John Harabedian
- Democratic
- Assemblymember
- District 41
Author
(1) Existing law, the Bergeson-Peace Infrastructure and Economic Development Bank Act, establishes the California Infrastructure and Economic Development Bank (I-Bank) in the Governor's Office of Business and Economic Development. Existing law, among other things, authorizes the I-Bank to issue bonds, make loans, and provide financial assistance for various types of projects that qualify as economic development or public development facilities. This bill would enact the Community Stabilization Act. The bill would require the I-Bank to develop and administer a program to issue a security, and to cease issuing a security on January 1, 2030. The bill would specify that the purpose of the program is to help stabilize property values in disaster-affected areas by allowing qualified investors, as defined, to purchase tradable securities, with the funding allocated to qualifying investment entities that purchase and manage residential land until it can be resold at fair market value. The bill would require profits from the land investments to be shared among investors and the I-Bank according to certain percentages, with qualifying investment entities being reimbursed for their administrative costs. This bill would establish various requirements for the security, including that it be tradeable, comply with specified municipal bonding requirements, and that it be funded by investments made by qualified investors using funds available pursuant to the federal Community Reinvestment Act of 1977. The bill would require the security to repay the investment upon a liquidity event and within 7 years of the purchase of an investment property, and would describe a liquidity event as the refinance or sale of the investment property. This bill would require funds raised from the purchase of the security to be deposited in the Community Stabilization Fund, which would be created by the bill, and would require all moneys in the fund to be continuously appropriated to the I-Bank. The bill would require the I-Bank to allocate moneys in the fund to qualifying investment entities to be invested in the Counties of Los Angeles and Ventura and in those areas that are covered by a state of disaster declared by the Governor. The bill would require a qualifying investment entity to meet prescribed requirements, including that it be a specified entity, including, among others, a nonprofit organization, as provided. The bill would also impose various requirements on the qualifying investment entity relating to the purchase, maintenance, and sale of the investment property, including, among other things, limiting the purchase of property to residential property that has been damaged or destroyed by the wildfires that began on January 7, 2025, in the Counties of Los Angeles and Ventura, as specified. The bill would require the I-Bank to submit a final report on the program to the Legislature, the Governor, and the Department of Finance no later than January 1, 2034, as specified. By establishing a new continuously appropriated fund, the Community Stabilization Fund, this bill would make an appropriation. (2) This bill would make legislative findings and declarations as to the necessity of a special statute for the Counties of Los Angeles and Ventura. (3) This bill would declare that it is to take effect immediately as an urgency statute.
Vetoed by Governor.
Consideration of Governor's veto pending.
Enrolled and presented to the Governor at 2 p.m.
Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 69. Noes 5. Page 3110.).
In Assembly. Concurrence in Senate amendments pending.
Read third time. Urgency clause adopted. Passed. Ordered to the Assembly. (Ayes 29. Noes 9. Page 2587.).
Read second time. Ordered to third reading.
From committee: Amend, and do pass as amended. (Ayes 5. Noes 2.) (August 29).
Read second time and amended. Ordered returned to second reading.
Read second time and amended. Re-referred to Com. on APPR.
From committee: Amend, and do pass as amended and re-refer to Com. on APPR. (Ayes 10. Noes 2.) (July 15).
From committee: Do pass and re-refer to Com. on JUD. (Ayes 8. Noes 3.) (June 30). Re-referred to Com. on JUD.
From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on B. P. & E.D.
In Senate. Read first time. To Com. on RLS. for assignment.
Read third time. Urgency clause adopted. Passed. Ordered to the Senate. (Ayes 69. Noes 3. Page 1853.).
Read second time. Ordered to third reading.
From committee: Do pass. (Ayes 11. Noes 1.) (May 23).
In committee: Set, first hearing. Referred to APPR. suspense file.
From committee: Do pass and re-refer to Com. on APPR. (Ayes 7. Noes 0.) (April 22). Re-referred to Com. on APPR.
From committee chair, with author's amendments: Amend, and re-refer to Com. on E.D., G., & H.I. Read second time and amended.
From printer. May be heard in committee March 21.
Read first time. To print.
| Bill Text Versions | Format |
|---|---|
| AB797 | HTML |
| 02/18/25 - Introduced | |
| 04/21/25 - Amended Assembly | |
| 06/23/25 - Amended Senate | |
| 07/17/25 - Amended Senate | |
| 08/29/25 - Amended Senate | |
| 09/11/25 - Enrolled |
| Document | Format |
|---|---|
| 04/21/25- Assembly Economic Development, Growth, and Household Impact | |
| 05/12/25- Assembly Appropriations | |
| 05/28/25- ASSEMBLY FLOOR ANALYSIS | |
| 06/29/25- Senate Business, Professions and Economic Development | |
| 07/12/25- Senate Judiciary | |
| 08/15/25- Senate Appropriations | |
| 08/29/25- Senate Appropriations | |
| 09/02/25- Sen. Floor Analyses | |
| 09/09/25- ASSEMBLY FLOOR ANALYSIS | |
| 10/23/25- ASSEMBLY FLOOR ANALYSIS |
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