CA SB961

Enacts the Second Neighborhood Infill Finance and Transit Improvements Act (NIFTI-2), allowing cities and counties to allocate local sales and use tax revenues to enhanced infrastructure financing districts located within one-half mile of major transit stops without voter approval for bond issuance.

Requires that at least 40 percent of NIFTI-2 funds be used for housing affordable to households earning below 60 percent of area median income, with specific allocations: 50 percent for households earning 30-60 percent of AMI and 50 percent for households below 30 percent of AMI or permanent supportive housing for homeless persons.

Mandates that at least 10 percent of funds support parks, urban forestry, greening improvements, or active transportation projects including pedestrian and bicycle facilities with connectivity to transit stations.

Establishes a three-public-hearing process with protest and potential voter confirmation procedures for adopting NIFTI-2 infrastructure financing plans, and requires annual reporting and independent financial audits.

Requires the Office of Planning and Research to complete by January 1, 2021, a study comparing the effectiveness of various tax increment financing tools for increasing housing production, including analysis of expanding NIFTI-2 to bus rapid transit areas.