AB 2397: Local government: community facilities districts: financing.

Official summary

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

Existing law, the Mello-Roos Community Facilities Act of 1982, authorizes a local agency, as defined, to initiate proceedings to establish a community facilities district as an alternative method of financing certain public capital facilities and services, especially in developing areas undergoing rehabilitation, only if it has first considered and adopted local goals and policies, as prescribed. Existing law authorizes a local agency to take any actions or make any determinations which it determines are necessary or convenient to carry out the purposes of the act and which are not otherwise prohibited by law.

This bill would prohibit the legislative body of a local agency from taking certain actions with respect to a critical housing infrastructure district, as defined, including abandoning the proposed establishment of the district, as specified, unless prior to taking the action it makes certain findings based upon substantial evidence, including that establishment of the district, levying the special taxes, or incurring bonded indebtedness, as applicable, would have a specific adverse impact upon the public interest. The bill would specify that these provisions do not require or prohibit the legislative body from taking any other action authorized by the act with respect to a critical housing infrastructure district, as specified.

The bill would include findings that changes proposed by this bill address a matter of statewide concern rather than a municipal affair and, therefore, apply to all cities, including charter cities.

Sponsors

Sponsors by party (alphabetical): Republican 1

“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. September 30, 2026Chaptered by Secretary of State - Chapter 938, Statutes of 2026.
2. September 30, 2026Chaptered by Secretary of State - Chapter 938, Statutes of 2026.
3. September 30, 2026Approved by the Governor.
4. September 30, 2026Approved by the Governor.
5. September 15, 2026Enrolled and presented to the Governor at 3 p.m.
6. September 15, 2026Enrolled and presented to the Governor at 3 p.m.
7. August 31, 2026Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 76. Noes 0. Page 7048.).
8. August 31, 2026Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 76. Noes 0. Page 7048.).
9. August 19, 2026In Assembly. Concurrence in Senate amendments pending.
10. August 19, 2026In Assembly. Concurrence in Senate amendments pending.
11. August 19, 2026Read third time. Passed. Ordered to the Assembly. (Ayes 38. Noes 0. Page 5557.).
12. August 19, 2026Read third time. Passed. Ordered to the Assembly. (Ayes 37. Noes 0.).