Amended  IN  Assembly  April 04, 2024
Amended  IN  Assembly  March 21, 2024

CALIFORNIA LEGISLATURE— 2023–2024 REGULAR SESSION

Assembly Bill
No. 2794


Introduced by Assembly Member Bryan

February 15, 2024


An act to add Title 6.6 (commencing with Section 62400) 62600) to the Government Code, relating to community development.


LEGISLATIVE COUNSEL'S DIGEST


AB 2794, as amended, Bryan. Community development: Antidisplacement Commercial Property Acquisition Program.

Existing law establishes the Department of Housing and Community Development to administer various programs and policies to support state housing and community development.

Existing law creates the Governor’s Office of Business and Economic Development (GO-Biz) and requires GO-Biz to serve the Governor as the lead entity for economic strategy and the marketing of California on issues relating to business development, private sector investment, and economic growth.
This bill would establish the Antidisplacement Commercial Property Acquisition Program, to be administered by the Department of Housing and Community Development, GO-Biz to provide low-interest loans to eligible community-based acquisition partners to acquire commercial property in communities that are vulnerable to gentrification and displacement. The bill would specify the goals of the program, including ensuring local businesses remain in high-risk communities vulnerable to gentrification and displacement. The bill would establish the Antidisplacement Commercial Property Acquisition Revolving Loan Fund, and would authorize the department, GO-Biz, upon appropriation by the Legislature to the fund for purposes of the program, to provide low-interest loans for purposes of the program. The bill would require the department GO-Biz to adopt regulations to administer the program, including qualifications that prioritize the preservation of Black-, indigenous-, people of color-, and women-owned businesses and the acquisition of commercial property in culturally significant commercial corridors. The bill would require the department GO-Biz to report to the Legislature on the progress of the program by January 1, 2030, or 5 years after the disbursement of the first loan by the department, GO-Biz, whichever is later. The bill would make the program contingent upon appropriation by the Legislature in the annual Budget Act or another statute for its purposes.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.Title 6.6 (commencing with Section 62400) is added to the Government Code, to read:

SECTION 1.

 Title 6.6 (commencing with Section 62600) is added to the Government Code, to read:

TITLE 6.6. Antidisplacement Commercial Property Acquisition Program

62400.62600.
 This title shall be known, and may be cited, as the Antidisplacement Commercial Property Acquisition Program.

62401.62601.
 The Antidisplacement Commercial Property Acquisition Program is hereby established, to be administered by the Department of Housing and Community Development. Governor’s Office of Business and Economic Development. The program shall provide low-interest loans to eligible community-based acquisition partners to acquire commercial property in communities that are vulnerable to gentrification and displacement in order to achieve the following goals:
(a) To ensure local businesses remain in high-risk communities vulnerable to gentrification and displacement.
(b) To stabilize Black-, indigenous-, people of color-, and women-owned small businesses in order to preserve and strengthen low-income communities of color.
(c) To strengthen communities that have historically faced redlining and systemic disinvestment.

62402.62602.
 For purposes of this title:

(a)“Department” means the Department of Housing and Community Development.

(b)

(a) “Eligible community-based acquisition partner” means a nonprofit organization or a land trust.

(c)

(b) “Fund” means the Antidisplacement Commercial Property Acquisition Revolving Loan Fund established in Section 62403.
(c) “GO-Biz” means the Governor’s Office of Business and Economic Development.
(d) “Program” means the Antidisplacement Commercial Property Acquisition Program established pursuant to this title.

62403.62603.
 (a) There is hereby created in the State Treasury the Antidisplacement Commercial Property Acquisition Revolving Loan Fund, to be administered by the department, GO-Biz, to provide low-interest loans to eligible community-based acquisition partners, nonprofit organizations, and land trusts, to acquire commercial property in communities that are vulnerable to gentrification and displacement.
(b) The department, GO-Biz, upon appropriation by the Legislature to the fund for these purposes, may provide low-interest loans from the fund for purposes of the program to eligible community-based acquisition partners that meet the requirements of, and regulations adopted pursuant to, this title.
(c) All moneys received for repayment of a loan, and any penalties, interest, and fees in connection with a loan, provided pursuant to the program shall be deposited in the fund for appropriation by the Legislature. Penalty moneys in the revolving fund shall be available, upon appropriation by the Legislature, for additional loans authorized under this title.
(d) The department GO-Biz may use moneys in the fund, upon appropriation for this purpose, for administrative costs incurred in implementing the program.

62404.

The department

62604.
 GO-Biz shall adopt regulations to administer this title that include, but are not limited to, the following:
(a) Qualifications that prioritize the preservation of Black-, indigenous-, people of color-, and women-owned businesses and the acquisition of commercial property in culturally significant commercial corridors.
(b) Guidelines for the use of funds that prevent the displacement of communities of color, including long-term use restrictions on the property and social impact requirements on the businesses.

62405.62605.
 (a) By January 1, 2030, or five years after the disbursement of the first loan by the department GO-Biz pursuant to this title, whichever is later, the department GO-Biz shall report to the Legislature on the progress of the program, including how the program has supported its own goals.
(b) The report shall be submitted in accordance with Section 9795.

62406.62606.
 The implementation of this title is contingent upon appropriation by the Legislature in the annual Budget Act or another statute for its purposes.