California Lawmakers Announce Legislative Bill Package and Budget Plan to Revive Struggling Downtowns

SACRAMENTO, CA - With many of California’s downtowns still struggling from the pandemic, Assemblymember Matt Haney (D-San Francisco) as Chair of the Downtown Recovery Committee unveiled a sweeping legislative plan to help breathe life back into the state’s urban cores.

Joined by mayors from across the state and members of the Assembly’s Downtown Recovery Committee, Haney announced a package of bills aimed at reversing high vacancy rates, supporting small businesses, tackling homelessness, and reigniting local economies.

“I spent the last year working with Mayors across the state and here’s what I found.” said Haney. “Local government are working miracles with the limited resources they currently have. But they need the support of the state to take the bold action we need to bring our downtowns back.”

The legislation comes after a yearlong statewide tour that took Haney to nine city centers — from San Diego to Sacramento — where he met with city leaders, business owners, and community advocates to craft a targeted recovery strategy.

The Recovery Committees bill package includes measures to spur infill housing near jobs and transit, streamline approvals for office to housing conversions, support struggling nightlife and entertainment venues, and getting homeless people of the streets and into housing.

Local leaders praised the initiative as a timely intervention.

“We thank Assemblymember Haney’s commitment to rebuilding and revitalizing our downtowns,” said Mayor Patricia Lock Dawson, Mayor of Riverside and Chair of the Big City Mayors Coalition. “His bill package provides our cities the critical tools our downtowns need to adapt to a changing economy and to the evolving needs of our communities. A thriving downtown is essential to long-term economic vitality, and we look forward to working together to bring these efforts to life.”

Tourism leaders echoed the urgency. “California’s iconic downtowns have never fully recovered from the pandemic’s work-from-home policies and reductions in business travel. Now, as the tourism industry faces increased uncertainty in the face of current events, it’s more critical than ever to promote innovative opportunities for economic development,” said Barb Newton, President & CEO of the California Travel Association. “Creating vibrant downtowns that don’t go dark at 5pm—where people can live, work, and play—creates jobs, increases tourist visitation, generates tax revenues, and benefits our entire economy.”

California’s downtowns were among the hardest hit by the pandemic in the nation, as remote work, shuttered businesses, and public safety concerns drove people away. Many still haven’t recovered.

Haney said the time to act is now.

“We can’t afford to let our downtowns continue to struggle,” he said. “This package is about more than recovery—it’s about reimagining the future of our cities.”

The Committee on Downtown Recovery will be convening throughout the legislative session to address further solutions to California’s downtowns’ most pressing challenges.

DOWNTOWN RECOVERY COMMITTEE SUPPORTED BILL PACKAGE

Supporting Downtown Businesses

AB 265 (Caloza) - California Small Business and Nonprofit Recovery Fund Act - Establishes a $100 million state-funded program administered by the Office of Small Business Advocate to provide financial assistance to small businesses and nonprofit organizations impacted by declared states of emergency

AB 342 (Haney) - Hospitality Zones - Gives local governments the ability to opt-in to a pilot program that would extend “last call” times at bars until 4 a.m. on Fridays, Saturdays, and certain holidays.

AB 592 (Gabriel) - Revitalizing California Restaurants with Outdoor Dining and Open Kitchens - Supports California community restaurants by maximizing their ability to offer outdoor dining, while continuing to enjoy a modernized, low cost regulatory process.

AB 828 (Mark Gonzalez) - Restaurant Relief Act - Makes it easier and more affordable for restaurants in downtown Los Angeles and surrounding areas to get alcohol licenses.

Combatting Street Homelessness

AB 255 (Haney) - Drug-Free Recovery Housing - Brings California in line with the Federal Department of Housing and Urban Development (HUD) by allowing up to 25% of the housing stock in any jurisdiction to be drug-free recovery housing.

AB 348 (Krell) - Full-Service Partnership Presumptive Eligibility for Vulnerable Populations - Establishes presumptive eligibility for Full Service Partnership programs for those with serious mental issues who are experiencing homelessness, being released from incarceration or being discharged from involuntary hospitalization.

AB 543 (Mark Gonzalez) - Street Medicine - Addresses the homelessness crisis by ensuring that people experiencing homelessness can access Medi-Cal services without unnecessary delays or administrative barriers and improving coordination between the health system and social safety net.

Creating Vibrant Streets

AB 476 (Mark Gonzalez) - Combatting Metal Theft - Deters copper theft and protects public infrastructure like street lighting, traffic signals, and telecoms to protect against streetlight outages.

AB 507 (Haney) - Office-to-Housing Conversions - Removes barriers to converting existing office buildings into housing and allows more people to live closer to work centers and transit, without changing the physical character of our neighborhoods.

AB 671 (Wicks) - Streamlined Restaurant Openings - Streamlines the permitting process for restaurant openings by creating a professional certification network.

Financing Critical Projects

AB 314 (Arambula) - Transit-Oriented Development - Provides more funding opportunities for development along planned high speed rail stations.

AB 1265 (Haney) - Historic Building Tax Relief - Extends the sunset date of the Historic Tax Credit and prioritizes infill adaptive reuse projects.

AB 1445 (Haney) - Downtown Recovery Districts - Establishes “downtown recovery districts” statewide, which would allow cities to opt into a financing model for property taxes to go toward adaptive reuse projects.