Legis
Housing
AB 2110, Chapter 381, Statutes of 2026 · Sunday 20 September 2026

Workforce Housing Enhanced Infrastructure Financing Act

Lets cities and counties create special financing districts to build deed-restricted workforce housing.

The law creates a local tool to finance housing for public-safety, education, health care, and manufacturing workers. It requires most units to serve lower-income households and preserves affordability for decades.

What the law does

  • Authorizes cities and counties to establish workforce housing enhanced infrastructure financing districts and adopt required financing plans.
  • Limits district-financed projects to single-family, multifamily, or predominantly residential mixed-use housing.
  • Requires projects to reserve units for specified workforce groups, while allowing lower- or moderate-income members of the public to occupy units under applicable law.
  • Requires recorded deed restrictions reserving at least 70 percent of units for lower-income households and 30 percent for moderate-income households.
  • Requires affordability covenants or restrictions for at least 55 years for rental units and 45 years for owner-occupied units.
  • Allows tax-increment bonds only after approval by two-thirds of district voters, and bars a substantially similar defeated bond measure for one year.

Who it affects

  • Public-safety personnel, school employees and teachers, health care personnel, and manufacturing workers seeking housing.
  • Lower-income and moderate-income households eligible for the housing.
  • Cities, counties, district governing boards, and voters residing in a district.

Context

Districts must review compliance with their financing plans every 10 years.