Enhanced infrastructure financing district.

Senator Pérez's proposal to expand the scope of enhanced infrastructure financing districts aims to help California communities address wildfire risks and climate impacts through new local funding mechanisms. The legislation would authorize cities and counties to finance additional types of public projects through these special districts, including vegetation clearance equipment, underground utility installations, and firefighting resources.

The bill adds to existing enhanced infrastructure financing district powers by enabling local agencies to fund several categories of infrastructure and community development. Beyond wildfire mitigation measures, the expanded authority would cover transit-oriented development, affordable housing construction, broadband internet improvements, and facilities for nonprofit organizations providing health and social services. The legislation maintains current restrictions that prevent school districts from participating in these financing arrangements.

Under the proposed framework, cities and counties could establish public financing authorities to oversee project funding within designated district boundaries. These authorities would retain their existing ability to finance public facilities while gaining new options to support climate adaptation initiatives, port and harbor infrastructure, and the revitalization of former military installations. The bill preserves the requirement that funded projects demonstrate benefits to the district or surrounding community.