Go to "Community Revitalization" Policy Issues Package
ISSUE: COMMUNITY REVITALIZATION

Infill and Neighborhood Redevelopment

California
AB 1284 (2001) would require the Department of Housing and Community Development to approve twelve “housing opportunity districts,” based on applications by interested cities and counties that have a certified housing element and have adopted, among other things, a transit village plan or an infill ordinance or other plan that identifies infill parcels for housing development. Would require a portion of the property tax revenues resulting from increases in assessed value due to affordable housing construction to be paid to the housing opportunity district, and provide the district powers similar to those of a redevelopment agency, including the ability to issue bonds and enter into other forms of indebtedness for the purpose of constructing affordable housing and transit-oriented public improvements within the district or the adjacent area. (California Futures Network)

AB 2359 (2000), the Community Investment Act, authorizes the creation of the Community Development Investment Guarantee Fund which would have established a program where private loans and investments in underserved communities would be backed by partial state repayment guarantees. The program would stimulate private sector lending and investment, and encourage community development lending and investment in very low, low-, and moderate-income urban communities.

AB 2870 (Chaptered July 5, 2000, California Codes, Health and Safety Code, Section 50898-50898.2) launches the Downtown Rebound Program (DPRG) to provide financing to assist in the revitalization of downtowns and neighborhoods, reduce development pressure of agricultural and open space resources and provide viable live/work linkages. The DRPG Program will provide planning grants to local governments to promote infill housing development, housing near transit and adaptive reuse, assisting owners of qualified buildings in obtaining seismic and structural feasibility studies specifically related to the purpose of adaptive reuse.

AB 857 (2002) has been called California’s best planning bill in 30 years. AB 857 was passed by the legislature in an effort to control sprawl and revitalize urban neighborhoods. The bill establishes state planning priorities which encourage every state agency to promote infill development and other efficient development patterns while protecting the state’s environmental and agricultural resources. “The bill is expected to maintain and enhance public health and safety, reduce the current rate of farmland and open space loss, address the current inequities among communities – especially communities of color – and save taxpayers millions of dollars.” (Smart Growth in the Golden State press release 8/30/2002)

AB 1901 (Chaptered Sept. 29, 2000) is part of an effort to preserve and bring back the State’s historic urban cores. “We want to revitalize underused, urban buildings so that we don’t continue to build out into what remains of our open space. California’s a beautiful, expansive state, but there’s a lot of concern – especially in our suburbs and rural communities – that we’re simply becoming one giant strip mall. The bill would create the Urban Initiatives Act to encourage urban revitalization through property tax relief, income tax credit, and regulatory flexibility.”

New Jersey
A 2591 (2002), the Neighborhood Revitalization Tax Credit Bill, uses tax credits to leverage private money for non-profit community groups who engage in community revitalization efforts. This program could fund a variety of affordable housing and economic development activities such as rehabilitating vacant residential and commercial structures, making infrastructure improvements, providing public open space, building recreation centers, and providing social services such as job training and child care.

Arizona
House Bill 2105 passed both Houses in 2002. It would authorize counties to establish infill incentive districts in unincorporated areas of a county, and adopt infill incentive plans for each district. The plans could include provisions for expedited zoning and processing of development plans, and waiver of development fees and standards. (National Conference of State Legislatures)

Florida
House Bill 17 (1999) authorizes counties and municipalities to designate urban infill and redevelopment areas. Local government incentives to developers for new development, expansion of existing development or redevelopment within an urban infill and redevelopment area include waiver of license and permit fees, waiver of local option sales taxes, expedited permitting, lower transportation impact fees for development that encourages public transit, prioritized infrastructure financing, and absorption of developer’s concurrency costs. State incentives for local governments that adopt urban infill and redevelopment plans include authority to issue community redevelopment revenue bonds, community redevelopment tax increment financing, and priority in the allocation of private activity bonds. The act also establishes a grant program for local government projects in urban infill and redevelopment areas, and amends the state’s transportation concurrency requirements to encourage public transit facilities within urban infill and redevelopment areas. (National Conference of State Legislatures)

Maine
Legislative Document 2600 (Enacted in 1999, Public Laws of Maine, Chapter 776) - In an attempt to encourage smart growth planning at the local level, the act limits state growth-related capital investments to designated growth areas contained in a local government’s comprehensive plan, or to areas served by a public sewer system that can provide service to a new project. The act establishes the Municipal Investment Trust Fund to provide loans to municipalities that undertake comprehensive downtown revitalization efforts. It requires the Department of Administrative and Financial Services to develop site selection criteria for state office buildings to encourage their location in service center downtowns. (National Conference of State Legislatures)

Maryland
SB 389 (1997) establishes the Priority Funding Areas Program that designates the types of existing areas – primarily urban centers and areas proposed for revitalization – that are eligible for state economic development funds, and authorizes counties to designate priority funding areas that meet local guidelines for intended use and have sufficient infrastructure in place to make development viable. Beginning October 1, 1998, no state funding of growth related projects can occur unless the projects are located in a priority funding area.

House Bill 5 (Enacted as Chapter 304) - This 1999 bill establishes a Smart Growth Economic Development Infrastructure Fund in the Department of Business and Economic Development. The fund is to be used to make loans to economically distressed counties to finance economic development projects.

Mixed-Use Development

Oregon
SB 763 (2001) is known as the Vertical Housing Zone Legislation and provides a partial tax exemption for construction projects that combine ground-floor commercial space with upper-floor residential use. A proposed zone must be located in concert with a light rail station, a transit oriented area, or within a core area of an urban center. General Information about SB 763 provided by the Oregon Economic and Community Development Department.

Spatial Mismatch

California
AB 2864 (2000) would create the Inter-Regional Partnership State Pilot Project to Improve the Balance of Jobs and Housing which would work to find solutions to imbalances of jobs and housing in specified areas. The bill also establishes the Jobs-Housing Balance Improvement Program that would require the department to make grants to eligible local agencies to attract new business to “housing rich” communities that lack an adequate employment base.

AB 2476 (2002) would authorize the Department of Housing and Community Development to distribute funds for local, regional, or interregional studies that address interregional impacts relating to transportation systems, traffic congestion, and long commutes that result, in part, from the imbalance of jobs and housing. Would require those studies to focus on developing strategies to promote jobs-to-housing balance objectives. (California Futures Network)

Tax Incremental Financing

Washington
House Bill 1418 (2001) was passed in an effort to promote economic stability and orderly development in Washington’s communities. The bill authorizes a funding mechanism called community revitalization financing which gives jurisdictions the ability to capture future tax revenues and use them to pay for up-front public improvements in designated zones if they are expected to foster economic development.

Land Value Taxation

Pennsylvania
SB 211 passed through both houses of the state legislature by a vote of 246-2 and was signed into law by Governor Tom Ridge in November 1998 as Act 108. The law extends the option of adopting a split-rate property tax to the 964 boroughs of the state.

New York
Senate Bill 5652 / Assembly Bill 7901 was signed into law in 1993 and enables the city of Amsterdam, NY to adopt a two-rate property tax.

Maryland
Act 656 from 1916 allows cities to classify land separately for the purposes of taxation. In a 1995 opinion, the Maryland Attorney General interpreted the act to grant authority for a two-tier taxation system.

Virginia
HB239 (2002) was signed into law by Virginia Governor Mark Warner on February 19th and permits Fairfax City to enact Land Value Taxation. The bill, which is the first of its kind in Virginia, takes effect in 2003.

Location Efficient Mortgages

Maryland
The “Live Near Your Work” program offers a $3,000 grant – a third from participating employers, a third from the state, and a third from the local government of the community where the employee works – toward costs associated with a home purchase, with the employee committing a minimum of $1,000 in his or her own funds. The home must be in a neighborhood in the sponsoring jurisdiction, and the beneficiary must agree to stay in the home for a limited period of time (usually three-to-five years).

Washington
SB 5950 was introduced in the 2001 legislature and provides ten year property tax deferrals for construction or rehabilitation of multifamily housing within transit corridors.

Inclusionary Zoning

North Carolina
SB 1001 (2001) provides authority for cities and counties to use inclusionary zoning to promote the development of affordable housing for sale or rental to persons and families of low and moderate income.

Transit-Oriented Development

Pennsylvania
HB 2464 (2001) would authorize public transportation agencies to work in cooperation with counties, municipalities, Amtrak, and the private sector to designate and create transit revitalization investments districts (TRIDs). The bill proposes to encourage cooperative approaches to new development around rail transit stations and along public transportation corridors, and to increase ridership on public transit systems while generating revenues for expanded services and capital improvements. It also seeks to encourage multi-jurisdictional implementation of comprehensive plans, stimulate public-private partnerships, and establish mechanisms to capture the value added by joint development activities, to reinvest in transit systems and local communities. More information on HB 2464 is available from the American Planning Association.

Fix-It-First

New Jersey
SB 16 received overwhelming bi-partisan support and was signed into law (P.L. 2000, Chapter 73) by Governor Whitman on July 20, 2000. The bill re-approved the state Transportation Trust Fund that administers future transportation development, and was amended to include key provisions that dealt with suburban sprawl, such as the requirement that older roads be repaired before new ones can be built. The bill also required legislative approval of all new highways, and included provisions dealing with additional bike paths and replacement of diesel buses.

Historic Preservation

California
SB 1247 would establish the California Trust for Cultural and Historic Preservation which would use funds from the sale of bonds to make grants, loans, or purchases relating to historical resources, develop programs to protect and preserve California’s cultural and historic resources, and create a master plan for cultural and historic preservation in the state. In addition, the legislation would consolidate cultural and historic preservation programs within state government (California Futures Network)

Parking Cash-Out

California
AB 2109 (1992 - California Health and Safety Code, Section 43845) mandates that employers with over 50 workers must provide a parking cash-out option.

Building Rehabilitation Codes

New Jersey
New Jersey enacted a rehabilitation subcode or “smart code” in 1997.

Maryland
Maryland adopted legislation modeled after the New Jersey code in 2000. Senate Bill 207 allows for rehabilitation to take place in only one area of a building, thereby reducing rehabilitation costs. For more information, see:

Rhode Island
Rhode Island’s rehabilitation code became effective May 2002. The code exempts existing commercial buildings from certain construction requirements.

California
The 2001 California Historical Building Code was created to regulate the preservation, rehabilitation, and restoration of historic buildings and properties.

This page was last updated on October 28, 2003.

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