Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Downtown Recovery Districts topic
No spam. Unsubscribe anytime.
Committee advances AB 1445 to let cities form downtown recovery districts to finance office‑to‑housing conversions
Summary
AB 1445 would let cities create downtown recovery districts that capture property‑tax increases within a district to finance conversions of vacant office space into mixed‑use and affordable housing; the Assembly committee voted to pass the bill as amended.
Assemblymember Haney and supporters told the Housing and Community Development Committee that AB 1445 is designed to help downtowns recover after the COVID‑19 pandemic by financing office‑to‑housing conversions through locally created downtown recovery districts.
The committee recorded an 8 to 0 vote in favor of the bill as amended at the hearing. Supporters said the measure would add a financing tool for local governments to close funding gaps that make conversions cost‑prohibitive.
“AB 1445 is a way to help our downtowns recover more quickly and rebound stronger after the COVID 19 pandemic,” Haney said in opening remarks. He and witnesses explained that although downtowns make up about 3% of a city’s land area, they generate a disproportionate share of property, hotel and sales tax revenue; they argued that housing conversions would promote economic recovery and downtown vibrancy.
Emilia Zamani of the California Travel Association testified in support and cited industry data: “According to our partners at Visit California, travelers infused $157,300,000,000 into California's economy last year,” she said, adding that the sector supports jobs and local revenue. Additional supporters at the hearing included Brandon Knapp of the Housing Action Coalition and representatives speaking on behalf of IKEA, Spur Abundant Housing and Circulate San Diego.
Under the bill as described in committee, cities could create a downtown recovery district and use increases in property‑tax revenues from properties inside the district to finance office‑to‑housing conversions, targeted to create affordable mixed‑use housing in downtown cores. Supporters said conversions are often more costly than new construction because of structural upgrades, remediation and seismic, fire‑safety or indoor‑air improvements.
The committee discussion included member interest in expanding use of the tool to smaller cities and in adding guardrails around the types of housing financed. The item passed out of committee as amended; the committee left the item open for concurrence and further process.
