AB 2079 California Assembly · 2025-2026 Regular Session

Adaptive Reuse Investment Incentive Program.

Summary

Existing law, the Office to Housing Conversion Act, starting July 1, 2026, deems an adaptive reuse project, as defined, a use by right in all zones, regardless of the zoning of the site, and subject to a streamlined, ministerial review process, if the project meets specified requirements. Existing law authorizes a local government to adopt an ordinance implementing the act and specifying the process and requirements applicable to adaptive reuse projects. If a local agency does not adopt an above-described ordinance, existing law requires the local agency to ministerially, without discretionary review, approve or disapprove applications for a permit to create or serve an adaptive reuse project, as specified. Existing law, the authorizes a city or county, or city and county, commencing in the 2026–27 fiscal year, to establish an adaptive reuse investment incentive program. If a city or county, or city and county, establishes that program, existing law requires, upon approval of the governing body, the city or county, or city and county, to pay adaptive reuse investment incentive funds to the proponent of a qualified adaptive reuse project property, approved pursuant to the streamlined, ministerial process described above, to subsidize the affordable housing required under the Office to Housing Conversion Act, as specified. Existing law defines "qualified adaptive reuse project property" to mean an adaptive reuse project proposed pursuant to the Office to Housing Conversion Act that is located within the city or county. This bill would expand the definition of qualified adaptive reuse project property to include adaptive reuse projects that fall under the Office to Housing Conversion Act regardless of compliance with affordability criteria or labor standards specified in that Act, thereby expanding payment of adaptive reuse investment incentive funds to certain adaptive reuse projects that do not have the requisite affordability or labor standards as specified in the Act, as provided. The bill would also expand the requirement on those cities, counties, and cities and counties to pay adaptive reuse investment incentive funds to the proponent to, in addition to subsidizing affordable housing units, subsidize the project's housing units. Existing law authorizes a city or special district to pay to the city or county, or city and county, an amount equal to the amount of ad valorem property tax revenue allocated to that city or special district, but not the actual allocation, derived from the taxation of that portion of the total assessed value of that real property that is in excess of the property's valuation at the time of the proponent's initial request for funding, for the purpose of subsidizing the affordable housing units required pursuant to the Office to Housing Conversion Act. This bill would expand the authorization for a city or special district to pay to the city or county, or city and county, as described above, for the purpose of subsidizing the project's housing units.

Issues: ✓ Housing

Bill status in committee 1 of 4 stages cleared

Introduction

Feb 2026

Committee Review

Floor Vote

Governor

Introduced Feb 18, 2026 Last action Mar 23, 2026

Maddy AI version diff · 2 comparisons

What changed between versions

03/19/26 - Amended Assembly → AB2079 · 3 edits

MINOR

This diff reflects a formatting and presentation change rather than a substantive policy change. The bill text transitions from a traditional print-style legislative layout (with line numbers, page headers, and column formatting) to a web-published version that includes website navigation elements (skip to content, home, accessibility, FAQ, etc.) and restructured section headings. The actual legislative language of AB 2079 remains identical between the two versions.

TECHNICAL

The document was reformatted from a print-style legislative layout with line numbers and page headers into a web-published format with navigation menus, breadcrumb trails, and restructured headings. No policy language was changed.

Website navigation elements were added including skip to content, home, accessibility, FAQ, feedback, sitemap, login, quick search fields, and bill tracking links.

Minor capitalization changes in the digest key: 'Vote: majority' became 'Vote: MAJORITY', 'Appropriation: no' became 'Appropriation: NO', and a new line 'Local Program: NO' was added to the digest summary.

02/18/26 - Introduced → 03/19/26 - Amended Assembly · 6 edits · Mar 19, 2026

MODERATE

AB 2079 was dramatically expanded from a single-section legislative intent statement into a full Adaptive Reuse Investment Incentive Program. The amended bill adds three new Government Code sections (51299.1-51299.3) that create a property-tax-based funding mechanism allowing cities and counties to pay developers of adaptive reuse projects up to 30 years of incentive funds derived from the increase in assessed value of those properties. The program notably expands eligibility beyond projects meeting affordability or labor standards, and broadens the purpose of payments from subsidizing only affordable housing to subsidizing all of a project's housing units.

SCOPE

The bill now establishes an Adaptive Reuse Investment Incentive Program under Government Code sections 51299.1 through 51299.3, rather than merely stating legislative intent. Cities and counties may voluntarily establish the program starting in the 2026-27 fiscal year.

FISCAL

Creates a funding mechanism where adaptive reuse investment incentive funds equal the ad valorem property tax revenue from the increase in assessed value of the project property above its valuation at the time of the proponent's initial funding request. Payments can continue for up to 30 consecutive fiscal years.

Broadens the purpose of incentive fund payments from subsidizing only 'affordable housing units required pursuant to the Office to Housing Conversion Act' to also include subsidizing 'the project's housing units' generally. This applies both to the city/county payment obligation and to the optional contribution from cities or special districts.

ELIGIBILITY

Expands the definition of 'qualified adaptive reuse project property' to include adaptive reuse projects that do NOT comply with affordability criteria (Section 65658.5(b)(3)) or labor standards (Sections 65658.6(a)(1) and 65658.12-65658.15). This means projects that would not otherwise qualify under the Office to Housing Conversion Act can still receive incentive funds.

DEFINITION

Adds formal definitions for 'adaptive reuse investment incentive funds,' 'program,' 'proponent' (must be named in the permit application and will be fee owner upon completion; lessees who receive a portion of funds also qualify), and 'qualified adaptive reuse project property.'

REQUIREMENT

Establishes procedural requirements: proponent must file a written request with the governing body; payment requires approval by a majority of the entire membership of the governing body; payments begin with the first fiscal year after the project receives a certificate of occupancy (or final inspection if the jurisdiction does not issue certificates).

Floor votes

How they voted

No floor votes recorded yet.

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Amendments

Mar 23, 2026

Committee

Re-referred to Com. on H. & C.D.

lower

Mar 19, 2026

Introduced

From committee chair, with author's amendments: Amend, and re-refer to Com. on H. & C.D. Read second time and amended.

lower

Mar 19, 2026

Committee

Referred to Coms. on H. & C.D. and L. GOV.

lower

Feb 19, 2026

Lower · Passed

From printer. May be heard in committee March 21.

lower

1 primary · 0 co-sponsors