Brown allows new local development financing tools

Sep 29, 2014 7:33 PM by News Staff

SACRAMENTO, Calif. (AP) - Gov. Jerry Brown is allowing local governments a partial replacement tool for financing infrastructure projects such as water systems, transit facilities and affordable housing.

The Democratic governor announced Monday that he signed SB628 by Democratic Sen. Jim Beall of San Jose, along with several other economic development bills.

Brown led the charge to eliminate some 400 community redevelopment agencies that he criticized as being little more than slush funds for private developers. Those agencies were dissolved in February 2012, leaving local governments without a way to fight blight and provide affordable housing.

SB628 allows a little-used tax increment financing law to be expanded and rebranded as Enhanced Infrastructure Financing Districts. Supporters say the bill has more safeguards because it requires 55 percent voter approval for issuing bonds and performance audits.

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