Housing Bill to Increase Financing for Affordable Housing Clears Senate Committee
SACRAMENTO – Today, the Senate Governance & Finance Committee approved AB 1568 on a 5-1 vote. The measure, authored by Assemblymember Richard Bloom (D-Santa Monica), gives local jurisdictions the authority to finance infrastructure and affordable housing, using new sales and use tax increment, within qualifying enhanced infrastructure improvement districts (EIFD).
“AB 1568 opens up a new source of financing for affordable housing construction,” said Assemblymember Bloom. “This bill is about reinvesting in our communities, revitalizing neighborhoods, and building more affordable housing in dense, transit-rich areas.”
AB 1568, also known as the Neighborhood Infill Finance and Transit Improvement Act of 2017 (NIFTI), allows an EIFD to receive sales and use tax increment (the increase in the total receipts of local sales and use taxes) for infrastructure infill sites. The measure requires at least 20 percent of revenue received to be used to finance affordable housing, something that the state is facing a critical shortage of.
Since the dissolution of redevelopment agencies in 2011, local governments have struggled to find reliable financing mechanisms for new construction and infrastructure improvements. EIFDs were created in 2014 to allow local governments to finance such projects in specified districts using property tax increment. This bill builds on the existing EIFD system by adding sales and use tax increment as a financing source.
“Building housing, especially affordable housing, has undoubtedly becoming more challenging without redevelopment agencies. This bill will ease some of those challenges and help locals increase the housing supply.”
AB 1568 measure has support from a broad coalition of environmental, labor, and housing organizations and now heads to the Senate Transportation & Housing Committee.
Richard Bloom represents California’s 50th Assembly District, which comprises the communities of Agoura Hills, Bel Air, Beverly Hills, Brentwood, Hollywood, Malibu, Pacific Palisades, Santa Monica, Topanga, West Hollywood, and West Los Angeles.