, as adopted by a planning document, to make the area suitable and available for residential development pursuant to Chapter 4.1 (commencing with Section 65912.100) of Division 1 of Title 7 of the Government Code.
(B)Qualifying infill project means a residential or mixed-use residential project located within an urbanized area on a site that has been previously developed, or on a vacant site where at least 50 percent of the perimeter of the site adjoins parcels that are developed with urban uses.
(f)(1)For catalytic qualifying infill areas, grants for small jurisdictions and large jurisdictions shall be provided using a selection process established by the department that meets all of the following requirements:
(A)Applicants shall meet both of the following minimum threshold requirements:
(i)Readiness, which includes both of the following:
(I)A demonstration that the catalytic qualifying infill area development can complete environmental review and secure necessary entitlements from the local jurisdiction within a reasonable period of time following the submission of a grant application.
(II)A demonstration that the eligible applicant has a viable plan to secure sufficient funding, derived from sources other than this part for the timely development of housing within a catalytic qualifying infill area.
(ii)A demonstration of the catalytic qualifying infill area locations consistency with an adopted sustainable communities strategy or alternative planning strategy pursuant to Section 65080 of the Government Code.
(B)The department shall, at a minimum, rank the affected catalytic qualifying infill areas applications for small jurisdictions and large jurisdictions based on the following:
(i)The number of housing units, including affordable units as required in paragraph (2) of subdivision (g) to be developed within the catalytic qualifying infill area.
(ii)The depth and duration of the affordability of the housing proposed for within the catalytic qualifying infill area.
(iii)The extent to which the average residential densities on the parcel or parcels to be developed exceeds exceed the density standards contained in paragraph (3) of subdivision (g).
(iv)The catalytic qualifying infill areas inclusion of, or proximity or accessibility to, a transit station, major transit stop, or other areas yielding significant reductions in vehicle miles traveled, or walkability to essential services and businesses.
(v)The proximity of planned housing within the catalytic qualifying infill area used in the calculation of the eligible grant amount to existing or planned parks, employment or retail centers, schools, or services.
(vi)Existing or planned ordinances and other zoning or building provisions that facilitate adaptive reuse, including, but not limited to, demonstration that, if the existing commercial, office, or retail structure intended for reuse as housing does not occupy the entirety of the underlying parcel, the adaptive reuse project will be permitted to add to the existing building or structure provided that the addition is consistent with the existing or planned zoning of the parcel.
(vii)The extent to which local strategies or programs are in place to prevent the direct or indirect displacement of local community residents and businesses from the area within and surrounding the catalytic qualifying infill area.
(viii)The level of community outreach and engagement in project planning, including efforts to involve disadvantaged communities and low-income residents, particularly local community residents and businesses from the area within and surrounding the catalytic qualifying infill area.
(ix)Inclusion of any publicly owned lands within the designated catalytic qualifying infill area.
(x)Streamlining provisions related to the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code), including, but not limited to, establishment of streamlined, program-level California Environmental Quality Act analysis and certification of general plans, community plans, specific plans with accompanying environmental impact reports, and related documents and streamlining proposed projects, such as enabling a by-right approval process or by utilizing statutory and categorical exemptions as authorized by applicable law.
(C)Eligible applicants shall submit the following information in the application request for funding:
(i)A complete description of the catalytic qualifying infill area and documentation of how the catalytic qualifying infill area meets the requirements of this section.
(ii)A complete description of the capital improvement project and requested grant funding, how the capital improvement project is necessary to support the development of housing, and how it meets the criteria of this section.
(iii)Documentation that specifies how the application meets all of the requirements of subdivision (g).
(iv)(I)Except as provided in subclause (II), a financial document that shows the gap financing needed for the project.
(II)For a qualifying infill project within a catalytic qualifying infill area located in the unincorporated area of the county, the department shall allow an applicant to meet the requirement described in subclause (I) by submitting copies of an application or applications for other sources of state or federal funding for a qualifying infill project.
(v)(I)Except as provided by subclause (II), documentation of all necessary entitlement and building permits.
(II)For a qualifying infill project within a catalytic qualifying infill area located in the unincorporated area of the county, the department shall allow the applicant to meet the requirement described in subclause (I) by submitting a letter of intent from a willing affordable housing developer that has previously completed at least one comparable housing project, certifying that the developer is willing to submit an application to the county for approval by the county of a qualifying infill project within the area in the event that the funding requested pursuant to this subdivision is awarded.
(2)In allocating funds pursuant to this subdivision, the department, to the maximum extent feasible, shall ensure a reasonable distribution of funds, including consideration of differing population sizes of localities and geographic location. Applications shall be considered and ranked against applications of localities of similar size and scope. For the purposes of this paragraph, the population of a county shall be the population in the unincorporated area.
(3)The department shall report the following information in its annual report due in 2024, as required by Section 50408:
(A)Specific uses of the funds for capital improvement projects.
(B)Locations of awarded catalytic qualifying infill area grants, including both of the following:
(i)Number of awards by geography, including urban and rural.
(ii)The types of buildings adapted to residential use.
(C)Total units to be created within the awarded qualifying infill areas, including anticipated affordability levels.
(D)Data on catalytic qualifying infill area projects funded, such as project sizes, adaptive reuse ordinances adopted, and by-right sites.
(g)A qualifying infill project, qualifying infill area, or catalytic qualifying infill area for which a capital improvement project grant may be awarded pursuant to paragraph (2) of subdivision (c), subdivision (d), subdivision (e), or subdivision (f) shall meet all of the following conditions:
(1)A qualifying infill area or catalytic qualifying infill area shall be located in a city, county, or city and county in which the general plan of the city, county, or city and county has an adopted housing element that has been found by the department, pursuant to Section 65585 of the Government Code, to be in compliance with the requirements of Article 10.6 (commencing with Section 65580) of Chapter 3 of Division 1 of Title 7 of the Government Code. This paragraph does not apply to a qualifying infill project.
(2)The project meets one of the following:
(2)(A)Includes not less than 15 percent of affordable units, as follows:
(A)(i)For projects that contain both rental and ownership units, units of either or both product types may be included in the calculation of the affordability criteria.
(B)(i)(ii)(I)To the extent included in a project grant application, for the purpose of calculating the percentage of affordable units, the department may consider the entire master development in which the development seeking grant funding is included.
(ii)(II)Where applicable, an applicant may include a replacement housing plan to ensure that dwelling units housing persons and families of low or moderate income are not removed from the low- and moderate-income housing market. Residential units to be replaced shall not be counted toward meeting the affordability threshold required for eligibility for funding under this section.
(C)(iii)For the purposes of this paragraph, subparagraph, affordable unit means a unit that is made available at an affordable rent, as defined in Section 50053, to a household earning no more than 60 80 percent of the area median income or at an affordable housing cost, as defined in Section 50052.5, to a household earning no more than 120 percent of the area median income. Rental units shall be subject to a recorded covenant that ensures affordability for at least 55 years. Ownership units shall initially be sold to and occupied by a qualified household, and shall be subject to a recorded covenant that includes either a resale restriction for at least 30 years or equity sharing upon resale.
(B)If the project is a by-right site and is in compliance with Section 65913.4 of the Government Code, or Chapter 4.1 (commencing with Section 65912.100) of Division 1 of Title 7 of the Government Code, the project meets the affordability requirements outlined in those sections, as applicable.
(3)Include average residential densities on the parcels to be developed that are equal to or greater than the densities described in subparagraph (B) of paragraph (3) of subdivision (c) of Section 65583.2 of the Government Code, except that a project located in a rural area as defined in Section 50199.21 shall include average residential densities on the parcels to be developed of at least 10 units per acre.
(4)Be located in an area that allows for mixed-use or residential development pursuant to one of the following:
(A)A general plan adopted pursuant to Section 65300 of the Government Code.
(B)A sustainable communities strategy adopted pursuant to Section 65080 of the Government Code.
(C)A specific plan adopted pursuant to Section 65450 of the Government Code.
(D)A Workforce Housing Opportunity Zone established pursuant to Section 65620 of the Government Code.
(E)A housing sustainability district established pursuant to Section 66201 of the Government Code.
(F)A housing development that is in compliance with Section 65913.4 of the Government Code, or Chapter 4.1 (commencing with Section 65912.100) of Division 1 of Title 7 of the Government Code.
(h)Funds awarded pursuant to this section shall supplement, not supplant, other available funding.
(i)The department shall adopt guidelines for the operation of the grant program. The guidelines shall include performance standards and authorize the reversion of grant awards if the awardee has not substantially met the performance standards.
(1)Performance standards shall include timelines for commencement of construction of a capital improvement project, completion of a capital improvement project, and commencement and completion of associated housing development on an identified infill site, as identified in the qualifying infill project, qualifying infill area, or catalytic qualifying infill area application.
(2)Catalytic qualifying infill area awards may be conditioned upon the local jurisdiction completing any actions to expedite housing development rezoning to accommodate density, completing environmental reviews to support ministerial approvals of housing, and granting fee waivers or other incentives to expedite housing development that were used in qualifying for an award.
(j)The department shall require recipients of funds to report on progress of capital improvement projects, including, but not limited to, substantiation of grant expenditures and housing outcomes, including levels of affordability as provided in the application.
(k)The guidelines may also provide for recapture of grants awarded, but for which development of the related housing units has not progressed in a reasonable period of time from the date of the grant award, as determined by the department. The guidelines shall not be subject to the requirements of Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code.
(l)For each fiscal year within the duration of the grant program, the department shall include within the report to the Governor and the Legislature, required by Section 50408, information on its activities relating to the grant program activities related to qualifying infill projects and qualifying infill areas, including small jurisdiction funding activities. The report shall include, but is not limited to, the following information:
(1)A summary of the projects that received grants under the program for each fiscal year that grants were awarded.
(2)The description, location, and estimated date of completion for each project that received a grant award under the program.
(3)An update on the status of each project that received a grant award under the program, and the number of housing units created or facilitated by the program.
(m)Notwithstanding paragraph (3) of subdivision (g), a city with a population greater than 100,000 in a standard metropolitan statistical area or a population of less than 2,000,000 may petition the department for, and the department may grant, an exception to the jurisdictions classification pursuant to subdivisions (d) to (f), inclusive, of Section 65583.2 of the Government Code, if the city believes it is unable to meet the density requirements specified in paragraph (3) of subdivision (g). The city shall submit the petition with its application and shall include the reasons why the city believes the exception is warranted. The city shall provide information supporting the need for the exception, including, but not limited to, any limitations that the city may encounter in meeting the density requirements specified in paragraph (3) of subdivision (g). Any exception shall be for the purposes of this section only. This subdivision shall become inoperative on January 1, 2026.
SEC. 2.Section 53559.1 of the Health and Safety Code is amended to read:53559.1.For the purposes of this part, the following definitions apply:
(a)Adaptive reuse means the repurposing of building structures for residential purposes, such as former office use, commercial use, or business parks. When referring to building structures, adaptive reuse means retrofitting and repurposing of existing buildings that create new residential rental units, and expressly excludes a project that involves rehabilitation of any construction affecting existing residential units that are, or have been, recently occupied.
(b)Capital improvement project means the construction, rehabilitation, demolition, relocation, preservation, acquisition, or other physical improvement of a capital asset, as defined in subdivision (a) of Section 16727 of the Government Code, that is an integral part of, or necessary to facilitate the development of, a qualifying infill project or qualifying infill area. Capital improvement projects that may be funded under the grant program established by this part include, but are not limited to, those related to the following:
(1)The creation, development, or rehabilitation of parks or open space.
(2)Water, sewer, or other utility service improvements.
(3)Transit linkages or facilities, including, but not limited to, related access plazas or pathways, or bus or transit shelters.
(4)Facilities that support pedestrian or bicycle transit.
(5)Traffic mitigation.
(6)Streets or roads that are publicly maintained and open to the use of the public for purposes of vehicular travel and that will serve as a connector within a qualifying infill project or qualifying infill area.
(7)Sidewalk or streetscape improvements, including, but not limited to, the reconstruction or resurfacing of sidewalks and streets or the installation of lighting, signage, or other related amenities.
(8)Adaptive reuse.
(9)Site preparation or demolition related to the capital improvement project or planned housing development used in calculating the eligible grant amount.
(10)Nature-based solutions that are proven to reduce the risk from climate change-driven natural disasters and risks like wildfire, flooding, heat, and sea level rise. For purposes of this paragraph, nature-based solutions means sustainable planning, design, environmental management, and engineering practices that weave natural features or processes into the built environment to promote adaptation and resilience.
(c)Catalytic qualifying infill area means a contiguous area or multiple noncontiguous parcels located within an urbanized area that meet all of the following requirements:
(1)The contiguous area or noncontiguous parcels have been previously developed, or at least 75 percent of the perimeter of each parcel or area adjoins parcels that are developed or have been previously developed with urban uses, provided that, for small jurisdiction applicants, the perimeter requirements in clause (i) of subparagraph (A) of paragraph (4) of subdivision (e) of Section 53559 shall apply. For purposes of this paragraph, perimeters of a parcel bordering navigable bodies of water shall not be included in the calculation determining if 75 percent of the perimeter adjoins parcels that are developed or have been previously developed with urban uses.
(2)No parcel within or adjoining the area is classified as agricultural or natural and working lands.
(3)The area or areas constitute a large catalytic investment in land that will accommodate a mix of uses, including affordable or mixed-income housing.
(d)(1)Disadvantaged communities means any of the following:
(A)Concentrated areas of poverty.
(B)Areas of high segregation and poverty and areas of low to moderate access to opportunity, as identified in opportunity area maps developed by the department and the California Tax Credit Allocation Committee.
(C)Communities of concern, disadvantaged communities identified pursuant to Section 39711, and low-income communities as defined in subdivision (d) of Section 39713.
(D)Areas of high housing cost burdens.
(E)Areas with high vulnerability of displacement; areas related to tribal entities.
(F)Any other areas experiencing disproportionate impacts of Californias housing and climate crisis.
(2)Applicants may propose alternative definitions to disadvantaged communities in consultation with the department.
(e)Eligible applicant means any of the following:
(1)A nonprofit or for-profit developer of a qualifying infill project.
(2)A city, county, city and county, or public housing authority that has jurisdiction over a qualifying infill area or catalytic qualifying infill area. A city, county, or city and county applying for funds for a qualifying infill area or a catalytic qualifying infill area shall not be required to have a developer coapplicant. A metropolitan planning organization may participate as a coapplicant.
(3)The duly constituted governing body of an Indian reservation or rancheria that has jurisdiction over a qualifying infill area or a tribally designated housing entity as defined in Section 4103 of Title 25 of the United States Code and Section 50104.6.5 that is the developer of a qualifying infill project.
(A)A tribal entity may apply as a small jurisdiction or large jurisdiction, but may only apply as one or the other for any single qualifying infill project or qualifying infill area.
(B)The department may modify or waive requirements of this paragraph consistent with the intent of paragraphs (1) and (2) of subdivision (p) of Section 50406 to allow tribal entities to access funding.
(f)Locality means a city, county, or city and county where a county means the unincorporated areas of that county.
(g)Small jurisdiction means a county with a population of less than 250,000 as of January 1, 2019, or any city within that county.
(h)Large jurisdiction means a county that is not a small jurisdiction, or any city within that county.
(i)Major transit stop has the same meaning as defined in subdivision (b) of Section 21155 of the Public Resources Code.
(j)Urbanized area means an incorporated city or urbanized area as defined by the United States Census Bureau.
(k)Urban uses means any improved park, residential, commercial, industrial, public institutional, transit or transportation passenger facility, or retail use, or any combination of those uses.
(l)Walkability means the parcels or parcel where the development will occur is within one mile of six or more of any of the following amenities:
(1)A supermarket or grocery store.
(2)A public park.
(3)A community center.
(4)A pharmacy or drugstore.
(5)A medical clinic or hospital.
(6)A public library.
(7)A school that maintains a kindergarten or any of grades 1 to 12, inclusive.
(a)The Infill Infrastructure Grant Program of 2019 is hereby established to be administered by the department.
(b)Upon appropriation by the Legislature of funds for purposes of this part, the department shall establish and administer a grant program to allocate those funds to selected capital improvement projects that are an integral part of, or necessary to facilitate the development of, a qualifying infill project, qualifying infill area, or catalytic qualifying infill area pursuant to the requirements of this section. The department shall determine amounts, if any, to be made available for qualifying infill projects, qualifying infill areas, or catalytic qualifying infill areas.
(c)(1)Except for funds appropriated or set aside for small jurisdictions for grants pursuant to subdivision (e), the department shall administer a competitive application process for capital improvement projects for large jurisdictions pursuant to this subdivision.
(2)Except for grants for qualifying infill areas or catalytic qualifying infill areas, the department shall do all of the following for grants made pursuant to this subdivision:
(A)Make program funds available at the same time it makes funds, if any, available under the Multifamily Housing Program (Chapter 6.7 (commencing with Section 50675) of Part 2).
(B)Rate and rank applications in a manner consistent with the Multifamily Housing Program (Chapter 6.7 (commencing with Section 50675) of Part 2), except that the department may establish additional point categories for the purposes of rating and ranking applications that seek funding pursuant to this part in addition to those used in the Multifamily Housing Program.
(C)Administer funds in a manner consistent with the Multifamily Housing Program (Chapter 6.7 (commencing with Section 50675) of Part 2).
(D)For purposes of awarding grants pursuant to the competitive application process required by this subdivision, qualifying infill project means a residential or mixed-use residential project located within an urbanized area on a site that has been previously developed, or on a vacant site where at least 75 percent of the perimeter of the site adjoins parcels that are developed or have been previously developed with urban uses.
(d)(1)In its review and ranking of applications for the award of capital improvement project grants, the department shall rank the affected qualifying infill areas based on the following priorities:
(A)Project readiness, which shall include all of the following:
(i)A demonstration that the area development can complete environmental review and secure necessary entitlements from the local jurisdiction within a reasonable period of time following the submission of a grant application.
(ii)A demonstration that the eligible applicant can secure sufficient funding commitments derived from sources other than this part for the timely development of a qualifying infill area.
(B)The depth and duration of the affordability of the housing proposed for a qualifying infill area.
(C)The extent to which the average residential densities on the parcels to be developed exceed the density standards contained in paragraph (3) of subdivision (g).
(D)The qualifying infill areas inclusion of, or proximity or accessibility to, a transit station or major transit stop or walkability to essential services or businesses.
(E)The proximity of housing to parks, employment or retail centers, schools, or services.
(F)The qualifying infill area locations consistency with an adopted sustainable communities strategy pursuant to Section 65080 of the Government Code, alternative planning strategy pursuant to Section 65450 of the Government Code, or other adopted regional growth plan intended to foster efficient land use.
(G)For qualifying infill areas, in awarding funds under the program, the department shall provide additional points or preference to projects located in jurisdictions that are designated prohousing pursuant to subdivision (c) of Section 65589.9 of the Government Code, in the manner determined by the department pursuant to subdivision (d) of Section 65589.9 of the Government Code.
(2)In allocating funds pursuant to this subdivision, the department, to the maximum extent feasible, shall ensure a reasonable geographic distribution of funds.
(3)For purposes of awarding grants pursuant to the competitive application process required by this subdivision or subparagraph (B) of paragraph (2) of subdivision (c), qualifying infill area means a contiguous area located within an urbanized area (i) that has been previously developed, or where at least 75 percent of the perimeter of the area adjoins parcels that are developed with urban uses, and (ii) in which at least one development application has been approved or is pending approval for a residential or mixed-use residential project that meets the definition and criteria in this section for a qualifying infill project.
(e)(1)The department shall administer an over-the-counter application process for grants funded by the allocation specified in the appropriation or paragraph (2) of subdivision (a) of Section 53559.2 for capital improvement projects for small jurisdictions, pursuant to this subdivision.
(2)Eligible applicants shall submit the following information in the application request for funding:
(A)A complete description of the qualifying infill project or qualifying infill area and documentation of how the infill project or infill area meets the requirements of this section.
(B)A complete description of the capital improvement project and requested grant funding for the project, how the project is necessary to support the development of housing, and how it meets the criteria of this section.
(C)Documentation that specifies how the application meets all of the requirements of subdivision (g).
(D)(i)Except as provided in clause (ii), a financial document that shows the gap financing needed for the project.
(ii)For a qualifying infill project located in the unincorporated area of the county, the department shall allow an applicant to meet the requirement described in clause (i) by submitting copies of an application or applications for other sources of state or federal funding for a qualifying infill project.
(E)(i)Except as provided by clause (ii), documentation of all approval of necessary entitlement and permits, and a certification from the applicant that the project is shovel-ready. building permits.
(ii)For a qualifying infill project located in the unincorporated area of the county, the department shall allow the applicant to meet the requirement described in clause (i) by submitting a letter of intent from a willing affordable housing developer that has previously completed at least one comparable housing project, certifying that the developer is willing to submit an application to the county for approval by the county of a qualifying infill project within the area in the event that the funding requested pursuant to this subdivision is awarded.
(3)The department may establish a per-unit formula to determine the amount of funds awarded pursuant to this subdivision.
(4)For purposes of awarding grants pursuant to the over-the-counter application process required by this subdivision:
(A)Qualifying infill area means a contiguous area located within an urbanized area that meets one either of the following criteria:
(i)The area contains sites included on the inventory of land suitable and available for residential development in the housing element of the applicable city or county general plan pursuant to paragraph (3) of subdivision (a) of Section 65583 of the Government Code, and at least 50 percent of the perimeter of the area shall adjoin parcels that are developed with urban uses.
(ii)The capital improvement project for which funding is requested is necessary, as documented by an environmental review or some other adopted planning document, to make the area suitable and available for residential development, or to allow the area to accommodate housing for additional income levels, and the area otherwise meets the requirements for inclusion on the inventory of land suitable and available for residential development in the housing element of the applicable city or county general plan pursuant to paragraph (3) of subdivision (a) of Section 65583 of the Government Code. At least 50 percent of the perimeter of the area shall adjoin parcels that are developed with urban uses.
(iii)The capital improvement project for which funding is requested is necessary, as adopted by a planning document, to make the area suitable and available for residential development pursuant to Chapter 4.1 (commencing with Section 65912.100) of Division 1 of Title 7 of the Government Code.(B)Qualifying infill project means a residential or mixed-use residential project located within an urbanized area on a site that has been previously developed, or on a vacant site where at least 50 percent of the perimeter of the site adjoins parcels that are developed with urban uses.
(f)(1)For catalytic qualifying infill areas, grants for small jurisdictions and large jurisdictions shall be provided using a selection process established by the department that meets all of the following requirements:
(A)Applicants shall meet both of the following minimum threshold requirements:
(i)Readiness, which includes both of the following:
(I)A demonstration that the catalytic qualifying infill area development can complete environmental review and secure necessary entitlements from the local jurisdiction within a reasonable period of time following the submission of a grant application.
(II)A demonstration that the eligible applicant has a viable plan to secure sufficient funding, derived from sources other than this part for the timely development of housing within a catalytic qualifying infill area.
(ii)A demonstration of the catalytic qualifying infill area locations consistency with an adopted sustainable communities strategy or alternative planning strategy pursuant to Section 65080 of the Government Code.
(B)The department shall, at a minimum, rank the affected catalytic qualifying infill areas applications for small jurisdictions and large jurisdictions based on the following:
(i)The number of housing units, including affordable units as required in paragraph (2) of subdivision (g) to be developed within the catalytic qualifying infill area.
(ii)The depth and duration of the affordability of the housing proposed for within the catalytic qualifying infill area.
(iii)The extent to which the average residential densities on the parcel or parcels to be developed exceeds the density standards contained in paragraph (3) of subdivision (g).
(iv)The catalytic qualifying infill areas inclusion of, or proximity or accessibility to, a transit station, major transit stop, or other areas yielding significant reductions in vehicle miles traveled, or walkability to essential services and businesses.
(v)The proximity of planned housing within the catalytic qualifying infill area used in the calculation of the eligible grant amount to existing or planned parks, employment or retail centers, schools, or services.
(vi)Existing or planned ordinances and other zoning or building provisions that facilitate adaptive reuse, including, but not limited to, demonstration that, if the existing commercial, office, or retail structure intended for reuse as housing does not occupy the entirety of the underlying parcel, the adaptive reuse project will be permitted to add to the existing building or structure provided that the addition is consistent with the existing or planned zoning of the parcel.
(vii)The extent to which local strategies or programs are in place to prevent the direct or indirect displacement of local community residents and businesses from the area within and surrounding the catalytic qualifying infill area.
(viii)The level of community outreach and engagement in project planning, including efforts to involve disadvantaged communities and low-income residents, particularly local community residents and businesses from the area within and surrounding the catalytic qualifying infill area.
(ix)Inclusion of any publicly owned lands within the designated catalytic qualifying infill area.
(x)Streamlining provisions related to the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code), including, but not limited to, establishment of streamlined, program-level California Environmental Quality Act analysis and certification of general plans, community plans, specific plans with accompanying environmental impact reports, and related documents and streamlining proposed projects, such as enabling a by-right approval process or by utilizing statutory and categorical exemptions as authorized by applicable law.
(C)Eligible applicants shall submit the following information in the application request for funding:
(i)A complete description of the catalytic qualifying infill area and documentation of how the catalytic qualifying infill area meets the requirements of this section.
(ii)A complete description of the capital improvement project and requested grant funding, how the capital improvement project is necessary to support the development of housing, and how it meets the criteria of this section.
(iii)Documentation that specifies how the application meets all of the requirements of subdivision (g).
(iv)(I)Except as provided in subclause (II), a financial document that shows the gap financing needed for the project.
(II)For a qualifying infill project within a catalytic qualifying infill area located in the unincorporated area of the county, the department shall allow an applicant to meet the requirement described in subclause (I) by submitting copies of an application or applications for other sources of state or federal funding for a qualifying infill project.
(v)(I)Except as provided by subclause (II), documentation of all necessary entitlement and permits, and a certification from the applicant that the capital improvement project is shovel-ready. building permits.
(II)For a qualifying infill project within a catalytic qualifying infill area located in the unincorporated area of the county, the department shall allow the applicant to meet the requirement described in subclause (I) by submitting a letter of intent from a willing affordable housing developer that has previously completed at least one comparable housing project, certifying that the developer is willing to submit an application to the county for approval by the county of a qualifying infill project within the area in the event that the funding requested pursuant to this subdivision is awarded.
(2)In allocating funds pursuant to this subdivision, the department, to the maximum extent feasible, shall ensure a reasonable distribution of funds, including consideration of differing population sizes of localities and geographic location. Applications shall be considered and ranked against applications of localities of similar size and scope. For the purposes of this paragraph, the population of a county shall be the population in the unincorporated area.
(3)The department shall report the following information in its annual report due in 2024, as required by Section 50408:
(A)Specific uses of the funds for capital improvement projects.
(B)Locations of awarded catalytic qualifying infill area grants, including both of the following:
(i)Number of awards by geography, including urban and rural.
(ii)The types of buildings adapted to residential use.
(C)Total units to be created within the awarded qualifying infill areas, including anticipated affordability levels.
(D)Data on catalytic qualifying infill area projects funded, such as project sizes, adaptive reuse ordinances adopted, and by-right sites.
(g)A qualifying infill project, qualifying infill area, or catalytic qualifying infill area for which a capital improvement project grant may be awarded pursuant to paragraph (2) of subdivision (c), subdivision (d), subdivision (e), or subdivision (f) shall meet all of the following conditions:
(1)A qualifying infill area or catalytic qualifying infill area shall be located in a city, county, or city and county in which the general plan of the city, county, or city and county has an adopted housing element that has been found by the department, pursuant to Section 65585 of the Government Code, to be in compliance with the requirements of Article 10.6 (commencing with Section 65580) of Chapter 3 of Division 1 of Title 7 of the Government Code. This paragraph does not apply to a qualifying infill project.
(2)The project meets one of the following:(A)(2)Includes not less than 15 percent of affordable units, as follows:
(i)(A)For projects that contain both rental and ownership units, units of either or both product types may be included in the calculation of the affordability criteria.
(ii)(I)To(B)(i)To the extent included in a project grant application, for the purpose of calculating the percentage of affordable units, the department may consider the entire master development in which the development seeking grant funding is included.
(II)(ii)Where applicable, an applicant may include a replacement housing plan to ensure that dwelling units housing persons and families of low or moderate income are not removed from the low- and moderate-income housing market. Residential units to be replaced shall not be counted toward meeting the affordability threshold required for eligibility for funding under this section.
(iii)(C)For the purposes of this subparagraph, paragraph, affordable unit means a unit that is made available at an affordable rent, as defined in Section 50053, to a household earning no more than 60 percent of the area median income or at an affordable housing cost, as defined in Section 50052.5, to a household earning no more than 120 percent of the area median income. Rental units shall be subject to a recorded covenant that ensures affordability for at least 55 years. Ownership units shall initially be sold to and occupied by a qualified household, and shall be subject to a recorded covenant that includes either a resale restriction for at least 30 years or equity sharing upon resale.
(B)If the project is a by-right site and is in compliance with Section 65913.4 or 65852.24 of the Government Code, or Chapter 4.1 (commencing with Section 65912.100) of Division 1 of Title 7 of the Government Code, the project meets the affordability requirements outlined in those sections, as applicable.(3)Include average residential densities on the parcels to be developed that are equal to or greater than the densities described in subparagraph (B) of paragraph (3) of subdivision (c) of Section 65583.2 of the Government Code, except that a project located in a rural area as defined in Section 50199.21 shall include average residential densities on the parcels to be developed of at least 10 units per acre.
(4)Be located in an area that allows for mixed-use or residential development pursuant to one of the following:
(A)A general plan adopted pursuant to Section 65300 of the Government Code.
(B)A sustainable communities strategy adopted pursuant to Section 65080 of the Government Code.
(C)A specific plan adopted pursuant to Section 65450 of the Government Code.
(D)A Workforce Housing Opportunity Zone established pursuant to Section 65620 of the Government Code.
(E)A housing sustainability district established pursuant to Section 66201 of the Government Code.
(F)A housing development that is in compliance with Section 65913.4 or 65852.24 of the Government Code, or Chapter 4.1 (commencing with Section 65912.100) of Division 1 of Title 7 of the Government Code.(h)Funds awarded pursuant to this section shall supplement, not supplant, other available funding.
(i)The department shall adopt guidelines for the operation of the grant program. The guidelines shall include performance standards and authorize the reversion of grant awards if the awardee has not substantially met the performance standards.
(1)Performance standards shall include timelines for commencement of construction of a capital improvement project, completion of a capital improvement project, and commencement and completion of associated housing development on an identified infill site, as identified in the qualifying infill project, qualifying infill area, or catalytic qualifying infill area application.
(2)Catalytic qualifying infill area awards may be conditioned upon the local jurisdiction completing any actions to expedite housing development rezoning to accommodate density, completing environmental reviews to support ministerial approvals of housing, and granting fee waivers or other incentives to expedite housing development that were used in qualifying for an award.
(j)The department shall require recipients of funds to report on progress of capital improvement projects, including, but not limited to, substantiation of grant expenditures and housing outcomes, including levels of affordability as provided in the application.
(k)The guidelines may also provide for recapture of grants awarded, but for which development of the related housing units has not progressed in a reasonable period of time from the date of the grant award, as determined by the department. The guidelines shall not be subject to the requirements of Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code.
(l)For each fiscal year within the duration of the grant program, the department shall include within the report to the Governor and the Legislature, required by Section 50408, information on its activities relating to the grant program activities related to qualifying infill projects and qualifying infill areas, including small jurisdiction funding activities. The report shall include, but is not limited to, the following information:
(1)A summary of the projects that received grants under the program for each fiscal year that grants were awarded.
(2)The description, location, and estimated date of completion for each project that received a grant award under the program.
(3)An update on the status of each project that received a grant award under the program, and the number of housing units created or facilitated by the program.
(m)Notwithstanding paragraph (3) of subdivision (g), a city with a population greater than 100,000 in a standard metropolitan statistical area or a population of less than 2,000,000 may petition the department for, and the department may grant, an exception to the jurisdictions classification pursuant to subdivisions (d) to (f), inclusive, of Section 65583.2 of the Government Code, if the city believes it is unable to meet the density requirements specified in paragraph (3) of subdivision (g). The city shall submit the petition with its application and shall include the reasons why the city believes the exception is warranted. The city shall provide information supporting the need for the exception, including, but not limited to, any limitations that the city may encounter in meeting the density requirements specified in paragraph (3) of subdivision (g). Any exception shall be for the purposes of this section only. This subdivision shall become inoperative on January 1, 2026.
SEC. 2.Section 53559.1 of the Health and Safety Code is amended to read:53559.1.For the purposes of this part, the following definitions apply:
(a)Adaptive reuse means the repurposing of building structures for residential purposes, such as former office use, commercial use, or business parks. When referring to building structures, adaptive reuse means retrofitting and repurposing of existing buildings that create new residential rental units, and expressly excludes a project that involves rehabilitation of any construction affecting existing residential units that are, or have been, recently occupied.
(b)Capital improvement project means the construction, rehabilitation, demolition, relocation, preservation, acquisition, or other physical improvement of a capital asset, as defined in subdivision (a) of Section 16727 of the Government Code, that is an integral part of, or necessary to facilitate the development of, a qualifying infill project or qualifying infill area. Capital improvement projects that may be funded under the grant program established by this part include, but are not limited to, those related to the following:
(1)The creation, development, or rehabilitation of parks or open space.
(2)Water, sewer, or other utility service improvements.
(3)Transit linkages or facilities, including, but not limited to, related access plazas or pathways, or bus or transit shelters.
(4)Facilities that support pedestrian or bicycle transit.
(5)Traffic mitigation.
(6)Streets or roads that are publicly maintained and open to the use of the public for purposes of vehicular travel and that will serve as a connector within a qualifying infill project or qualifying infill area.
(7)Sidewalk or streetscape improvements, including, but not limited to, the reconstruction or resurfacing of sidewalks and streets or the installation of lighting, signage, or other related amenities.
(8)Adaptive reuse.
(9)Site preparation or demolition related to the capital improvement project or planned housing development used in calculating the eligible grant amount.
(10)Nature-based solutions that are proven to reduce the risk from climate change-driven natural disasters and risks like wildfire, flooding, heat, and sea level rise. For purposes of this paragraph, nature-based solutions means sustainable planning, design, environmental management, and engineering practices that weave natural features or processes into the built environment to promote adaptation and resilience.
(c)Catalytic qualifying infill area means a contiguous area or multiple noncontiguous parcels located within an urbanized area that meet all of the following requirements:
(1)The contiguous area or noncontiguous parcels have been previously developed, or at least 75 percent of the perimeter of each parcel or area adjoins parcels that are developed or have been previously developed with urban uses, provided that, for small jurisdiction applicants, the perimeter requirements in clause (i) of subparagraph (A) of paragraph (4) of subdivision (e) of Section 53559 shall apply. For purposes of this paragraph, perimeters of a parcel bordering navigable bodies of water and improved parks shall not be included. included in the calculation determining if 75 percent of the perimeter adjoins parcels that are developed or have been previously developed with urban uses.
(2)No parcel within or adjoining the area is classified as agricultural or natural and working lands.
(3)The area or areas constitute a large catalytic investment in land that will accommodate a mix of uses, including affordable or mixed-income housing.
(d)(1)Disadvantaged communities means any of the following:
(A)Concentrated areas of poverty.
(B)Areas of high segregation and poverty and areas of low to moderate access to opportunity, as identified in opportunity area maps developed by the department and the California Tax Credit Allocation Committee.
(C)Communities of concern, disadvantaged communities identified pursuant to Section 39711, and low-income communities as defined in subdivision (d) of Section 39713.
(D)Areas of high housing cost burdens.
(E)Areas with high vulnerability of displacement; areas related to tribal entities.
(F)Any other areas experiencing disproportionate impacts of Californias housing and climate crisis.
(2)Applicants may propose alternative definitions to disadvantaged communities in consultation with the department.
(e)Eligible applicant means any of the following:
(1)A nonprofit or for-profit developer of a qualifying infill project.
(2)A city, county, city and county, or public housing authority that has jurisdiction over a qualifying infill area or catalytic qualifying infill area. A city, county, or city and county applying for funds for a qualifying infill area or a catalytic qualifying infill area shall not be required to have a developer coapplicant. A metropolitan planning organization may participate as a coapplicant.
(3)The duly constituted governing body of an Indian reservation or rancheria that has jurisdiction over a qualifying infill area or a tribally designated housing entity as defined in Section 4103 of Title 25 of the United States Code and Section 50104.6.5 that is the developer of a qualifying infill project.
(A)A tribal entity may apply as a small jurisdiction or large jurisdiction, but may only apply as one or the other for any single qualifying infill project or qualifying infill area.
(B)The department may modify or waive requirements of this division paragraph consistent with the intent of paragraphs (1) and (2) of subdivision (p) of Section 50406 to allow tribal entities to access funding.
(f)Locality means a city, county, or city and county where a county means the unincorporated areas of that county.
(g)Small jurisdiction means a county with a population of less than 250,000 as of January 1, 2019, or any city within that county.
(h)Large jurisdiction means a county that is not a small jurisdiction, or any city within that county.
(i)Major transit stop has the same meaning as defined in subdivision (b) of Section 21155 of the Public Resources Code.
(j)Urbanized area means an incorporated city or urbanized area as defined by the United States Census Bureau.
(k)Urban uses means any improved park, residential, commercial, industrial, public institutional, transit or transportation passenger facility, or retail use, or any combination of those uses.
(l)Walkability means the parcels or parcel where the development will occur is within one mile of six or more of any of the following amenities:
(1)A supermarket or grocery store.
(2)A public park.
(3)A community center.
(4)A pharmacy or drugstore.
(5)A medical clinic or hospital.
(6)A public library.
(7)A school that maintains a kindergarten or any of grades 1 to 12, inclusive.
(a)The Infill Infrastructure Grant Program of 2019 is hereby established to be administered by the department.
(b)Upon appropriation by the Legislature of funds for purposes of this part, the department shall establish and administer a grant program to allocate those funds to selected capital improvement projects that are an integral part of, or necessary to facilitate the development of, a qualifying infill project, qualifying infill area, or catalytic qualifying infill area pursuant to the requirements of this section. The department shall determine amounts, if any, to be made available for qualifying infill projects, qualifying infill areas, or catalytic qualifying infill areas.
(c)(1)Except for funds appropriated or set aside for small jurisdictions for grants pursuant to subdivision (e), the department shall administer a competitive application process for capital improvement projects for large jurisdictions pursuant to this subdivision.
(2)Except for grants for qualifying infill areas or catalytic qualifying infill areas, the department shall do all of the following for grants made pursuant to this subdivision:
(A)Make program funds available at the same time it makes funds, if any, available under the Multifamily Housing Program (Chapter 6.7 (commencing with Section 50675) of Part 2).
(B)Rate and rank applications in a manner consistent with the Multifamily Housing Program (Chapter 6.7 (commencing with Section 50675) of Part 2), except that the department may establish additional point categories for the purposes of rating and ranking applications that seek funding pursuant to this part in addition to those used in the Multifamily Housing Program.
(C)Administer funds in a manner consistent with the Multifamily Housing Program (Chapter 6.7 (commencing with Section 50675) of Part 2).
(D)For purposes of awarding grants pursuant to the competitive application process required by this subdivision, qualifying infill project means a residential or mixed-use residential project located within an urbanized area on a site that has been previously developed, or on a vacant site where at least 75 percent of the perimeter of the site adjoins parcels that are developed with urban uses.
(d)(1)In its review and ranking of applications for the award of capital improvement project grants, the department shall rank the affected qualifying infill areas based on the following priorities:
(A)Project readiness, which shall include all of the following:
(i)A demonstration that the area development can complete environmental review and secure necessary entitlements from the local jurisdiction within a reasonable period of time following the submission of a grant application.
(ii)A demonstration that the eligible applicant can secure sufficient funding commitments derived from sources other than this part for the timely development of a qualifying infill area.
(B)The depth and duration of the affordability of the housing proposed for a qualifying infill area.
(C)The extent to which the average residential densities on the parcels to be developed exceed the density standards contained in paragraph (3) of subdivision (g).
(D)The qualifying infill areas inclusion of, or proximity or accessibility to, a transit station or major transit stop. stop or walkability to essential services or businesses.
(E)The proximity of housing to parks, employment or retail centers, schools, or social services.
(F)The qualifying infill area locations consistency with an adopted sustainable communities strategy pursuant to Section 65080 of the Government Code, alternative planning strategy pursuant to Section 65450 of the Government Code, or other adopted regional growth plan intended to foster efficient land use.
(G)For qualifying infill areas, in awarding funds under the program, the department shall provide additional points or preference to projects located in jurisdictions that are designated prohousing pursuant to subdivision (c) of Section 65589.9 of the Government Code, in the manner determined by the department pursuant to subdivision (d) of Section 65589.9 of the Government Code.
(2)In allocating funds pursuant to this subdivision, the department, to the maximum extent feasible, shall ensure a reasonable geographic distribution of funds.
(3)For purposes of awarding grants pursuant to the competitive application process required by this subdivision or subparagraph (B) of paragraph (2) of subdivision (c), qualifying infill area means a contiguous area located within an urbanized area (i) that has been previously developed, or where at least 75 percent of the perimeter of the area adjoins parcels that are developed with urban uses, and (ii) in which at least one development application has been approved or is pending approval for a residential or mixed-use residential project that meets the definition and criteria in this section for a qualifying infill project.
(e)(1)The department shall administer an over-the-counter application process for grants funded by the allocation specified in the appropriation or paragraph (2) of subdivision (a) of Section 53559.2 for capital improvement projects for small jurisdictions, pursuant to this subdivision.
(2)Eligible applicants shall submit the following information in the application request for funding:
(A)A complete description of the qualifying infill project or qualifying infill area and documentation of how the infill project or infill area meets the requirements of this section.
(B)A complete description of the capital improvement project and requested grant funding for the project, how the project is necessary to support the development of housing, and how it meets the criteria of this section.
(C)Documentation that specifies how the application meets all of the requirements of subdivision (g).
(D)(i)Except as provided in clause (ii), a financial document that shows the gap financing needed for the project.
(ii)For a qualifying infill project located in the unincorporated area of the county, the department shall allow an applicant to meet the requirement described in clause (i) by submitting copies of an application or applications for other sources of state or federal funding for a qualifying infill project.
(E)(i)Except as provided by clause (ii), documentation of all necessary entitlement and permits, and a certification from the applicant that the project is shovel-ready.
(ii)For a qualifying infill project located in the unincorporated area of the county, the department shall allow the applicant to meet the requirement described in clause (i) by submitting a letter of intent from a willing affordable housing developer that has previously completed at least one comparable housing project, certifying that the developer is willing to submit an application to the county for approval by the county of a qualifying infill project within the area in the event that the funding requested pursuant to this subdivision is awarded.
(3)The department may establish a per-unit formula to determine the amount of funds awarded pursuant to this subdivision.
(4)For purposes of awarding grants pursuant to the over-the-counter application process required by this subdivision:
(A)Qualifying infill area means a contiguous area located within an urbanized area that meets either one of the following criteria:
(i)The area contains sites included on the inventory of land suitable and available for residential development in the housing element of the applicable city or county general plan pursuant to paragraph (3) of subdivision (a) of Section 65583 of the Government Code, and at least 50 percent of the perimeter of the area shall adjoin parcels that are developed with urban uses.
(ii)The capital improvement project for which funding is requested is necessary, as documented by an environmental review or some other adopted planning document, to make the area suitable and available for residential development, or to allow the area to accommodate housing for additional income levels, and the area otherwise meets the requirements for inclusion on the inventory of land suitable and available for residential development in the housing element of the applicable city or county general plan pursuant to paragraph (3) of subdivision (a) of Section 65583 of the Government Code. At least 50 percent of the perimeter of the area shall adjoin parcels that are developed with urban uses.
(iii)The capital improvement project for which funding is requested is necessary, as adopted by a planning document, to make the area suitable and available for residential development pursuant to Chapter 4.1 (commencing with Section 65912.100) of Division 1 of Title 7 of the Government Code.
(B)Qualifying infill project means a residential or mixed-use residential project located within an urbanized area on a site that has been previously developed, or on a vacant site where at least 50 percent of the perimeter of the site adjoins parcels that are developed with urban uses.
(f)(1)For catalytic qualifying infill areas, grants for small jurisdictions and large jurisdictions shall be provided using a selection process established by the department that meets all of the following requirements:
(A)Applicants shall meet both of the following minimum threshold requirements:
(i)Readiness, which includes both of the following:
(I)A demonstration that the catalytic qualifying infill area development can complete environmental review and secure necessary entitlements from the local jurisdiction within a reasonable period of time following the submission of a grant application.
(II)A demonstration that the eligible applicant has a viable plan to secure sufficient funding, derived from sources other than this part for the timely development of housing within a catalytic qualifying infill area.
(ii)A demonstration of the catalytic qualifying infill area locations consistency with an adopted sustainable communities strategy or alternative planning strategy pursuant to Section 65080 of the Government Code.
(B)The department shall, at a minimum, rank the affected catalytic qualifying infill areas applications for small jurisdictions and large jurisdictions based on the following:
(i)The number of housing units, including affordable units as required in paragraph (2) of subdivision (g) to be developed within the catalytic qualifying infill area.
(ii)The depth and duration of the affordability of the housing proposed for within the catalytic qualifying infill area.
(iii)The extent to which the average residential densities on the parcel or parcels to be developed exceeds the density standards contained in paragraph (3) of subdivision (g).
(iv)The catalytic qualifying infill areas inclusion of, or proximity or accessibility to, a transit station, major transit stop, or other areas yielding significant reductions in vehicle miles traveled. traveled, or walkability to essential services and businesses.
(v)The proximity of planned housing within the catalytic qualifying infill area used in the calculation of the eligible grant amount to existing or planned parks, employment or retail centers, schools, or social services.
(vi)Existing or planned ordinances and other zoning or building provisions that facilitate adaptive reuse, including, but not limited to, demonstration that, if the existing commercial, office, or retail structure intended for reuse as housing does not occupy the entirety of the underlying parcel, the adaptive reuse project will be permitted to add to the existing building or structure provided that the addition is consistent with the existing or planned zoning of the parcel.
(vii)The extent to which local strategies or programs are in place to prevent the direct or indirect displacement of local community residents and businesses from the area within and surrounding the catalytic qualifying infill area.
(viii)The level of community outreach and engagement in project planning, including efforts to involve disadvantaged communities and low-income residents, particularly local community residents and businesses from the area within and surrounding the catalytic qualifying infill area.
(ix)Inclusion of any publicly owned lands within the designated catalytic qualifying infill area.
(x)Streamlining provisions related to the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code), including, but not limited to, establishment of streamlined, program-level California Environmental Quality Act analysis and certification of general plans, community plans, specific plans with accompanying environmental impact reports, and related documents and streamlining proposed projects, such as enabling a by-right approval process or by utilizing statutory and categorical exemptions as authorized by applicable law.
(C)Eligible applicants shall submit the following information in the application request for funding:
(i)A complete description of the catalytic qualifying infill area and documentation of how the catalytic qualifying infill area meets the requirements of this section.
(ii)A complete description of the capital improvement project and requested grant funding, how the capital improvement project is necessary to support the development of housing, and how it meets the criteria of this section.
(iii)Documentation that specifies how the application meets all of the requirements of subdivision (g).
(iv)(I)Except as provided in subclause (II), a financial document that shows the gap financing needed for the project.
(II)For a qualifying infill project within a catalytic qualifying infill area located in the unincorporated area of the county, the department shall allow an applicant to meet the requirement described in subclause (I) by submitting copies of an application or applications for other sources of state or federal funding for a qualifying infill project.
(v)(I)Except as provided by subclause (II), documentation of all necessary entitlement and permits, and a certification from the applicant that the capital improvement project is shovel-ready.
(II)For a qualifying infill project within a catalytic qualifying infill area located in the unincorporated area of the county, the department shall allow the applicant to meet the requirement described in subclause (I) by submitting a letter of intent from a willing affordable housing developer that has previously completed at least one comparable housing project, certifying that the developer is willing to submit an application to the county for approval by the county of a qualifying infill project within the area in the event that the funding requested pursuant to this subdivision is awarded.
(2)In allocating funds pursuant to this subdivision, the department, to the maximum extent feasible, shall ensure a reasonable distribution of funds, including consideration of differing population sizes of localities and geographic location. Applications shall be considered and ranked against applications of localities of similar size and scope. For the purposes of this paragraph, the population of a county shall be the population in the unincorporated area.
(3)The department shall report the following information in its annual report due in 2024, as required by Section 50408:
(A)Specific uses of the funds for capital improvement projects.
(B)Locations of awarded catalytic qualifying infill area grants, including both of the following:
(i)Number of awards by geography, including urban and rural.
(ii)The types of buildings adapted to residential use.
(C)Total units to be created within the awarded qualifying infill areas, including anticipated affordability levels.
(D)Data on catalytic qualifying infill area projects funded, such as project sizes, adaptive reuse ordinances adopted, and by-right sites.
(g)A qualifying infill project, qualifying infill area, or catalytic qualifying infill area for which a capital improvement project grant may be awarded pursuant to paragraph (2) of subdivision (c), subdivision (d), subdivision (e), or subdivision (f) shall meet all of the following conditions:
(1)A qualifying infill area or catalytic qualifying infill area shall be located in a city, county, or city and county in which the general plan of the city, county, or city and county has an adopted housing element that has been found by the department, pursuant to Section 65585 of the Government Code, to be in compliance with the requirements of Article 10.6 (commencing with Section 65580) of Chapter 3 of Division 1 of Title 7 of the Government Code. This paragraph does not apply to a qualifying infill project.
(2)The project meets one of the following:
(2)Include(A)Includes not less than 15 percent of affordable units, as follows:
(A)(i)For projects that contain both rental and ownership units, units of either or both product types may be included in the calculation of the affordability criteria.
(B)(i)(ii)(I)To the extent included in a project grant application, for the purpose of calculating the percentage of affordable units, the department may consider the entire master development in which the development seeking grant funding is included.
(ii)(II)Where applicable, an applicant may include a replacement housing plan to ensure that dwelling units housing persons and families of low or moderate income are not removed from the low- and moderate-income housing market. Residential units to be replaced shall not be counted toward meeting the affordability threshold required for eligibility for funding under this section.
(C)(iii)For the purposes of this subdivision, subparagraph, affordable unit means a unit that is made available at an affordable rent, as defined in Section 50053, to a household earning no more than 60 percent of the area median income or at an affordable housing cost, as defined in Section 50052.5, to a household earning no more than 120 percent of the area median income. Rental units shall be subject to a recorded covenant that ensures affordability for at least 55 years. Ownership units shall initially be sold to and occupied by a qualified household, and shall be subject to a recorded covenant that includes either a resale restriction for at least 30 years or equity sharing upon resale.
(B)If the project is a by-right site and is in compliance with Section 65913.4 or 65852.24 of the Government Code, or Chapter 4.1 (commencing with Section 65912.100) of Division 1 of Title 7 of the Government Code, the project meets the affordability requirements outlined in those sections, as applicable.
(3)Include average residential densities on the parcels to be developed that are equal to or greater than the densities described in subparagraph (B) of paragraph (3) of subdivision (c) of Section 65583.2 of the Government Code, except that a project located in a rural area as defined in Section 50199.21 shall include average residential densities on the parcels to be developed of at least 10 units per acre.
(4)Be located in an area designated that allows for mixed-use or residential development pursuant to one of the following:
(A)A general plan adopted pursuant to Section 65300 of the Government Code.
(B)A sustainable communities strategy adopted pursuant to Section 65080 of the Government Code.
(C)A specific plan adopted pursuant to Section 65450 of the Government Code.
(D)A Workforce Housing Opportunity Zone established pursuant to Section 65620 of the Government Code.
(E)A housing sustainability district established pursuant to Section 66201 of the Government Code.
(F)A housing development that is in compliance with Section 65913.4 or 65852.24 of the Government Code, or Chapter 4.1 (commencing with Section 65912.100) of Division 1 of Title 7 of the Government Code.
(h)Funds awarded pursuant to this section shall supplement, not supplant, other available funding.
(i)The department shall adopt guidelines for the operation of the grant program. The guidelines shall include performance standards and authorize the reversion of grant awards if the awardee has not substantially met the performance standards.
(1)Performance standards shall include timelines for commencement of construction of a capital improvement project, completion of a capital improvement project, and commencement and completion of associated housing development on an identified infill site, as identified in the qualifying infill project, qualifying infill area, or catalytic qualifying infill area application.
(2)Catalytic qualifying infill area awards may be conditioned upon the local jurisdiction completing any actions to expedite housing development rezoning to accommodate density, completing environmental reviews to support ministerial approvals of housing, and granting fee waivers or other incentives to expedite housing development that were used in qualifying for an award.
(j)The department shall require recipients of funds to report on progress of capital improvement projects, including, but not limited to, substantiation of grant expenditures and housing outcomes, including levels of affordability as provided in the application.
(k)The guidelines may also provide for recapture of grants awarded, but for which development of the related housing units has not progressed in a reasonable period of time from the date of the grant award, as determined by the department. The guidelines shall not be subject to the requirements of Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code.
(l)For each fiscal year within the duration of the grant program, the department shall include within the report to the Governor and the Legislature, required by Section 50408, information on its activities relating to the grant program activities related to qualifying infill projects and qualifying infill areas, including small jurisdiction funding activities. The report shall include, but is not limited to, the following information:
(1)A summary of the projects that received grants under the program for each fiscal year that grants were awarded.
(2)The description, location, and estimated date of completion for each project that received a grant award under the program.
(3)An update on the status of each project that received a grant award under the program, and the number of housing units created or facilitated by the program.
(m)Notwithstanding paragraph (3) of subdivision (g), a city with a population greater than 100,000 in a standard metropolitan statistical area or a population of less than 2,000,000 may petition the department for, and the department may grant, an exception to the jurisdictions classification pursuant to subdivisions (d) to (f), inclusive, of Section 65583.2 of the Government Code, if the city believes it is unable to meet the density requirements specified in paragraph (3) of subdivision (g). The city shall submit the petition with its application and shall include the reasons why the city believes the exception is warranted. The city shall provide information supporting the need for the exception, including, but not limited to, any limitations that the city may encounter in meeting the density requirements specified in paragraph (3) of subdivision (g). Any exception shall be for the purposes of this section only. This subdivision shall become inoperative on January 1, 2026.
SEC. 2.Section 53559.1 of the Health and Safety Code is amended to read:53559.1.For the purposes of this part, the following definitions apply:
(a)Adaptive reuse means the repurposing of building structures for residential purposes, such as former office use, commercial use, or business parks. When referring to building structures, adaptive reuse means retrofitting and repurposing of existing buildings that create new residential rental units, and expressly excludes a project that involves rehabilitation of any construction affecting existing residential units that are, or have been, recently occupied.
(b)Capital improvement project means the construction, rehabilitation, demolition, relocation, preservation, acquisition, or other physical improvement of a capital asset, as defined in subdivision (a) of Section 16727 of the Government Code, that is an integral part of, or necessary to facilitate the development of, a qualifying infill project or qualifying infill area. Capital improvement projects that may be funded under the grant program established by this part include, but are not limited to, those related to the following:
(1)The creation, development, or rehabilitation of parks or open space.
(2)Water, sewer, or other utility service improvements.
(3)Streets, roads, or transit Transit linkages or facilities, including, but not limited to, related access plazas or pathways, or bus or transit shelters, or facilities that support pedestrian or bicycle transit. shelters.
(4)Facilities that support pedestrian or bicycle transit.
(5)Traffic mitigation.
(6)Streets or roads that are publicly maintained and open to the use of the public for purposes of vehicular travel and that will serve as a connector within a qualifying infill project or qualifying infill area.
(6)(7)Sidewalk or streetscape improvements, including, but not limited to, the reconstruction or resurfacing of sidewalks and streets or the installation of lighting, signage, or other related amenities.
(7)(8)Adaptive reuse.
(8)(9)Site preparation or demolition related to the capital improvement project or planned housing development used in calculating the eligible grant amount.
(10)Nature-based solutions that are proven to reduce the risk from climate change-driven natural disasters and risks like wildfire, flooding, heat, and sea level rise. For purposes of this paragraph, nature-based solutions means sustainable planning, design, environmental management, and engineering practices that weave natural features or processes into the built environment to promote adaptation and resilience.
(c)Catalytic qualifying infill area means a contiguous area or multiple noncontiguous parcels located within an urbanized area that meet all of the following requirements:
(1)The contiguous area or noncontiguous parcels have been previously developed, or at least 75 percent of the perimeter of each parcel or area adjoins parcels that are developed or have been previously developed with urban uses, provided that, for small jurisdiction applicants, the perimeter requirements in clause (i) of subparagraph (A) of paragraph (4) of subdivision (e) of Section 53559 shall apply. For purposes of this paragraph, perimeters bordering navigable bodies of water and improved parks shall not be included.
(2)No parcel within or adjoining the area is classified as agricultural or natural and working lands.
(3)The area or areas constitute a large catalytic investment in land that will accommodate a mix of uses, including affordable or mixed-income housing.
(d)(1)Disadvantaged communities means any of the following:
(A)Concentrated areas of poverty.
(B)Areas of high segregation and poverty and areas of low to moderate access to opportunity, as identified in opportunity area maps developed by the department and the California Tax Credit Allocation Committee.
(C)Communities of concern, disadvantaged communities identified pursuant to Section 39711, and low-income communities as defined in subdivision (d) of Section 39713.
(D)Areas of high housing cost burdens.
(E)Areas with high vulnerability of displacement; areas related to tribal entities.
(F)Any other areas experiencing disproportionate impacts of Californias housing and climate crisis.
(2)Applicants may propose alternative definitions to disadvantaged communities in consultation with the department.
(e)Eligible applicant means any of the following:
(1)A nonprofit or for-profit developer of a qualifying infill project.
(2)A city, county, city and county, or public housing authority that has jurisdiction over a qualifying infill area or catalytic qualifying infill area. A metropolitan planning organization may participate as a coapplicant.
(3) The duly constituted governing body of an Indian reservation or rancheria that has jurisdiction over a qualifying infill area or a tribally designated housing entity as defined in Section 4103 of Title 25 of the United States Code and Section 50104.6.5 that is the developer of a qualifying infill project.
(A)A tribal entity may apply as a small jurisdiction or large jurisdiction, but may only apply as one or the other for any single qualifying infill project or qualifying infill area.
(B)The department may modify or waive requirements of this division consistent with the intent of paragraphs (1) and (2) of subdivision (p) of Section 50406 to allow tribal entities to access funding.
(f)Locality means a city, county, or city and county where a county means the unincorporated areas of that county.
(g)Small jurisdiction means a county with a population of less than 250,000 as of January 1, 2019, or any city within that county.
(h)Large jurisdiction means a county that is not a small jurisdiction, or any city within that county.
(i)Major transit stop has the same meaning as defined in subdivision (b) of Section 21155 of the Public Resources Code.
(i)(j)Urbanized area means an incorporated city. For sites in unincorporated areas, the site must be within a designated urban service area that is designated in the local general plan for urban development and is served by the public sewer and water. city or urbanized area as defined by the United States Census Bureau.
(j)(k)Urban uses means any residential, commercial, industrial, public institutional, transit or transportation passenger facility, or retail use, or any combination of those uses.
|
Date
|
Status
|
|---|---|
| Sep 29, 2026 | Chaptered by Secretary of State. Chapter 804, Statutes of 2026. |
| Sep 29, 2026 | Approved by the Governor. |
| Sep 2, 2026 | Enrolled and presented to the Governor at 3 p.m. |
| Aug 27, 2026 | Assembly amendments concurred in. (Ayes 40. Noes 0.) Ordered to engrossing and enrolling. |
| Aug 27, 2026 | Assembly amendments concurred in. (Ayes 40. Noes 0. Page 5940.) Ordered to engrossing and enrolling. |
| Aug 25, 2026 | In Senate. Concurrence in Assembly amendments pending. |
| Aug 25, 2026 | Read third time. Passed. (Ayes 78. Noes 0. Page 6469.) Ordered to the Senate. |
| Aug 25, 2026 | Read third time. Passed. Ordered to the Senate. |
| Aug 19, 2026 | Read third time and amended. |
| Aug 19, 2026 | Ordered to third reading. |
| Aug 17, 2026 | Read second time. Ordered to third reading. |
| Aug 13, 2026 | Read second time and amended. Ordered to second reading. |
| Aug 13, 2026 | From committee: Do pass as amended. (Ayes 11. Noes 0.) (August 13). |
| Aug 13, 2026 | Assembly Rule 63 suspended. |
| Aug 29, 2025 | August 29 hearing postponed by committee. |
| Aug 20, 2025 | August 20 set for first hearing. Placed on APPR. suspense file. |
| Jul 17, 2025 | Read second time and amended. Re-referred to Com. on APPR. |
| Jul 16, 2025 | From committee: Do pass as amended and re-refer to Com. on APPR. (Ayes 12. Noes 0.) (July 16). |
| Jul 8, 2025 | From committee with author's amendments. Read second time and amended. Re-referred to Com. on H. & C.D. |
| May 29, 2025 | Referred to Com. on H. & C.D. |
| May 15, 2025 | In Assembly. Read first time. Held at Desk. |
| May 15, 2025 | Read third time. Passed. (Ayes 34. Noes 0. Page 1091.) Ordered to the Assembly. |
| May 13, 2025 | Read second time. Ordered to consent calendar. |
| May 12, 2025 | From committee: Be ordered to second reading pursuant to Senate Rule 28.8 and ordered to consent calendar. |
| May 2, 2025 | Set for hearing May 12. |
| Apr 30, 2025 | From committee: Do pass and re-refer to Com. on APPR. with recommendation: To consent calendar. (Ayes 11. Noes 0. Page 937.) (April 29). Re-referred to Com. on APPR. |
| Apr 24, 2025 | Set for hearing April 29. |
| Apr 22, 2025 | From committee with author's amendments. Read second time and amended. Re-referred to Com. on HOUSING. |
| Mar 12, 2025 | Referred to Com. on HOUSING. |
| Feb 24, 2025 | Read first time. |
| Feb 24, 2025 | From printer. May be acted upon on or after March 24. |
| Feb 21, 2025 | Introduced. To Com. on RLS. for assignment. To print. |
|
Date
|
Description
|
Location
|
Votes
|
|
|---|---|---|---|---|
| Aug 27, 2026 | Unfinished Business SB772 Cabaldon et al. Concurrence | Senate Floor |
Passed |
|
| Aug 25, 2026 | SB 772 Cabaldon Senate Third Reading By Schultz | Assembly Floor |
Passed |
|
| Aug 13, 2026 | Do pass as amended. | Assembly Standing Committee on Appropriations |
Passed |
|
| Jul 16, 2025 | Do pass as amended and be re-referred to the Committee on [Appropriations] | Assembly Standing Committee on Housing and Community Development |
Passed |
|
| May 15, 2025 | Consent Calendar 2nd SB772 Cabaldon | Senate Floor |
Passed |
|
| Apr 29, 2025 | Do pass, but first be re-referred to the Committee on [Appropriations] with the recommendation: To Consent Calendar | Senate Standing Committee on Housing |
Passed |
This list shows positions taken on this bill by organizations on the date displayed, which is linked to the original source.
Positions by individuals are not included.
|
Organization
|
Position
|
Date
|
|---|---|---|
| Abundant Housing LA | ** Support | |
| California Forward | ** Support | |
| California YIMBY | ** Support | |
| Center For Biological Diversity | ** Support | |
| Council of Infill Builders | ** Support | |
| Endangered Habitats League | ** Support | |
| ENTERPRISE COMMUNITY PARTNERS, INC. | ** Support | |
| Epic - Environmental Protection Information Center | ** Support | |
| Greenbelt Alliance | ** Support | |
| House Sacramento | ** Support | |
| Housing Action Coalition | ** Support | |
| Landwatch Monterey County | ** Support | |
| League of California Women Voters | ** Support | |
| Lisc San Diego | ** Support | |
| Livable Communities Initiative | ** Support | |
| New Way Homes | ** Support | |
| Planning And Conservation League | ** Support | |
| Prosperity California | ** Support | |
| Save The Bay | ** Support | |
| Seamless Bay Area | ** Support | |
| Sequoia Riverlands Trust | ** Support | |
| Sierra Business Council | ** Support | |
| Streets for All | ** Support | |
| The Central Valley Urban Institute | ** Support | |
| Transform | ** Support | |
| Wildlands Network | ** Support | |
| Yimby Action | ** Support |
SENATE RULES COMMITTEE Office of Senate Floor Analyses (916) 651-4171 | SB 772 |
UNFINISHED BUSINESS
Bill No: SB 772
Author: Cabaldon (D), et al.
Amended: 8/19/26
Vote: 21
SENATE HOUSING COMMITTEE: 11-0, 4/29/25
AYES: Wahab, Seyarto, Arreguín, Cabaldon, Caballero, Cortese, Durazo, Gonzalez, Grayson, Ochoa Bogh, Padilla
SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8
SENATE FLOOR: 34-0, 5/15/25 (Consent)
AYES: Allen, Archuleta, Arreguín, Ashby, Becker, Blakespear, Cabaldon, Caballero, Choi, Cortese, Dahle, Durazo, Gonzalez, Grayson, Hurtado, Jones, Laird, Limón, McGuire, McNerney, Menjivar, Niello, Ochoa Bogh, Pérez, Richardson, Seyarto, Smallwood-Cuevas, Stern, Strickland, Umberg, Valladares, Wahab, Weber Pierson, Wiener
NO VOTE RECORDED: Alvarado-Gil, Cervantes, Grove, Padilla, Reyes, Rubio
ASSEMBLY FLOOR: 78-0, 8/25/26 - See last page for vote
SUBJECT: Infill Infrastructure Grant Program of 2019: applications: eligibility
SOURCE: Author
DIGEST:
This bill makes a number of revisions to the Infill Infrastructure Grant (IIG) Program.
Assembly Amendments
make updates to IIG to facilitate developments in areas eligible for streamlined, ministerial approval; authorize natural infrastructure solutions to be funded, as specified; expand the definition of “walkability”; and, make other clarifying changes.
ANALYSIS:
Existing law:
- Establishes the IIG at the Department of Housing and Community Development (HCD).
- Streamlines the approval process for certain housing developments along commercial corridors and in commercial zones, as specified, pursuant to AB 2011 (Wicks, Chapter 647, Statutes of 2022).
- Streamlines the approval for certain infill housing developments, pursuant to SB 35 (Wiener, Chapter 366, Statues of 2017).
This bill:
- Changes the definition of "qualifying infill project" areas for the purposes of the IIG program to include parcels that are adjacent to parcels that have previously been developed in addition to ones with existing development.
- Adds to the list of priorities that HCD considers in ranking applicants for IIG funding for both "qualifying infill area" and "catalytic qualifying infill area" to include:
- Walkability to essential services or businesses; and
- On-demand transit services that provide or support new, restored, or expanded routes.
- Adds to the definition of "qualifying infill area" a capital improvement project for which funding is requested is necessary and integral to make and are suitable for development under AB 2011 (Wicks, Chapter 647, Statutes of 20220.
- Expands the areas where a "qualifying infill project," "qualifying infill area," or "catalytic qualifying infill area" can qualify for funding to include sites that are eligible for AB 2011 (Wicks, Chapter 647, Statutes of 2022) or SB 35 (Wiener, Chapter 366, Statues of 2017).
- Changes the definition of capital improvement projects that may be funded under the IIG as follows:
- Replaces "streets and roads" as a use to streets or roads that are publicly maintained and open to the use of the public for purposes of vehicular travel and that will serve as a connector within a qualifying infill project or qualifying infill area; and
- Add the use of funds for "nature infrastructure solutions" that reduce the risk of climate change-driven natural disasters like wildfire, flooding, heat, and sea-level rise, or provide other social benefits.
- Allows a city, county, or city and county to apply for a "qualified infill area" or a "catalyst qualifying infill area" without having a developer as a co-applicant.
- Adds a definition of a "major transit stop" that includes existing and planned stops in the regional transportation plan.
- Changes the definition of an "urbanized area" to an urbanized area as defined by the United States Census Bureau rather than for sites in unincorporated areas that the site is within a designated urban service area that is designated in the local general plan for urban development and is served by the public sewer and water.
- Adds a definition of "walkability" to mean the parcels or parcel where the development will occur is within one mile of six or more of any of the following amenities:
- A supermarket or grocery store;
- A public park;
- A community center;
- A pharmacy or drugstore;
- A medical clinic or hospital;
- A public library; or
- A school that maintains a kindergarten or any of grades one to 12, inclusive;
- Food bank;
- A licensed childcare facility as identified by the State Department of Social Services;
- A community or recreation center accessible to the general public;
- A bank or credit union;
- A post office; and
- A laundry service.
- Adds a definition of "on-demand transit service" to include shuttles, vans, circulators, paratransit services, and private sector transit solutions commonly referred to as microunits that are operated or contracted by a public entity. Requires the transit service to serve the general public and be demand responsible and capable of serving multiple riders simultaneously not only a single rider service. Defined "demand responsive" to mean a route or frequency of service is dispatched in real time based on customer demand.
Background
IIG. The original IIG program, now commonly known as IIG of 2007, was established pursuant to Proposition 6, the Housing and Emergency Shelter Trust Fund Act of 2006; it received additional funds through Proposition 1, the Veterans and Affordable Housing Bond Act of 2018. In 2019, the Legislature allocated $500 million General Fund moneys to IIG and updated the program; the new version of the program is commonly known as IIG of 2019.
IIG of 2019 promotes infill housing development by providing financial assistance for capital improvement projects that are an integral part of, or necessary to facilitate the development of, affordable and mixed-income housing. Under IIG of 2019, grants are available in the form of gap funding for infrastructure, factory-built housing components, and adaptive reuse necessary for specific residential or mixed-use infill developments. Eligible costs include, but are not limited to, the creation, development, or rehabilitation of parks or open space; water, sewer, or other utility service improvements (including internet and electric vehicle infrastructure); streets; roads; transit station structured parking; transit linkages or facilities; facilities that support pedestrian or bicycle transit; traffic mitigation, sidewalk, or streetscape improvements; factory-built housing components; adaptive reuse; and site preparation or demolition.
Comments
Author statement. “Many former commercial and underutilized areas have significant potential for the development of housing at scale, but lack the public infrastructure necessary to support higher-density residential development. The Bridge District is a perfect example of smart growth. It is a waterfront urban mixed-use development located along the western side of the Sacramento River. A former industrial area, it is now a vibrant community easily accessible to downtown Sacramento via the Tower Bridge, with the potential to eventually support 5,210 new homes and 7,290,000 square feet of commercial development. The Bridge District required vision and state and local investments. Reforms to the IIG Program have the potential to catalyze investment in underutilized lands, such as vacant shopping centers or strip malls, to support the development of housing with infrastructure that has been upgraded to accommodate growth. Aiding local governments to transform cities into denser, more livable communities will also mitigate against the impacts of climate change. The bill would also authorize the IIG Program to fund green infrastructure improvements, such as landscape features that can help mitigate flooding risks.”
Updating IIG of 2019. Supporters of this bill note that IIG of 2019 is a key tool in helping to address infrastructure challenges – such as upgrades to water, sewer, and transit access – that make it harder to build multifamily housing. They also note that since this program has not been significantly updated since it was established, and precludes some housing developments from accessing funds from IIG in areas that are walkable to specified services and retail centers.
Limited program funding. HCD released the Multifamily Finance Super NOFA (Notice of Funding Availability) on February 13th, announcing the availability of $382 million through Multifamily Housing Program (MHP), Joe Serna Jr. Farmworker Housing Grant Program, IIG of 2007, IIG of 2019, and the Veterans Housing and Homelessness Prevention Program.[1] Of this total, $20 million is provided for IIG of 2007 and IIG of 2019 – the total amount of remaining funds in these programs. This bill would apply to any future funds that are appropriated to IIG. SB 417 (Limon/Rivas, Chapter 16, Statutes of 2026) enacts the Veterans and Affordable Housing Bond Act of 2026, which, if adopted by the voters in the statewide election November 2, 2026, would authorize $11.25 billion in general obligation bonds to fund specified housing programs, including $500 million for IIG of 2019.
FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No
According to the Assembly Committee on Appropriations:
- Ongoing General Fund cost pressures to provide funding to the IIG Program to accommodate the expanded allowable projects under the bill. The IIG Program is oversubscribed and the 2026 budget act does not provide an allocation for additional grants. SB 417 (Limon), Chapter 16, Statutes of 2026, the Veterans and Affordable Housing Bond Act of 2026, which includes $500 million for the IIG Program is a potential funding source, should it pass at the November 3, 2026 statewide general election.
- HCD estimates minor and absorbable costs to make minor modifications to the IIG Program guidelines, application materials, and application review tools. Because program guidelines are generally updated with every funding round, HCD indicates the workload created by this bill can be absorbed by current staffing levels.
SUPPORT: (Verified 8/20/26)
Abundant Housing LA
California Forward
California Yimby
Center for Biological Diversity
Council of Infill Builders
Endangered Habitats League
Enterprise Community Partners, INC.
Epic - Environmental Protection Information Center
Greenbelt Alliance
House Sacramento
Housing Action Coalition
Lisc San Diego
Livable Communities Initiative
New Way Homes
Prosperity California
Save the Bay
Seamless Bay Area
Sequoia Riverlands Trust
Sierra Business Council
Streets for All
The Central Valley Urban Institute
Transform
Wildlands Network
Yimby Action
OPPOSITION: (Verified 8/20/26)
None received
ASSEMBLY FLOOR: 78-0, 8/25/26
AYES: Addis, Aguiar-Curry, Ahrens, Alanis, Alvarez, Arambula, Ávila Farías, Bains, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Bryan, Calderon, Caloza, Carrillo, Castillo, Chen, Connolly, Davies, DeMaio, Dixon, Elhawary, Ellis, Flora, Fong, Gabriel, Garcia, Gipson, Jeff Gonzalez, Mark González, Hadwick, Haney, Harabedian, Hart, Hoover, Irwin, Jackson, Johnson, Kalra, Krell, Lackey, Lee, Lowenthal, Macedo, Muratsuchi, Nguyen, Ortega, Pacheco, Papan, Patel, Patterson, Pellerin, Petrie-Norris, Quirk-Silva, Ramos, Ransom, Celeste Rodriguez, Michelle Rodriguez, Rogers, Blanca Rubio, Sanchez, Schiavo, Schultz, Sharp-Collins, Solache, Soria, Stefani, Ta, Tangipa, Valencia, Wallis, Ward, Wicks, Wilson, Zbur, Rivas
NO VOTE RECORDED: McKinnor
Prepared by: Alison Hughes / HOUSING / (916) 651-4124
9/21/26 15:53:06
**** END ****
Multifamily Finance SuperNOFA Program 2025 Notice of Funding Availability. (HCD, February 13, 2025). Accessible here: https://www.hcd.ca.gov/sites/default/files/docs/grants-and-funding/supernofa/2025-mfsn-round-3-nofa.pdf ↑
SENATE RULES COMMITTEE Office of Senate Floor Analyses (916) 651-4171 | SB 772 |
UNFINISHED BUSINESS
Bill No: SB 772
Author: Cabaldon (D), et al.
Amended: 8/19/26
Vote: 21
SENATE HOUSING COMMITTEE: 11-0, 4/29/25
AYES: Wahab, Seyarto, Arreguín, Cabaldon, Caballero, Cortese, Durazo, Gonzalez, Grayson, Ochoa Bogh, Padilla
SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8
SENATE FLOOR: 34-0, 5/15/25 (Consent)
AYES: Allen, Archuleta, Arreguín, Ashby, Becker, Blakespear, Cabaldon, Caballero, Choi, Cortese, Dahle, Durazo, Gonzalez, Grayson, Hurtado, Jones, Laird, Limón, McGuire, McNerney, Menjivar, Niello, Ochoa Bogh, Pérez, Richardson, Seyarto, Smallwood-Cuevas, Stern, Strickland, Umberg, Valladares, Wahab, Weber Pierson, Wiener
NO VOTE RECORDED: Alvarado-Gil, Cervantes, Grove, Padilla, Reyes, Rubio
ASSEMBLY FLOOR: Passed, 8/25/26
SUBJECT: Infill Infrastructure Grant Program of 2019: applications: eligibility
SOURCE: Author
DIGEST:
This bill makes a number of revisions to the Infill Infrastructure Grant (IIG) Program.
Assembly Amendments
make updates to IIG to facilitate developments in areas eligible for streamlined, ministerial approval; authorize natural infrastructure solutions to be funded, as specified; expand the definition of “walkability”; and, make other clarifying changes.
ANALYSIS:
Existing law:
- Establishes the IIG at the Department of Housing and Community Development (HCD).
- Streamlines the approval process for certain housing developments along commercial corridors and in commercial zones, as specified, pursuant to AB 2011 (Wicks, Chapter 647, Statutes of 2022).
- Streamlines the approval for certain infill housing developments, pursuant to SB 35 (Wiener, Chapter 366, Statues of 2017).
This bill:
- Changes the definition of "qualifying infill project" areas for the purposes of the IIG program to include parcels that are adjacent to parcels that have previously been developed in addition to ones with existing development.
- Adds to the list of priorities that HCD considers in ranking applicants for IIG funding for both "qualifying infill area" and "catalytic qualifying infill area" to include:
- Walkability to essential services or businesses; and
- On-demand transit services that provide or support new, restored, or expanded routes.
- Adds to the definition of "qualifying infill area" a capital improvement project for which funding is requested is necessary and integral to make and are suitable for development under AB 2011 (Wicks, Chapter 647, Statutes of 20220.
- Expands the areas where a "qualifying infill project," "qualifying infill area," or "catalytic qualifying infill area" can qualify for funding to include sites that are eligible for AB 2011 (Wicks, Chapter 647, Statutes of 2022) or SB 35 (Wiener, Chapter 366, Statues of 2017).
- Changes the definition of capital improvement projects that may be funded under the IIG as follows:
- Replaces "streets and roads" as a use to streets or roads that are publicly maintained and open to the use of the public for purposes of vehicular travel and that will serve as a connector within a qualifying infill project or qualifying infill area; and
- Add the use of funds for "nature infrastructure solutions" that reduce the risk of climate change-driven natural disasters like wildfire, flooding, heat, and sea-level rise, or provide other social benefits.
- Allows a city, county, or city and county to apply for a "qualified infill area" or a "catalyst qualifying infill area" without having a developer as a co-applicant.
- Adds a definition of a "major transit stop" that includes existing and planned stops in the regional transportation plan.
- Changes the definition of an "urbanized area" to an urbanized area as defined by the United States Census Bureau rather than for sites in unincorporated areas that the site is within a designated urban service area that is designated in the local general plan for urban development and is served by the public sewer and water.
- Adds a definition of "walkability" to mean the parcels or parcel where the development will occur is within one mile of six or more of any of the following amenities:
- A supermarket or grocery store;
- A public park;
- A community center;
- A pharmacy or drugstore;
- A medical clinic or hospital;
- A public library; or
- A school that maintains a kindergarten or any of grades one to 12, inclusive;
- Food bank;
- A licensed childcare facility as identified by the State Department of Social Services;
- A community or recreation center accessible to the general public;
- A bank or credit union;
- A post office; and
- A laundry service.
- Adds a definition of "on-demand transit service" to include shuttles, vans, circulators, paratransit services, and private sector transit solutions commonly referred to as microunits that are operated or contracted by a public entity. Requires the transit service to serve the general public and be demand responsible and capable of serving multiple riders simultaneously not only a single rider service. Defined "demand responsive" to mean a route or frequency of service is dispatched in real time based on customer demand.
Background
IIG. The original IIG program, now commonly known as IIG of 2007, was established pursuant to Proposition 6, the Housing and Emergency Shelter Trust Fund Act of 2006; it received additional funds through Proposition 1, the Veterans and Affordable Housing Bond Act of 2018. In 2019, the Legislature allocated $500 million General Fund moneys to IIG and updated the program; the new version of the program is commonly known as IIG of 2019.
IIG of 2019 promotes infill housing development by providing financial assistance for capital improvement projects that are an integral part of, or necessary to facilitate the development of, affordable and mixed-income housing. Under IIG of 2019, grants are available in the form of gap funding for infrastructure, factory-built housing components, and adaptive reuse necessary for specific residential or mixed-use infill developments. Eligible costs include, but are not limited to, the creation, development, or rehabilitation of parks or open space; water, sewer, or other utility service improvements (including internet and electric vehicle infrastructure); streets; roads; transit station structured parking; transit linkages or facilities; facilities that support pedestrian or bicycle transit; traffic mitigation, sidewalk, or streetscape improvements; factory-built housing components; adaptive reuse; and site preparation or demolition.
Comments
Author statement. “Many former commercial and underutilized areas have significant potential for the development of housing at scale, but lack the public infrastructure necessary to support higher-density residential development. The Bridge District is a perfect example of smart growth. It is a waterfront urban mixed-use development located along the western side of the Sacramento River. A former industrial area, it is now a vibrant community easily accessible to downtown Sacramento via the Tower Bridge, with the potential to eventually support 5,210 new homes and 7,290,000 square feet of commercial development. The Bridge District required vision and state and local investments. Reforms to the IIG Program have the potential to catalyze investment in underutilized lands, such as vacant shopping centers or strip malls, to support the development of housing with infrastructure that has been upgraded to accommodate growth. Aiding local governments to transform cities into denser, more livable communities will also mitigate against the impacts of climate change. The bill would also authorize the IIG Program to fund green infrastructure improvements, such as landscape features that can help mitigate flooding risks.”
Updating IIG of 2019. Supporters of this bill note that IIG of 2019 is a key tool in helping to address infrastructure challenges – such as upgrades to water, sewer, and transit access – that make it harder to build multifamily housing. They also note that since this program has not been significantly updated since it was established, and precludes some housing developments from accessing funds from IIG in areas that are walkable to specified services and retail centers.
Limited program funding. HCD released the Multifamily Finance Super NOFA (Notice of Funding Availability) on February 13th, announcing the availability of $382 million through Multifamily Housing Program (MHP), Joe Serna Jr. Farmworker Housing Grant Program, IIG of 2007, IIG of 2019, and the Veterans Housing and Homelessness Prevention Program.[1] Of this total, $20 million is provided for IIG of 2007 and IIG of 2019 – the total amount of remaining funds in these programs. This bill would apply to any future funds that are appropriated to IIG. SB 417 (Limon/Rivas, Chapter 16, Statutes of 2026) enacts the Veterans and Affordable Housing Bond Act of 2026, which, if adopted by the voters in the statewide election November 2, 2026, would authorize $11.25 billion in general obligation bonds to fund specified housing programs, including $500 million for IIG of 2019.
FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No
According to the Assembly Committee on Appropriations:
- Ongoing General Fund cost pressures to provide funding to the IIG Program to accommodate the expanded allowable projects under the bill. The IIG Program is oversubscribed and the 2026 budget act does not provide an allocation for additional grants. SB 417 (Limon), Chapter 16, Statutes of 2026, the Veterans and Affordable Housing Bond Act of 2026, which includes $500 million for the IIG Program is a potential funding source, should it pass at the November 3, 2026 statewide general election.
- HCD estimates minor and absorbable costs to make minor modifications to the IIG Program guidelines, application materials, and application review tools. Because program guidelines are generally updated with every funding round, HCD indicates the workload created by this bill can be absorbed by current staffing levels.
SUPPORT: (Verified 8/20/26)
Abundant Housing LA
California Forward
California Yimby
Center for Biological Diversity
Council of Infill Builders
Endangered Habitats League
Enterprise Community Partners, INC.
Epic - Environmental Protection Information Center
Greenbelt Alliance
House Sacramento
Housing Action Coalition
Lisc San Diego
Livable Communities Initiative
New Way Homes
Prosperity California
Save the Bay
Seamless Bay Area
Sequoia Riverlands Trust
Sierra Business Council
Streets for All
The Central Valley Urban Institute
Transform
Wildlands Network
Yimby Action
OPPOSITION: (Verified 8/20/26)
None received
Prepared by: Alison Hughes / HOUSING / (916) 651-4124
8/25/26 13:07:32
**** END ****
Multifamily Finance SuperNOFA Program 2025 Notice of Funding Availability. (HCD, February 13, 2025). Accessible here: https://www.hcd.ca.gov/sites/default/files/docs/grants-and-funding/supernofa/2025-mfsn-round-3-nofa.pdf ↑
SENATE THIRD READING
STR Bill Id:SB 772
Author:(Cabaldon)
As Amended Ver:August 19, 2026
Majority vote
SUMMARY
Makes changes to the Infill Infrastructure Grant (IIG) Program
Major Provisions
- Changes the definition of "qualifying infill project" areas for the purposes of the IIG program to include parcels that are adjacent to parcels that have previously been developed in addition to ones with existing development.
- Adds to the list of priorities that the Department of Housing and Community Development (HCD) considers in ranking applicants for IIG funding for both "qualifying infill area" and "catalytic qualifying infill area" to include:
- Walkability to essential services or businesses; and
- On-demand transit services that provide or support new, restored, or expanded routes
- Adds to the definition of "qualifying infill area" a capital improvement project for which funding is requested is necessary and integral to make and are suitable for development under AB 2011 (Wicks), Chapter 647, Statutes of 2022.
- Expands the areas where a "qualifying infill project," "qualifying infill area," or "catalytic qualifying infill area" can qualify for funding to include sites that are eligible for AB 2011 (Wicks), Chapter 647, Statutes of 2022 or SB 35 (Wiener), Chapter 366, Statues of 2017.
- Changes the definition of capital improvement projects that may be funded under the IIG as follows:
- Replaces "streets and roads" as a use to streets or roads that are publicly maintained and open to the use of the public for purposes of vehicular travel and that will serve as a connector within a qualifying infill project or qualifying infill area; and
- Add the use of funds for "nature infrastructure solutions" that reduce the risk of climate change-driven natural disasters like wildfire, flooding, heat, and sea-level rise, or provide other social benefits.
- Allows a city, county, or city and county to apply for a "qualified infill area" or a "catalyst qualifying infill area" without having a developer as a co-applicant.
- Adds a definition of a "major transit stop" that includes existing and planned stops in the regional transportation plan.
- Changes the definition of an "urbanized area" to an urbanized area as defined by the United States Census Bureau rather than for sites in unincorporated areas that the site is within a designated urban service area that is designated in the local general plan for urban development and is served by the public sewer and water.
- Adds a definition of "walkability" to mean the parcels or parcel where the development will occur is within one mile of six or more of any of the following amenities:
- A supermarket or grocery store;
- A public park;
- A community center;
- A pharmacy or drugstore;
- A medical clinic or hospital;
- A public library; or
- A school that maintains a kindergarten or any of grades one to 12, inclusive;
- Food bank;
- A licensed childcare facility as identified by the State Department of Social Services;
- A community or recreation center accessible to the general public;
- A bank or credit union;
- A post office; and
- A laundry service.
- Adds a definition of "on-demand transit service" to include shuttles, vans, circulators, paratransit services, and private sector transit solutions commonly referred to as microunits that are operated or contracted by a public entity. Requires the transit service to serve the general public and be demand responsible and capable of serving multiple riders simultaneously not only a single rider service. Defined "demand responsive" to mean a route or frequency of service is dispatched in real time based on customer demand.
COMMENTS
IIG: The original IIG program, now commonly known as IIG of 2007, was established pursuant to Proposition 6, the Housing and Emergency Shelter Trust Fund Act of 2006. It received additional funds through Proposition 1, the Veterans and Affordable Housing Bond Act of 2018. In 2019, the Legislature allocated $500 million General Fund monies to IIG and updated the program; the new version of the program is commonly known as IIG of 2019.
IIG of 2019 promotes infill housing development by providing financial assistance for capital improvement projects that are an integral part of, or necessary to facilitate the development of, affordable and mixed income housing. Under IIG of 2019, grants are available in the form of gap funding for infrastructure, factory-built housing components, and adaptive reuse necessary for specific residential or mixed-use infill developments. Eligible costs include, but are not limited to, the creation, development, or rehabilitation of parks or open space; water, sewer, or other utility service improvements (including internet and electric vehicle infrastructure); streets; roads; transit station structured parking; transit linkages or facilities; facilities that support pedestrian or bicycle transit; traffic mitigation, sidewalk, or streetscape improvements; factory-built housing components; adaptive reuse; and site preparation or demolition.
IIG of 2019 has a competitive program for larger, urban jurisdictions and a non-competitive, over-the counter program for small jurisdictions. The IIG program provides funding for infill projects, infill areas, and catalytic areas. Infill projects are required to include a minimum of 15% of the units affordable to households at or below 60% of Area Median Income (AMI). Infill areas are not required to have a specific number of affordable housing units, but must have at least one development that qualifies as an infill project. Qualifying infill areas are evaluated based on project readiness, proximity to transit and other amenities, level of residential density on parcels in the area, if an area is in a sustainable communities plan, and if the jurisdiction has a pro-housing designation from HCD. For the competitive program, applications are weighted based on the amount of affordable housing in a project and a jurisdiction must apply with a developer. Small jurisdictions in unincorporated areas are not required to have a developer as a co-applicant.
The catalytic program does not require a minimum affordability level, but areas are weighted based on the number of housing units that could be produced in addition to other factors. These are areas that constitute a large catalytic investment in land that will accommodate a mix of uses, including affordable or mixed-income housing. These areas can have contiguous or non-contiguous parcels.
Walkability: The IIG program is intended to fund dense, infill housing close to transit. While the statute does require a consideration of proximity to existing or planned parks, employment or retail centers, schools, or services, walkability this bill requires a development to be within one mile of six listed entities.
AB 2011 (Wicks) and SB 35 (Wiener) sites: AB 2011 streamlines the approval process for certain housing developments along commercial corridors and in commercial zones, while ensuring labor standards for construction workers and facilitating the development of affordable housing units. The law allows for by-right approval of mixed-income and 100% affordable housing projects on sites currently zoned for office, retail, or parking uses, provided they meet specific affordability, labor, and environmental criteria. This means qualifying projects can bypass certain discretionary local approvals, such as conditional use permits, making it easier and faster to build housing. In 2017, SB 35 (Wiener) created a by-right approval process for infill projects with two or more residential units in localities that have failed to produce sufficient housing to meet their Regional Housing Needs Assessment (RHNA). To access the by-right process, the project must meet a number of requirements, including that the development includes a percentage of affordable housing units, meets specified labor standards, is not on an environmentally sensitive site, and would not result in the demolition of existing housing. Localities are allowed to provide design review, and are allowed to apply their own objective development standards, but they must approve the development project in specified timeframes. The IIG program does not currently allow SB 35 and AB 2011 sites to qualify, this bill would allow sites that meet the standards of both bills to qualify for funding. They would need to meet the other standards of the program including affordability standards, proximity to transit, walkability, or access to on-demand transit services.
According to the Author
"Many former commercial and underutilized areas have significant potential for the development of housing at scale but lack the public infrastructure necessary to support higher-density residential development. The Bridge District is a perfect example of smart growth. It is a waterfront urban mixed-use development located along the western side of the Sacramento River. A former industrial area, it is now a vibrant community easily accessible to downtown Sacramento via the Tower Bridge, with the potential to eventually support 5,210 new homes and 7,290,000 square feet of commercial development. The Bridge District required vision and state and local investments. Reforms to the IIG Program have the potential to catalyze investment in underutilized lands, such as vacant shopping centers or strip malls, to support the development of housing with infrastructure that has been upgraded to accommodate growth. Aiding local governments to transform cities into denser, more livable communities will also mitigate against the impacts of climate change. The bill would also authorize the IIG Program to fund green infrastructure improvements, such as landscape features that can help mitigate flooding risks."
Arguments in Support
According to the bill's sponsor, Prosperity California, "The Infill Infrastructure Grant Program (IIG) is an effective but oversubscribed program funding the upgrades to water, sewer, and transit access that make new housing possible. By updating the program and increasing funding, we can ensure more climate-smart housing is built while protecting Californians from the impacts of climate-driven natural disasters. SB 772 will:
- Require the California Department of Housing and Community Development (HCD) to include future transit stops that have been planned for by local and regional government when considering project eligibility;
- Require HCD to look at a development's walkability to essential services and businesses, such as grocery stores and medical clinics, when ranking which project to fund;
- Expand the type of projects that can be funded by including nature-based solutions that promote climate adaptation and resilience for new housing."
Arguments in Opposition
None on file.
FISCAL COMMENTS
According to the Assembly Committee on Appropriations:
- Ongoing General Fund cost pressures to provide funding to the IIG Program to accommodate the expanded allowable projects under the bill. The IIG Program is oversubscribed and the 2026 budget act does not provide an allocation for additional grants. SB 417 (Limon), Chapter 16, Statutes of 2026, the Veterans and Affordable Housing Bond Act of 2026, which includes $500 million for the IIG Program is a potential funding source, should it pass at the November 3, 2026 statewide general election.
HCD estimates minor and absorbable costs to make minor modifications to the IIG Program guidelines, application materials, and application review tools. Because program guidelines are generally updated with every funding round, HCD indicates the workload created by this bill can be absorbed by current staffing levels.
VOTES
SENATE FLOOR: 34-0-6
YES: Allen, Archuleta, Arreguín, Ashby, Becker, Blakespear, Cabaldon, Caballero, Choi, Cortese, Dahle, Durazo, Gonzalez, Grayson, Hurtado, Jones, Laird, Limón, McGuire, McNerney, Menjivar, Niello, Ochoa Bogh, Pérez, Richardson, Seyarto, Smallwood-Cuevas, Stern, Strickland, Umberg, Valladares, Wahab, Weber Pierson, Wiener
ABS, ABST OR NV: Alvarado-Gil, Cervantes, Grove, Padilla, Reyes, Rubio
ASM HOUSING AND COMMUNITY DEVELOPMENT: 12-0-0
YES: Haney, Patterson, Ávila Farías, Caloza, Garcia, Kalra, Lee, Quirk-Silva, Ta, Tangipa, Wicks, Wilson
ASM APPROPRIATIONS: 11-0-4
YES: Wicks, Arambula, Calderon, Caloza, Fong, Mark González, Krell, Pacheco, Pellerin, Sharp-Collins, Solache
ABS, ABST OR NV: Hoover, Dixon, Ta, Tangipa
UPDATED
VERSION: August 19, 2026
CONSULTANT: Lisa Engel / H. & C.D. / (916) 319-2085 FN: 0003789
SENATE THIRD READING
STR Bill Id:SB 772
Author:(Cabaldon)
As Amended Ver:August 13, 2026
Majority vote
SUMMARY
Makes changes to the Infill Infrastructure Grant (IIG) Program.
Major Provisions
- Changes the definition of "qualifying infill project" areas for the purposes of the IIG program to include parcels that are adjacent to parcels that have previously been developed in addition to ones with existing development.
- Adds to the list of priorities that the Department of Housing and Community Development (HCD) considers in ranking applicants for IIG funding for both "qualifying infill area" and "catalytic qualifying infill area" to include:
- Walkability to essential services or businesses; and
- On-demand transit services that provide or support new, restored, or expanded routes
- Adds to the definition of "qualifying infill area" a capital improvement project for which funding is request is necessary and integral to make and are suitable for development under AB 2011 (Wicks), Chapter 647, Statutes of 2022.
- Expands the areas where a "qualifying infill project," "qualifying infill area," or "catalytic qualifying infill area" can qualify for funding to include sites that are eligible for AB 2011 (Wicks), Chapter 647, Statutes of 2022 or SB 35 (Wiener), Chapter 366, Statues of 2017.
- Changes the definition of capital improvement projects that may be funded under the IIG as follows:
- Replaces "streets and roads" as a use to streets or roads that are publicly maintained and open to the use of the public for purposes of vehicular travel and that will serve as a connector within a qualifying infill project or qualifying infill area; and
- Add the use of funds for "nature infrastructure solutions" that reduce the risk of climate change-driven natural disasters like wildfire, flooding, heat, and sea-level rise, or provide other social benefits.
- Allows a city, county, or city and county to apply for a "qualified infill area" or a "catalyst qualifying infill area" without having a developer as a co-applicant.
- Adds a definition of a "major transit stop" that includes existing and planned stops in the regional transportation plan.
- Changes the definition of an "urbanized area" to an urbanized area as defined by the United States Census Bureau rather than for sites in unincorporated areas that the site is within a designated urban service area that is designated in the local general plan for urban development and is served by the public sewer and water.
- Adds a definition of "walkability" to mean the parcels or parcel where the development will occur is within one mile of six or more of any of the following amenities:
- A supermarket or grocery store;
- A public park;
- A community center;
- A pharmacy or drugstore;
- A medical clinic or hospital;
- A public library; or
- A school that maintains a kindergarten or any of grades one to 12, inclusive;
- Food bank;
- A licensed childcare facility as identified by the State Department of Social Services;
- A community or recreation center accessible to the general public;
- A bank or credit union;
- A post office; and
- A laundry service.
- Adds a definition of "on-demand transit service" to include shuttles, vans, circulators, paratransit services, and private sector transit solutions commonly referred to as microunits that are operated or contracted by a public entity. Requires the transit service to serve the general public and be demand responsible and capable of serving multiple riders simultaneously not only a single rider service. Defined "demand responsive" to mean a route or frequency of service is dispatched in real time based on customer demand.
- Adds a definition of "shovel-ready" to mean that the project has a letter or other document evidencing to the satisfaction of the department a commitment of funds or a reservation of funds by a project-funding source for construction or permanent financing include but not limited to the following:
- Private financing from a lender other than a mortgage broker, the applicant or an entity with an identity of interest win the applicant, unless the applicant is a lending institution actively and regularly engaged in residential lending;
- Deferred-payment financing, residential receipts payment financing, residential receipts payments financing, grants, and subsidies from public agencies;
- Funds awarded by another department program;
- A land donation in fee for no other consideration that is supported by an appraisal or purchase and sale agreement or a local fee waiver resulting in quantifiable cost savings; and
- Owner equity contributions or developer funds.
COMMENTS
IIG: The original IIG program, now commonly known as IIG of 2007, was established pursuant to Proposition 6, the Housing and Emergency Shelter Trust Fund Act of 2006. It received additional funds through Proposition 1, the Veterans and Affordable Housing Bond Act of 2018. In 2019, the Legislature allocated $500 million General Fund monies to IIG and updated the program; the new version of the program is commonly known as IIG of 2019.
IIG of 2019 promotes infill housing development by providing financial assistance for capital improvement projects that are an integral part of, or necessary to facilitate the development of, affordable and mixed income housing. Under IIG of 2019, grants are available in the form of gap funding for infrastructure, factory-built housing components, and adaptive reuse necessary for specific residential or mixed-use infill developments. Eligible costs include, but are not limited to, the creation, development, or rehabilitation of parks or open space; water, sewer, or other utility service improvements (including internet and electric vehicle infrastructure); streets; roads; transit station structured parking; transit linkages or facilities; facilities that support pedestrian or bicycle transit; traffic mitigation, sidewalk, or streetscape improvements; factory-built housing components; adaptive reuse; and site preparation or demolition.
IIG of 2019 has a competitive program for larger, urban jurisdictions and a non-competitive, over-the counter program for small jurisdictions. The IIG program provides funding for infill projects, infill areas, and catalytic areas. Infill projects are required to include a minimum of 15% of the units affordable to households at or below 60% of Area Median Income (AMI). Infill areas are not required to have a specific number of affordable housing units, but must have at least one development that qualifies as an infill project. Qualifying infill areas are evaluated based on project readiness, proximity to transit and other amenities, level of residential density on parcels in the area, if an area is in a sustainable communities plan, and if the jurisdiction has a pro-housing designation from HCD. For the competitive program, applications are weighted based on the amount of affordable housing in a project and a jurisdiction must apply with a developer. Small jurisdictions in unincorporated areas are not required to have a developer as a co-applicant.
The catalytic program does not require a minimum affordability level, but areas are weighted based on the number of housing units that could be produced in addition to other factors. These are areas that constitute a large catalytic investment in land that will accommodate a mix of uses, including affordable or mixed-income housing. These areas can have contiguous or non-contiguous parcels.
Walkability: The IIG program is intended to fund dense, infill housing close to transit. While the statute does require a consideration of proximity to existing or planned parks, employment or retail centers, schools, or services, walkability this bill requires a development to be within one mile of six listed entities.
Shovel-ready: To qualify for the IIG program, applicants must provide documentation that the project is shovel-ready. The statute does not define what qualifies as shovel ready which according to the sponsors has led to confusion and an inconsistent application of the standard. This bill adds a list of documentation that an applicant can provide to satisfy this requirement.
AB 2011 (Wicks) and SB 35 (Wiener) sites: AB 2011 streamlines the approval process for certain housing developments along commercial corridors and in commercial zones, while ensuring labor standards for construction workers and facilitating the development of affordable housing units. The law allows for by-right approval of mixed-income and 100% affordable housing projects on sites currently zoned for office, retail, or parking uses, provided they meet specific affordability, labor, and environmental criteria. This means qualifying projects can bypass certain discretionary local approvals, such as conditional use permits, making it easier and faster to build housing. In 2017, SB 35 (Wiener) created a by-right approval process for infill projects with two or more residential units in localities that have failed to produce sufficient housing to meet their Regional Housing Needs Assessment (RHNA). To access the by-right process, the project must meet a number of requirements, including that the development includes a percentage of affordable housing units, meets specified labor standards, is not on an environmentally sensitive site, and would not result in the demolition of existing housing. Localities are allowed to provide design review, and are allowed to apply their own objective development standards, but they must approve the development project in specified timeframes. The IIG program does not currently allow SB 35 and AB 2011 sites to qualify, this bill would allow sites that meet the standards of both bills to qualify for funding. They would need to meet the other standards of the program including affordability standards, proximity to transit, walkability, or access to on-demand transit services.
According to the Author
"Many former commercial and underutilized areas have significant potential for the development of housing at scale but lack the public infrastructure necessary to support higher-density residential development. The Bridge District is a perfect example of smart growth. It is a waterfront urban mixed-use development located along the western side of the Sacramento River. A former industrial area, it is now a vibrant community easily accessible to downtown Sacramento via the Tower Bridge, with the potential to eventually support 5,210 new homes and 7,290,000 square feet of commercial development. The Bridge District required vision and state and local investments. Reforms to the IIG Program have the potential to catalyze investment in underutilized lands, such as vacant shopping centers or strip malls, to support the development of housing with infrastructure that has been upgraded to accommodate growth. Aiding local governments to transform cities into denser, more livable communities will also mitigate against the impacts of climate change. The bill would also authorize the IIG Program to fund green infrastructure improvements, such as landscape features that can help mitigate flooding risks."
Arguments in Support
According to the bill's sponsor, Prosperity California, "The Infill Infrastructure Grant Program (IIG) is an effective but oversubscribed program funding the upgrades to water, sewer, and transit access that make new housing possible. By updating the program and increasing funding, we can ensure more climate-smart housing is built while protecting Californians from the impacts of climate-driven natural disasters. SB 772 will:
- Require the California Department of Housing and Community Development (HCD) to include future transit stops that have been planned for by local and regional government when considering project eligibility;
- Require HCD to look at a development's walkability to essential services and businesses, such as grocery stores and medical clinics, when ranking which project to fund;
- Expand the type of projects that can be funded by including nature-based solutions that promote climate adaptation and resilience for new housing."
Arguments in Opposition
None on file.
FISCAL COMMENTS
According to the Assembly Committee on Appropriations:
- Ongoing General Fund cost pressures to provide funding to the IIG Program to accommodate the expanded allowable projects under the bill. The IIG Program is oversubscribed and the 2026 budget act does not provide an allocation for additional grants. SB 417 (Limon), Chapter 16, Statutes of 2026, the Veterans and Affordable Housing Bond Act of 2026, which includes $500 million for the IIG Program is a potential funding source, should it pass at the November 3, 2026 statewide general election.
- HCD estimates minor and absorbable costs to make minor modifications to the IIG Program guidelines, application materials, and application review tools. Because program guidelines are generally updated with every funding round, HCD indicates the workload created by this bill can be absorbed by current staffing levels.
VOTES
SENATE FLOOR: 34-0-6
YES: Allen, Archuleta, Arreguín, Ashby, Becker, Blakespear, Cabaldon, Caballero, Choi, Cortese, Dahle, Durazo, Gonzalez, Grayson, Hurtado, Jones, Laird, Limón, McGuire, McNerney, Menjivar, Niello, Ochoa Bogh, Pérez, Richardson, Seyarto, Smallwood-Cuevas, Stern, Strickland, Umberg, Valladares, Wahab, Weber Pierson, Wiener
ABS, ABST OR NV: Alvarado-Gil, Cervantes, Grove, Padilla, Reyes, Rubio
ASM HOUSING AND COMMUNITY DEVELOPMENT: 12-0-0
YES: Haney, Patterson, Ávila Farías, Caloza, Garcia, Kalra, Lee, Quirk-Silva, Ta, Tangipa, Wicks, Wilson
ASM APPROPRIATIONS: 11-0-4
YES: Wicks, Arambula, Calderon, Caloza, Fong, Mark González, Krell, Pacheco, Pellerin, Sharp-Collins, Solache
ABS, ABST OR NV: Hoover, Dixon, Ta, Tangipa
UPDATED
VERSION: August 13, 2026
CONSULTANT: Lisa Engel / H. & C.D. / (916) 319-2085 FN: 0003539
Date of Hearing: August 20, 2025
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Buffy Wicks, Chair
SBPCA Bill Id:SB 772
Author:(Cabaldon) – As Amended Ver:July 17, 2025
Policy Committee: | Housing and Community Development | Vote: | 12 - 0 |
|
| ||
|
|
Urgency: No State Mandated Local Program: No Reimbursable: No
SUMMARY:
This bill revises and expands the Infill Infrastructure Grant (IIG) Program of 2019.
Specifically, this bill:
- Expands the definition of “qualifying infill project” for the purposes of the IIG program to include a residential or mixed-use residential project located within an urbanized area on a vacant site where at least 75% of the perimeter of the site adjoins parcels that have been previously developed with urban uses.
- Adds to the list of priorities the Department of Housing and Community Development (HCD) considers in ranking applicants for IIG funding for a qualifying infill area or a catalytic qualifying infill area to include the area’s walkability to essential services or businesses. Defines “walkability” for these purposes.
- Allows a qualifying infill project, qualifying infill area, or catalytic qualifying infill area to also be located in an area that allows for mixed-use or residential development pursuant to AB 2011 (Wicks), Chapter 647, Statutes of 2022.
- Makes other definitional additions and revisions, including, modifying “capital improvement project” to also include:
- Streets or roads that are publicly maintained and open to the use of the public for purposes of vehicular travel and that will serve as a connector within a qualifying infill project or qualifying infill area.
- “Nature-based solutions,” as defined, proven to reduce the risk from climate change-driven natural disasters and risks like wildfire, flooding, heat, and sea level rise.
FISCAL EFFECT:
- Ongoing General Fund cost pressures to provide funding to the IIG Program to accommodate the expanded allowable projects under the bill. The Program is oversubscribed and the 2025 budget act does not provide an allocation for additional grants. AB 746, the Affordable Housing Bond Act of 2026, which includes $400 million for the Program is a potential funding source, should it pass the Legislature and a vote of the people at the June 2, 2026 statewide primary election.
- HCD estimates minor and absorbable costs to make minor modifications to the IIG Program guidelines, application materials, and application review tools. Because program guidelines are generally updated with every funding round, HCD indicates the workload created by this bill can be absorbed by current staffing levels.
COMMENTS:
- Purpose. According to the author:
Many former commercial and underutilized areas have significant potential for the development of housing at scale but lack the public infrastructure necessary to support higher-density residential development. Reforms to the IIG Program have the potential to catalyze investment in underutilized lands, such as vacant shopping centers or strip malls, to support the development of housing with infrastructure that has been upgraded to accommodate growth. Aiding local governments to transform cities into denser, more livable communities will also mitigate against the impacts of climate change.
- Background. Existing law establishes the IIG Program of 2019, which requires HCD, upon appropriation, to establish and administer a grant program to allocate funds for infrastructure improvements necessary to facilitate new infill housing development. Under the program, grants are available as gap funding for infrastructure improvements necessary for specific residential or mixed-use infill development projects or areas. Existing law defines a qualifying infill project or area for these purposes to include a residential or mixed-use residential project located within an urbanized area on a vacant site where at least 75% of the perimeter of the site adjoins parcels that are developed with urban uses.
Eligible improvements include development or reconstruction of parks or open space, water, sewer or other utility service improvements, streets, roads, parking structures, transit linkages, transit shelters, traffic mitigation features, sidewalks, and streetscape improvements.
The program requires HCD to administer a specified competitive application process for capital improvement projects for large jurisdictions, and a non-competitive, over-the counter program for small jurisdictions. Infill projects are required to include a minimum of 15% of the units affordable to households at or below 60% of AMI. Qualifying infill areas are evaluated based on project readiness, proximity to transit and other amenities, level of residential density on parcels in the area, whether an area is in a sustainable communities plan, and whether the jurisdiction has a pro-housing designation from HCD.
This bill expands the definition of a qualifying infill project, includes walkability provisions in application ranking criteria, and updates eligible funding uses to include nature-based solutions that promote climate adaptation and resilience. According to the bill’s sponsor, Prosperity California:
The IIG Program is an effective but oversubscribed program funding the upgrades to water, sewer, and transit access that make new housing possible. By updating the program and increasing funding, we can ensure more climate-smart housing is built while protecting Californians from the impacts of climate-driven natural disasters.
Analysis Prepared by: Jennifer Swenson / APPR. / (916) 319-2081
Date of Hearing: July 16, 2025
ASSEMBLY COMMITTEE ON HOUSING AND COMMUNITY DEVELOPMENT
Matt Haney, Chair
SBPCA Bill Id:SB 772
Author:(Cabaldon) – As Amended Ver:July 8, 2025
SENATE VOTE: 34-0
SUBJECT: Infill Infrastructure Grant Program of 2019: applications: eligibility
SUMMARY: Lowers the affordability requirements to receive funding from the Infill Infrastructure Grant (IIG) Program and makes other changes to the program. Specifically, this bill:
- Changes the definition of “qualifying infill project” areas for the purposes of the IIG program to include parcels that are adjacent to parcels that have previously been developed in addition to ones with existing development.
- Adds to the list of priorities that the Department of Housing and Community Development (HCD) considers in ranking applicants for IIG funding for both “qualifying infill area” and “catalytic qualifying infill area” to include walkability to essential services or businesses.
- Changes the information that eligible applicants must submit to HCD in the application request for both “qualifying infill projects” and “catalytic qualifying infill” funding from a requirement to submit permits and a certification that the project is shovel-ready to building permits.
- Adds to the definition of “qualifying infill area” a contiguous area that is located within an urban area that qualifies as a site under AB 2011 (Wicks), Chapter 647, Statutes of 2022.
- Lowers the affordability requirements for a project in a “qualifying infill area,” or “catalytic qualifying infill area” in the following way:
- Reduces the area median income (AMI) a project must include in a development from 15% of affordable units at 60% of AMI to 15% at 80% of AMI;
- Allows a project that is using the by-right, streamlined process under SB 35 (Wiener), Chapter 366, Statutes of 2017 to qualify for funding if they include at a minimum 10% of the affordable units at 50% of AMI (very low-income); and
- Allows a project that is using the by-right, streamlined process under AB 2011 (Wicks), Chapter 647, Statutes of 2022 to qualify for funding if they include a minimum of either 8% of units at 50% of AMI and 5% of units at 30% of AMI (extremely low-income), or 15% of units at 80% of AMI.
- Expands the areas where a “qualifying infill project,” “qualifying infill area,” or “catalytic qualifying infill area” can qualify for funding to include sites that are eligible for AB 2011 (Wicks), Chapter 647, Statutes of 2022.
- Changes the definition of capital improvement projects that may be funded under the IIG as follows:
- Replaces “streets and roads” as a use to streets or roads that are publicly maintained and open to the use of the public for purposes of vehicular travel and that will serve as a connector within a qualifying infill project or qualifying infill area; and
- Add the use of funds for “nature-based solutions” that are proven to reduce the risk from climate change-driven natural disasters and risks like wildfire, flooding, heat, and sea level rise. For purposes of this paragraph, “nature-based solutions” means sustainable planning, design, environmental management, and engineering practices that weave natural features or processes into the built environment to promote adaptation and resilience.
- Allows a city, county, or city and county to apply for a “qualified infill area” or a “catalyst qualifying infill area” without having a developer as a co-applicant.
- Adds a definition of a “major transit stop” that includes existing and planned stops in the regional transportation plan.
- Changes the definition of an “urbanized area” to an urbanized area as defined by the United States Census Bureau rather than for sites in unincorporated areas that the site is within a designated urban service area that is designated in the local general plan for urban development and is served by the public sewer and water.
- Adds a definition of “walkability” to mean the parcels or parcel where the development will occur is within one mile of six or more of any of the following amenities:
- A supermarket or grocery store;
- A public park;
- A community center;
- A pharmacy or drugstore;
- A medical clinic or hospital;
- A public library; or
- A school that maintains a kindergarten or any of grades 1 to 12, inclusive.
EXISTING LAW:
- Defines a “capital improvement project” to mean the construction, rehabilitation, demolition, relocation, preservation, acquisition, or other physical improvement of a capital asset, that is an integral part of, or necessary to facilitate the development of, a qualifying infill project or qualifying infill area. Capital improvement projects include, but are not limited to, those related to the following:
- The creation, development, or rehabilitation of parks or open space;
- Water, sewer, or other utility service improvements;
- Streets, roads, or transit linkages or facilities, including, but not limited to, related access plazas or pathways, bus or transit shelters, or facilities that support pedestrian or bicycle transit;
- Facilities that support pedestrian or bicycle transit;
- Traffic mitigation;
- Sidewalk or streetscape improvements, including, but not limited to, the reconstruction or resurfacing of sidewalks and streets or the installation of lighting, signage, or other related amenities;
- Adaptive reuse; and
- Site preparation or demolition related to the capital improvement project or planned housing development used in calculating the eligible grant amount.
- Defines a “catalytic qualifying infill area” to mean a contiguous area or multiple noncontiguous parcels located within an urbanized area that meet all of the following requirements:
- The contiguous area or noncontiguous parcels have been previously developed, or at least 75% of the perimeter of each parcel or area adjoins parcels that are developed or have been previously developed with urban uses, with specified perimeter requirements for small jurisdiction applicants;
- No parcel within or adjoining the area is classified as agricultural or natural and working lands; and
- The area or areas constitute a large catalytic investment in land that will accommodate a mix of uses, including affordable or mixed-income housing.
- Defines “qualifying infill area” to mean a contiguous area located within an urbanized area that meets either of the following criteria:
- A contiguous area located within an urbanized area that has been previously developed, or where at least 75% of the perimeter of the area adjoins parcels that are developed with urban uses, and in which at least one development application has been approved or is pending approval for a residential or mixed-use residential project that meets the definition of a qualifying infill project;
- The area contains sites included on the inventory of land suitable and available for residential development in the housing element of the applicable city or county general plan and at least 50% of the perimeter of the area shall adjoin parcels that are developed with urban uses; or
- The capital improvement project for which funding is requested is necessary, as documented by an environmental review or some other adopted planning document, to make the area suitable and available for residential development, or to allow the area to accommodate housing for additional income levels, and the area otherwise meets the requirements for inclusion on the inventory of land suitable and available for residential development in the housing element of the applicable city or county general plan and at least 50% of the perimeter of the area adjoins parcels that are developed with urban uses.
- Defines “qualifying infill project” to mean a residential or mixed-use residential project located within an urbanized area on a site that has been previously developed, or on a vacant site where at least 50% of the perimeter of the site adjoins parcels that are developed with urban uses.
- Establishes the IIG of 2019 at HCD to provide capital improvement projects that are an integral part of, or necessary to facilitate the development of, a qualifying infill project, qualifying infill area, or catalytic qualifying infill area.
- Requires HCD to administer a competitive grants process for larger jurisdictions and an over-the counter, non-competitive grants process for smaller jurisdictions.
- Requires HCD to do all of the following for grants for qualifying infill projects:
- Administer funding through the Multi-family Housing Program (MHP); and
- Award funds to residential or mixed-use residential projects located within an urbanized area on a site that has been previously developed, or on a vacant site where at least 75% of the perimeter of the site adjoins parcels that are developed.
- Requires HCD in its review of capital improvement project grants in infill qualifying areas to review and rank applications based on the following:
- Project readiness, which shall include all of the following:
- A demonstration that the area development can complete environmental review and secure necessary entitlements from the local jurisdiction within a reasonable period of time following the submission of a grant application; and
- A demonstration that the eligible applicant can secure sufficient funding commitments derived from sources other than this part for the timely development of a qualifying infill area.
- The depth and duration of the affordability of the housing proposed for a qualifying infill area;
- The extent to which the average residential densities on the parcels to be developed exceed the density standards contained in the housing element;
- The qualifying infill area’s inclusion of, or proximity or accessibility to, a transit station or major transit stop;
- The proximity of housing to parks, employment or retail centers, schools, or social services;
- The qualifying infill area location’s consistency with an adopted sustainable communities strategy, alternative planning strategy, or other adopted regional growth plan intended to foster efficient land use;
- For qualifying infill areas, in awarding funds under the program, the department shall provide additional points or preference to projects located in jurisdictions that are designated prohousing; and
- Ensure a reasonable geographic distribution of funds.
- Provides that for a qualifying infill project located in the unincorporated area of the county HCD shall allow an applicant to meet the requirement to provide documentation of all approval necessary entitlement and permits, and a certification from the applicant that the project is shovel-ready, by submitting a letter of intent from a willing affordable housing developer that has previously completed at least one comparable housing project, certifying that the developer is willing to submit an application to the county for approval by the county of a qualifying infill project within the area in the event that the county receives an award of funding for an qualifying infill area (Health and Safety Code Section (HSC) 53559 et seq.)
- A qualifying infill project, qualifying infill area, or catalytic qualifying infill area for which a capital improvement project grant may be awarded must include all of the following:
- Not less than 15% of affordable units, as follows:
- For projects that contain both rental and ownership units, units of either or both product types may be included in the calculation of the affordability criteria;
- To the extent included in a project grant application, for the purpose of calculating the percentage of affordable units, HCD may consider the entire master development in which the development seeking grant funding is included; and
- Where applicable, an applicant may include a replacement housing plan to ensure that dwelling units housing persons and families of low or moderate income are not removed from the low- and moderate-income housing market. Residential units to be replaced shall not be counted toward meeting the affordability threshold required for eligibility for funding under this section.
- Defines “affordable unit” to mean a unit that is made available at an affordable rent to a household earning no more than 60% of AMI or at an affordable housing cost or for ownership units no more than 120% of AMI. Rental units shall be subject to a recorded covenant that ensures affordability for at least 55 years. Ownership units shall initially be sold to and occupied by a qualified household, and shall be subject to a recorded covenant that includes either a resale restriction for at least 30 years or equity sharing upon resale.
- Requires the Office of Land Use and Climate Innovation, before July 1, 2026, and at least once every three years thereafter, to consult with other state agencies to issue the following guidance:
- A methodology for determining the amounts that are required to be contributed to the Transit-Oriented Development (TOD) Implementation Fund to mitigate the environmental impacts associated with vehicle miles traveled;
- A definition of location-efficient areas that reflects a reasonable nexus between the location of the transportation impact of the project and the location of the vehicle miles traveled-efficient affordable housing or related infrastructure project, which shall consider the location-efficient area’s consistency with an adopted sustainable communities strategy, alternative planning strategy, or other adopted regional growth plan intended to foster efficient land use;
- A process for validating a project’s vehicle miles traveled funding contribution, which shall be designed to provide certainty to the lead agency and project applicant that the contribution satisfies applicable mitigation requirements for significant transportation impacts; and
- A methodology for estimating the anticipated reduction in vehicle miles traveled associated with affordable housing or related infrastructure projects funded pursuant to subdivision This methodology may consider existing methodologies, but shall be tailored to the specific purposes of the TOD Implementation Fund, including accounting for relevant factors influencing vehicle miles traveled reduction, including proximity to transit, job access, walkability, and the level of affordability, and the length of the affordability period, of the affordable housing or related infrastructure project. (HSC 53568)
- Establishes the Housing Accountability Act (HAA), which, among other provisions, provides specified housing development projects with protections under the HAA if the local government fails to make a determination that a project is exempt from the California Environmental Quality Act. This includes projects that are within one-half mile of a bus station or ferry terminal and within one to two miles from six or more of the following amenities:
- A supermarket or grocery store;
- A public park;
- A community center;
- A pharmacy or drugstore;
- A medical clinic or hospital;
- A public library; or
- A school that maintains a kindergarten or any grades 1 to 12, inclusive. (Government Code Section 65589.5.1)
FISCAL EFFECT: Unknown.
COMMENTS:
Author’s Statement: According to the author, “Many former commercial and underutilized areas have significant potential for the development of housing at scale but lack the public infrastructure necessary to support higher-density residential development. The Bridge District is a perfect example of smart growth. It is a waterfront urban mixed-use development located along the western side of the Sacramento River. A former industrial area, it is now a vibrant community easily accessible to downtown Sacramento via the Tower Bridge, with the potential to eventually support 5,210 new homes and 7,290,000 square feet of commercial development. The Bridge District required vision and state and local investments. Reforms to the IIG Program have the potential to catalyze investment in underutilized lands, such as vacant shopping centers or strip malls, to support the development of housing with infrastructure that has been upgraded to accommodate growth. Aiding local governments to transform cities into denser, more livable communities will also mitigate against the impacts of climate change. The bill would also authorize the IIG Program to fund green infrastructure improvements, such as landscape features that can help mitigate flooding risks.”
IIG: The original IIG program, now commonly known as IIG of 2007, was established pursuant to Proposition 6, the Housing and Emergency Shelter Trust Fund Act of 2006. It received additional funds through Proposition 1, the Veterans and Affordable Housing Bond Act of 2018. In 2019, the Legislature allocated $500 million General Fund monies to IIG and updated the program; the new version of the program is commonly known as IIG of 2019.
IIG of 2019 promotes infill housing development by providing financial assistance for capital improvement projects that are an integral part of, or necessary to facilitate the development of, affordable and mixed income housing. Under IIG of 2019, grants are available in the form of gap funding for infrastructure, factory-built housing components, and adaptive reuse necessary for specific residential or mixed-use infill developments. Eligible costs include, but are not limited to, the creation, development, or rehabilitation of parks or open space; water, sewer, or other utility service improvements (including internet and electric vehicle infrastructure); streets; roads; transit station structured parking; transit linkages or facilities; facilities that support pedestrian or bicycle transit; traffic mitigation, sidewalk, or streetscape improvements; factory-built housing components; adaptive reuse; and site preparation or demolition.
IIG of 2019 has a competitive program for larger, urban jurisdictions and a non-competitive, over-the counter program for small jurisdictions. The IIG program provides funding for infill projects, infill areas, and catalytic areas. Infill projects are required to include a minimum of 15% of the units affordable to households at or below 60% of AMI. Infill areas are not required to have a specific number of affordable housing units, but must have at least one development that qualifies as an infill project. Qualifying infill areas are evaluated based on project readiness, proximity to transit and other amenities, level of residential density on parcels in the area, if an area is in a sustainable communities plan, and if the jurisdiction has a pro-housing designation from HCD. For the competitive program, applications are weighted based on the amount of affordable housing in a project and a jurisdiction must apply with a developer. Small jurisdictions in unincorporated areas are not required to have a developer as a co-applicant.
The catalytic program does not require a minimum affordability level, but areas are weighted based on the number of housing units that could be produced in addition to other factors. These are areas that constitute a large catalytic investment in land that will accommodate a mix of uses, including affordable or mixed-income housing. These areas can have contiguous or non-contiguous parcels.
Walkability: The IIG program is intended to fund dense, infill housing close to transit. While the statute does require a consideration of proximity to existing or planned parks, employment or retail centers, schools, or services, this bill adds definition from Housing Accountability Act (HHA) for walkability that requires a development to be within one mile of six listed entities.
Affordability: IIG of 2019 requires that infill qualifying projects, infill qualifying areas, and catalyst qualify areas include a minimum of 15% of the units at 60% of AMI. For infill qualifying areas and catalyst qualifying areas the 15% can be distributed throughout the area. Infill qualifying projects must have 15% of the units affordable to 60% of AMI or less which means that most of the projects are 100% affordable. Other mixed use developments with less or no affordable housing benefit from the infrastructure investment made to the area. This bill would reduce the affordability requirement in two ways: 1) it would increase the allowable AMI for the existing 15% requirement to 80% of AMI; and 2) it would allow a development that is utilizing streamlining under SB 35 (Wiener) to qualify for funding if they include at a minimum of 10% of the units at 50% of AMI, or if a development used AB 2011 (Wicks) they could qualify for funding if they include either 8% at 50% of AMI and 5% at 30% of AMI or 15% for 80% of AMI. A developer utilizing SB 35 or AB 2011 is not subject to review under the California Environmental Quality Act (CEQA) and is eligible for a density bonus which creates significant benefits to a developer – those benefits support the inclusion of a small percentage of affordable housing. The amount of affordable housing required to qualify for SB 35 has been reduced from 20% at 80% of AMI to 10% at 50% of AMI. This change was sought by developers who argued that 20% was too high and would require subsidy to achieve. The lower percentage of 10% at 50% of AMI also allows a developer to access additional density under Density Bonus Law, increasing the number of market rate units allowed over the density allowed in a jurisdiction to further support the inclusion of 10% of the units at an affordable rate. Both AB 2011 and SB 35 are land use tools to expedite housing production and the goal – unlike the IIG program – is for the inclusion of these benefits to support the construction of mixed-income housing that specifically does not require the state to provide additional subsidy through its extremely limited pool of housing construction funding.
Concerns: This bill makes other changes that may undermine the goals of the IIG program. The infill area and catalytic application requires an applicant to show proof that a development is permitted and has obtained its entitlements. This bill would change that to a requirement to show proof of building permits, which comes later in the post-entitlement process and may not be available at the point when a local government is applying for funds for infrastructure to attract a developer.
To qualify for funding for a qualifying infill area, an area must include sites included in the housing element or as documented by an environmental review or some other adopted planning document, to make the area suitable and available for residential development. This bill would add to this list that a capital improvement project requesting funding may meet the standards of AB 2011 (Wicks), as adopted by a planning document, to make the area suitable and available for residential development. The reasoning behind adding this option is fundamentally flawed. AB 2011 rezones commercial corridors and makes housing an allowable use at a minimum density and with a minimum amount of affordable housing. These sites likely will not be in a planning document as they are not part of the local jurisdiction’s housing element and likely are not part of any land use plan for housing development.
Arguments in Support: According to the bill’s sponsor, Prosperity California, “The Infill Infrastructure Grant Program (IIG) is an effective but oversubscribed program funding the upgrades to water, sewer, and transit access that make new housing possible. By updating the program and increasing funding, we can ensure more climate-smart housing is built while protecting Californians from the impacts of climate-driven natural disasters. SB 772 will:
- Require the California Department of Housing and Community Development (HCD) to include future transit stops that have been planned for by local and regional government when considering project eligibility;
- Require HCD to look at a development’s walkability to essential services and businesses, such as grocery stores and medical clinics, when ranking which project to fund;
- Expand the type of projects that can be funded by including nature-based solutions that promote climate adaptation and resilience for new housing.”
Arguments in Opposition: None on file.
Committee Amendments: The following amendments address issues raised in the analysis.
- Restore this language:
(E) (i) Except as provided by clause (ii), documentation of all approval of necessary entitlement and permits, and a certification from the applicant that the project is shovel-ready. building permits.
- Delete this language:
(iii) The capital improvement project for which funding is requested is necessary, as adopted by a planning document, to make the area suitable and available for residential development pursuant to Chapter 4.1 (commencing with Section 65912.100) of Division 1 of Title 7 of the Government Code.
- Restore this language:
(v) (I) Except as provided by subclause (II), documentation of all necessary entitlement and permits, and a certification from the applicant that the capital improvement project is shovel-ready. building permits.
- Delete the changes to this section:
(2) The project meets one of the following:
(2) (A) Include Includes not less than 15 percent of affordable units, as follows:
(A) (i) For projects that contain both rental and ownership units, units of either or both product types may be included in the calculation of the affordability criteria.
(B) (ii) (i) (I) To the extent included in a project grant application, for the purpose of calculating the percentage of affordable units, the department may consider the entire master development in which the development seeking grant funding is included.
(ii) (II) Where applicable, an applicant may include a replacement housing plan to ensure that dwelling units housing persons and families of low or moderate income are not removed from the low- and moderate-income housing market. Residential units to be replaced shall not be counted toward meeting the affordability threshold required for eligibility for funding under this section.
(C) (iii) For the purposes of this subdivision, subparagraph, “affordable unit” means a unit that is made available at an affordable rent, as defined in Section 50053, to a household earning no more than 60 80 percent of the area median income or at an affordable housing cost, as defined in Section 50052.5, to a household earning no more than 120 percent of the area median income. Rental units shall be subject to a recorded covenant that ensures affordability for at least 55 years. Ownership units shall initially be sold to and occupied by a qualified household, and shall be subject to a recorded covenant that includes either a resale restriction for at least 30 years or equity sharing upon resale.
(B) If the project is a by-right site and is in compliance with Section 65913.4 of the Government Code, or Chapter 4.1 (commencing with Section 65912.100) of Division 1 of Title 7 of the Government Code, the project meets the affordability requirements outlined in those sections, as applicable.
Related Legislation:
SB 341 (Becker, Chapter 777, Statutes of 2023) makes a number of changes to state housing programs, including specifying that additional points or preference from a prohousing designation shall be awarded only for the qualifying infill area portion of IIG of 2007, and adding the qualifying infill area and catalytic qualifying infill area portions of IIG of 2019 as one of the specified state programs for which additional points or preference is awarded due to a prohousing designation.
AB 140 (Committee on Budget, Chapter 111, Statutes of 2021) provided for statutory changes necessary to implement the housing and homelessness provisions of the Budget Act of 2021. Included provisions authorizing HCD to expend $250 million pursuant to IIG of 2019, with $160 million directed to selected capital improvements for large jurisdictions and $90 million directed to over-the-counter grants for capital improvements for projects for small jurisdictions.
AB 101 (Committee on Budget, Chapter 159, Statutes of 2019) provided for statutory changes necessary to enact the housing and homelessness-related provisions of the Budget Act of 2019. Included provisions authorizing HCD to expend $500 million in grants to fund infrastructure improvements including water, sewer, other utility improvements, streets, roads, other transit linkages, sidewalks, and other streetscape improvements for eligible cities and counties. Included a 15% affordability requirement.
REGISTERED SUPPORT / OPPOSITION:
Support
Abundant Housing L.A.
California Forward
California YIMBY
Center for Biological Diversity
Central Valley Urban Institute
Council of Infill Builders
Endangered Habitats League
Enterprise Community Partners, INC.
Epic - Environmental Protection Information Center
Greenbelt Alliance
Housing Action Coalition
LandWatch Monterey County
League of California Women Voters
LISC San Diego
Livable Communities Initiative
New Way Homes
Planning and Conservation League
Prosperity California
Seamless Bay Area
Sequoia Riverlands Trust
Sierra Business Council
Streets for All
Transform
Wildlands Network
YIMBY Action
Opposition
None on file.
Analysis Prepared by: Lisa Engel / H. & C.D. / (916) 319-2085
SENATE RULES COMMITTEE Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 | SB 772 |
CONSENT
Bill No: SB 772
Author: Cabaldon (D)
Amended: 4/22/25
Vote: 21
SENATE HOUSING COMMITTEE: 11-0, 4/29/25
AYES: Wahab, Seyarto, Arreguín, Cabaldon, Caballero, Cortese, Durazo, Gonzalez, Grayson, Ochoa Bogh, Padilla
SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8
SUBJECT: Infill Infrastructure Grant Program of 2019: applications: eligibility
SOURCE: Author
DIGEST:
This bill makes a number of revisions to the Infill Infrastructure Grant (IIG) Program of 2019.
ANALYSIS:
Existing law establishes the IIG at the Department of Housing and Community Development (HCD).
This bill:
- Revises the definition of “qualifying infill project” to add a vacant site where at least 75% of the perimeter of the site adjoins parcels that have been previously developed with urban uses for capital improvement project applications in large jurisdictions.
- Revises the criteria for the list of priorities on which HCD must base its ranking for qualifying infill areas. Specifically, a transit station or major transit stop, may also include “walkability to essential services or businesses.”
- Revises the information that applicants must submit, to delete the certification that the project is shovel-ready for capital improvement project applications in small jurisdictions. Instead, the applicant must demonstrate approval of necessary entitlements and building permits.
- Revises the criteria to the list of priorities on which HCD must base its ranking for catalytic qualifying infill areas for both small and large jurisdictions, as follows:
- For the criterion of the catalytic qualifying infill area’s inclusion of, or proximity or accessibility to, a transit station or major transit stop, adds “walkability to essential services or businesses.”
- Revises the information that applicants must submit, to delete the certification that the project is shovel-ready for catalytic qualifying infill areas for both small and large jurisdictions. Instead, the applicant must demonstrate approval of necessary entitlements and building permits.
- Revises the definition of “eligible capital improvement project” as follows:
- Deletes streets and roads, and instead adds streets or roads that are publicly maintained and open to the use of the public for vehicular travel and that will serve as a connector within a qualifying infill project or qualifying infill areas.
- Adds “nature-based solutions that are proven to reduce the risk from climate change-driven natural disasters and risks like wildfire, flooding, heat, and sea level rise,” defined as “sustainable planning, design, environmental management, and engineering practices that weave natural features or processes into the built environment to promote adaptation and resilience.”
- Revises the definition of one of the requirements for “catalytic qualifying infill area” to delete the perimeter of a parcel bordering improved parks from being included in the calculation of whether 75% of the perimeter adjoins parcels that are developed or have previously been developed.
- Revises the definition of “eligible applicant” to provide that a city or county that is applying for funds for a qualifying infill area or a catalytic qualifying infill area shall not be required to have a developer co-applicant.
- Adds a definition for “walkability, specifically that the parcel or parcels to be developed are within one mile of six or of the following: supermarket or grocery store, public park, community center, pharmacy or drugstore, medical clinic or hospital, public library, or a school.
- Makes other technical, clarifying changes.
Background
IIG. The original IIG program, now commonly known as IIG of 2007, was established pursuant to Proposition 6, the Housing and Emergency Shelter Trust Fund Act of 2006; it received additional funds through Proposition 1, the Veterans and Affordable Housing Bond Act of 2018. In 2019, the Legislature allocated $500 million General Fund moneys to IIG and updated the program; the new version of the program is commonly known as IIG of 2019.
IIG of 2019 promotes infill housing development by providing financial assistance for capital improvement projects that are an integral part of, or necessary to facilitate the development of, affordable and mixed-income housing. Under IIG of 2019, grants are available in the form of gap funding for infrastructure, factory-built housing components, and adaptive reuse necessary for specific residential or mixed-use infill developments. Eligible costs include, but are not limited to, the creation, development, or rehabilitation of parks or open space; water, sewer, or other utility service improvements (including internet and electric vehicle infrastructure); streets; roads; transit station structured parking; transit linkages or facilities; facilities that support pedestrian or bicycle transit; traffic mitigation, sidewalk, or streetscape improvements; factory-built housing components; adaptive reuse; and site preparation or demolition.
Comments
Author statement. “Many former commercial and underutilized areas have significant potential for the development of housing at scale, but lack the public infrastructure necessary to support higher-density residential development. The Bridge District is a perfect example of smart growth. It is a waterfront urban mixed-use development located along the western side of the Sacramento River. A former industrial area, it is now a vibrant community easily accessible to downtown Sacramento via the Tower Bridge, with the potential to eventually support 5,210 new homes and 7,290,000 square feet of commercial development. The Bridge District required vision and state and local investments. Reforms to the IIG Program have the potential to catalyze investment in underutilized lands, such as vacant shopping centers or strip malls, to support the development of housing with infrastructure that has been upgraded to accommodate growth. Aiding local governments to transform cities into denser, more livable communities will also mitigate against the impacts of climate change. The bill would also authorize the IIG Program to fund green infrastructure improvements, such as landscape features that can help mitigate flooding risks.”
Updating IIG of 2019. Supporters of this bill note that IIG of 2019 is a key tool in helping to address infrastructure challenges – such as upgrades to water, sewer, and transit access – that make it harder to build multifamily housing. They also note that since this program has not been significantly updated since it was established. Program changes in this bill include the following:
- Expanding eligibility for capital improvement projects. This bill adds a vacant site where at least 75% of the perimeter of the site adjoins parcels that have been previously developed with urban uses, to the definition of “qualifying infill project.” This is intended to align the definition with that of “catalytic qualifying infill area” to capture additional infill parcels.
- Revises and expands eligibility criteria of capital improvement projects. This bill deletes streets and roads as eligible projects and instead adds street and roads that will serve as a connector within a qualifying infill project or qualifying infill areas. This is intended to help direct money toward repairing existing roads, rather than building new roads. This bill also adds, “Nature based solutions that are proven to reduce the risk from climate change-driven natural disasters” as eligible projects.
- Expands ranking criteria for qualifying infill areas and catalytic qualifying areas. This bill adds an area’s inclusion of, or proximity or accessibility to, “walkability to essential services or businesses,” as specified, to the ranking criteria. It also replaces proximity to services, with proximity to social services.
- Revises a criterion for catalytic qualifying infill areas. This bill deletes the perimeter of a parcel bordering improved parks from being included in the calculation of whether 75% of the perimeter adjoins parcels that are developed or have previously been developed.
- Eliminates an application requirement. This bill eliminates the requirement for a city or county that is applying for funds for a qualifying infill area or a catalytic qualifying infill area, to have the developer apply with a city or county.
Limited program funding. HCD released the Multifamily Finance Super NOFA (Notice of Funding Availability) on February 13th, announcing the availability of $382 million through Multifamily Housing Program (MHP), Joe Serna Jr. Farmworker Housing Grant Program, IIG of 2007, IIG of 2019, and the Veterans Housing and Homelessness Prevention Program.[1] Of this total, $20 million is provided for IIG of 2007 and IIG of 2019 – the total amount of remaining funds in these programs. This bill would apply to any future funds that are appropriated to IIG. As California YIMBY points out in its support letter, IIG is “an effective but oversubscribed program” in its current form; this bill would expand eligibility, potentially resulting in an even more oversubscribed program. SB 417 (Cabaldon) of the current legislative session, the Affordable Housing Bond Act of 2026, includes $5.25 million for MHP and IIG 2019.
FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No
SUPPORT: (Verified 5/12/25)
Abundant Housing LA
California Forward
California Yimby
Center for Biological Diversity
Council of Infill Builders
Endangered Habitats League
Enterprise Community Partners, INC.
Epic - Environmental Protection Information Center
Greenbelt Alliance
House Sacramento
Housing Action Coalition
Lisc San Diego
Livable Communities Initiative
New Way Homes
Prosperity California
Save the Bay
Seamless Bay Area
Sequoia Riverlands Trust
Sierra Business Council
Streets for All
The Central Valley Urban Institute
Transform
Wildlands Network
Yimby Action
OPPOSITION: (Verified 5/12/25)
None received
Prepared by: Alison Hughes / HOUSING / (916) 651-4124
5/14/25 12:30:10
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SENATE COMMITTEE ON HOUSING
Senator Aisha Wahab, Chair
2025 - 2026 Regular
Bill No: SB 772 Hearing Date: 4/29/25
Author: | Cabaldon | ||
Version: | April 22, 2025 Amended | ||
Urgency: | No | Fiscal: | Yes |
Consultant: | Alison Hughes | ||
SUBJECT: Infill Infrastructure Grant Program of 2019: applications: eligibility
DIGEST: This bill makes a number of revisions to the Infill Infrastructure Grant Program of 2019 (IIG).
ANALYSIS:
This bill makes the following changes to IIG of 2019:
For capital improvement project applications for large jurisdictions:
- Revises the definition of “qualifying infill project” to add a vacant site where at least 75% of the perimeter of the site adjoins parcels that have been previously developed with urban uses.
For ranking of applications for capital project improvement grants generally:
- Revises the criteria for the list of priorities on which HCD must base its ranking for qualifying infill areas, as follows:
- For the criterion of the qualifying infill area’s inclusion of, or proximity or accessibility to, a transit station or major transit stop, adds “walkability to essential services or businesses.”
For capital improvement project applications (over-the-counter) for small jurisdictions:
- Revises the information that applicants must submit, to delete the certification that the project is shovel-ready. Instead, the applicant must demonstrate approval of necessary entitlements and building permits.
For catalytic qualifying infill area applications for small and large jurisdictions:
- Revises the criteria to the list of priorities on which HCD must base its ranking for catalytic qualifying infill areas, as follows:
- For the criterion of the catalytic qualifying infill area’s inclusion of, or proximity or accessibility to, a transit station or major transit stop, adds “walkability to essential services or businesses.”
- Revises the information that applicants must submit, to delete the certification that the project is shovel-ready. Instead, the applicant must demonstrate approval of necessary entitlements and building permits.
For definitions:
- Revises the definition of “eligible capital improvement project” as follows:
- Deletes streets and roads, and instead adds streets or roads that are publicly maintained and open to the use of the public for vehicular travel and that will serve as a connector within a qualifying infill project or qualifying infill areas.
- Adds “nature-based solutions that are proven to reduce the risk from climate change-driven natural disasters and risks like wildfire, flooding, heat, and sea level rise,” defined as “sustainable planning, design, environmental management, and engineering practices that weave natural features or processes into the built environment to promote adaptation and resilience.”
- Revises the definition of one of the requirements for “catalytic qualifying infill area” to delete the perimeter of a parcel bordering improved parks from being included in the calculation of whether 75% of the perimeter adjoins parcels that are developed or have previously been developed.
- Revises the definition of “eligible applicant” to provide that a city or county that is applying for funds for a qualifying infill area or a catalytic qualifying infill area shall not be required to have a developer co-applicant.
- Adds a definition for “walkability, specifically that the parcel or parcels to be developed are within one mile of six or of the following: supermarket or grocery store, public park, community center, pharmacy or drugstore, medical clinic or hospital, public library, or a school.
- Makes other technical, clarifying changes.
Background
IIG. The original IIG program, now commonly known as IIG of 2007, was established pursuant to Proposition 6, the Housing and Emergency Shelter Trust Fund Act of 2006; it received additional funds through Proposition 1, the Veterans and Affordable Housing Bond Act of 2018. In 2019, the Legislature allocated $500 million General Fund monies to IIG and updated the program; the new version of the program is commonly known as IIG of 2019.
IIG of 2019 promotes infill housing development by providing financial assistance for capital improvement projects that are an integral part of, or necessary to facilitate the development of, affordable and mixed income housing. Under IIG of 2019, grants are available in the form of gap funding for infrastructure, factory-built housing components, and adaptive reuse necessary for specific residential or mixed-use infill developments. Eligible costs include, but are not limited to, the creation, development, or rehabilitation of parks or open space; water, sewer, or other utility service improvements (including internet and electric vehicle infrastructure); streets; roads; transit station structured parking; transit linkages or facilities; facilities that support pedestrian or bicycle transit; traffic mitigation, sidewalk, or streetscape improvements; factory-built housing components; adaptive reuse; and site preparation or demolition.
Comments
- Author statement. “Many former commercial and underutilized areas have significant potential for the development of housing at scale, but lack the public infrastructure necessary to support higher-density residential development. The Bridge District is a perfect example of smart growth. It is a waterfront urban mixed-use development located along the western side of the Sacramento River. A former industrial area, it is now a vibrant community easily accessible to downtown Sacramento via the Tower Bridge, with the potential to eventually support 5,210 new homes and 7,290,000 square feet of commercial development. The Bridge District required vision and state and local investments. Reforms to the IIG Program have the potential to catalyze investment in underutilized lands, such as vacant shopping centers or strip malls, to support the development of housing with infrastructure that has been upgraded to accommodate growth. Aiding local governments to transform cities into denser, more livable communities will also mitigate against the impacts of climate change. The bill would also authorize the IIG Program to fund green infrastructure improvements, such as landscape features that can help mitigate flooding risks.”
- Updating IIG of 2019. Supporters of this bill note that IIG of 2019 is a key tool in helping to address infrastructure challenges – such as upgrades to water, sewer, and transit access – that make it harder to build multifamily housing. They also note that since this program has not been significantly updated since it was established. Program changes in this bill include the following:
- Expanding eligibility for capital improvement projects. This bill adds a vacant site where at least 75% of the perimeter of the site adjoins parcels that have been previously developed with urban uses, to the definition of “qualifying infill project.” This is intended to align the definition with that of “catalytic qualifying infill area” to capture additional infill parcels.
- Revises and expands eligibility criteria of capital improvement projects. This bill deletes streets and roads as eligible projects and instead adds street and roads that will serve as a connector within a qualifying infill project or qualifying infill areas. This is intended to help direct money toward repairing existing roads, rather than building new roads. This bill also adds, “Nature based solutions that are proven to reduce the risk from climate change-driven natural disasters” as eligible projects.
- Expands ranking criteria for qualifying infill areas and catalytic qualifying areas. This bill adds an area’s inclusion of, or proximity or accessibility to, “walkability to essential services or businesses,” as specified, to the ranking criteria. It also replaces proximity to services, with proximity to social services.
- Revises a criterion for catalytic qualifying infill areas. This bill deletes the perimeter of a parcel bordering improved parks from being included in the calculation of whether 75% of the perimeter adjoins parcels that are developed or have previously been developed.
- Eliminates an application requirement. This bill eliminates the requirement for a city or county that is applying for funds for a qualifying infill area or a catalytic qualifying infill area, to have the developer apply with a city or county.
- Limited program funding. HCD released the Multifamily Finance Super NOFA (Notice of Funding Availability) on February 13th, announcing the availability of $382 million through MHP, Joe Serna Jr. Farmworker Housing Grant Program, IIG of 2007, IIG of 2019, and the Veterans Housing and Homelessness Prevention Program.[1] Of this total, $20 million is provided for IIG of 2007 and IIG of 2019 – the total amount of remaining funds in these programs. This bill would apply to any future funds that are appropriated to IIG. As California YIMBY points out in its support letter, IIG is “an effective but oversubscribed program” in its current form; this bill would expand eligibility, potentially resulting in an even more oversubscribed program. SB 417 (Cabaldon, 2025), The Affordable Housing Bond Act of 2026, includes $5.25 million for MHP and IIG 2019.
Related/Prior Legislation
SB 417 (Cabaldon, 2025) – creates the Affordable Housing Bond Act of 2026, which would authorize, upon voter approval at the June 2, 2026 election, $10 million in general obligation bonds to fund affordable rental housing and homeownership programs, including IIG 2019. This bill will also be heard in this committee today.
SB 341 (Becker, Chapter 777, Statutes of 2023) – makes a number of changes to state housing programs, including specifying that additional points or preference from a prohousing designation shall be awarded only for the qualifying infill area portion of IIG of 2007, and adding the qualifying infill area and catalytic qualifying infill area portions of IIG of 2019 as one of the specified state programs for which additional points or preference is awarded due to a prohousing designation.
AB 140 (Committee on Budget, Chapter 111, Statutes of 2021) – provided for statutory changes necessary to implement the housing and homelessness provisions of the Budget Act of 2021. Included provisions authorizing HCD to expend $250 million pursuant to IIG of 2019, with $160 million directed to selected capital improvements for large jurisdictions and $90 million directed to over-the-counter grants for capital improvements for projects for small jurisdictions.
AB 101 (Committee on Budget, Chapter 159, Statutes of 2019) – provided for statutory changes necessary to enact the housing and homelessness-related provisions of the Budget Act of 2019. Included provisions authorizing HCD to expend $500 million in grants to fund infrastructure improvements including water, sewer, other utility improvements, streets, roads, other transit linkages, sidewalks, and other streetscape improvements for eligible cities and counties. Included a 15% affordability requirement.
FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No
POSITIONS: (Communicated to the committee before noon on Wednesday,
April 23, 2025.)
SUPPORT:
Abundant Housing LA
California Forward
California Yimby
Center for Biological Diversity
Council of Infill Builders
Endangered Habitats League
Enterprise Community Partners, INC.
Epic - Environmental Protection Information Center
Greenbelt Alliance
House Sacramento
Housing Action Coalition
Lisc San Diego
Livable Communities Initiative
New Way Homes
Prosperity California
Save the Bay
Seamless Bay Area
Sequoia Riverlands Trust
Sierra Business Council
Streets for All
The Central Valley Urban Institute
Transform
Wildlands Network
Yimby Action
OPPOSITION:
None received
-- END –
Discussed in Hearing
49SEC
Senate Floor
2MIN
Assembly Floor
10MIN
Assembly Standing Committee on Housing and Community Development
Bill Author
Bill Co-Author(s):
