Local government: community facilities districts: financing.

The definition of qualifying affordable housing units in a critical housing infrastructure district now includes 'housing for very low, low-, or moderate-income households' as defined in Section 65589.5(h)(3), in addition to the existing references to lower income and moderate income households under Health and Safety Code sections 50079.5 and 50052.5. This adds very low income households to the protected categories.

The finding required before a local agency can take adverse action (abandoning a district, refusing special taxes, or refusing bonded indebtedness) now references the broader 'very low, low-, or moderate-income households' definition when determining whether housing costs would no longer meet affordability thresholds.

The legislative summary was reworded to remove redundant phrases ('among other things') and clarify the list of findings required based on substantial evidence. Page numbering shifted from 94 to 93.

Changed the requirement from making ALL findings in subdivision (c) to making 'at least one' of the listed findings. This means a local agency can now abandon a critical housing infrastructure district or refuse to levy taxes based on a single adverse impact finding rather than demonstrating all three specified impacts (adverse public interest, unaffordable housing costs, and unnecessary district for regional housing need).

Section 2 was restructured from two separate findings-and-declarations paragraphs into a single consolidated section. The standalone declaration that the specific new code section addresses a matter of statewide concern was removed and merged into a broader finding that increasing housing production is a matter of statewide concern and that inability to secure infrastructure financing is an impediment to housing production.

Removed the prohibition on local agencies denying or conditionally denying, or imposing infeasible conditions on, CFA financing applications for affordable housing projects. This had required written findings supported by a preponderance of the evidence and was modeled on Housing Accountability Act standards.

Expanded the legislative findings in Section 2 to explicitly state that increasing housing production is a matter of statewide concern and that inability to secure infrastructure financing is an impediment to housing production, strengthening the constitutional basis for applying to charter cities.

Removed the requirement that Section 53316.8 be construed consistently with the Housing Accountability Act (Section 65589.5), eliminating the legal link to that broader housing framework.

Added a new required finding in subdivision (c)(2): before taking action against a critical housing infrastructure district, the legislative body must find based on substantial evidence that doing so would result in housing costs for lower and moderate income units that no longer meet the definition of affordable housing costs under Section 50052.5 of the Health and Safety Code.

Removed the streamlined ministerial review process requiring local agencies to approve or deny completed CFA applications within 30 days, with automatic deemed approval if no action is taken.

Removed the requirement that denials be supported by actuarial evidence of substantial adverse impact on the local agency's insolvency risk.

Removed the prohibition on selectively denying CFA applications when the local agency has already approved similar applications in the same or prior regional housing needs allocation cycle.

Removed the requirement that cities and counties publish all CFA financing terms, including fees, bond purposes, and district boundaries, on their websites for public comparison.

Added prohibition on local legislative bodies abandoning a critical housing infrastructure district, refusing to adopt an ordinance levying special taxes, or refusing to adopt a resolution to incur bonded indebtedness, unless they make findings based on substantial evidence that the action would have a specific adverse impact on the public interest and, for sites identified in the housing element, that establishment is not necessary for development at specified densities.

Removed the HCD appeal process that allowed applicants to appeal denials to the Department of Housing and Community Development for a determination within 30 days.

Removed HCD's enforcement authority to investigate complaints, issue findings of noncompliance within 90 days, issue orders, and recommend withholding state housing funds from noncompliant local agencies.

Removed the fee cap limiting application fees to the historical average of prior application fees.

Fiscal committee determination changed from 'yes' to 'no,' reflecting the removal of provisions that would have triggered state-mandated local program costs or fiscal impacts requiring committee review.

Added definition of 'critical housing infrastructure district' as a CFA established solely to finance facilities serving affordable housing for lower or moderate income households, initiated by petition signed by 100 percent of landowners in the proposed district, with special taxes eligible for landowner approval under Section 53326(b).

The bill's scope shifted from a broad procedural framework with multiple enforcement mechanisms to a more targeted approach: retaining the substantive denial prohibition while adding protections specifically for CFA districts initiated by unanimous landowner petition for affordable housing projects.

The entire amendment to Government Code Section 65098 defining terms related to 21st century warehouses, logistics use developments, tier 1 warehouses, warehouse concentration regions, sensitive receptors, and small off-road engines was deleted. This removes the bill's connection to planning and zoning law entirely.

The bill's scope narrowed from covering both Mello-Roos CFA financing and warehouse/logistics definitions to covering only Mello-Roos CFA financing for affordable housing. The legislative digest removed the 'Planning and zoning' subject heading.

A new provision prohibits local agencies from denying or conditionally denying a CFA financing application related to a housing development project that includes units affordable to lower income or moderate income households, unless the agency makes written findings supported by a preponderance of the evidence that (1) the denial is based on specific written reasons and (2) the CFA would have a specific adverse impact on public health or safety or violate state or federal law with no feasible mitigation.

A new requirement that the section be construed consistently with the standards set forth in the Housing Accountability Act (Section 65589.5), aligning the CFA denial standard with existing state housing accountability law.

New definitions for 'lower income household' (referencing Health and Safety Code Section 50079.5) and 'moderate income household' (referencing Health and Safety Code Section 50052.5) were added to the new affordable housing CFA provision.

Added new Section 53316.8 to the Government Code, expanding the bill from a warehouse definition fix to a comprehensive Mello-Roos Community Facilities Act reform targeting housing infrastructure financing.

Adds a legislative finding that the new provisions address a matter of statewide concern rather than a municipal affair, making them applicable to all cities including charter cities.

Requires local agencies to approve or deny completed bond financing applications within 30 days; applications are deemed approved if no action is taken within that period.

Prohibits local agencies from selectively denying financing for housing-related public infrastructure if they have already approved other projects during the same or prior regional housing needs allocation cycle.

Caps application fees at the historical average of prior application fees and prohibits requiring applicants to accept financing they do not want.

Requires local agencies that deny an application to support the denial with actuarial evidence demonstrating substantial adverse impact on the agency's insolvency risk.

Grants the Department of Housing and Community Development authority to investigate complaints, issue findings of noncompliance within 90 days, issue orders, and recommend withholding state housing funds from noncompliant local agencies.

Requires each city and county in a community facilities district to publish all bond financing terms, including fees, purposes, and district boundaries, on their internet website for public comparison.

Fiscal committee review changed from 'no' to 'yes,' indicating the bill now has fiscal implications requiring committee analysis.