All Roll Calls
Yes: 105 • No: 5
CaliforniaAB 4172025-2026 Regular SessionHouseWALLET
Community facilities districts.
Sponsored By: Juan Carrillo (Democratic)
Signed by Governor
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Bill Overview
Analyzed Economic Effects
11 provisions identified: 6 benefits, 1 costs, 4 mixed.
Long-term rules for affordable housing units
Housing paid for by the district must stay affordable. Rental units stay affordable at least 55 years. Owner‑occupied units stay affordable at least 45 years. In mixed‑income projects, district money can only pay for the income‑restricted units and linked onsite childcare or services.
Financing help for California small businesses
Qualifying small businesses in California can get district financing to buy, build, or repair their own commercial spaces. To qualify, the business and affiliates have 100 or fewer employees and average receipts of $15,000,000 or less over the last three years, and it is independently owned with its principal office and officers in California. Districts may set lower local limits.
What projects districts can fund
Districts can finance long‑lived public projects that last 15 years or more. They can fund roads, transit, water, parks, libraries, childcare, broadband, brownfield cleanup, affordable housing, and more, when projects benefit the community. They can also pay planning and design costs, maintain facilities they helped build, and fund facilities outside the district if the plan shows a clear link.
Which areas qualify for revitalization help
An area qualifies if at least 60% of its land meets income or distress tests. The income test is median income under 80% of the chosen city, county, or state median. Or it meets three of four: unemployment at least 3 points higher, crime at least 5% higher, bad infrastructure, or deteriorated buildings. Former military bases with poor infrastructure, disadvantaged communities, and certain housing‑element sites also qualify. On former bases, the board includes a base closure commission member.
How local revitalization boards are formed
Cities, counties, and special districts can create a local revitalization authority by resolution or joint powers. The authority is a public body that receives tax‑increment funds and has a board with local officials plus at least two public members who live or work in the area. It must follow open‑meeting, public‑records, and conflict‑of‑interest laws. School entities and redevelopment successor agencies cannot participate or receive Section 34188 funds. Where a former redevelopment agency existed, the authority takes effect only after the successor agency gets a Department of Finance finding of completion, keeps litigated assets out, and follows Controller orders. Local governments may fund administration with grants or loans; if it is a loan, area residents and owners are third‑party beneficiaries for repayment.
Earlier plan posting and two hearings
The draft financing plan is posted online and sent to landowners. The authority holds a public meeting at least 30 days before the first hearing to explain it. It must hold two hearings at least 30 days apart. Notices are posted online, mailed at least 10 days before each hearing, and run in a county newspaper (weekly for 4 weeks before the first, and at least 10 days before the second). Notices must show the district map, explain the plan, and tell people how to review, comment, or protest.
Protest and vote rights on plans
If protests come from more than 50% of landowners and residents 18+, the plan is blocked. If protests are 25% to 50%, an election must be held within 90 days and can be by mail. If most voters say no, the authority must stop and cannot propose a new plan to that area for one year.
Limits on bond funds and operations
Article 4 bond proceeds cannot pay for maintenance. District financing cannot pay for ongoing operations or services. In high or very high fire‑hazard zones, Article 4 bond money cannot buy certain fire‑prevention and firefighting equipment.
How local taxes join a district
The authority can only divide a taxing agency’s property taxes if that agency’s governing body first approves and files a resolution. A district may still form without taxes from agencies that do not approve; those agencies keep their revenues. A taxing agency may join later; if it does, its tax share uses the district’s last equalized assessment roll.
More cleanup and redevelopment tools
Districts may use cleanup and redevelopment powers from the Polanco Act and related health and safety laws. They can finance actions needed to carry out those laws, which can change how local revenues are allocated to projects.
Yearly audits, reports, and plan changes
Each year the authority reviews the plan and can amend it by majority vote after a 30‑day mailed notice to owners, residents, and taxing entities. Big changes, like adding territory or raising tax limits, must use the full new‑plan notice and hearings. The authority must get an independent audit every year and adopt an annual report within seven months of year‑end. A draft report is posted 30 days before the hearing and mailed to owners, residents, and taxing entities. If the report is not provided, the authority cannot spend district funds until it is.
Sponsors & Cosponsors
Sponsor
Juan Carrillo
Democratic • House
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
Senate vote • 9/3/2025
Item 70 — Senate SFLOOR
Yes: 31 • No: 5
legislature vote • 6/18/2025
Vote in CS82
Yes: 5 • No: 0
House vote • 4/1/2025
Item 27 — Assembly AFLOOR
Yes: 62 • No: 0
legislature vote • 3/26/2025
Vote in CX15
Yes: 7 • No: 0
Actions Timeline
Chaptered by Secretary of State - Chapter 260, Statutes of 2025.
10/3/2025SenateApproved by the Governor.
10/3/2025legislatureEnrolled and presented to the Governor at 3 p.m.
9/9/2025legislatureIn Assembly. Ordered to Engrossing and Enrolling.
9/3/2025HouseRead third time. Passed. Ordered to the Assembly. (Ayes 31. Noes 5. Page 2456.).
9/3/2025SenateRead second time. Ordered to third reading.
6/19/2025SenateFrom committee: Do pass. (Ayes 5. Noes 0.) (June 18).
6/18/2025SenateReferred to Com. on L. GOV.
5/7/2025SenateIn Senate. Read first time. To Com. on RLS. for assignment.
4/2/2025SenateRead third time. Passed. Ordered to the Senate. (Ayes 62. Noes 0.)
4/1/2025HouseRead second time. Ordered to third reading.
3/28/2025HouseRead second time and amended. Ordered returned to second reading.
3/27/2025HouseFrom committee: Amend, and do pass as amended. (Ayes 7. Noes 0.) (March 26).
3/26/2025HouseRe-referred to Com. on L. GOV.
3/10/2025HouseFrom committee chair, with author's amendments: Amend, and re-refer to Com. on L. GOV. Read second time and amended.
3/6/2025HouseRe-referred to Com. on L. GOV.
3/4/2025HouseFrom committee chair, with author's amendments: Amend, and re-refer to Com. on L. GOV. Read second time and amended.
3/3/2025HouseReferred to Com. on L. GOV.
3/3/2025HouseFrom printer. May be heard in committee March 8.
2/6/2025HouseRead first time. To print.
2/5/2025House
Bill Text
Chaptered
10/3/2025
Enrolled
9/5/2025
Amended Assembly
3/27/2025
Amended Assembly
3/6/2025
Amended Assembly
3/3/2025
Introduced
2/5/2025