CAL.Regulation
California authorizes workforce-housing tax increment financing districts
Governor Gavin Newsom signed AB 2110 on September 20, 2026, as Chapter 381, enacting the Workforce Housing Enhanced Infrastructure Financing Act. It lets cities and counties establish workforce-housing enhanced infrastructure financing districts funded by tax increment financing. Financed housing must reserve all units for public safety, education, health care, or manufacturing personnel and lower- or moderate-income households, with affordability covenants of 55 years for rentals and 45 for owner-occupied homes. Bonds need two-thirds voter approval; effective January 1, 2027.
Enrolled text (California Legislative Information) →
Key points
- Chapter 381, approved September 20, 2026; majority-vote bill effective January 1, 2027.California Legislative InformationCalifornia Legislative Information
- A city or county establishes a district by resolution, compliance findings, and an infrastructure financing plan.California Legislative Information
- All units are reserved for public safety, education, health care, or manufacturing personnel in lower- or moderate-income households.California Legislative Information
- At least 70 percent of units must serve lower-income households; the rest serve moderate-income households.California Legislative Information
- Affordability covenants run 55 years for rentals and 45 years for owner-occupied units.California Legislative Information
- Tax increment bonds require approval by two-thirds of voters; defeated propositions cannot be resubmitted for a year.California Legislative Information