Infill Infrastructure Grant Program of 2019: applications: eligibility.

Section 53559(g)(4) now includes three additional location types that qualify for grants: Workforce Housing Opportunity Zones (Gov. Code 65620), housing sustainability districts (Gov. Code 66201), and housing developments compliant with Section 65913.4 or Chapter 4.1 of the Government Code (the streamlined approval provisions).

New subdivision (h) establishes that funds awarded under the program shall supplement, not supplant, other available funding, preventing grant money from replacing existing local or state infrastructure spending.

New subdivision (i) requires the department to adopt guidelines for operating the grant program, including performance standards and authority to revoke (revert) grant awards if the recipient has not substantially met those standards.

The term 'shovel-ready' was removed from the list of newly defined terms in the legislative digest, indicating its definition was either dropped or already exists elsewhere in statute.

The digest language on ranking criteria was revised to state the bill adds on-demand transit and walkability criteria to existing ranking factors rather than replacing them, clarifying that proximity to a transit station or major transit stop remains an existing criterion.

Removed 'walkability stop' from the list of transit-related features used to rank applications. Previously, an area could earn ranking points for proximity to a transit station, major transit stop, OR walkability stop. Now only transit station or major transit stop qualify under that criterion.

Consolidated two separate numbered items (both labeled (10)) covering 'nature-based solutions' and 'natural infrastructure solutions' into a single item (10) using the broader 'natural infrastructure solutions' definition. The narrower 'nature-based solutions' language about sustainable planning, design, environmental management, and engineering practices was removed in favor of the more encompassing natural infrastructure solutions framework.

Fixed duplicate subdivision letter designations (the old version had two (g)s, two (h)s, two (i)s, two (j)s, two (k)s, and two (l)s). Subdivisions are now properly sequenced from (a) through (n).

Corrected garbled text in the walkability definition: 'A supermarket or supermarket, grocery store. store, or other stores that sells groceries' was cleaned up to 'A supermarket, grocery store, or other stores that sells groceries.'

Fixed the statutory cross-reference for 'major transit stop' which previously contained two conflicting section numbers and a duplicated word: 'subdivision (b) of Section 21155 Section 21064.3 of the Public Resources Code. Code' is now simply 'Section 21064.3 of the Public Resources Code.'

Fixed a typo in the digest where 'a any of the following' was corrected to 'any of the following,' and removed a duplicate word in the definitions list ('transit stop" stop,"' became 'transit stop,"').

On-demand transit services that provide or support new, restored, or expanded routes are now an explicit ranking factor for qualifying infill areas in the competitive grant process.

Application documentation requirements were relaxed slightly: applicants no longer need to show 'approval of' entitlements or specifically 'building' permits, only documentation of all necessary entitlement and permits plus a shovel-ready certification.

The third criterion for a qualifying infill area in the over-the-counter (small jurisdiction) process was changed from 'necessary, as adopted by a planning document' to 'necessary and integral,' raising the bar for how directly the capital improvement project must tie to residential development under streamlined approval law.

The affordable unit definition is now explicitly set at 60 percent of area median income for rental (with a 55-year recorded covenant) and 120 percent of area median income for ownership (with a 30-year resale restriction or equity sharing), rather than the 80 percent AMI threshold proposed in the prior version.

New defined terms added: 'on-demand transit service,' 'shovel-ready,' and 'walkability,' providing statutory clarity for how these concepts are applied in ranking and eligibility determinations.

The previously proposed alternative that would have allowed by-right sites in compliance with streamlined approval provisions to meet affordability requirements without the 15 percent affordable units threshold was removed. The 15 percent requirement now applies uniformly.

Reinstated the requirement that applicants for over-the-counter capital improvement project grants (for small jurisdictions) must submit a certification that the project is shovel-ready, in addition to documentation of all necessary entitlement and building permits.

Reinstated the requirement that applicants for catalytic qualifying infill area grants must submit a certification that the capital improvement project is shovel-ready, in addition to documentation of all necessary entitlement and building permits.

Assembly Member Caloza was added as a coauthor of the bill.

Corrected cross-reference language in the affordable unit definition from 'paragraph, subparagraph' to 'subparagraph, subdivision' for proper statutory citation.

The income threshold for an 'affordable unit' is raised from 60% to 80% of area median income, meaning more households (up to 80% AMI) can now be housed in units that count toward the program's 15% affordable housing requirement.

As an alternative to meeting the 15% affordable unit requirement, a project that is a by-right site in compliance with provisions deeming housing an allowable use or subject to streamlined ministerial approval can qualify for funding.

The 'shovel-ready' certification requirement is removed. Applicants must now submit documentation of approval of necessary entitlement and building permits instead of a certification that the project is shovel-ready.

The definition of 'qualifying infill area' is expanded to include areas where the capital improvement project is necessary to make the area suitable for residential development pursuant to the Affordable Housing and High Road Jobs Act of 2022, which provides streamlined ministerial approval for certain housing developments.

The definition of 'urbanized area' is changed from an incorporated city or designated urban service area to an incorporated city or an urbanized area as defined by the United States Census Bureau, potentially changing which geographic areas qualify.

New definitions are added for 'major transit stop' (rail or BRT station, ferry terminal, or intersection of 2+ major bus routes meeting frequency criteria) and 'walkability.'

The definition of 'capital improvement project' is revised to require that funded streets or roads be publicly maintained, open to public vehicle travel, and serve as a connector within the qualifying area. It is also expanded to include nature-based solutions proven to reduce climate change risk.

The definition of 'qualifying infill project' is expanded to include vacant sites where at least 75% of the perimeter adjoins parcels that are developed OR have been previously developed with urban uses, broadening which sites qualify for grants.

The definition of 'urbanized area' is changed from an incorporated city or a designated urban service area (for unincorporated areas) to an incorporated city or an urbanized area as defined by the U.S. Census Bureau, potentially expanding or narrowing geographic eligibility depending on how Census definitions compare to local designations.

A new third criterion is added for 'qualifying infill area' under the small jurisdiction over-the-counter process: areas where the capital improvement project is necessary to make the area suitable and available for residential development pursuant to the Affordable Housing and High Road Jobs Act of 2022 (streamlined ministerial approval provisions).

For catalytic qualifying infill areas and small jurisdiction over-the-counter applications, the requirement is changed from submitting documentation of all necessary entitlements and permits plus a shovel-ready certification to submitting documentation of approval of necessary entitlement and building permits. This removes the explicit shovel-ready certification while requiring actual permit approvals.

Ranking criteria are revised: 'social services' is changed to the broader term 'services,' and 'walkability to essential services or businesses' is added as an explicit ranking factor alongside proximity to transit stations and major transit stops.

A new definition of 'major transit stop' is added, meaning a site containing an existing rail or bus rapid transit station, a ferry terminal served by bus or rail transit, or the intersection of 2 or more major bus routes meeting specified frequency criteria, including stops in the applicable regional transportation plan.

A new definition of 'walkability' is added for purposes of the program.

The definition of 'capital improvement project' is revised to require that funded streets or roads be publicly maintained, open to public vehicle travel, and serve as a connector within a qualifying infill project or area. It is also expanded to expressly include nature-based solutions proven to reduce climate change risk.

Affordability requirements are restructured to allow the department to consider the entire master development when calculating the percentage of affordable units, and to allow applicants to include a replacement housing plan so that low- and moderate-income units are not removed from the market without being counted toward the affordability threshold.