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    AB-1445
    Housing & Homelessness

    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 projects to be near public transit and in areas with 20% or higher office vacancy rates.
    • Mandates that conversion projects pay prevailing wages and meet specific labor standards.
    • Limits tax revenue distributions to 30 years and requires projects to opt in by December 2032.

    Summary

    Assembly Member Haney's legislation expands California's downtown revitalization financing district model beyond San Francisco, enabling cities and counties statewide to establish special districts for converting commercial buildings to residential use. The bill authorizes local governments to create financing districts that capture incremental property tax revenue from commercial-to-residential conversion projects within designated downtown areas.

    The legislation requires eligible projects to be located in areas with commercial office vacancy rates of 20 percent or higher and within transit priority areas. Projects must either convert existing commercial buildings to housing or replace them with new residential structures. To qualify for tax increment financing, at least 75 percent of the project site must adjoin developed urban parcels. The bill mandates that mixed-use developments dedicate a minimum of 60 percent of square footage to residential use.

    Projects opting to receive district funding must meet specific affordability requirements, including setting aside either 5 percent of rental units for very low-income households, 10 percent for lower-income households, or 10 percent of for-sale units for moderate-income households - or match local inclusionary requirements if higher. These affordability restrictions apply after the first 1.5 million square feet of conversion projects in each district. The legislation also establishes labor standards, requiring prevailing wages and compliance with additional requirements based on project size and building height.

    Districts must prepare detailed financing plans specifying maximum tax increment amounts, revenue projections, and operational timelines not exceeding 45 years. The plans require approval through three public hearings. Annual reporting to the Legislature and regular public hearings provide oversight of district activities and funded projects. Projects have until December 31, 2032 to opt into receiving tax increment financing under the program.

    Key Dates

    Next Step
    Referred to the Senate Standing Committee on Housing
    Next Step
    Senate Committee
    Referred to the Senate Standing Committee on Housing
    Hearing scheduled for , 1021 O Street, Room 2100
    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
    Eloise ReyesD
    Senator
    Committee Member
    Not Contacted
    Not Contacted
    Profile
    Ash KalraD
    Assemblymember
    Bill Author
    Not Contacted
    Not Contacted
    Profile
    Maria DurazoD
    Senator
    Committee Member
    Not Contacted
    Not Contacted
    Profile
    Alex LeeD
    Assemblymember
    Bill Author
    Not Contacted
    Not Contacted
    0 of 14 row(s) selected.
    Page 1 of 3
    Select All Legislators
    Profile
    Anna CaballeroD
    Senator
    Committee Member
    Profile
    Eloise ReyesD
    Senator
    Committee Member
    Profile
    Ash KalraD
    Assemblymember
    Bill Author
    Profile
    Maria DurazoD
    Senator
    Committee Member
    Profile
    Alex LeeD
    Assemblymember
    Bill Author
    Profile
    Kelly SeyartoR
    Senator
    Committee Member
    Profile
    Dave CorteseD
    Senator
    Committee Member
    Profile
    Rosilicie Ochoa BoghR
    Senator
    Committee Member
    Profile
    Matt HaneyD
    Assemblymember
    Bill Author
    Profile
    Steve PadillaD
    Senator
    Committee Member
    Profile
    Aisha WahabD
    Senator
    Committee Member
    Profile
    Jesse ArreguinD
    Senator
    Committee Member
    Profile
    Christopher CabaldonD
    Senator
    Committee Member
    Profile
    Sasha Renee PerezD
    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 2, 2025
    PASS
    Senate Committee
    Senate Local Government Hearing
    AyesNoesNVRTotalResult
    5027PASS

    Key Takeaways

    • Authorizes California cities and counties to establish financing districts for converting commercial buildings to housing.
    • Requires projects to be near public transit and in areas with 20% or higher office vacancy rates.
    • Mandates that conversion projects pay prevailing wages and meet specific labor standards.
    • Limits tax revenue distributions to 30 years and requires projects to opt in by December 2032.

    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 legislation expands California's downtown revitalization financing district model beyond San Francisco, enabling cities and counties statewide to establish special districts for converting commercial buildings to residential use. The bill authorizes local governments to create financing districts that capture incremental property tax revenue from commercial-to-residential conversion projects within designated downtown areas.

    The legislation requires eligible projects to be located in areas with commercial office vacancy rates of 20 percent or higher and within transit priority areas. Projects must either convert existing commercial buildings to housing or replace them with new residential structures. To qualify for tax increment financing, at least 75 percent of the project site must adjoin developed urban parcels. The bill mandates that mixed-use developments dedicate a minimum of 60 percent of square footage to residential use.

    Projects opting to receive district funding must meet specific affordability requirements, including setting aside either 5 percent of rental units for very low-income households, 10 percent for lower-income households, or 10 percent of for-sale units for moderate-income households - or match local inclusionary requirements if higher. These affordability restrictions apply after the first 1.5 million square feet of conversion projects in each district. The legislation also establishes labor standards, requiring prevailing wages and compliance with additional requirements based on project size and building height.

    Districts must prepare detailed financing plans specifying maximum tax increment amounts, revenue projections, and operational timelines not exceeding 45 years. The plans require approval through three public hearings. Annual reporting to the Legislature and regular public hearings provide oversight of district activities and funded projects. Projects have until December 31, 2032 to opt into receiving tax increment financing under the program.

    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 Housing
    Next Step
    Senate Committee
    Referred to the Senate Standing Committee on Housing
    Hearing scheduled for , 1021 O Street, Room 2100
    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 2, 2025
    PASS
    Senate Committee
    Senate Local Government Hearing
    AyesNoesNVRTotalResult
    5027PASS

    Contacts

    Profile
    Anna CaballeroD
    Senator
    Committee Member
    Not Contacted
    Not Contacted
    Profile
    Eloise ReyesD
    Senator
    Committee Member
    Not Contacted
    Not Contacted
    Profile
    Ash KalraD
    Assemblymember
    Bill Author
    Not Contacted
    Not Contacted
    Profile
    Maria DurazoD
    Senator
    Committee Member
    Not Contacted
    Not Contacted
    Profile
    Alex LeeD
    Assemblymember
    Bill Author
    Not Contacted
    Not Contacted
    0 of 14 row(s) selected.
    Page 1 of 3
    Select All Legislators
    Profile
    Anna CaballeroD
    Senator
    Committee Member
    Profile
    Eloise ReyesD
    Senator
    Committee Member
    Profile
    Ash KalraD
    Assemblymember
    Bill Author
    Profile
    Maria DurazoD
    Senator
    Committee Member
    Profile
    Alex LeeD
    Assemblymember
    Bill Author
    Profile
    Kelly SeyartoR
    Senator
    Committee Member
    Profile
    Dave CorteseD
    Senator
    Committee Member
    Profile
    Rosilicie Ochoa BoghR
    Senator
    Committee Member
    Profile
    Matt HaneyD
    Assemblymember
    Bill Author
    Profile
    Steve PadillaD
    Senator
    Committee Member
    Profile
    Aisha WahabD
    Senator
    Committee Member
    Profile
    Jesse ArreguinD
    Senator
    Committee Member
    Profile
    Christopher CabaldonD
    Senator
    Committee Member
    Profile
    Sasha Renee PerezD
    Senator
    Committee Member