AB 1445: Downtown revitalization and economic recovery financing districts.

Official summary

Legislative Counsel’s Digest (official, as of the latest version). Written by nonpartisan legislative staff; reproduced verbatim.

Existing law authorizes the legislative body of a city or a county to establish an enhanced infrastructure financing district to finance public capital facilities or other specified projects of communitywide significance, including the acquisition, construction, or rehabilitation of housing for persons of very low, low, and moderate income.

Existing law authorizes the City and County of San Francisco to establish a downtown revitalization and economic recovery financing district for the purpose of financing commercial-to-residential conversion projects with incremental tax revenues generated by commercial-to-residential conversion projects within the district. Existing law requires the City and County of San Francisco to establish a board for the district at the same time that it adopts the resolution of intention to form the district, and requires the district to prepare a downtown revitalization financing plan (financing plan) that includes specified information and requirements, including that the first distribution of incremental tax revenues distributed back to a commercial-to-residential conversion project commence with the fiscal year that begins after the project is issued a certificate of occupancy. Existing law, among other things, requires a district to establish a process for eligible commercial-to-residential conversion projects identified in the financing plan to opt into receiving incremental tax revenue generated by the respective project.

Existing law specifies that the commercial-to-residential conversion projects that opt in to receive incremental tax revenue are public works for which prevailing wages are required to be paid, as specified, and requires the commercial-to-residential conversion projects that opt in to receiving incremental tax revenue to comply with labor standards adopted by the Board of Supervisors of the City and County of San Francisco, as provided.

This bill would additionally authorize any city, county, or city and county, except the City and County of San Francisco, to establish a downtown revitalization and economic recovery financing district for the purpose of financing specified commercial-to-residential conversion projects with incremental tax revenues generated by commercial-to-residential conversion projects within the district. The bill would require the district to meet the requirements imposed on the City and County of San Francisco when establishing a downtown revitalization and economic recovery financing district described above and would modify the required components of the district’s proposed financing plan, as provided. The bill would make various conforming changes to the above-described provisions in this regard and would also make technical changes.

This bill would further specify that, for purposes of the preparation of a financing plan, if the city, county, or city and county does not issue certificates of occupancy, the first distribution of incremental tax revenue to a commercial-to-residential conversion project shall be made with the fiscal year that begins after the project completes a final inspection. The bill would remove the requirement that commercial-to-residential conversion projects that opt in to receive incremental tax revenue comply with labor standards adopted by the Board of Supervisors of the City and County of San Francisco and would instead subject such projects to specified labor standards.

Existing law requires a certain portion of any ad valorem property tax revenue annually allocated to the local government that is specified in the adopted financing plan, as described, to be allocated to and, when collected, apportioned to a special fund of the district for all lawful purposes of the district. Existing law also requires those revenues to be allocated and apportioned to the local government when the district ceases to exist pursuant to the financing plan.

Sponsors

Sponsors by party (alphabetical): Democratic 3

“Support” is shown only as formal sponsorship recorded by the legislature. Roll-call votes are available on the official bill page.

Recent official actions

1. October 11, 2025Chaptered by Secretary of State - Chapter 642, Statutes of 2025.
2. October 11, 2025Approved by the Governor.
3. September 23, 2025Enrolled and presented to the Governor at 4 p.m.
4. September 11, 2025Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 69. Noes 5. Page 3311.).
5. September 10, 2025In Assembly. Concurrence in Senate amendments pending.
6. September 10, 2025Read third time. Passed. Ordered to the Assembly. (Ayes 28. Noes 0. Page 2813.).
7. September 8, 2025Read second time. Ordered to third reading.
8. September 5, 2025Read third time and amended. Ordered to second reading.
9. August 29, 2025Read second time. Ordered to third reading.
10. August 29, 2025From committee: Do pass. (Ayes 5. Noes 0.) (August 29).
11. August 18, 2025In committee: Referred to suspense file.
12. July 17, 2025Read second time and amended. Re-referred to Com. on APPR.