§ 53398.52. — 53398.52. (Amended by Stats. 2025, Ch. 260, Sec. 2.)

California § 53398.52.

• Jurisdiction: California
• Code GOV: Government Code - GOV
• Div.: 2.
• Title 5.: DIVISION 2. CITIES, COUNTIES, AND OTHER AGENCIES
• Part 1.: PART 1. POWERS AND DUTIES COMMON TO CITIES, COUNTIES, AND OTHER AGENCIES
• Ch. 2.99.: CHAPTER 2.99. Enhanced Infrastructure Financing District
• Art. 1.: ARTICLE 1. General Provisions

Text

(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.

Legislative History

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