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Committee advances bill to let cities form downtown recovery districts to finance office‑to‑housing conversions
Summary
AB 1445 would allow cities to form downtown recovery districts that capture property‑tax increments to help finance conversions of office buildings into mixed‑use housing, with aims to accelerate downtown recovery and create affordable housing. Supporters from tourism and housing groups backed the tool; committee approved the bill as amended.
The Assembly Housing and Community Development Committee voted to pass AB 1445, which would let cities create downtown recovery financing districts to help convert vacant office space into mixed‑use and affordable housing.
Assemblymember Haney, who introduced the bill, said downtowns occupy a small share of city land but contribute a disproportionate share of local tax revenue and that post‑pandemic office vacancy and falling commercial values are stalling downtown recovery. "AB 1445 would provide necessary tools to support the creation of affordable mixed‑use housing on former commercial spaces in downtowns across California by providing the much needed financing to make these projects work," Haney said in committee.
Under the bill as presented, a city could form a downtown recovery district where property‑tax revenue increases generated within the district would be used to finance office‑to‑housing conversion projects. Haney said the tool is already available to one city and county through a recent law and that AB 1445 would make it available more broadly to other cities, including smaller communities seeking downtown revitalization.
Emilia Zimani of the California Travel Association testified in support and said visitor spending supports jobs and local revenues; she said Visit California data show traveler spending of about $157.3 billion last year and urged support for measures that encourage downtown vibrancy and tourism recovery. Other supporters included Housing Action Coalition, IKEA (via a representative), and advocates from Spur Abundant Housing and Circulate San Diego.
Committee members expressed support and interest in expanding the tool to smaller cities and asked the author to work with cities on guardrails that target the type of housing conversions sought. The committee voted to pass AB 1445 as amended; the item was recorded as 8–0 and left open for any closing administrative steps.
