Status: ACTIVE
Senate Bill 1003 (Grayson)
What the bill does:
SB 1003, authored by Senator Tim Grayson, establishes Pro-Housing Enhanced Infrastructure Financing Districts (PEIFDs), creating an incentive structure and state support to encourage local adoption of these districts. PEIFDs are built on the existing Enhanced Infrastructure Financing District (EIFD) tool, a form of tax increment financing that lets jurisdictions use a portion of property tax revenue to fund infrastructure and housing development. The bill responds to a real gap: while affordable housing construction funding is relatively plentiful, funding to support infill infrastructure is not, and that gap keeps otherwise-viable housing projects from penciling out.
The bill's fix is to make PEIFD creation an enhanced action for earning or renewing a jurisdiction's pro-housing designation, giving cities and counties a concrete incentive to align infrastructure investment with housing production. A PEIFD would also give a jurisdiction the highest level of priority when applying for competitive state programs, layering on top of the funding priority that pro-housing designation already provides for pre-development activities like site-specific infrastructure, connectivity, and access improvements. HAC is the bill's sponsor.
Why this bill matters:
Infill housing projects routinely die not because cities won't approve them, but because the site prep, utility upgrades, and street connections needed to serve them don't pencil out. State dollars for affordable construction are comparatively abundant; dollars for the infrastructure that makes a site buildable in the first place are scarce. SB 1003 targets that specific gap by making infrastructure financing tools count toward a jurisdiction's pro-housing standing, so cities have a real incentive to pair land use reform with the infrastructure investment that reform requires to actually produce units.
SB 1003 doesn't create a new financing mechanism from scratch. It builds on the existing EIFD (Enhanced Infrastructure Financing District) structure, which lets a city or county capture a portion of future property tax increment in a defined area and use it to fund infrastructure, replacing a tool cities lost when redevelopment agencies were dissolved in 2012. SB 1003 layers a "Pro-Housing" designation on top of that structure: forming a PEIFD becomes an enhanced pathway for a jurisdiction to earn or renew its pro-housing status, and PEIFDs get top priority when jurisdictions apply for competitive state funding for pre-development activities like site work, connectivity, and access improvements. It's an incentive layer, not a mandate, so it works with the tools jurisdictions already know how to use.
Contact Ali Sapirman at Ali@housingactioncoalition.org for more information.
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