Article 1 - General Provisions

California Government Code — §§ 53398-53398.8

Sections (59)

Added by Stats. 1999, Ch. 773, Sec. 1. Effective January 1, 2000.

(a)The Legislature finds and declares that the North American Free Trade Agreement has resulted in a dramatic increase in trade with Mexico. In 1998 companies in California exported over $13.3 billion worth of goods to Mexico, and more than 80,000 jobs throughout the state are the direct result of this trade. This increased trade has strained the inadequate public infrastructure in the region just north of the international border.
(b)The Legislature further finds and declares that there is a significant opportunity for industrial development, including high technology and biotechnology manufacturing, in the region along the border. However, this region lacks the public infrastructure necessary to support new development or to provide for the rapid and reliable delivery of supplies to, and distribution of products from, companies throughout the state.
(c)The Legislature finds and declares that the state and federal governments have withdrawn in whole or in part from their former role in financing infrastructure facilities, including highways, roads and interchanges, sewage facilities and water reclamation works, water supply and treatment works, flood control and drainage works, schools, libraries, parks, parking facilities, open space, and seismic retrofit and rehabilitation of public facilities.
(d)The Legislature further finds and declares that the methods available to local agencies to finance public works often place an undue and unfair burden on buyers of new homes, especially for public works that benefit the broader community.
(e)The Legislature further finds and declares that the absence of practical and equitable methods for financing both regional and local public works leads to a declining standard of public works, a failure to construct new public works needed to support new commercial and industrial development in the region along the border, a reduced quality of life and decreased safety for affected citizens, increased objection to otherwise desirable development, and excessive costs for homebuyers.
(f)The Legislature further finds and declares that it is equitable and in the public interest to provide alternative procedures for financing public works and services needed to support new commercial and industrial development in the region along the border that would generate significant new employment opportunities.

Added by Stats. 1999, Ch. 773, Sec. 1. Effective January 1, 2000.

Unless the context otherwise requires, the definitions contained in this article shall govern the construction of this chapter.

(a)“Affected taxing entity” means any governmental taxing agency that levied or had levied on its behalf a property tax on all or a portion of the property located in the proposed district in the fiscal year prior to the designation of the district, but not including any county office of education, school district, community college district, or the Educational Revenue Augmentation Fund.
(b)“Border development zone” means a strip of land three miles wide with the international border with Mexico on the south, the mean high tide of the Pacific Ocean on the west, and the border with the State of Arizona on the east.
(c)“City” means a city, a county, or a city and county.
(d)“Debt” means any binding obligation to repay a sum of money, including obligations in the form of bonds, certificates of participation, long-term leases, loans from government agencies, or loans from banks, other financial institutions, private businesses, or individuals.
(e)“Designated official” means the city engineer or other appropriate official designated pursuant to Section 53398.13.
(f)“District” means an infrastructure financing district located in the border development zone.
(g)“Infrastructure financing district” means a legally constituted governmental entity established pursuant to this chapter for the sole purpose of financing public facilities.
(h)“Landowner” or “owner of land” means any person shown as the owner of land on the last equalized assessment roll or otherwise known to be the owner of the land by the legislative body. The legislative body has no obligation to obtain other information as to the ownership of land, and its determination of ownership shall be final and conclusive for the purposes of this chapter. A public agency is not a landowner or owner of land for purposes of this chapter.
(i)“Legislative body” means the city council or board of supervisors.

Added by Stats. 1999, Ch. 773, Sec. 1. Effective January 1, 2000.

(a)The revenues available pursuant to Article 3 (commencing with Section 53398.30) may be used directly for work allowed pursuant to Section 53398.3 (including use as matching funds to accomplish this work), may be accumulated for a period not to exceed five years to provide a fund for that work, may be pledged to pay the principal of, and interest on, bonds issued pursuant to Article 4 (commencing with Section 53398.40), or may be pledged to pay the principal of, and interest on, bonds issued pursuant to the Improvement Bond Act of 1915 (Division 10 (commencing with Section 8500) of the Streets and Highways Code) or the Mello-Roos Community Facilities Act of 1982 (Chapter 2.5 (commencing with Section 53311)), the proceeds of which have been or will be used entirely for allowable purposes of the district. The revenue of the district may also be advanced for allowable purposes of the district to an Integrated Financing District established pursuant to Chapter 1.5 (commencing with Section 53175), in which case the district may be party to a reimbursement agreement established pursuant to that chapter. The revenues of the district may also be committed to paying for any completed public facility acquired pursuant to Section 53398.3 over a period of time, including the payment of a rate of interest not to exceed the bond buyer index rate on the day that the agreement to repay is entered into by the city.
(b)The legislative body may enter into an agreement with any affected taxing entity providing for the construction of, or assistance in, financing public facilities.

Amended by Stats. 2000, Ch. 595, Sec. 1. Effective January 1, 2001.

(a)A district may finance (1) the purchase, construction, expansion, improvement, seismic retrofit, or rehabilitation of any real or other tangible property with an estimated useful life of 15 years or longer that satisfies the requirements of subdivision (b), (2) the planning and design work that is directly related to the purchase, construction, expansion, or rehabilitation of that property, and (3) the costs described in Sections 53398.5 and 53398.31. A district may only finance the purchase of facilities for which construction has been completed, as determined by the legislative body. The facilities need not be physically located within the boundaries of the district. A district may not finance routine maintenance, repair work, or the costs of ongoing operation or providing services of any kind.
(b)The district shall finance only public capital facilities that provide significant benefits to the area of the border development zone, including, but not limited to, all of the following:
(1)Highways, interchanges, ramps and bridges, major and minor arterial streets, major and minor collector streets, parking facilities, and transit facilities. Phased road widening projects shall also be permitted.
(2)Sewage collection, pumping, treatment and water reclamation plants and interceptor pipes.
(3)Facilities for the collection and treatment of water for urban uses.
(4)Flood control levees and dams, retention basins, and drainage facilities.
(5)Child care facilities.
(6)Libraries.
(7)Parks, recreational facilities, and open space.
(8)Facilities for the transfer and disposal of solid waste, including transfer stations and vehicles.
(9)Public safety facilities.
(c)Any district that constructs dwelling units shall set aside not less than 20 percent of those units to increase and improve the community’s supply of low- and moderate-income housing available at an affordable housing cost, as defined by Section 50052.5 of the Health and Safety Code, to persons and families of low and moderate income, as defined in Section 50093 of the Health and Safety Code.
(d)A district may also finance the purchase of sewage treatment capacity that provides significant benefits to the area of the border development zone. The facility providing the sewage treatment capacity need not be physically located within the boundaries of the district.

Added by Stats. 1999, Ch. 773, Sec. 1. Effective January 1, 2000.

(a)A district may not include any portion of a redevelopment project area that is or has been previously created pursuant to Part 1 (commencing with Section 33000) of Division 24 of the Health and Safety Code, whether the creation is or was proper or improper. A redevelopment project area may not include any portion of a district created pursuant to this chapter.
(b)A district may finance only the facilities or services authorized in this chapter to the extent that the facilities or services are in addition to those provided in the territory of the district before the district was created. The additional facilities or services may not supplant facilities or services already available within that territory when the district was created but may supplement those facilities and services as needed to serve new developments.
(c)A district may include areas that are not contiguous.

Added by Stats. 1999, Ch. 773, Sec. 1. Effective January 1, 2000.

It is the intent of the Legislature that the area of the districts created be substantially undeveloped, and the establishment of a district should not ordinarily lead to the removal of existing dwelling units. If, however, any dwelling units are proposed to be removed or destroyed in the course of private development or public works construction within the area of the district, the legislative body shall do all of the following:

(a)Within four years of the removal or destruction, cause or require the construction or rehabilitation, for rental or sale to persons or families of low or moderate income, of an equal number of replacement dwelling units at affordable housing cost, as defined in Section 50052.5 of the Health and Safety Code, within the territory of the district if the dwelling units removed were inhabited by persons or families of low or moderate income, as defined in Section 50093 of the Health and Safety Code.
(b)Within four years of the removal or destruction, cause or require the construction or rehabilitation, for rental or sale to persons of low or moderate income, a number of dwelling units that is at least one unit but not less than 20 percent of the total dwelling units removed at affordable housing cost, as defined in Section 50052.5 of the Health and Safety Code, within the territory of the district if the dwelling units removed or destroyed were not inhabited by persons of low or moderate income, as defined in Section 50093 of the Health and Safety Code.
(c)Provide relocation assistance and make all the payments required by Chapter 16 (commencing with Section 7260) of Division 7 of Title 1, to persons displaced by any public or private development occurring within the territory of the district. This displacement shall be deemed to be the result of public action.
(d)Ensure that removal or destruction of any dwelling units occupied by persons or families of low or moderate income does not take place unless and until there are suitable housing units, at comparable cost to the units from which the persons or families were displaced, available and ready for occupancy by the residents of the units at the time of their displacement. The housing units shall be suitable to the needs of these displaced persons or families and shall be decent, safe, sanitary, and otherwise standard dwellings.

Added by Stats. 1999, Ch. 773, Sec. 1. Effective January 1, 2000.

Any action or proceeding to attack, review, set aside, void, or annul the creation of a district or the adoption of an infrastructure financing plan, including a division of taxes thereunder, shall be commenced within 30 days after the enactment of the ordinance creating the district pursuant to Section 53398.21. Consistent with the time limitations of this section, such an action or proceeding with respect to a division of taxes under this chapter may be brought pursuant to Chapter 9 (commencing with Section 860) of Title 10 of Part 2 of the Code of Civil Procedure, except that Section 869 of the Code of Civil Procedure shall not apply.

Added by Stats. 1999, Ch. 773, Sec. 1. Effective January 1, 2000.

An action to determine the validity of the issuance of bonds pursuant to this chapter may be brought pursuant to Chapter 9 (commencing with Section 860) of Title 10 of Part 2 of the Code of Civil Procedure. However, notwithstanding the time limits specified in Section 860 of the Code of Civil Procedure, the action shall be commenced within 30 days after adoption of the resolution pursuant to Section 53398.43 providing for issuance of the bonds if the action is brought by an interested person pursuant to Section 863 of the Code of Civil Procedure. Any appeal from a judgment in that action or proceeding shall be commenced within 30 days after entry of judgment.

Added by Stats. 1999, Ch. 773, Sec. 1. Effective January 1, 2000.

An infrastructure financing district in the border development zone is a “district” within the meaning of Section 1 of Article XIII A of the California Constitution.

Added by Stats. 1999, Ch. 773, Sec. 1. Effective January 1, 2000.

A legislative body of a city may designate one or more proposed infrastructure financing districts in the border development zone pursuant to this chapter. Proceedings for the establishment of a district shall be instituted by the adoption of a resolution of intention to establish the proposed district and shall do all of the following:

(a)State that an infrastructure financing district is proposed to be established under the terms of this chapter and describe the boundaries of the proposed district, which may be accomplished by reference to a map on file in the office of the clerk of the city.
(b)State the type of public facilities proposed to be financed by the district. The district may only finance public facilities authorized by Section 53398.3.
(c)State that incremental property tax revenue from the city and some or all affected taxing entities within the district may be used to finance these public facilities.
(d)Fix a time and place for a public hearing on the proposal.

Added by Stats. 1999, Ch. 773, Sec. 1. Effective January 1, 2000.

The legislative body shall direct the clerk to mail a copy of the resolution of intention to create the district to each owner of land within the district.

Added by Stats. 1999, Ch. 773, Sec. 1. Effective January 1, 2000.

The legislative body shall direct the clerk to mail a copy of the resolution to each affected taxing entity.

Added by Stats. 1999, Ch. 773, Sec. 1. Effective January 1, 2000.

After adopting the resolution pursuant to Section 53398.10, the legislative body shall designate and direct the city engineer or other appropriate official to prepare an infrastructure plan pursuant to Section 53398.14.

Added by Stats. 1999, Ch. 773, Sec. 1. Effective January 1, 2000.

After receipt of a copy of the resolution of intention to establish a district, the official designated pursuant to Section 53398.13 shall prepare a proposed infrastructure financing plan. The infrastructure financing plan shall be consistent with the general plan of the city within which the district is located and shall include all of the following:

(a)A map and legal description of the proposed district, which may include all or a portion of the district designated by the legislative body in its resolution of intention.
(b)A description of the public facilities required to serve the development proposed in the area of the district, including those to be provided by the private sector, those to be provided by governmental entities without assistance under this chapter, those public improvements and facilities to be financed with assistance from the proposed district, and those to be provided jointly. The description shall include the proposed location, timing, and costs of the public improvements and facilities.
(c)A finding that the public facilities provide significant benefits to the border development zone.
(d)A financing section, which shall contain all of the following information:
(1)A specification of the maximum portion of the incremental tax revenue of the city and of each affected taxing entity proposed to be committed to the district for each year during which the district will receive incremental tax revenue. The portion need not be the same for all affected taxing entities. The portion may change over time.
(2)A projection of the amount of tax revenues expected to be received by the district in each year during which the district will receive tax revenues, including an estimate of the amount of tax revenues attributable to each affected taxing entity for each year.
(3)A plan for financing the public facilities to be assisted by the district, including a detailed description of any intention to incur debt.
(4)A limit on the total number of dollars of taxes that may be allocated to the district pursuant to the plan.
(5)A date on which the district will cease to exist, by which time all tax allocation to the district will end. The date shall not be more than 30 years from the date on which the ordinance forming the district is adopted pursuant to Section 53398.20.
(6)An analysis of the costs to the city of providing facilities and services to the area of the district while the area is being developed and after the area is developed. The plan shall also include an analysis of the tax, fee, charge, and other revenues expected to be received by the city as a result of expected development in the area of the district.
(7)An analysis of the projected fiscal impact of the district and the associated development upon each affected taxing entity.
(e)If any dwelling units occupied by persons or families of low or moderate income are proposed to be removed or destroyed in the course of private development or public works construction within the area of the district, a plan providing for replacement of those units and relocation of those persons or families consistent with the requirements of Section 53398.5.

Added by Stats. 1999, Ch. 773, Sec. 1. Effective January 1, 2000.

The infrastructure financing plan shall be sent to each owner of land within the proposed district and to each affected taxing entity together with any report required by the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code) that pertains to the proposed public facilities or the proposed development project for which the public facilities are needed. The plan shall be made available for public inspection. The report shall also be sent to the planning commission and the legislative body.

Added by Stats. 1999, Ch. 773, Sec. 1. Effective January 1, 2000.

The designated official shall consult with each affected taxing entity, and, at the request of any affected taxing entity, shall meet with representatives of an affected taxing entity. Any affected taxing entity may suggest revisions to the plan.

Added by Stats. 1999, Ch. 773, Sec. 1. Effective January 1, 2000.

The legislative body shall conduct a public hearing prior to adopting the proposed infrastructure financing plan. The public hearing shall be called no sooner than 60 days after the plan has been sent to each affected taxing entity. In addition to the notice given to landowners and affected taxing entities pursuant to Sections 53398.11 and 53398.12, notice of the public hearing shall be given by publication not less than once a week for four successive weeks in a newspaper of general circulation published in the city in which the proposed district is located. The notice shall state that the district will be used to finance public works, briefly describe the public works, briefly describe the proposed financial arrangements, including the proposed commitment of incremental tax revenue, describe the boundaries of the proposed district, and state the day, hour, and place when and where any persons having any objections to the proposed infrastructure financing plan, or the regularity of any of the prior proceedings, may appear before the legislative body and object to the adoption of the proposed plan by the legislative body.

Added by Stats. 1999, Ch. 773, Sec. 1. Effective January 1, 2000.

At the hour set in the required notices, the legislative body shall proceed to hear and pass upon all written and oral objections. The hearing may be continued from time to time. The legislative body shall consider the recommendations, if any, of affected taxing entities, and all evidence and testimony for and against the adoption of the plan. The legislative body may modify the plan by eliminating or reducing the size and cost of proposed public works, by reducing the amount of proposed debt, or by reducing the portion, amount, or duration of incremental tax revenues to be committed to the district.

Added by Stats. 1999, Ch. 773, Sec. 1. Effective January 1, 2000.

(a)The legislative body shall not enact an ordinance approving the infrastructure financing plan providing for the division of taxes of any affected taxing entity pursuant to Article 3 (commencing with Section 53398.30) unless a resolution approving the plan has been adopted by the governing body of each affected taxing entity that is proposed to be subject to division of taxes pursuant to Article 3 (commencing with Section 53398.30) has been filed with the legislative body at or prior to the time of the hearing.
(b)Nothing in this section shall be construed to prevent the legislative body from amending its infrastructure financing plan and adopting an ordinance approving the formation of the infrastructure financing district without allocation of the tax revenues of any affected taxing entity that has not approved the infrastructure financing plan by resolution of the governing body of the affected taxing entity.

Added by Stats. 1999, Ch. 773, Sec. 1. Effective January 1, 2000.

At the conclusion of the hearing, the legislative body may, in a manner consistent with Section 53398.19, adopt an ordinance approving the infrastructure financing plan, or the infrastructure financing plan as modified, and creating the infrastructure financing district with the full force and effect of law, or the legislative body may abandon the proceedings.

Added by Stats. 1999, Ch. 773, Sec. 1. Effective January 1, 2000.

The legislative body may submit a proposition to establish or change the appropriations limit, as defined by subdivision (h) of Section 8 of Article XIII B of the California Constitution, of a district to the qualified electors of a district. The proposition establishing or changing the appropriations limit shall become effective if approved by the qualified electors voting on the proposition and shall be adjusted for changes in the cost of living and changes in populations, as defined by subdivisions (b) and (c) of Section 7901, except that the change in population may be estimated by the legislative body in the absence of an estimate by the Department of Finance, and in accordance with Section 1 of Article XIII B of the California Constitution. For purposes of adjusting for changes in population, the population of the district shall be deemed to be at least one person during each calendar year.

Amended by Stats. 2016, Ch. 49, Sec. 3. (SB 975) Effective January 1, 2017.

Any infrastructure financing plan may contain a provision that taxes, if any, levied upon taxable property in the area included within the infrastructure financing district each year by or for the benefit of the State of California, or any affected taxing entity after the effective date of the ordinance adopted pursuant to Section 53398.20 to create the district, shall be divided, subject to the provisions of Section 53993, as follows:

(a)That portion of the taxes that would be produced by the rate upon which the tax is levied each year by or for each of the affected taxing entities upon the total sum of the assessed value of the taxable property in the district as shown upon the assessment roll used

in connection with the taxation of the property by the affected taxing entity, last equalized prior to the effective date of the ordinance adopted pursuant to Section 53398.20 to create the district, shall be allocated to, and when collected shall be paid to, the respective affected taxing entities as taxes by or for the affected taxing entities on all other property are paid.

(b)That portion of the levied taxes each year specified in the adopted infrastructure financing plan for the city and each affected taxing entity that has agreed to participate pursuant to Section 53398.19 in excess of the amount specified in subdivision (a) shall be allocated to, and when collected shall be paid into a special fund of, the district for all lawful purposes of the district. Unless and until the total assessed valuation of the taxable property in a district exceeds the total assessed value of the taxable property in the district as shown by the last

equalized assessment roll referred to in subdivision (a), all of the taxes levied and collected upon the taxable property in the district shall be paid to the respective affected taxing entities. When the district ceases to exist pursuant to the adopted infrastructure financing plan, all moneys thereafter received from taxes upon the taxable property in the district shall be paid to the respective affected taxing entities as taxes on all other property are paid.

Added by Stats. 1999, Ch. 773, Sec. 1. Effective January 1, 2000.

All costs incurred by a county in connection with the division of taxes pursuant to Section 53398.30 for a district shall be paid by that district.

Added by Stats. 1999, Ch. 773, Sec. 1. Effective January 1, 2000.

The legislative body may, by majority vote, initiate proceedings to issue bonds pursuant to this chapter by adopting a resolution stating its intent to issue the bonds.

Added by Stats. 1999, Ch. 773, Sec. 1. Effective January 1, 2000.

The resolution adopted pursuant to Section 53398.40 shall contain all of the following information:

(a)A description of the facilities to be financed with the proceeds of the proposed bond issue.
(b)The estimated cost of the facilities, the estimated cost of preparing and issuing the bonds, and the principal amount of the proposed bond issuance.
(c)The maximum interest rate and discount on the proposed bond issuance.
(d)A determination of the amount of tax revenue available or estimated to be available, for the payment of the principal of, and interest on, the bonds.
(e)A finding that the amount necessary to pay the principal of, and interest on, the proposed bond issuance will be less than, or equal to, the amount determined pursuant to subdivision (d).
(f)The date, hour, and place at which any person may appear before the legislative body and object to the proposal to issue bonds.

Added by Stats. 1999, Ch. 773, Sec. 1. Effective January 1, 2000.

The clerk of the legislative body shall publish the resolution adopted pursuant to Section 53398.40 once a day for at least seven successive days in a newspaper published in the city or county at least six days a week, or at least once a week for two successive weeks in a newspaper published in the city or county less than six days a week.

If there are no newspapers meeting these criteria, the resolution shall be posted in three public places within the territory of the district for two succeeding weeks.

Added by Stats. 1999, Ch. 773, Sec. 1. Effective January 1, 2000.

(a)At the hour set in the required notice, the legislative body shall proceed to hear and pass upon all written and oral objections. The hearing may be continued from time to time. The legislative body shall consider all evidence and testimony for and against the proposal to issue bonds.
(b)At the conclusion of the hearing, the legislative body may approve the issuance of bonds by adopting a resolution that shall provide for all of the following:
(1)The issuance of the bonds in one or more series.
(2)The principal amount of the bonds, which shall be consistent with the amount specified in subdivision (b) of Section 53398.41.
(3)The date the bonds will bear.
(4)The date of maturity of the bonds.
(5)The denomination of the bonds.
(6)The form of the bonds.
(7)The manner of execution of the bonds.
(8)The medium of payment in which the bonds are payable.
(9)The place or manner of payment and any requirements for registration of the bonds.
(10)The terms of call or redemption, with or without premium.

Added by Stats. 1999, Ch. 773, Sec. 1. Effective January 1, 2000.

The legislative body may, by majority vote, provide for refunding of bonds issued pursuant to this chapter. However, refunding bonds shall not be issued if the total net interest cost to maturity on the refunding bonds plus the principal amount of the refunding bonds exceeds the total net interest cost to maturity on the bonds to be refunded. The legislative body may not extend the time to maturity of the bonds.

Added by Stats. 1999, Ch. 773, Sec. 1. Effective January 1, 2000.

The legislative body or any person executing the bonds shall not be personally liable on the bonds by reason of their issuance. The bonds and other obligations of a district issued pursuant to this chapter are not a debt of the city, county, or state or of any of its political subdivisions, other than the district, and none of those entities, other than the district, shall be liable on the bonds and the bonds or obligations shall be payable exclusively from funds or properties of the district. The bonds shall contain a statement to this effect on their face. The bonds do not constitute an indebtedness within the meaning of any constitutional or statutory debt limitation.

Added by Stats. 1999, Ch. 773, Sec. 1. Effective January 1, 2000.

The bonds may be sold at discount not to exceed 5 percent of par at public sale. At least five days prior to the sale, notice shall be published, pursuant to Section 6061, in a newspaper of general circulation and in a financial newspaper published in the City and County of San Francisco and in the City of Los Angeles. The bonds may be sold at not less than par to the federal government at private sale without any public advertisement.

Added by Stats. 1999, Ch. 773, Sec. 1. Effective January 1, 2000.

If any member of the legislative body whose signature appears on bonds ceases to be a member of the legislative body before delivery of the bonds, his or her signature is as effective as if he or she had remained in office. Bonds issued pursuant to this chapter are fully negotiable.

Amended by Stats. 2024, Ch. 599, Sec. 2.5. (SB 1140) Effective January 1, 2025.

The Legislature finds and declares that with the dissolution of redevelopment agencies, public benefits will accrue if local agencies, excluding schools, are provided a means to finance the reuse and revitalization of former military bases, fund the creation of transit priority projects and the implementation of sustainable communities plans, fund projects that enable communities to adapt to the impacts of climate change, including to improve air quality, mitigate wildfires, construct and rehabilitate affordable housing units, fund port and harbor infrastructure, fund projects to improve broadband internet access service, construct facilities for nonprofit community organizations that provide health, youth, homeless, and social services, and construct facilities to house providers of consumer goods and services in the communities served by these

efforts.

Amended by Stats. 2015, Ch. 320, Sec. 1. (AB 313) Effective January 1, 2016.

Unless the context otherwise requires, the definitions contained in this article shall govern the construction of this chapter.

(a)“Affected taxing entity” means any governmental taxing agency which levied or had levied on its behalf a property tax on all or a portion of the property located in the proposed district in the fiscal year prior to the designation of the district, but not including any county office of education, school district, or community college district. An “affected taxing entity” may include a special district if the special district is providing any portion of the funding included in the infrastructure financing plan adopted pursuant to Section 53398.63. For the purposes of this section, “special district” means an

agency of the state formed for the performance of governmental or proprietary functions within limited geographic boundaries, and shall not include a school district or community college district.

(b)“County” means a county or a city and county.
(c)“Debt” means any binding obligation to repay a sum of money, including obligations in the form of bonds, certificates of participation, long-term leases, loans from government agencies, or loans from banks, other financial institutions, private businesses, or individuals.
(d)“Designated official” means the city or county engineer or other appropriate official designated pursuant to Section 53398.62.
(e)(1) “District” means an enhanced infrastructure financing district.
(2)An enhanced infrastructure financing district is a district within the meaning of Section 1 of Article XIII A of the California Constitution.
(f)“Enhanced infrastructure financing district” means a legally constituted governmental entity separate and distinct from the city or county that established it pursuant to this chapter for the sole purpose of financing public facilities or other projects as authorized by this chapter. An enhanced infrastructure financing district shall be a local agency for purposes of Chapter 9 (commencing with Section 54950).
(g)“Landowner” or “owner of land” means any person shown as the owner of land on the last equalized assessment roll or otherwise known to be the owner of the land by the legislative body. The legislative body has no obligation to obtain other

information as to the ownership of land, and its determination of ownership shall be final and conclusive for the purposes of this chapter. A public agency is not a landowner or owner of land for purposes of this chapter, unless the public agency owns all of the land to be included within the proposed district.

(h)“Legislative body” means the city council or board of supervisors.
(i)“Public financing authority” means the governing board of the district established pursuant to this chapter.

Amended by Stats. 2025, Ch. 260, Sec. 2. (AB 417) Effective January 1, 2026.

(a)(1) A district may finance any of the following:

(A) The purchase, construction, expansion, improvement, seismic retrofit, or rehabilitation of any real or other tangible property with an estimated useful life of 15 years or longer that satisfies the requirements of subdivision (b).

(B) The planning and design work that is directly related to the purchase, construction, expansion, or rehabilitation of property.

(C) The costs described in Sections 53398.56 and 53398.57.

(D) (i) The ongoing or capitalized costs to maintain

public capital facilities financed in whole or in part by the district.

(ii) Notwithstanding clause (i), a district shall not use the proceeds of bonds issued pursuant to the authority in Article 4 (commencing with Section 53398.77) to finance maintenance of any kind.

(2)The facilities are not required to be physically located within the boundaries of the district. However, any facilities financed outside of a district shall have a tangible connection to the work of the district, as detailed in the infrastructure financing plan adopted pursuant to Section 53398.69.
(3)A district shall not finance the costs of an ongoing operation or providing services of any kind.
(b)The district shall finance only public capital facilities or other specified

projects of communitywide significance that provide significant benefits to the district or the surrounding community, including, but not limited to, all of the following:

(1)Highways, interchanges, ramps and bridges, arterial streets, parking facilities, and transit facilities.
(2)Sewage treatment and water reclamation plants and interceptor pipes.
(3)Facilities for the collection and treatment of water for urban uses.
(4)Flood control levees and dams, retention basins, and drainage channels.
(5)Childcare facilities.
(6)Libraries.
(7)Parks, recreational

facilities, and open space.

(8)Facilities for the transfer and disposal of solid waste, including transfer stations and vehicles.
(9)Brownfield restoration and other environmental mitigation.
(10)The development of projects on a former military base, provided that the projects are consistent with the military base authority reuse plan and are approved by the military base reuse authority, if applicable.
(11)The repayment of the transfer of funds to a military base reuse authority pursuant to Section 67851 that occurred on or after the creation of the district.
(12)The acquisition, construction, or rehabilitation of housing for persons of very low, low, and moderate income, as defined

in Sections 50105 and 50093 of the Health and Safety Code, for rent or purchase.

(13)Acquisition, construction, or repair of industrial structures for private use.
(14)(A) Acquisition, construction, or repair of commercial structures by the small business occupant of such structures, if such acquisition, construction, or repair is for purposes of fostering economic recovery of a community and of ensuring the long-term economic sustainability of small businesses.
(B)For purposes of this paragraph and subject to subparagraph (C), “small business” means an independently owned and operated business that is not dominant in its field of operation, the principal office of which is located in California, the officers of which are domiciled in California, and which, together with affiliates, has 100

or fewer employees, and average annual gross receipts of fifteen million dollars ($15,000,000) or less over the previous three years, or is a manufacturer, as defined in subdivision (c) of Section 14837, with 100 or fewer employees. An “independently owned and operated business” shall include a formula retail business that is an independently owned franchise.

(C)A district may set a lower threshold for the average annual gross receipts over the previous three years and for the number of employees described in subparagraph (B).
(15)Transit priority projects, as defined in Section 21155 of the Public Resources Code, that are located within a transit priority project area. For purposes of this paragraph, a transit priority project area may include a military base reuse plan that meets the definition of a transit priority project area and it may include a contaminated site within a

transit priority project area.

(16)Projects that implement a sustainable communities strategy, when the State Air Resources Board, pursuant to Chapter 2.5 (commencing with Section 65080) of Division 1 of Title 7, has accepted a metropolitan planning organization’s determination that the sustainable communities strategy or the alternative planning strategy would, if implemented, achieve the greenhouse gas emission reduction targets.
(17)Projects that enable communities to adapt to the impacts of climate change, including, but not limited to, higher average temperatures, decreased air and water quality, the spread of infectious and vector-borne diseases, other public health impacts, extreme weather events, sea level rise, flooding, heat waves, wildfires, and drought. This paragraph includes projects intended to improve air quality.
(18)Port or harbor infrastructure, as defined by Section 1698 of the Harbors and Navigation Code.
(19)The acquisition, construction, or improvement of broadband Internet access service. For purposes of this section, “broadband Internet access services” has the same meaning as defined in Section 53167. A district that acquires, constructs, or improves broadband Internet access service may transfer the management and control of those facilities to a local agency that is authorized to provide broadband Internet access service, and that local agency when providing that service shall comply with the requirements of Article 12 (commencing with Section 53167) of Chapter 1 of Part 1 of Division 2 of Title 5.
(20)Facilities in which nonprofit community organizations provide health, youth, homeless, and social services.
(21)(A) For districts at least partially in high or very high fire hazard severity zones designated by the State Fire Marshal pursuant to Article 9 (commencing with Section 4201) of Chapter 1 of Part 2 of Division 4 of the Public Resources Code, the following:
(i)Heavy equipment to be used for vegetation clearance and firebreaks.

(ii) Undergrounding of local publicly owned electric utilities, as defined in Section 224.3 of the Public Utilities Code, against wildfires.

(iii) Equipment used for fire watch, prevention, and fighting, including, but not limited to, helicopters, air tankers, and technological advancements to weather and wind science infrastructure, risk modeling, and prediction.

(B) A district shall not use the proceeds of bonds issued pursuant to the authority in Article 4 (commencing with Section 53398.77) to finance the equipment described in clause (i) or (iii) of subparagraph (A).

(c)The district shall require, by recorded covenants or restrictions, that housing units built pursuant to this section shall remain available at affordable housing costs to, and occupied by, persons and families of very low, low, or moderate income for the longest feasible time, but for not less than 55 years for rental units and 45 years for owner-occupied units.
(d)The district may finance mixed-income housing developments, but may finance only those units in such a development that are restricted to occupancy by persons of very low, low, or moderate incomes as defined in Sections 50105 and 50093 of the Health

and Safety Code, and those onsite facilities for childcare, after school care, and social services that are integrally linked to the tenants of the restricted units.

(e)A district may utilize any powers under either the Polanco Redevelopment Act (Article 12.5 (commencing with Section 33459) of Chapter 4 of Part 1 of Division 24 of the Health and Safety Code) or Chapter 6.10 (commencing with Section 25403) of Division 20 of the Health and Safety Code, and finance any action necessary to implement that act.

Added by Stats. 2014, Ch. 785, Sec. 1. (SB 628) Effective January 1, 2015.

Notwithstanding subdivision (b) of Section 53398.52, a district may reimburse a developer of a project that is located entirely within the boundaries of that district for any permit expenses incurred and to offset additional expenses incurred by the developer in constructing affordable housing units pursuant to the Transit Priority Project Program established in Section 65470.

Amended by Stats. 2023, Ch. 678, Sec. 1. (AB 1259) Effective January 1, 2024.

A city or county that created a redevelopment agency, as defined in Section 33003 of the Health and Safety Code, shall neither initiate the creation of a district, nor participate in the governance or financing of a district, until each of the following has occurred:

(a)The successor agency for the former redevelopment agency created by the city or county has received a finding of completion, as specified in Section 34179.7 of the Health and Safety Code.
(b)The city or county certifies to the Department of Finance and to the public financing authority that no former redevelopment agency assets that are the subject of litigation involving the state, if

the city or county, the successor agency, or the designated local authority are a named plaintiff, have been or will be used to benefit any efforts of an enhanced infrastructure financing district formed under this chapter, unless the litigation and all possible appeals have been resolved in a court of law. The city or county shall provide this certification to the Department of Finance within 10 days of its legislative body’s action to participate in an enhanced infrastructure financing district pursuant to Section 53398.68, or of its legislative body’s action to form an enhanced infrastructure financing district pursuant to Section 53398.69.

(c)The office of the Controller has completed its review as specified in Section 34167.5 of the Health and Safety Code.
(d)The successor

agency and the entity that created the former redevelopment agency have complied with all of the office of the Controller’s findings and orders stemming from the reviews as specified in subdivision (c).

(e)Notwithstanding subdivision (a), the City of Selma may initiate, participate in, finance, or govern an enhanced infrastructure financing district, if the City of Selma, acting as the successor agency to the former Selma Redevelopment Agency, is in compliance with subdivisions (b), (c), and (d), and has paid in full the amount outstanding specified in subdivision (b) of Section 34183.5 of the Health and Safety Code.
(f)Notwithstanding subdivision (a), the City of Merced may initiate, participate in, finance, or govern an enhanced infrastructure financing district if the City of

Merced, and the Merced Designated Local Authority acting as the successor agency to the former Redevelopment Agency of the City of Merced, are in compliance with subdivisions (b), (c), and (d), and have paid in full the amounts outstanding specified in Section 34179.5 of, and subdivision (b) of Section 34183.5 of, the Health and Safety

Code, including amounts remaining due under any applicable installment payment plan entered into with the Department of Finance.

Added by Stats. 2014, Ch. 785, Sec. 1. (SB 628) Effective January 1, 2015.

(a)A district may include any portion of a former redevelopment project area that was previously created pursuant to Part 1 (commencing with Section 33000) of Division 24 of the Health and Safety Code, provided that the city or county that created the former redevelopment agency has met the requirements of Section 53398.54.
(b)A district may finance only the facilities authorized in this chapter to the extent that the facilities are in addition to those provided in the territory of the district before the district was created. The additional facilities may not supplant facilities already available within that territory when the district was created but may supplement, rehabilitate, upgrade, or

make more sustainable those facilities.

(c)A district may include areas which are not contiguous.

Amended by Stats. 2015, Ch. 320, Sec. 4. (AB 313) Effective January 1, 2016.

It is the intent of the Legislature that the creation of the districts should not ordinarily lead to the removal of existing dwelling units. If, however, any dwelling units are proposed to be removed or destroyed in the course of public works construction within the area of the district or private development within the area of the district that is subject to a written agreement with the district or that is financed in whole or in part by the district then the infrastructure financing plan adopted pursuant to Section 53398.69 shall contain provisions to do all of the following:

(a)If the dwelling units to be removed or destroyed are or were inhabited by persons or families of very low, low, or moderate income, as defined in Sections 50105

and 50093 of the Health and Safety Code, at any time within five years prior to establishment of the district, cause or require the construction or rehabilitation of an equal number of replacement dwelling units, within one-half mile of the location of the units to be removed or destroyed, that have an equal or greater number of bedrooms as those removed or destroyed units, within two years of the removal or destruction of the dwelling units. The replacement dwelling units shall be available for rent or sale to persons or families of very low, low, or moderate income, at affordable rent, as defined in Section 50053 of the Health and Safety Code, or at affordable housing cost, as defined in Section 50052.5 of the Health and Safety Code, to persons in the same or a lower income category (extremely low, very low, low, or moderate), as the persons displaced from, or who last occupied, the removed or destroyed dwelling units.

(b)If the dwelling

units to be removed or destroyed were not inhabited by persons of low or moderate income within the period of time specified in subdivision (a), cause or require the construction or rehabilitation within one-half mile of the location of the units to be removed or destroyed of at least one unit but not less than 25 percent of the total dwelling units removed or destroyed, within two years of the removal or destruction of the dwelling units. The units constructed or rehabilitated pursuant to this subdivision shall be of equivalent size and type to the units to be removed or destroyed. An equal percentage of the replacement dwelling units constructed or rehabilitated pursuant to this subdivision shall be available for rent or sale at affordable rent, as defined in Section 50053 of the Health and Safety Code, or affordable housing cost, as defined in Section 50052.5 of the Health and Safety Code, to extremely low and very low income persons or families, as defined in Sections 50106 and 50105 of the Health and

Safety Code.

(c)Comply with all relocation assistance requirements of Chapter 16 (commencing with Section 7260) of Division 7 of Title 1, for persons displaced from dwelling units by any public works construction within the area of the district or private development within the area of the district that is subject to a written agreement with the district or that is financed in whole or in part by the district as a result of the infrastructure financing plan adopted pursuant to Section 53398.69. The displacement of any persons from a dwelling unit as a result of the plan shall be deemed to be the result of public action.
(d)Ensure that removal or destruction of any dwelling units occupied by persons or families of low or moderate income not take place unless and until there has been full compliance with the relocation assistance requirements of this section, Section 53398.63, and

Chapter 16 (commencing with Section 7260) of Division 7 of Title 1.

(e)(1) The district shall require, by recorded covenants or restrictions, that all dwelling units constructed or rehabilitated pursuant to this section shall remain available at affordable rent or housing cost to, and occupied by, persons and families of the same income categories as required by subdivision (a) or (b), as applicable, for the longest feasible time, but for not less than 55 years for rental units and 45 years for owner-occupied units.
(2)The district may permit sales of owner-occupied units prior to the expiration of the 45-year period for a price in excess of that otherwise permitted under this subdivision pursuant to an adopted program which protects the district’s investment of moneys in the unit or units, including, but not limited to, an equity sharing program, not in

conflict with another public funding source or law, which establishes a schedule of equity sharing that permits retention by the seller of a portion of those excess proceeds based on the length of occupancy. For purposes of this paragraph, the terms of the equity sharing program shall be consistent with the provisions of paragraph (2) of subdivision (c) of Section 65915, provided, however, that the program shall require any amounts recaptured by the district to be used within five years for any of the affordable housing purposes described in Section 34176.1 of the Health and Safety Code.

Amended by Stats. 2015, Ch. 320, Sec. 5. (AB 313) Effective January 1, 2016.

Any action or proceeding to attack, review, set aside, void, or annul the creation of a district, adoption of an infrastructure financing plan, including a division of taxes thereunder, or an election pursuant to this chapter shall be commenced within 30 days after the enactment of the resolution creating the district pursuant to Section 53398.69. Consistent with the time limitations of this section, such an action or proceeding with respect to a division of taxes under this chapter may be brought pursuant to Chapter 9 (commencing with Section 860) of Title 10 of Part 2 of the Code of Civil Procedure.

Amended by Stats. 2019, Ch. 656, Sec. 1. (AB 116) Effective January 1, 2020.

An action to determine the validity of the issuance of bonds pursuant to this chapter may be brought pursuant to Chapter 9 (commencing with Section 860) of Title 10 of Part 2 of the Code of Civil Procedure. However, notwithstanding the time limits specified in Section 860 of the Code of Civil Procedure, the action shall be commenced within 30 days after adoption of the resolution pursuant to Section 53398.77 providing for issuance of the bonds if the action is brought by an interested person pursuant to Section 863 of the Code of Civil Procedure. Any appeal from a judgment in that action or proceeding shall be commenced within 30 days after entry

of judgment.

Amended by Stats. 2021, Ch. 391, Sec. 2. (SB 780) Effective January 1, 2022.

A legislative body of a city or county may designate one or more proposed enhanced infrastructure financing districts pursuant to this chapter. Proceedings for the establishment of a district shall be instituted by the adoption of a resolution of intention to establish the proposed district and shall do all of the following:

(a)State that an enhanced infrastructure financing district is proposed to be established under the terms of this chapter and describe the boundaries of the proposed district, which may be accomplished by reference to a map on file in the office of the clerk of the city or in the office of the recorder of the county, as applicable. The map may identify, within a district, certain areas which shall be referred to as “project areas.”
(b)State the type of public facilities and development proposed to be financed or assisted by the district in accordance with Section 53398.52.
(c)State the need for the district and the goals the district proposes to achieve.
(d)State that incremental property tax revenue from the city or county and some or all affected taxing entities within the district, if approved by resolution pursuant to Section 53398.68, may be used to finance these activities.
(e)(1) State that a city, county, or city and county may allocate tax revenues derived from local sales and use taxes imposed pursuant to the Bradley-Burns Uniform Local Sales and Use Tax Law (Part 1.5 (commencing with Section 7200) of Division 2 of the Revenue and Taxation Code) or

transactions and use taxes imposed in accordance with the Transactions and Use Tax Law (Part 1.6 (commencing with Section 7251) of Division 2 of the Revenue and Taxation Code) to an enhanced infrastructure financing district pursuant to Section 53398.75.5, if applicable.

(2)The legislative body of the city or county that elects to make an allocation pursuant to paragraph (1) shall adopt an ordinance to establish the following:
(A)The procedure by which the city or county will calculate the revenues derived from sales and use taxes and transactions and use taxes to be allocated to the enhanced infrastructure financing district.
(B)The decision process by which the city or county will determine the amount that will be dedicated to the proposed district.
(f)Fix a time and place for a public hearing on the proposal.

Amended by Stats. 2018, Ch. 467, Sec. 60. (SB 1498) Effective January 1, 2019.

(a)The legislative body shall direct the city official or county official, as applicable, selected by the legislative body, to mail a copy of the resolution of intention to create the district to each owner of land within the district.
(b)As an alternative to mailing a copy of the resolution of intention pursuant to subdivision (a), the legislative body may direct the city official or county official, as applicable, selected by the legislative body, to mail a single-page notice of intention to create the district to each owner of land within the district. For purposes of this section, the notice of intention shall indicate the physical location or Internet Web site where documents

related to the district, including the resolution of intention, will be made available for public viewing or inspection. The notice of intention shall also state the date of the public hearing on the proposal and include a brief description of the types of public facilities to be financed by the district.

Amended by Stats. 2024, Ch. 599, Sec. 4. (SB 1140) Effective January 1, 2025.

The legislative body shall direct the city official or county official, as applicable, selected by the legislative body, to mail or electronically submit a copy of the resolution to each affected taxing entity.

Amended by Stats. 2015, Ch. 793, Sec. 3.5. (SB 63) Effective January 1, 2016.

(a)Except as provided in subdivision (b), after adopting the resolution pursuant to Section 53398.59, the legislative body shall send a copy of the resolution to the public financing authority. The public financing authority shall designate and direct the city or county engineer or other appropriate official to prepare an infrastructure financing plan pursuant to Section 53398.63.
(b)In the case of a district proposed for port or harbor infrastructure, the legislative body shall designate and direct the harbor agency, except as provided in Section 1719 of the Harbors and Navigation Code, to prepare an infrastructure financing plan pursuant to Section 53398.63.

Amended by Stats. 2024, Ch. 344, Sec. 1. (AB 761) Effective January 1, 2025.

After receipt of a copy of the resolution of intention to establish a district, the official designated pursuant to Section 53398.62 shall prepare a proposed infrastructure financing plan. A plan shall be proposed for the district that shall include any project areas, if proposed, within the district. The infrastructure financing plan shall be consistent with the general plan, and specific plan, if applicable, of the city or county within which the district is located and shall include all of the following:

(a)A map and legal description of the proposed district, which may include all or a portion of the district designated by the legislative body in its resolution of intention.
(b)A description of the public

facilities and other forms of development or financial assistance that is proposed in the area of the district, including those to be provided by the private sector, those to be provided by governmental entities without assistance under this chapter, those public improvements and facilities to be financed with assistance from the proposed district, and those to be provided jointly. The description shall include the proposed location, timing, and costs of the development and financial assistance.

(c)If funding from affected taxing entities is incorporated into the financing plan, a finding that the development and financial assistance are of communitywide significance and provide significant benefits to an area larger than the area of the district.
(d)A financing section, which shall contain all of the following information:
(1)A specification of the maximum portion of the incremental tax revenue of the city or county and of each affected taxing entity proposed to be committed to the district for each year during which the district will receive incremental tax revenue. The portion need not be the same for all affected taxing entities. The portion may change over time.
(2)A projection of the amount of tax revenues expected to be received by the district in each year during which the district will receive tax revenues, including an estimate of the amount of tax revenues attributable to each affected taxing entity for each year.
(3)A plan for financing the public facilities to be assisted by the district, including a detailed description of any intention to incur debt.
(4)A limit on the total number of dollars of taxes that

may be allocated to the district pursuant to the plan.

(5)Either of the following:
(A)A date on which the district will cease to exist, by which time all tax allocation to the district will end.
(i)For plans proposed on or after January 1, 2025, for districts enacted primarily for the purpose of development and construction of passenger rail projects in the County of Los Angeles, where at least 75 percent of the revenue from the district is used for debt service on a federal Transportation Infrastructure Finance and Innovation Act (TIFIA) loan, the date shall not be more than 75 years from the date on which the issuance of a TIFIA loan is approved by the United States Department of Transportation. Starting 45 years after the issuance of the TIFIA loan, incremental tax revenue received shall only be used for the

purposes of the TIFIA loan repayment, including debt service.

(ii) For all other districts, the date shall not be more than 45 years from the date on which the issuance of bonds is approved pursuant to Section 53398.77, or the issuance of a loan is approved by the governing board of a local agency pursuant to Section 53398.87.

(B) If the district is divided into project areas, a date on which the infrastructure financing plan will cease to be in effect and all tax allocations to the district will end and a date on which the district’s authority to repay indebtedness with incremental tax revenues received under this chapter will end, not to exceed 45 years from the date the district or the applicable project area has actually received one hundred thousand dollars ($100,000) in annual incremental tax revenues under this chapter. After the time limits established under this

subparagraph, a district or project area shall not receive incremental tax revenues under this chapter. If the district is divided into project areas, a separate and unique time limit shall be applicable to each project area that does not exceed 45 years from the date the district has actually received one hundred thousand dollars ($100,000) in incremental tax revenues under this chapter from that project area.

(6)An analysis of the costs to the city or county of providing facilities and services to the area of the district while the area is being developed and after the area is developed. The plan shall also include an analysis of the tax, fee, charge, and other revenues expected to be received by the city or county as a result of expected development in the area of the district.
(7)An analysis of the projected fiscal impact of the district and the associated development upon

each affected taxing entity.

(8)A plan for financing any potential costs that may be incurred by reimbursing a developer of a project that is both located entirely within the boundaries of that district and qualifies for the Transit Priority Project Program, pursuant to Section 65470, including any permit and affordable housing expenses related to the project.
(e)If any dwelling units within the territory of the district are proposed to be removed or destroyed in the course of public works construction within the area of the district or private development within the area of the district that is subject to a written agreement with the district or that is financed in whole or in part by the district, a plan providing for replacement of those units and relocation of those persons or families consistent with the requirements of Section 53398.56.
(f)The goals the district proposes to achieve for each project financed pursuant to Section 53398.52.

Amended by Stats. 2024, Ch. 599, Sec. 5. (SB 1140) Effective January 1, 2025.

The infrastructure financing plan shall be sent to each owner of land within the proposed district and to each affected taxing entity together with any report required by the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code) that pertains to the proposed public facilities or the proposed development project for which the public facilities are needed, and shall be made available for public inspection. The report shall also be sent to the public financing authority, the planning commission, and the legislative body.

Added by Stats. 2014, Ch. 785, Sec. 1. (SB 628) Effective January 1, 2015.

The designated official shall consult with each affected taxing entity, and, at the request of any affected taxing entity, shall meet with representatives of an affected taxing entity. Any affected taxing entity may suggest revisions to the plan.

Amended by Stats. 2025, Ch. 260, Sec. 3. (AB 417) Effective January 1, 2026.

(a)The draft-enhanced infrastructure financing plan shall be made available to the public and to each landowner within the area on a designated internet website and at a meeting held at least 30 days before the first public hearing. The purposes of the meeting shall be to allow the staff of the public financing authority to present the draft-enhanced infrastructure financing plan, answer questions about the enhanced infrastructure financing plan, and consider comments about the enhanced infrastructure financing plan.
(b)(1) (A) The public financing authority shall consider adoption of the enhanced infrastructure financing plan at two public hearings that shall take place at least 30 days apart.

(B) In addition to the notice given to landowners and affected taxing entities pursuant to Sections 53398.60 and 53398.61, the public financing authority shall post notice of each meeting or public hearing required by this section in an easily identifiable and accessible location on the enhanced infrastructure financing district’s internet website and shall mail a written notice of the meeting or public hearing to each landowner, each resident, and each taxing entity at least 10 days before the meeting or public hearing.

(2)At the first public hearing, the public financing authority shall consider any written and oral comments and take action to modify or reject the enhanced infrastructure financing plan.
(3)If the enhanced infrastructure financing plan is not rejected at the first public hearing, then the public

financing authority shall conduct a protest proceeding at the second public hearing to consider whether the landowners and residents within the enhanced infrastructure financing plan area wish to present oral or written protests against the adoption of the enhanced infrastructure financing plan.

(c)(1) The notices required in subparagraph (B) of paragraph (1) of subdivision (b) shall do all of the following, as applicable:

(A) Describe specifically the boundaries of the proposed area.

(B) Describe the purpose of the enhanced infrastructure financing plan.

(C) State the day, hour, and place when and where any and all persons having any comments on the proposed enhanced infrastructure financing plan may appear to provide written or

oral comments to the enhanced infrastructure financing district.

(D) Notice of the first public hearing shall include a summary of the enhanced infrastructure financing plan and shall identify a location accessible to the public where the enhanced infrastructure financing plan proposed to be presented at the first public hearing can be reviewed.

(E) Notice of the second public hearing to consider any written or oral protests shall contain a copy of the enhanced infrastructure financing plan, and shall inform the landowner and resident of their right to submit an oral or written protest before the close of the public hearing. The protest may state that the landowner or resident objects to the public financing authority taking action to implement the enhanced infrastructure financing plan.

(2)At the second public

hearing, the public financing authority shall consider all written and oral protests received before the close of the public hearing along with the recommendations, if any, of affected taxing entities, and shall terminate the proceedings or adopt the enhanced infrastructure financing plan subject to confirmation by the voters at an election called for that purpose. The public financing authority shall terminate the proceedings if there is a majority protest. A majority protest exists if protests have been filed representing over 50 percent of the combined number of landowners and residents in the area who are at least 18 years of age. An election shall be called if between 25 percent and 50 percent of the combined number of landowners and residents in the area who are at least 18 years of age file a protest.

(d)An election required pursuant to paragraph (2) of subdivision (c) shall be held within 90 days of the public hearing and may be held

by mail-in ballot. The public financing authority shall adopt, at a duly noticed public hearing, procedures for this election.

(e)If a majority of the landowners and residents vote against the enhanced infrastructure financing plan, then the public financing authority shall not take any further action to implement the proposed enhanced infrastructure financing plan. The public financing authority shall not propose a new or revised enhanced infrastructure financing plan to the affected landowners and residents for at least one year following the date of an election in which the enhanced infrastructure financing plan was rejected.
(f)At the hour set in the notices required by subparagraph (B) of paragraph (1) of subdivision (b), the public financing authority shall consider all written and oral comments.
(g)If less

than 25 percent of the combined number of landowners and residents in the area who are at least 18 years of age file a protest, the public financing authority may adopt the enhanced infrastructure financing plan at the conclusion of the second public hearing by resolution. The resolution adopting the enhanced infrastructure financing plan shall be subject to referendum as prescribed by law.

(h)The public financing authority shall consider and adopt an amendment or amendments to an enhanced infrastructure financing plan in accordance with the provisions of this section.
(i)(1) A separate notice of the first public hearing shall also be published not less than once a week for four successive weeks before the first public hearing in a newspaper of general circulation published in the county in which the area lies. The notice shall state that the district will

be used to finance public facilities or development, briefly describe the public facilities or development, briefly describe the proposed financial arrangements, including the proposed commitment of incremental tax revenue, describe the boundaries of the proposed district, and state the day, hour, and place when and where any persons having any objections to the proposed infrastructure financing plan, or the regularity of any of the prior proceedings, may appear before the public financing authority and object to the adoption of the proposed plan by the public financing authority.

(2)A separate notice of the second public hearing shall also be published not less than 10 days before the second public hearing in a newspaper of general circulation in the county in which the area lies. The notice shall state that the district will be used to finance public facilities or development, briefly describe the public facilities or development, briefly

describe the proposed financial arrangements, describe the boundaries of the proposed district, and state the day, hour, and place when and where any persons having any objections to the proposed infrastructure financing plan, or the regularity of any of the prior proceedings, may appear before the public financing authority and object to the adoption of the proposed plan by the public financing authority.

(j)(1) The public financing authority shall review the enhanced infrastructure financing plan at least annually and make any amendments that are necessary and appropriate and shall require the preparation of an annual independent financial audit paid for from revenues of the enhanced infrastructure financing district.

(A) Amendments to an approved infrastructure financing plan, including proposals to finance affordable housing and additional eligible

projects, as specified in Section 53398.52, or to add a participating taxing entity and its representatives as members of a public financing authority after the date of district formation, may be approved by a majority vote of the public financing authority at a public hearing held following the provision of a 30-day mailed notice describing the proposed changes to all property owners, residents, and affected taxing entities.

(B) Amendments that propose any of the following shall be adopted in accordance with all notices and hearing requirements for the affected landowners and residents within the proposed additional territory applicable to an initial proposed enhanced infrastructure financing plan:

(i)Addition of new territory to a district.

(ii) Increase of the limit of the total number of dollars in local taxes

allocated to the plan, except where the increase is a result of an affected taxing entity agreeing to participate in the existing district and the plan is amended pursuant to subparagraph (A).

(iii) Approval of a public facility or development that was not proposed to be financed or assisted by the district in the approved plan.

(2)A public financing authority shall adopt an annual report within seven months of the close of each fiscal year, after holding a public hearing. Written copies of the draft report shall be made available to the public 30 days before the public hearing. The public financing authority shall cause the draft report to be posted in an easily identifiable and accessible location on the enhanced infrastructure financing district’s internet website and shall mail a written notice of the availability of the draft report on the internet website to each owner of

land and each resident within the area covered by the enhanced infrastructure financing plan and to each taxing entity that has adopted a resolution pursuant to Section 53398.68.

(3)The annual report shall contain all of the following:
(A)A description of the projects undertaken in the fiscal year, including any rehabilitation of structures, and a comparison of the progress expected to be made on those projects compared to the actual progress.
(B)A chart comparing the actual revenues and expenses, including administrative costs, of the public financing authority to the budgeted revenues and expenses.
(C)The amount of tax increment revenues received.
(D)An assessment of the status

regarding completion of the enhanced infrastructure financing district’s projects.

(E)The amount of revenues expended to assist private businesses.
(4)If the public financing authority fails to provide the annual report required by paragraph (3), the public financing authority shall not spend any funds received pursuant to a resolution adopted pursuant to this chapter until the public financing authority has provided the report.

Amended by Stats. 2025, Ch. 260, Sec. 4. (AB 417) Effective January 1, 2026.

(a)The public financing authority shall not adopt a resolution proposing formation of a district and providing for the division of taxes of any affected taxing entity pursuant to Article 3 (commencing with Section 53398.75) unless a resolution approving the plan has been adopted by the governing body of each affected taxing entity that is proposed to be subject to division of taxes pursuant to Article 3 (commencing with Section 53398.75) and has been filed with the legislative body at or before the time of the hearing.
(b)Nothing in this section shall be construed to prevent the public financing authority from amending its infrastructure financing plan and adopting a resolution proposing formation of the enhanced infrastructure financing district without

allocation of the tax revenues of any affected taxing entity that has not approved the infrastructure financing plan by resolution of the governing body of the affected taxing entity.

(c)(1) At any time after the date of district formation, an affected taxing entity may choose to approve the plan and participate in the division of taxes used to finance the activities of a district, by adopting a resolution of the governing body.
(2)If, after the date of district formation, an affected taxing entity adopts a resolution approving the plan and to participate in the division of taxes used to finance an enhanced infrastructure financing district, the division of taxes shall be based upon the last equalized assessment roll that is used for the district pursuant to paragraph (2) of subdivision (a) of Section 53398.75.

Amended by Stats. 2019, Ch. 656, Sec. 5. (AB 116) Effective January 1, 2020.

(a)(1) At the conclusion of the hearings pursuant to Section 53398.66, the public financing authority may adopt a resolution proposing adoption of the infrastructure financing plan, as modified, and formation of the enhanced infrastructure financing district in a manner consistent with Section 53398.68, or it may adopt a resolution abandoning the proceedings. If the proceedings are abandoned, then the public financing authority shall cease to exist by operation of this section with no further action required of the legislative body and the legislative body may not enact a resolution of intention to

establish a district that includes the same geographic area within one year of the date of the resolution abandoning the proceedings.

(2)In the case of an infrastructure financing plan adopted pursuant to Section 53398.75.7, the proceedings set forth in subdivision (e) of that section shall govern the adoption of the infrastructure financing plan.
(b)The infrastructure financing plan shall take effect upon the adoption of the resolution. The infrastructure financing plan shall specify if the district shall be funded solely through the district’s share of tax increment, governmental or private loans, grants, bonds, assessments, fees, or some combination thereof. However, the public financing authority shall not issue bonds or levy assessments or fees that may be included in the infrastructure financing plan before one or more of the following:
(1)The adoption of a resolution meeting the requirements of Section

53398.77, and, if applicable, subdivision (c) of Section 53398.78, to issue bonds to finance the infrastructure financing plan.

(2)Compliance with the procedures required in subdivision (f) of Section 53398.75, to levy assessments or fees to finance the infrastructure financing plan.
(c)In addition, the district may expend up to 10 percent of any accrued tax increment in the first two years of the effective date of the enhanced infrastructure financing district on planning and dissemination of information to the residents within the district’s boundaries about the infrastructure financing plan and planned activities to be funded by the

district.

Added by Stats. 2014, Ch. 785, Sec. 1. (SB 628) Effective January 1, 2015.

(a)Except as otherwise provided in this chapter, the provisions of law regulating elections of the local agency that calls an election pursuant to this chapter, insofar as they may be applicable, shall govern all elections conducted pursuant to this chapter. Except as provided in subdivision (b), there shall be prepared and included in the ballot material provided to each voter, an impartial analysis pursuant to Section 9160 or 9280 of the Elections Code, arguments and rebuttals, if any, pursuant to Sections 9162 to 9167, inclusive, and Section 9190 of the Elections Code or pursuant to Sections 9281 to 9287, inclusive, and Section 9295 of the Elections Code.
(b)If the vote is to be by the

landowners of the proposed district, analysis and arguments may be waived with the unanimous consent of all the landowners and shall be so stated in the order for the election.

Added by Stats. 2014, Ch. 785, Sec. 1. (SB 628) Effective January 1, 2015.

(a)If the election is to be conducted by mail ballot, the election official conducting the election shall provide ballots and election materials pursuant to subdivision (d) of Section 53326 and Section 53327, together with all supplies and instructions necessary for the use and return of the ballot.
(b)The identification envelope for return of mail ballots used in landowner elections shall contain the following:
(1)The name of the landowner.
(2)The address of the landowner.
(3)A declaration, under

penalty of perjury, stating that the voter is the owner of record or the authorized representative of the landowner entitled to vote and is the person whose name appears on the identification envelope.

(4)The printed name and signature of the voter.
(5)The address of the voter.
(6)The date of signing and place of execution of the declaration pursuant to paragraph (3).
(7)A notice that the envelope contains an official ballot and is to be opened only by the canvassing board.

Added by Stats. 2024, Ch. 599, Sec. 8. (SB 1140) Effective January 1, 2025.

(a)As an alternative to mailing documents pursuant to Section 53398.64 and Section 53398.66, the official designated pursuant to Section 53398.62 may mail a notice to each landowner, resident, and affected taxing entity at least 40 days before the meeting held pursuant to subdivision (a) of Section 53398.66. This notice shall include all of the following, as applicable:
(1)A summary of the plan, including all required information listed in paragraph (1) of subdivision (c) of Section 53398.66.
(2)The internet website where the applicable documents, including those described in Section 53398.64, will be made available for public viewing or inspection.
(3)A designated contact person to receive and process any requests for a mailed or electronically mailed packet of all materials.
(4)The location, date, and time of the meeting and two scheduled public hearings held in accordance with Section 53398.66.
(5)A description of the actions that may be taken at the meeting and each of the public hearings described in paragraph (4).
(6)A description of the schedule, information, and process for accessing any amendments to the plan in accordance with paragraph (1) of subdivision (j) of Section 53398.66.
(7)A description of the schedule, information, and process for accessing annual reports in accordance with paragraph (2) of subdivision (i) of

Section 53398.66.

(b)(1) If the first or second public hearing on the plan occurs at the location, date, and time listed in the mailed notice described in subdivision (a), then the public financing authority shall be deemed to comply with the 10-day mailed notice requirement pursuant to subdivision (b) of Section 53398.66.
(2)If the first or second public hearing is rescheduled for a later date than listed in the mailed notice described in subdivision (a), due to unanticipated circumstances, the official designated pursuant to Section 53398.62 shall do all of the following:
(A)Publish notice of the rescheduled date and time of the first or second public hearing, at least 10 days before the meeting, in a newspaper in accordance with subdivision (i) of Section 53398.66.
(B)Post, at least 10 days before the rescheduled meeting, notice of the rescheduled date and time of the first or second public hearing on the internet website described in paragraph (2) of subdivision (a).
(C)Email, at least 10 days before the rescheduled meeting, notification of the rescheduled date and time of the first or second public hearing to the email contact list assembled and maintained in accordance with subdivision (c).
(c)The designated contact person described in paragraph (3) of subdivision (a) shall assemble and maintain an email contact list of all landowners, residents, and other interested parties who have expressed interest in receiving information and materials.

Added by Stats. 2024, Ch. 599, Sec. 9. (SB 1140) Effective January 1, 2025.

Except for the notices described in subdivision (i) of Section 53398.66, a notice required by this chapter shall be provided in English and in all other languages spoken jointly by 20 percent or more of the population in the jurisdiction of the county of the proposed district that speaks English less than “very well” and jointly speaks a language other than English according to data from the most recent American Community Survey or data from an equally reliable source.

Repealed and added by Stats. 2015, Ch. 320, Sec. 14. (AB 313) Effective January 1, 2016.

This section implements and fulfills the intent of this chapter and of Article XIII B of the California Constitution. The allocation and payment to a district of the portion of taxes specified in Section 53398.75 for the purpose of paying principal of, or interest on, loans, advances, or indebtedness incurred by the district pursuant to this chapter, shall not be deemed the receipt by a district of proceeds of taxes levied by or on behalf of the district within the meaning or for the purposes of Article XIII B of the California Constitution, nor shall that portion of taxes be deemed receipt of proceeds of taxes by, or an appropriation subject to limitation of, any other public body within the meaning or for purposes of Article XIII B of the California Constitution or any statutory provision enacted in implementation of Article XIII B of the California Constitution.

Amended by Stats. 2025, Ch. 769, Sec. 1. (SB 516) Effective January 1, 2026.

(a)Any infrastructure financing plan may contain a provision that taxes, if any, levied upon taxable property in the area included within the enhanced infrastructure financing district each year by or for the benefit of the State of California, or any affected taxing entity after the effective date of the resolution adopted pursuant to Section 53398.69 to create the district, shall be divided, subject to the provisions of Section 53993, as follows:
(1)That portion of the taxes that would be produced by the rate upon which the tax is levied each year by or for each of the affected taxing entities upon the total sum of the assessed value of the taxable property in the district as shown upon

the assessment roll used in connection with the taxation of the property by the affected taxing entity, last equalized prior to the effective date of the resolution adopted pursuant to Section 53398.69 to create the district, shall be allocated to, and when collected shall be paid to, the respective affected taxing entities as taxes by or for the affected taxing entities on all other property are paid.

(2)That portion of the levied taxes each year specified in the adopted infrastructure financing plan for the city or county and each affected taxing entity that has agreed to participate pursuant to Section 53398.68 in excess of the amount specified in paragraph (1) shall be allocated to, and when collected shall be paid into a special fund of, the district for all lawful purposes of the district. Unless and until the total assessed valuation

of the taxable property in a district exceeds the total assessed value of the taxable property in the district as shown by the last equalized assessment roll referred to in paragraph (1), all of the taxes levied and collected upon the taxable property in the district shall be paid to the respective affected taxing entities. When the district ceases to exist pursuant to the adopted infrastructure financing plan, all moneys thereafter received from taxes upon the taxable property in the district shall be paid to the respective affected taxing entities as taxes on all other property are paid.

(b)Notwithstanding subdivision (a), where any district boundaries overlap with the boundaries of any former redevelopment project area, any debt or obligation of a district shall be subordinate to any and all enforceable obligations of the former

redevelopment agency, as approved by the Oversight Board and the Department of Finance. For the purposes of this chapter, the division of taxes allocated to the district pursuant to subdivision (a) of this section or of subdivision (b) of Section 53396 shall not include any taxes required to be deposited by the county auditor-controller into the Redevelopment Property Tax Trust Fund created pursuant to subdivision (b) of Section 34170.5 of the Health and Safety Code.

(c)The legislative body of the city or county forming the district may choose to dedicate any portion of its net available revenue to the district through the financing plan described in Section 53398.63.
(d)For the purposes of this section, “net available revenue” means periodic distributions to the city or

county from the Redevelopment Property Tax Trust Fund, created pursuant to Section 34170.5 of the Health and Safety Code, that are available to the city or county after all preexisting legal commitments and statutory obligations funded from that revenue are made pursuant to Part 1.85 (commencing with Section 34170) of Division 24 of the Health and Safety Code. “Net available revenue” shall not include any funds deposited by the county auditor-controller into the Redevelopment Property Tax Trust Fund or funds remaining in the Redevelopment Property Tax Trust Fund prior to distribution. Net available revenues shall not include any moneys payable to a school district that maintains kindergarten and grades 1 to 12, inclusive, community college districts, county office of education, or to the Educational Revenue Augmentation Fund, pursuant to paragraph (4) of subdivision (a) of Section 34183 of the

Health and Safety Code.

(e)(1) That portion of any ad valorem property tax revenue annually allocated to a city or county pursuant to Section 97.70 of the Revenue and Taxation Code that is specified in the adopted infrastructure financing plan for the city or county that has agreed to participate pursuant to Section 53398.68, and that corresponds to the increase in the assessed valuation of taxable property shall be allocated to, and, when collected, shall be apportioned to, a special fund of the district for all lawful purposes of the district.
(2)When the district ceases to exist pursuant to the adopted infrastructure financing plan, the revenues described in this subdivision shall be allocated to, and, when collected, shall be apportioned to, the

respective city or county.

(f)This section shall not be construed to prevent a district from utilizing revenues from any of the following sources to support its activities provided that the applicable voter approval has been obtained, and the infrastructure financing plan has been approved pursuant to Section 53398.69:
(1)The Improvement Act of 1911 (Division 7 (commencing with Section 5000) of the Streets and Highways Code).
(2)The Municipal Improvement Act of 1913 (Division 12 (commencing with Section 10000) of the Streets and Highways Code).
(3)The Improvement Bond Act of 1915 (Division 10 (commencing with Section 8500) of the Streets and Highways Code).
(4)The Landscaping and Lighting Act of 1972 (Part 2 (commencing with Section 22500) of Division 15 of the Streets and Highways Code).
(5)The Vehicle Parking District Law of 1943 (Part 1 (commencing with Section 31500) of Division 18 of the Streets and Highways Code).
(6)The Parking District Law of 1951 (Part 4 (commencing with Section 35100) of Division 18 of the Streets and Highways Code).
(7)The Park and Playground Act of 1909 (Chapter 7 (commencing with Section 38000) of Part 2 of Division 3 of Title 4 of this code).
(8)The Mello-Roos Community Facilities Act of 1982 (Chapter 2.5

(commencing with Section 53311) of Part 1 of Division 2 of this title).

(9)The Benefit Assessment Act of 1982 (Chapter 6.4 (commencing with Section 54703) of Part 1 of Division 2 of this title).
(10)The so-called facilities benefit assessment levied by the charter city of San Diego or any substantially similar assessment levied for the same purpose by any other charter city pursuant to any ordinance or charter provision.
(11)Any state funds.

Added by Stats. 2014, Ch. 785, Sec. 1. (SB 628) Effective January 1, 2015.

All costs incurred by a county in connection with the division of taxes pursuant to Section 53398.75 for a district shall be paid by that district.

Amended by Stats. 2019, Ch. 656, Sec. 6. (AB 116) Effective January 1, 2020.

The public financing authority may, by majority vote, issue bonds pursuant to this chapter by adopting a resolution that includes all of the following:

(a)A description of the facilities or developments to be financed with the proceeds of the proposed bond issue.
(b)The estimated cost of the

facilities or developments, the estimated cost of preparing and issuing the bonds, and the principal amount of the bond issuance.

(c)The maximum interest rate and discount on the bond issuance.
(d)A determination of the amount of tax revenue available or estimated to be available, for the payment of the principal of, and interest on, the bonds.
(e)A finding that the amount necessary to pay the principal of, and interest on, the bond issuance will be less than, or equal to, the amount determined pursuant to subdivision (d).
(f)The issuance of the bonds in one or more series.
(g)The principal amount of the bonds that shall be consistent with the amount specified in subdivision (b).
(h)The date the bonds will bear.
(i)The date of maturity of the bonds.
(j)The denomination of the bonds.
(k)The form of the bonds.
(l)The manner of execution of the bonds.
(m)The medium of payment in which the bonds are payable.
(n)The place or manner of payment and any requirements for registration of the bonds.
(o)The terms of call or redemption, with or without premium.

Added by renumbering Section 53398.80.5 by Stats. 2019, Ch. 656, Sec. 10. (AB 116) Effective January 1, 2020.

(a)If the public financing authority adopts a resolution to issue bonds pursuant to Section 53398.77 for port or harbor infrastructure, it shall,

before issuing the bonds, submit the resolution to issue bonds to the affected harbor agency pursuant to Section 1713 of the Harbors and Navigation Code for its preliminary approval.

(b)If the harbor agency grants preliminary approval, the proposal shall be considered by the State Lands Commission for final approval pursuant to Section 1714 of the Harbors and Navigation Code.
(c)If the State Lands Commission votes in favor of the issuance of the bonds as provided in Section 1714 of the Harbors and Navigation Code, the public financing authority may issue bonds pursuant to Section 53398.77.