Infrastructure Financing Districts Legislation
SB 628 (Beall) – Support
SB 628 by Senator Jim Beall was amended late in the session to provide for a new economic development tool, Enhanced Infrastructure Financing Districts (EIFDs). Counties will recall that the Governor had proposed the concept of EIFDs in his January budget proposal and May Revision, building on the existing infrastructure financing statutes. IFDs, like redevelopment agencies (RDAs), are economic development financing mechanisms that rely on tax increment financing. Unlike redevelopment, they cannot utilize schools’ property tax shares and require the consent of any other taxing entities before their property taxes can be diverted. An IFD can therefore use the tax increment of only some—or even one—of the local taxing entities.
The proposed EIFDs are available to finance transit priority projects, infill, affordable housing, military base reuse, and environmental mitigation. While the proposed bill does not include a voter requirement for formation of the EIFD, if the EIFD issues bonds, voters within the district must approve by at least 55%.
SB 628 was approved by the Senate and Assembly last week and will soon become eligible for the Governor’s consideration.