SB 1648

The Real Estate Infrastructure Development Act of 2025 ("the Act"") provides independent authority for the establishment and governance of an infrastructure development district and constitutes an alternative method of establishing and governing such a district. Previous methods, including municipal improvements by special assessments law, improvement bond law, and the Central Business Improvement District Act remain in full force and effect as separate and independent authority for the establishment and governance of a central business improvement or infrastructure development district as long as no central bu siness improvement overlap s with an area within an infrastructure development district created by a municipality. This bill removes the condition that a central business improvement can not overlap an area within an infrastructure development district created by a municipality for the previous methods to remain in full force and effect. PETITIONS AND HEARINGS Upon the filing of an initiating petition purporting to contain the requisite number of signatures, present law requires each governing body of a host municipality required to receive such petition s to order a public hearing to determine whether the infrastructure development district will be established. This bill removes from the petition description that it must be purporting to contain the requisite number of signatures and clarifies that the public hearing will be held by the governing body . When a district must be approved by two or more host municipalities, present law authorizes the governing bodies to hold joint public hearings. This bill adds that governing bodies may alternatively hold separate public hearings when a governing body makes approval contingent on the approval of another governing body. ESTABLISHMENT RESOLUTIONS Present law requires t he establishment resolution adopted by the governing body of the municipality to include certain information, including t he rate of levy of the special assessment to be imposed . This bill clarifies that the resolution must include t he maximum rate of levy of the special assessment to be imposed, not just the rate of levy . BONDS, NOTES, AND OTHER OBLIGATION S Present law requires that t he maximum term of any bonds, notes, or other debt obligations issued to fund the costs of infrastructure, including any refinancing bonds, must not exceed 30 years from the first issuance of bonds, notes, or other debt. This bill adds that, f or development projects with multiple phases of development, bonds must be issued for each phase of the development and each phase must not exceed 30 years from date of issuance of the bonds for that phase. DISSOLUTION OF DISTRICTS Present law requires that e ach district established under th e Act to be dissolved by the governing bodies of the host municipality no later than 30 years from the date the district is established, or if earlier if certain events occur. This bill removes this provision and, instead, requires e ach district established under the Act to be dissolved by the governing bodies of the host municipality no later than 30 years from the date that the last assessment is first levied, or if earlier if those same certai n events occur."