On September 28, 2021, Governor Newsom signed SB 780 (Cortese) into law. CALED sponsored this bill based on input from economic development practitioners on how to improve California’s economic development financing tools. Dee Dee Myers, Senior Advisor and Director of the Governor’s Office of Business and Economic Development stated, “California’s local agencies have long used tax increment financing tools, and this bill provides needed clarifications to improve their utilization. Tools like Enhanced Infrastructure Finance Districts (EIFDs) and Community Revitalization Investment Authorities (CRIAs) are often used to help spur the development of affordable housing and community public infrastructure projects. The Governor’s Office of Business and Economic Development (GO-Biz) is especially proud to work with the California Association of Local Economic Development (CALED) who led the effort on SB 780 so that our local agencies can invest in their communities using these revitalized tools.”
Since the elimination of redevelopment agencies in 2011, the Legislature enacted several tax increment financing tools to support infrastructure, economic development and affordable housing in local communities. Improvements to two of these tools, EIFD and CRIA, were needed to facilitate their use for infrastructure, economic development, revitalization, and affordable housing objectives. We are grateful to Senator Cortese for authoring this thoughtful, practitioner-informed legislation that streamlines EIFDs and CRIAs.
Senator Cortese said the following about SB 780: “The need for creative ways to raise money for local development projects is greater than ever. The COVID-19 pandemic imposed immense pressure on local governments that were already financially unstable, and the housing crisis has left local governments scrambling for solutions to get affordable housing projects funded. Therefore, the revitalization of these economic development tools is well overdue.”
CALED President and CEO Gurbax Sahota shared, “On behalf of hundreds of economic developers across our state, the California Association for Local Economic Development thanks Governor Newsom for signing SB 780 and Senator Cortese for his thoughtful leadership in listening to practitioner solutions for growing local economies by authoring SB 780. This legislation, which improves EIFDs and CRIAs, gives California communities more effective tax increment financing tools for economic development, infrastructure, and affordable housing projects – critical investments needed in order to create a better future for our residents.”
Thank you to CALED’s Strategic Legislative Advisor Daniel Carrigg, the Economic Development Finance and Real Estate Committee, the Legislative Advocacy Committee, and the Board of Directors & Advisors for their engagement on this bill.
List of supporters of this bill:
- California Association for Local Economic Development (Sponsor)
- California Building Industry Association
- California Business Properties Association
- California Forward Action Fund
- City of Concord
- City of Cupertino
- City of Huntington Park
- City of Lakewood
- City of Lynwood
- City of Milpitas
- City of Pico Rivera
- City of San Diego
- City of Vista
- City of West Sacramento
- County of Monterey
- Desert Valley Builders Association
- Edison International and Affiliates, Including Southern California Edison
- Inland Valley Development Agency
- Keyser Marston Associates, Inc.
- Kosmont Companies
- League of California Cities
- Luis Alejo, Monterey Co. Supervisor (Author of AB 2 (Alejo), CRIA Law)
- RSG, Inc.
- San Francisco Bay Area Planning and Urban Research Association (SPUR)
- Southwest California Legislative Counsel