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    AB-1445
    Budget & Economy

    Downtown revitalization and economic recovery financing districts.

    Engrossed
    CA
    ∙
    2025-2026 Regular Session
    0
    0
    Track
    Track

    Key Takeaways

    • Authorizes California cities and counties to establish financing districts for converting commercial buildings to housing.
    • Requires commercial-to-residential projects to be near transit and in areas with 20% or higher office vacancy rates.
    • Mandates that conversion projects include affordable housing units and comply with prevailing wage requirements.
    • Allows districts to use tax revenue generated by conversion projects to finance development costs for up to 30 years.

    Summary

    Assembly Member Haney's downtown revitalization legislation expands California cities' and counties' ability to establish financing districts that support commercial-to-residential conversion projects through incremental tax revenues. The measure builds upon an existing program currently limited to San Francisco, allowing other local governments to create specialized districts that direct property tax increments toward qualifying residential conversion developments.

    The bill establishes specific criteria for eligible projects, requiring them to be located in areas with commercial vacancy rates of 20% or higher, within transit priority zones, and adjacent to existing urban development. Projects must meet defined affordability targets, with at least 5-10% of units reserved for very low, low, or moderate-income households. For jurisdictions outside San Francisco, 30% of district tax revenues must support these affordable housing requirements.

    Each district would operate under a governing board comprising three local government officials and two public members, with oversight responsibilities including adoption of a detailed financing plan and annual public reporting. Projects seeking tax increment funding must opt in before receiving their first building permit and no later than December 31, 2032. The legislation also mandates prevailing wages and compliance with locally-adopted labor standards for participating developments.

    The measure modifies existing revenue allocation rules by eliminating requirements to return portions of tax increments to local governments upon district dissolution. Districts may operate for up to 45 years from initial project funding, with tax revenues generated by residential portions of conversion projects flowing to a special district fund for continued reinvestment in qualified developments.

    Key Dates

    Next Step
    Referred to the Senate Standing Committee on Appropriations
    Next Step
    Senate Committee
    Referred to the Senate Standing Committee on Appropriations
    Hearing has not been scheduled yet
    Senate Housing Hearing
    Senate Committee
    Senate Housing Hearing
    Do pass as amended, but first amend, and re-refer to the Committee on [Appropriations]
    Senate Local Government Hearing
    Senate Committee
    Senate Local Government Hearing
    Do pass as amended, but first amend, and re-refer to the Committee on [Housing]
    Vote on Assembly Floor
    Assembly Floor
    Vote on Assembly Floor
    AB 1445 Haney Assembly Third Reading
    Assembly Housing And Community Development Hearing
    Assembly Committee
    Assembly Housing And Community Development Hearing
    Do pass
    Assembly Local Government Hearing
    Assembly Committee
    Assembly Local Government Hearing
    Do pass as amended and be re-referred to the Committee on [Housing and Community Development]
    Introduced
    Assembly Floor
    Introduced
    Introduced. To print.

    Contacts

    Profile
    Anna CaballeroD
    Senator
    Committee Member
    Not Contacted
    Not Contacted
    Profile
    Ash KalraD
    Assemblymember
    Bill Author
    Not Contacted
    Not Contacted
    Profile
    Tim GraysonD
    Senator
    Committee Member
    Not Contacted
    Not Contacted
    Profile
    Megan DahleR
    Senator
    Committee Member
    Not Contacted
    Not Contacted
    Profile
    Alex LeeD
    Assemblymember
    Bill Author
    Not Contacted
    Not Contacted
    0 of 10 row(s) selected.
    Page 1 of 2
    Select All Legislators
    Profile
    Anna CaballeroD
    Senator
    Committee Member
    Profile
    Ash KalraD
    Assemblymember
    Bill Author
    Profile
    Tim GraysonD
    Senator
    Committee Member
    Profile
    Megan DahleR
    Senator
    Committee Member
    Profile
    Alex LeeD
    Assemblymember
    Bill Author
    Profile
    Kelly SeyartoR
    Senator
    Committee Member
    Profile
    Matt HaneyD
    Assemblymember
    Bill Author
    Profile
    Aisha WahabD
    Senator
    Committee Member
    Profile
    Christopher CabaldonD
    Senator
    Committee Member
    Profile
    Laura RichardsonD
    Senator
    Committee Member

    Get Involved

    Act Now!

    Email the authors or create an email template to send to all relevant legislators.

    Introduced By

    Matt Haney
    Matt HaneyD
    California State Assembly Member
    Co-Authors
    Ash Kalra
    Ash KalraD
    California State Assembly Member
    Alex Lee
    Alex LeeD
    California State Assembly Member
    40% progression
    Bill has passed all readings in its first house and is ready to move to the other house (5/23/2025)

    Latest Voting History

    View History
    July 15, 2025
    PASS
    Senate Committee
    Senate Housing Hearing
    AyesNoesNVRTotalResult
    81211PASS

    Key Takeaways

    • Authorizes California cities and counties to establish financing districts for converting commercial buildings to housing.
    • Requires commercial-to-residential projects to be near transit and in areas with 20% or higher office vacancy rates.
    • Mandates that conversion projects include affordable housing units and comply with prevailing wage requirements.
    • Allows districts to use tax revenue generated by conversion projects to finance development costs for up to 30 years.

    Get Involved

    Act Now!

    Email the authors or create an email template to send to all relevant legislators.

    Introduced By

    Matt Haney
    Matt HaneyD
    California State Assembly Member
    Co-Authors
    Ash Kalra
    Ash KalraD
    California State Assembly Member
    Alex Lee
    Alex LeeD
    California State Assembly Member

    Summary

    Assembly Member Haney's downtown revitalization legislation expands California cities' and counties' ability to establish financing districts that support commercial-to-residential conversion projects through incremental tax revenues. The measure builds upon an existing program currently limited to San Francisco, allowing other local governments to create specialized districts that direct property tax increments toward qualifying residential conversion developments.

    The bill establishes specific criteria for eligible projects, requiring them to be located in areas with commercial vacancy rates of 20% or higher, within transit priority zones, and adjacent to existing urban development. Projects must meet defined affordability targets, with at least 5-10% of units reserved for very low, low, or moderate-income households. For jurisdictions outside San Francisco, 30% of district tax revenues must support these affordable housing requirements.

    Each district would operate under a governing board comprising three local government officials and two public members, with oversight responsibilities including adoption of a detailed financing plan and annual public reporting. Projects seeking tax increment funding must opt in before receiving their first building permit and no later than December 31, 2032. The legislation also mandates prevailing wages and compliance with locally-adopted labor standards for participating developments.

    The measure modifies existing revenue allocation rules by eliminating requirements to return portions of tax increments to local governments upon district dissolution. Districts may operate for up to 45 years from initial project funding, with tax revenues generated by residential portions of conversion projects flowing to a special district fund for continued reinvestment in qualified developments.

    40% progression
    Bill has passed all readings in its first house and is ready to move to the other house (5/23/2025)

    Key Dates

    Next Step
    Referred to the Senate Standing Committee on Appropriations
    Next Step
    Senate Committee
    Referred to the Senate Standing Committee on Appropriations
    Hearing has not been scheduled yet
    Senate Housing Hearing
    Senate Committee
    Senate Housing Hearing
    Do pass as amended, but first amend, and re-refer to the Committee on [Appropriations]
    Senate Local Government Hearing
    Senate Committee
    Senate Local Government Hearing
    Do pass as amended, but first amend, and re-refer to the Committee on [Housing]
    Vote on Assembly Floor
    Assembly Floor
    Vote on Assembly Floor
    AB 1445 Haney Assembly Third Reading
    Assembly Housing And Community Development Hearing
    Assembly Committee
    Assembly Housing And Community Development Hearing
    Do pass
    Assembly Local Government Hearing
    Assembly Committee
    Assembly Local Government Hearing
    Do pass as amended and be re-referred to the Committee on [Housing and Community Development]
    Introduced
    Assembly Floor
    Introduced
    Introduced. To print.

    Latest Voting History

    View History
    July 15, 2025
    PASS
    Senate Committee
    Senate Housing Hearing
    AyesNoesNVRTotalResult
    81211PASS

    Contacts

    Profile
    Anna CaballeroD
    Senator
    Committee Member
    Not Contacted
    Not Contacted
    Profile
    Ash KalraD
    Assemblymember
    Bill Author
    Not Contacted
    Not Contacted
    Profile
    Tim GraysonD
    Senator
    Committee Member
    Not Contacted
    Not Contacted
    Profile
    Megan DahleR
    Senator
    Committee Member
    Not Contacted
    Not Contacted
    Profile
    Alex LeeD
    Assemblymember
    Bill Author
    Not Contacted
    Not Contacted
    0 of 10 row(s) selected.
    Page 1 of 2
    Select All Legislators
    Profile
    Anna CaballeroD
    Senator
    Committee Member
    Profile
    Ash KalraD
    Assemblymember
    Bill Author
    Profile
    Tim GraysonD
    Senator
    Committee Member
    Profile
    Megan DahleR
    Senator
    Committee Member
    Profile
    Alex LeeD
    Assemblymember
    Bill Author
    Profile
    Kelly SeyartoR
    Senator
    Committee Member
    Profile
    Matt HaneyD
    Assemblymember
    Bill Author
    Profile
    Aisha WahabD
    Senator
    Committee Member
    Profile
    Christopher CabaldonD
    Senator
    Committee Member
    Profile
    Laura RichardsonD
    Senator
    Committee Member