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SB 549

Relating to complex rehabilitation technology.

2025 Regular Session Introduced by Wlnsvey Campos and 17 co-sponsors

SB 549 allows local property tax increments to fund EIFDs near transit for affordable housing and enables LA County to create a Resilient Rebuilding Authority for wildfire recovery.

Effective date, January 1, 2026.
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Bill Summary · SB 549

Summary — SB 549 (Allen) — Second Neighborhood Infill Finance & Transit Improvements Act (NIFTI‑2) and Resilient Rebuilding Authority for the Los Angeles Wildfires

Status: Action postponed indefinitely (as of 2025‑06‑03)
Introduced: February 20, 2025
Subject area: Local government, housing, infrastructure finance, disaster recovery

Purpose / Intent

SB 549 would (1) revise the Second Neighborhood Infill Finance and Transit Improvements Act (NIFTI‑2) to change which local revenues may be allocated to enhanced infrastructure financing districts (EIFDs) and to relax certain boundary requirements, and (2) create statutory authority for Los Angeles County to form a Resilient Rebuilding Authority to coordinate recovery from the January 2025 wildfires.

Key provisions

  1. Amendments to NIFTI‑2 (Government Code §53398.75.7)

    • For resolutions adopted under the act’s provisions on or after January 1, 2026, a city, county, or city‑and‑county may adopt a resolution to allocate property tax revenues (i.e., property tax increment) to an enhanced infrastructure financing district.
    • Removes authorization to allocate local sales and use tax revenues (Bradley‑Burns or transaction/use taxes) under these NIFTI‑2 resolutions.
    • Repeals the requirement that the EIFD boundaries be coterminous with the creating city or county.
    • Maintains a set of substantive use and proximity requirements for districts that receive property tax allocations:
      • Eligible area must be within 0.5 mile of a major transit stop.
      • At least 40% of funds must be used for acquisition, construction, or rehabilitation of housing for households under 60% of area median income (AMI), including predevelopment and land acquisition costs.
      • Of housing funds, 50% must serve households between 30–60% AMI; 50% must serve households under 30% AMI or be permanent supportive housing.
      • First occupancy priority for income‑qualified households displaced from the district through no fault of their own; secondary priority to households with members employed within two miles.
      • At least 10% of funds must be used for parks, urban forestry, permanent greening, or qualifying active transportation capital projects.
      • Other allowable uses include multifamily affordable housing, transit capital and transit‑oriented development, complete‑streets projects, limited parking structures, and programs to reduce vehicle miles traveled.
    • Requires the infrastructure financing plan to demonstrate these requirements are met every 10 years.
    • States that certain procedural sections (53398.66 and 53398.67) do not apply to adoption of an enhanced plan that includes property tax allocations under this section.

  2. Resilient Rebuilding Authority for the Los Angeles Wildfires

    • Authorizes Los Angeles County to establish a Resilient Rebuilding Authority to coordinate, accelerate, and streamline recovery in jurisdictions impacted by the January 2025 wildfires.
    • Permits the county to empower the authority to engage in specified acts to support rebuilding and protection of homes, businesses, utilities, and public infrastructure.
    • Includes legislative findings declaring a special statute for Los Angeles County is necessary.

Who would be affected

  • Cities, counties, and city‑and‑counties establishing EIFDs — especially those near major transit stops — by giving them an option to allocate property tax increments to EIFDs under NIFTI‑2.
  • Local affordable housing developers and residents seeking transit‑oriented affordable housing (with explicit income targeting and occupancy priorities).
  • Los Angeles County and jurisdictions impacted by the January 2025 wildfires — those communities would be eligible to participate in or be served by the proposed Resilient Rebuilding Authority.
  • Local fiscal stakeholders and property taxpayers in jurisdictions that choose to allocate property tax increments to EIFDs.

Procedural / timeline notes

  • The bill would apply to resolutions adopting property tax allocations under NIFTI‑2 on or after January 1, 2026.
  • At introduction the bill did not create a state appropriation; it was not referred to a fiscal committee.
  • Current status in the provided materials: action postponed indefinitely (bill not advancing as of that action date).

Note: The materials submitted for review included multiple unrelated enactments titled “SB 549” from other states and sessions; this summary focuses on the California‑focused text (NIFTI‑2 amendments and Los Angeles Resilient Rebuilding Authority) contained in the provided documents.

Compiled from official sources — confirm details with the bill’s official record.

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