CA AB797

Creates the Community Stabilization Act requiring the California Infrastructure and Economic Development Bank (I-Bank) to issue tradeable securities through January 1, 2030, funded by banks using Community Reinvestment Act funds, to purchase and manage residential land damaged by the January 7, 2025 wildfires in Los Angeles and Ventura Counties

Establishes the Community Stabilization Fund with continuous appropriation to fund qualifying investment entities (nonprofits, charities, community land trusts, or local public entities) that purchase disaster-damaged residential properties at fair market value minus insured structure amounts

Requires properties to be held up to 7 years, with profits from eventual sale distributed as 90% to investors, 5% to I-Bank, and 5% to the qualifying investment entity as administrative fees

Exempts redevelopment of acquired properties from CEQA requirements and prioritizes sales resulting in owner-occupancy while preserving the socioeconomic composition of disaster areas

Mandates a final report to the Legislature, Governor, and Department of Finance by January 1, 2034, assessing program effectiveness in stabilizing disaster-impacted property values