AB 797: Community Stabilization Act: Counties of Los Angeles and Ventura.

Official summary

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

(1)Existing law, the Bergeson-Peace Infrastructure and Economic Development Bank Act, establishes the California Infrastructure and Economic Development Bank (I-Bank) in the Governor’s Office of Business and Economic Development. Existing law, among other things, authorizes the I-Bank to issue bonds, make loans, and provide financial assistance for various types of projects that qualify as economic development or public development facilities.

This bill would enact the Community Stabilization Act. The bill would require the I-Bank to develop and administer a program to issue a security, and to cease issuing a security on January 1, 2030. The bill would specify that the purpose of the program is to help stabilize property values in disaster-affected areas by allowing qualified investors, as defined, to purchase tradable securities, with the funding allocated to qualifying investment entities that purchase and manage residential land until it can be resold at fair market value. The bill would require profits from the land investments to be shared among investors and the I-Bank according to certain percentages, with qualifying investment entities being reimbursed for their administrative costs.

This bill would establish various requirements for the security, including that it be tradeable, comply with specified municipal bonding requirements, and that it be funded by investments made by qualified investors using funds available pursuant to the federal Community Reinvestment Act of 1977. The bill would require the security to repay the investment upon a liquidity event and within 7 years of the purchase of an investment property, and would describe a liquidity event as the refinance or sale of the investment property.

This bill would require funds raised from the purchase of the security to be deposited in the Community Stabilization Fund, which would be created by the bill, and would require all moneys in the fund to be continuously appropriated to the I-Bank. The bill would require the I-Bank to allocate moneys in the fund to qualifying investment entities to be invested in the Counties of Los Angeles and Ventura and in those areas that are covered by a state of disaster declared by the Governor. The bill would require a qualifying investment entity to meet prescribed requirements, including that it be a specified entity, including, among others, a nonprofit organization, as provided. The bill would also impose various requirements on the qualifying investment entity relating to the purchase, maintenance, and sale of the investment property, including, among other things, limiting the purchase of property to residential property that has been damaged or destroyed by the wildfires that began on January 7, 2025, in the Counties of Los Angeles and Ventura, as specified. The bill would require the I-Bank to submit a final report on the program to the Legislature, the Governor, and the Department of Finance no later than January 1, 2034, as specified.

By establishing a new continuously appropriated fund, the Community Stabilization Fund, this bill would make an appropriation.

(2)This bill would make legislative findings and declarations as to the necessity of a special statute for the Counties of Los Angeles and Ventura.

Sponsors

Sponsors by party (alphabetical): Democratic 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. January 22, 2026Consideration of Governor's veto stricken from file.
2. October 13, 2025Consideration of Governor's veto pending.
3. October 13, 2025Vetoed by Governor.
4. September 16, 2025Enrolled and presented to the Governor at 2 p.m.
5. September 9, 2025Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 69. Noes 5. Page 3110.).
6. September 8, 2025In Assembly. Concurrence in Senate amendments pending.
7. September 8, 2025Read third time. Urgency clause adopted. Passed. Ordered to the Assembly. (Ayes 29. Noes 9. Page 2587.).
8. September 2, 2025Read second time. Ordered to third reading.
9. August 29, 2025Read second time and amended. Ordered returned to second reading.
10. August 29, 2025From committee: Amend, and do pass as amended. (Ayes 5. Noes 2.) (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.