Unless the context otherwise requires, the following definitions shall govern the construction of this chapter:

(a)“Affected taxing entity” means any governmental taxing agency that levied or had levied on its behalf a property tax on all or a portion of the property located in the proposed district in the fiscal year prior to the designation of the district, but not including any county office of education, school district, or community college district.

(b)“City” means a city, a county, or a city and county.

(c)“Debt” means any binding obligation to repay a sum of money, including obligations in the form of bonds, certificates of participation, long-term leases, loans from government agencies, or loans from banks, other financial institutions, private businesses, or individuals.

(d)“Designated official” means the city engineer or other appropriate official designated pursuant to Section 53395.13.

(e)(1)“District” means an infrastructure financing district.

(2)An infrastructure financing district is a “district” within the meaning of Section 1 of Article XIII A of the California Constitution.

(f)“Infrastructure financing district” means a legally constituted governmental entity established pursuant to this chapter for the sole purpose of financing public facilities.

(g)“Landowner” or “owner of land” means any person shown as the owner of land on the last equalized assessment roll or otherwise known to be the owner of the land by the legislative body. The legislative body has no obligation to obtain other information as to the ownership of land, and its determination of ownership shall be final and conclusive for the purposes of this chapter. A public agency is not a landowner or owner of land for purposes of this chapter, unless the public agency owns all of the land to be included within the proposed district.

(h)“Legislative body” means the city council or board of supervisors.

(i)“Transit facility” includes, but is not limited to, any publicly owned facility and amenity necessary to implement a transit village plan adopted pursuant to Article 8.5 (commencing with Section 65460) of Chapter 3 of Division 1 of Title 7.

(a)A district may finance (1) the purchase, construction, expansion, improvement, seismic retrofit, or rehabilitation of any real or other tangible property with an estimated useful life of 15 years or longer which satisfies the requirements of subdivision (b), (2) may finance planning and design work which is directly related to the purchase, construction, expansion, or rehabilitation of that property, and (3) the costs described in Sections 53395.5, and 53396.5. A district shall only finance the purchase of facilities for which construction has been completed, as determined by the legislative body. The facilities need not be physically located within the boundaries of the district. A district may not finance routine maintenance, repair work, or the costs of ongoing operation or providing services of any kind. A district shall not compensate the members of the legislative body of the city for any activities undertaken pursuant to this chapter.

(b)The district shall finance only public capital facilities including, but not limited to, all of the following:

(1)Highways, interchanges, ramps and bridges, arterial streets, parking facilities, and transit facilities.

(2)Sewage treatment and water reclamation plants and interceptor pipes.

(3)Facilities for the collection and treatment of water for urban uses.

(4)Flood control levees and dams, retention basins, and drainage channels.

(5)Child care facilities.

(6)Libraries.

(7)Parks, recreational facilities, and open space.

(8)Facilities for the transfer and disposal of solid waste, including transfer stations and vehicles.

(c)Any district which constructs dwelling units shall set aside not less than 20 percent of those units to increase and improve the community’s supply of low- and moderate-income housing available at an affordable housing cost, as defined by Section 50052.5 of the Health and Safety Code, to persons and families of low- and moderate-income, as defined in Section 50093 of the Health and Safety Code.

With respect to an infrastructure financing district proposed to implement a transit village plan adopted pursuant to Article 8.5 (commencing with Section 65460) of Chapter 3 of Division 1 of Title 7, an election is not required to form an infrastructure financing district, adopt an infrastructure financing plan, or issue bonds pursuant to this chapter. Any other provision of this chapter applies to the formation of an infrastructure financing district and the adoption of an infrastructure financing plan.

A legislative body of a city may designate one or more proposed infrastructure financing districts pursuant to this chapter. Proceedings for the establishment of a district shall be instituted by the adoption of a resolution of intention to establish the proposed district and shall do all of the following:

(a)State that an infrastructure financing district is proposed to be established under the terms of this chapter and describe the boundaries of the proposed district, which may be accomplished by reference to a map on file in the office of the clerk of the city.

(b)State the type of public facilities proposed to be financed by the district. The district may only finance public facilities authorized by Section 53395.3.

(c)State the need for the district and the goals the district proposes to achieve by financing public facilities.

(d)State that incremental property tax revenue from the city and some or all affected taxing entities within the district may be used to finance these public facilities.

(e)Fix a time and place for a public hearing on the proposal.

The legislative body shall direct the clerk to mail a copy of the resolution of intention to create the district to each owner of land within the district and to each affected taxing entity.

The legislative body shall direct the clerk to post a copy of the resolution of intention to create the district in an easily identifiable and accessible location on the legislative body’s Internet Web site.

After receipt of a copy of the resolution of intention to establish a district, the official designated pursuant to Section 53395.13 shall prepare a proposed infrastructure financing plan. The infrastructure financing plan shall be consistent with the general plan of the city within which the district is located and shall include all of the following:

(a)A map and legal description of the proposed district, which may include all or a portion of the district designated by the legislative body in its resolution of intention.

(b)A description of the public facilities required to serve the development proposed in the area of the district including those to be provided by the private sector, those to be provided by governmental entities without assistance under this chapter, those public improvements and facilities to be financed with assistance from the proposed district, and those to be provided jointly. The description shall include the proposed location, timing, and costs of the public improvements and facilities.

(c)A finding that the public facilities provide significant benefits to an area larger than the area of the district.

(d)A financing section, which shall contain all of the following information:

(1)A specification of the maximum portion of the incremental tax revenue of the city and of each affected taxing entity proposed to be committed to the district for each year during which the district will receive incremental tax revenue. The portion need not be the same for all affected taxing entities. The portion may change over time.

(2)A projection of the amount of tax revenues expected to be received by the district in each year during which the district will receive tax revenues, including an estimate of the amount of tax revenues attributable to each affected taxing entity for each year.

(3)A plan for financing the public facilities to be assisted by the district, including a detailed description of any intention to incur debt.

(4)A limit on the total number of dollars of taxes which may be allocated to the district pursuant to the plan.

(5)A date on which the district will cease to exist, by which time all tax allocation to the district will end. The date shall not be more than 40 years from the date on which the ordinance forming the district is adopted pursuant to Section 53395.23.

(6)An analysis of the costs to the city of providing facilities and services to the area of the district while the area is being developed and after the area is developed. The plan shall also include an analysis of the tax, fee, charge, and other revenues expected to be received by the city as a result of expected development in the area of the district.

(7)An analysis of the projected fiscal impact of the district and the associated development upon each affected taxing entity.

(e)If any dwelling units occupied by persons or families of low or moderate income are proposed to be removed or destroyed in the course of private development or public works construction within the area of the district, a plan providing for replacement of those units and relocation of those persons or families consistent with the requirements of Section 53395.5.

(f)The goals the district proposes to achieve by financing public facilities.

(a)The legislative body shall not enact a resolution proposing formation of a district and providing for the division of taxes of any affected taxing entity pursuant to Article 3 (commencing with Section 53396) unless a resolution approving the plan has been adopted by the governing body of each affected taxing entity which is proposed to be subject to division of taxes pursuant to Article 3 (commencing with Section 53396) has been filed with the legislative body at or prior to the time of the hearing.

(b)In the case of an affected taxing entity that is a special district that provides fire protection services and where the county board of supervisors is the governing authority or has appointed itself as the governing board of the district, the plan shall be adopted by a separate resolution approved by the district’s governing authority or governing board.

(c)Nothing in this section shall be construed to prevent the legislative body from amending its infrastructure financing plan and adopting a resolution proposing formation of the infrastructure financing district without allocation of the tax revenues of any affected taxing entity which has not approved the infrastructure financing plan by resolution of the governing body of the affected taxing entity.

(a)At the conclusion of the hearing required by Section 53395.17, the legislative body may adopt a resolution adopting the infrastructure financing plan, as modified, and approving the formation of the infrastructure financing district in a manner consistent with Section 53395.19, or it may abandon the proceedings.

(b)No later than June 30 of each year after the adoption of the infrastructure financing plan, the legislative body shall direct the clerk to mail an annual report to each owner of land within the district and each affected taxing entity. The legislative body shall direct the clerk to post this annual report in an easily identifiable and accessible location on the legislative body’s Internet Web site. The annual report shall contain all of the following:

(1)A summary of the district’s expenditures.

(2)A description of the progress made towards the district’s adopted goals.

(3)An assessment of the status regarding completion of the district’s public works projects.

(c)If the district fails to provide the annual report required by subdivision (b), the district shall not spend any funds to construct public works projects until the annual report is submitted.

(d)If the district fails to produce evidence of progress made towards achieving its adopted goals for five consecutive years, the district shall not spend any funds to construct any new public works projects; provided, however, the district may complete any public works projects that it had started. Any excess property tax increment revenues that had been allocated for new public works projects shall be reallocated to the affected taxing entities.

Any infrastructure financing plan may contain a provision that taxes, if any, levied upon taxable property in the area included within the infrastructure financing district each year by or for the benefit of the State of California, or any affected taxing entity after the effective date of the ordinance adopted pursuant to Section 53395.23 to create the district, unless the district implements a transit village plan pursuant to Section 53395.75, shall be divided as follows:

(a)That portion of the taxes which would be produced by the rate upon which the tax is levied each year by or for each of the affected taxing entities upon the total sum of the assessed value of the taxable property in the district as shown upon the assessment roll used in connection with the taxation of the property by the affected taxing entity, last equalized prior to the effective date of the ordinance adopted pursuant to Section 53395.23 to create the district, shall be allocated to, and when collected shall be paid to, the respective affected taxing entities as taxes by or for the affected taxing entities on all other property are paid.

(b)That portion of the levied taxes each year specified in the adopted infrastructure financing plan for the city and each affected taxing entity which has agreed to participate pursuant to Section 53395.19 in excess of the amount specified in subdivision (a) shall be allocated to, and when collected shall be paid into a special fund of, the district for all lawful purposes of the district. Unless and until the total assessed valuation of the taxable property in a district exceeds the total assessed value of the taxable property in the district as shown by the last equalized assessment roll referred to in subdivision (a), all of the taxes levied and collected upon the taxable property in the district shall be paid to the respective affected taxing entities. When the district ceases to exist pursuant to the adopted infrastructure financing plan, all moneys thereafter received from taxes upon the taxable property in the district shall be paid to the respective affected taxing entities as taxes on all other property are paid.

The legislative body may, by majority vote, initiate proceedings to issue bonds pursuant to this chapter by adopting a resolution.

The resolution adopted pursuant to Section 53397.1 shall contain all of the following information:

(a)A description of the facilities to be financed with the proceeds of the bond issue.

(b)The estimated cost of the facilities, the estimated cost of preparing and issuing the bonds, and the principal amount of the bond issuance.

(c)The maximum interest rate and discount on the proposed bond issuance.

(d)A determination of the amount of tax revenue available or estimated to be available, for the payment of the principal of, and interest on, the bonds.

(e)A finding that the amount necessary to pay the principal of, and interest on, the bond issuance will be less than, or equal to, the amount determined pursuant to subdivision (d).

(f)The issuance of the bonds in one or more series.

(g)The date the bonds will bear.

(h)The denomination of the bonds.

(i)The form of the bonds.

(j)The manner and execution of the bonds.

(k)The medium of payment in which the bonds are payable.

(l)The place or manner of payment and any requirements for registration of the bonds.

(m)The terms or call of redemption, with or without premium.

If a city, county, or city and county finances a district that implements a transit village plan adopted pursuant to Article 8.5 (commencing with Section 65460) of Chapter 3 of Division 1 of Title 7, the city, county, or city and county shall do all of the following:

(a)Use at least 20 percent of all revenues derived from the property tax increment under Chapter 2.8 (commencing with Section 53395) of Part 1 of Division 2 of Title 5 for the purposes of increasing, improving, and preserving the supply of lower and moderate-income housing available in the district at an affordable housing cost, as defined in Section 50052.5 of the Health and Safety Code, and occupied by persons and families of low or moderate income, as defined in Section 50093 of the Health and Safety Code, lower income households, as defined in Section 50079.5 of the Health and Safety Code, very low income households, as defined in Section 50105 of the Health and Safety Code, and extremely low income households, as defined in Section 50106 of the Health and Safety Code. The amount of very low, low- and moderate-income housing shall be in compliance with the Community Redevelopment Law (Part 1 (commencing with Section 33000) of Division 24 of the Health and Safety Code) and any adopted policies of the city, county, or city and county that adopted the transit village plan.

(b)Require that housing units described in subdivision (a) remain available at affordable housing cost to, and occupied by, persons and families of low or moderate income and very low income and extremely low income households for the longest feasible time, but for not less than 55 years for rental units and 45 years for owner-occupied units. The covenants or restrictions implementing this requirement shall be in compliance with subdivision (f) of Section 33334.3 of the Health and Safety Code.

(c)Rehabilitate, develop, or construct, or cause to be rehabilitated, developed, or constructed for rental or sale to persons or families of low or moderate income an equal number of replacement dwelling units that have an equal or greater number of bedrooms as the destroyed or removed units, at affordable housing costs within the district, and within four years after the destruction or removal, whenever dwelling units housing persons or families of low or moderate income are destroyed or removed from the low- and moderate-income housing market as part of the development of a district that is subject to a written agreement with the city, county, or city and county, or when financial assistance has been provided by the city, county, or city and county. The replacement dwelling units shall be available at affordable housing cost to, and occupied by, persons and families in the same or a lower income category as the persons and families displaced from those destroyed or removed units.

(d)Include in the transit village plan both of the following:

(1)As one of the five demonstrable public benefits required by subdivision (f) of Section 65460.2, either an increased stock of affordable housing or live-travel options for transit-needy groups.

(2)Provisions to implement subdivisions (a) and (b) and paragraph (1).