Plain English Breakdown
The official status indicates the bill was vetoed; it is unclear if a legislative override occurred based solely on the provided metadata.
Community Stabilization Act for Los Angeles and Ventura Counties
This vetoed bill would have created a program to help stabilize property values in disaster-affected areas of Los Angeles and Ventura counties by allowing investors to fund the purchase and management of residential land damaged or destroyed by wildfires starting on January 7, 2025.
What This Bill Does
- Requires the California Infrastructure and Economic Development Bank (I-Bank) to create a program that issues tradable securities until January 1, 2030.
- Creates a Community Stabilization Fund where money from investors is deposited for use in Los Angeles and Ventura counties within areas covered by a state of disaster declared by the Governor.
- Allows qualifying investment entities to buy residential land damaged or destroyed by wildfires starting on January 7, 2025, until it can be resold at fair market value.
- Requires profits from selling the managed properties to be shared between investors and the I-Bank based on set percentages, while reimbursing qualifying investment entities for administrative costs.
- Mandates that investments must be repaid within seven years of buying a property or when a liquidity event occurs.
Who It Names or Affects
- The California Infrastructure and Economic Development Bank (I-Bank).
- Qualified investors who purchase tradable securities using funds available under the federal Community Reinvestment Act.
- Qualifying investment entities, such as nonprofit organizations, that manage residential land in disaster areas.
- Residents of Los Angeles and Ventura counties whose properties were damaged or destroyed by wildfires beginning on January 7, 2025.
Terms To Know
- Security
- A tradable financial instrument that investors can buy to provide funding for the program using funds from the federal Community Reinvestment Act.
- Liquidity event
- The sale or refinancing of an investment property, which triggers repayment to investors.
- Qualifying investment entity
- An organization, such as a nonprofit, that meets specific requirements set by the I-Bank to purchase and manage damaged residential land.
Limits and Unknowns
- The Governor vetoed this bill, so it did not become law unless lawmakers later overrode that decision.
- Funding is limited to properties in Los Angeles and Ventura counties affected by wildfires starting on January 7, 2025, within areas covered by a state of disaster declared by the Governor.