Community Stabilization Act: Counties of Los Angeles and Ventura.
Vote required
Two Thirds
Fiscal committee
No
Appropriation
No
Current location
Vetoed
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Progress
Where this bill stands in the legislative process.
- Introduced
- Passed Assembly
- Passed Senate
- To Governor
- Became Law
Overview
This bill, the Community Stabilization Act, creates a program within the California Infrastructure and Economic Development Bank (I-Bank) to help stabilize property values in disaster-affected areas, specifically the counties of Los Angeles and Ventura. It will do this by issuing a security that qualified investors can purchase, with the funds used to purchase and manage residential land until it can be resold at fair market value. Profits from these investments will be shared between investors and the I-Bank, ensuring disaster-stricken homeowners can recover their equity. The program is designed to address distortions of capital allocation following disasters and provide a pathway for property owners to rebuild.
Key provisions
- Establishes the Community Stabilization Fund to hold funds raised from the sale of the security.
- Requires the I-Bank to issue a security that is tradeable and complies with municipal bonding requirements.
- Specifies that the security must be repaid within 7 years of purchasing an investment property, triggered by a refinance or sale.
- Limits the purchase of property to residential property damaged or destroyed by wildfires in Los Angeles and Ventura counties.
- Requires qualifying investment entities to be nonprofits, charities, or local public entities.
- Sets profit-sharing percentages between investors and the I-Bank.
- Requires a final report to the Legislature, Governor, and Department of Finance by January 1, 2034.
- The security will cease issuing on January 1, 2030.
Who is affected
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1 on record
Primary sponsor
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