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Bill would let nonprofits buy wildfire‑damaged homes using CRA funds to preserve local ownership
Summary
Assemblymember Haribedian introduced AB 797 to let CRA‑backed securities, issued by the I‑Bank, funnel capital to qualified nonprofits to buy wildfire‑damaged homes at pre‑disaster fair market value, providing a voluntary option for homeowners and aiming to prevent predatory lowball purchases.
Assemblymember Haribedian introduced AB 797, the Community Stabilization Act, on June 30 at the California State Senate Business, Professions and Economic Development Committee hearing, proposing a state‑facilitated mechanism to give homeowners whose houses were destroyed by wildfires an option to sell to qualified nonprofits at fair market value.
The bill would authorize the California Infrastructure and Economic Development Bank (I‑Bank) to issue zero‑interest securities bought only by financial institutions subject to the federal Community Reinvestment Act (CRA). Those funds would be directed to qualified nonprofit investment entities to acquire and manage disaster‑affected properties. When properties are later monetized, 90% of profits would go to the CRA investors, 5% to the administering nonprofit, and 5% to the state; Haribedian said the measure would use no general‑fund dollars.
AB 797’s author framed the…
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