Back to California

AB-2397 • 2026

Local government: community facilities districts: financing.

Local government: community facilities districts: financing.

Housing Land Taxes
Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor
Ta
Last action
2026-04-23
Official status
From committee chair, with author's amendments: Amend, and re-refer to Com. on H. & C.D. Read second time and amended.
Effective date
Not listed

Plain English Breakdown

The official summary does not provide details on enforcement mechanisms or penalties for non-compliance by local agencies.

Local Government: Community Facilities Districts Financing

This law stops local agencies from rejecting or making it too hard for housing projects that help lower and moderate income families to get money through community facilities districts, unless the agency has strong reasons in writing.

What This Bill Does

  • Prohibits a local agency from denying or conditionally denying an application for financing through a community facilities district if the project includes units affordable to persons and families of lower or moderate-income households, unless the agency provides written findings supported by substantial evidence.

Who It Names or Affects

  • Local agencies
  • Housing developers working on projects for low to moderate-income families

Terms To Know

Community facilities district
A special area set up by local governments to fund public services or infrastructure.
Preponderance of the evidence
The amount of proof needed in a case where it is more likely than not that something is true.

Limits and Unknowns

  • Does not specify what happens if local agencies do not follow these rules.
  • It does not change how other types of housing projects are handled, only those related to community facilities districts.
  • The bill applies statewide and includes charter cities but does not cover all possible scenarios or exceptions.

Bill History

  1. 2026-04-23 California Legislative Information

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

  2. 2026-04-23 California Legislative Information

    From committee: Do pass and re-refer to Com. on H. & C.D. (Ayes 10. Noes 0.) (April 22). Re-referred to Com. on H. & C.D.

  3. 2026-04-09 California Legislative Information

    In committee: Hearing postponed by committee.

  4. 2026-04-07 California Legislative Information

    Re-referred to Com. on L. GOV.

  5. 2026-04-06 California Legislative Information

    From committee chair, with author's amendments: Amend, and re-refer to Com. on L. GOV. Read second time and amended.

  6. 2026-03-23 California Legislative Information

    Re-referred to Com. on L. GOV.

  7. 2026-03-19 California Legislative Information

    From committee chair, with author's amendments: Amend, and re-refer to Com. on L. GOV. Read second time and amended.

  8. 2026-03-19 California Legislative Information

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

  9. 2026-02-21 California Legislative Information

    From printer. May be heard in committee March 23.

  10. 2026-02-20 California Legislative Information

    Read first time. To print.

Official Summary Text

AB 2397, as amended, Ta.
Local government: community facilities districts: financing.
Existing law, the Mello-Roos Community Facilities Act of 1982, authorizes a local agency, as defined, to initiate proceedings to establish a community facilities district as an alternative method of financing certain public capital facilities and services, especially in developing areas undergoing rehabilitation, only if it has first considered and adopted local goals and policies, as prescribed. Existing law authorizes a local agency to take any actions or make any determinations which it determines are necessary or convenient to carry out the purposes of the act and which are not otherwise prohibited by law.
This bill would prohibit a local agency from denying or conditionally denying, or imposing conditions on in a manner that renders infeasible, an application for financing through a community facilities district pursuant to the act that is
related to a housing development project that includes units affordable to persons and families of lower income households or moderate income households, as those terms are defined, unless the local agency makes written findings supported by a preponderance of the evidence in the record that, among other things, the denial or any condition is based on specific, written findings setting forth the reasons for the decision.
Existing law, the Housing Accountability Act, which is part of the Planning and Zoning Law, prohibits, among other things, a local agency from disapproving a housing development project or emergency shelter, or conditioning approval in a manner that renders the housing or emergency shelter infeasible, as specified, for a housing development project for very low, low-, or moderate-income households, or an emergency shelter, unless the local
agency makes specified written findings based upon a preponderance of the evidence in the record.
This bill would require its provisions to be construed consistently with the standards set forth in the Housing Accountability Act, as applicable.
This bill would prohibit the legislative body of a local agency from taking certain actions with respect to a critical housing infrastructure district, as defined, including abandoning the proposed establishment of the district, as specified, unless prior to taking the action it makes findings based upon substantial evidence that, among other things, establishment of the district, levying the special taxes, or incurring bonded indebtedness, as applicable, would have a specific adverse impact upon the public interest.
The bill would specify that these provisions do not require or prohibit the legislative body from taking any other action authorized by the act with respect to a critical housing infrastructure district, as specified.
The bill would include findings that changes proposed by this bill address a matter of statewide concern rather than a municipal affair and, therefore, apply to all cities, including charter cities.

Current Bill Text

Read the full stored bill text
Download Bill PDF