California Assembly Bill AB2308

California 2025-2026 Regular Session

• Introduced: 2/19/26
• Refer: 3/9/26
• Report Pass: 4/16/26
• Refer: 4/16/26
• Report Pass: 4/29/26
• Engrossed: 5/7/26
• Refer: 5/7/26
• Refer: 5/20/26
• Report Pass: 6/3/26
• Refer: 6/3/26
• Report Pass: 6/10/26
• Refer: 6/10/26

Caption

An act to amend Section 34177.7 of the Health and Safety Code, relating to housing.

Summary

AB 2308 would amend a special provision of the Health and Safety Code governing the former San Francisco Redevelopment Agency’s successor agency. The bill expands and clarifies the successor agency’s authority to issue bonds or incur other indebtedness for specified San Francisco redevelopment obligations, including affordable housing tied to Mission Bay, Hunters Point Shipyard, Candlestick Point, and the Transbay project. It specifically authorizes the successor agency to enter into arrangements with the Transbay Joint Powers Authority and the City and County of San Francisco to extend the time period for pledges of gross sales proceeds and net tax increment for Transbay infrastructure financing. The bill also preserves and reinforces existing financing mechanisms for up to 5,842 units of affordable housing, with long affordability covenants of at least 55 years for rental units and 45 years for owner-occupied units. It sets out detailed rules on what revenues may be pledged, how debt service and administrative costs are to be paid, and how the successor agency may subordinate certain payments only with approval from affected taxing entities or the city. The measure further confirms that these obligations are to be treated as indebtedness of the dissolved redevelopment agency and included on the Recognized Obligation Payment Schedule, subject to oversight board and department review.

Impact

AB 2308 would amend Section 34177.7 of the Health and Safety Code to create a San Francisco-specific exception within the post-redevelopment agency dissolution framework. It would allow the successor agency to use redevelopment property tax trust fund revenues, subject to statutory limits, to finance Transbay infrastructure and designated affordable housing projects, and it would permit extensions of certain revenue pledge periods tied to Transbay financing arrangements. The bill also tightens procedural and financing rules by requiring oversight board approval, limiting legal challenges to a 30-day window, and directing the agency to seek the lowest long-term cost financing with no variable rates or payment spikes.

Sentiment

The available voting history suggests the bill has generally been received positively in committee. It passed the Assembly Housing and Community Development Committee unanimously and later advanced from the Senate committee with a strong majority, indicating broad support for the measure’s housing and infrastructure financing goals. No committee transcript is available here, but the votes point to a favorable overall sentiment toward preserving financing tools for San Francisco’s redevelopment obligations.

Contention

The main point of contention is the bill’s highly localized, special-statute approach. Rather than changing redevelopment financing rules statewide, it creates or expands authority only for the City and County of San Francisco, which may raise concerns about preferential treatment or precedent. The bill also implicates the allocation and extension of tax increment and gross sales proceeds, which can affect other taxing entities and requires their approval in some cases. Any concern about fiscal exposure appears to be managed through oversight board approval, evidence requirements, and limits on what revenues may be pledged, but the bill still centers on using public redevelopment revenues to support long-term debt and project financing.