SB772 - Infill Infrastructure Grant Program of 2019: applications: eligibility.

Enrolled August 30, 2026 Passed IN Senate August 27, 2026 Passed IN Assembly August 25, 2026 Amended IN Assembly August 19, 2026 Amended IN Assembly August 13, 2026 Amended IN Assembly July 17, 2025 Amended IN Assembly July 08, 2025 Amended IN Senate April 22, 2025 CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION Senate Bill No. 772 Introduced by Senator Cabaldon (Coauthor: Assembly Member Caloza) February 21, 2025 An act to amend Sections 53559 and 53559.1 of the Health and Safety Code, relating to housing. LEGISLATIVE COUNSEL'S DIGEST SB 772, Cabaldon. Infill Infrastructure Grant Program of 2019: applications: eligibility. Existing law establishes the Infill Infrastructure Grant Program of 2019 (program), which requires the Department of Housing and Community Development, upon appropriation of funds by the Legislature, to establish and administer a grant program to allocate those funds to eligible applicants to fund capital improvement projects that are an integral part of, or necessary to facilitate the development of, a qualifying infill project, qualifying infill area, or catalytic qualifying infill area. Existing law requires the department to administer a specified competitive application process for capital improvement projects for large jurisdictions, as defined. For these purposes, existing law defines a qualifying infill project to include a residential or mixed-use residential project located within an urbanized area on a vacant site where at least 75% of the perimeter of the site adjoins parcels that are developed with urban uses. This bill would expand the definition of qualifying infill project to include a residential or mixed-use residential project located within an urbanized area on a vacant site where at least 75% of the perimeter of the site adjoins parcels that have been previously developed with urban uses. Existing law requires the department to administer an over-the-counter application process for grants for capital improvement projects for small jurisdictions, as provided. For these purposes, existing law defines the term “qualifying infill area” as a contiguous area located within an urbanized area that meets one of specified alternative conditions, including that the capital improvement project for which funding is requested is necessary, as specified, to make the area suitable and available for residential development or to allow the area to accommodate housing for additional income levels, and that the area may be included on an inventory of land in the housing element, as specified. This bill would expand the definition of “qualifying infill area” to additionally include a contiguous area located within an urbanized area for which the capital improvement project for which funding is requested under the program, as described above, is necessary and integral to make the area suitable and available for residential development pursuant to the Affordable Housing and High Road Jobs Act of 2022, which subjects a housing development to streamlined, ministerial approval under certain circumstances, as specified. Existing law requires the department, in its review of applications, to rank affected qualifying infill areas and catalytic qualifying infill areas based on specified criteria, including the qualifying infill area’s or catalytic qualifying infill area’s inclusion of, or proximity to, a train station or major transit stop and the proximity of housing to existing or planned parks, employment or retail centers, schools, or social services. This bill would revise these provisions to require the department to additionally rank applications, as described above, based on the qualifying infill area’s inclusion of, or proximity or accessibility to on-demand transit services, as specified, or walkability to essential services or businesses and based on the catalytic qualifying infill area’s inclusion of, or proximity or accessibility to walkability to essential services or businesses. The bill would additionally revise these provisions to require the department’s ranking to be based on the proximity of housing to services, rather than social services. Existing law requires a qualifying infill project, qualifying infill area, or catalytic qualifying infill area for which a capital improvement project grant can be awarded under the program to meet specified conditions, including, among others, being located in an area designated for mixed-use or residential development, as specified. This bill would additionally allow the project to be located in an area that allows for mixed-use or residential development pursuant to a housing development that is in compliance with certain provisions deeming a housing development an allowable use or subject to streamlined, ministerial approval. Existing law defines various terms for the purposes of the program, including, “capital improvement project,” “catalytic qualifying infill area,” “eligible applicant,” “urbanized area,” and “urban uses.” This bill would revise these definitions. The bill would additionally define the terms “on-demand transit service,” “major transit stop,” and “walkability.” Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO Bill Text The people of the State of California do enact as follows: SECTION 1. Section 53559 of the Health and Safety Code is amended to read: 53559. (a) The Infill Infrastructure Grant Program of 2019 is hereby established to be administered by the department. (b) Upon appropriation by the Legislature of funds for purposes of this part, the department shall establish and administer a grant program to allocate those funds to selected capital improvement projects that are an integral part of, or necessary to facilitate the development of, a qualifying infill project, qualifying infill area, or catalytic qualifying infill area pursuant to the requirements of this section. The department shall determine amounts, if any, to be made available for qualifying infill projects, qualifying infill areas, or catalytic qualifying infill areas. (c) (1) Except for funds appropriated or set aside for small jurisdictions for grants pursuant to subdivision (e), the department shall administer a competitive application process for capital improvement projects for large jurisdictions pursuant to this subdivision. (2) Except for grants for qualifying infill areas or catalytic qualifying infill areas, the department shall do all of the following for grants made pursuant to this subdivision: (A) Make program funds available at the same time it makes funds, if any, available under the Multifamily Housing Program (Chapter 6.7 (commencing with Section 50675) of Part 2). (B) Rate and rank applications in a manner consistent with the Multifamily Housing Program (Chapter 6.7 (commencing with Section 50675) of Part 2), except that the department may establish additional point categories for the purposes of rating and ranking applications that seek funding pursuant to this part in addition to those used in the Multifamily Housing Program. (C) Administer funds in a manner consistent with the Multifamily Housing Program (Chapter 6.7 (commencing with Section 50675) of Part 2). (D) For purposes of awarding grants pursuant to the competitive application process required by this subdivision, “qualifying infill project” means a residential or mixed-use residential project located within an urbanized area on a site that has been previously developed, or on a vacant site where at least 75 percent of the perimeter of the site adjoins parcels that are developed or have been previously developed with urban uses. (d) (1) In its review and ranking of applications for the award of capital improvement project grants, the department shall rank the affected qualifying infill areas based on the following priorities: (A) Project readiness, which shall include all of the following: (i) A demonstration that the area development can complete environmental review and secure necessary entitlements from the local jurisdiction within a reasonable period of time following the submission of a grant application. (ii) A demonstration that the eligible applicant can secure sufficient funding commitments derived from sources other than this part for the timely development of a qualifying infill area. (B) The depth and duration of the affordability of the housing proposed for a qualifying infill area. (C) The extent to which the average residential densities on the parcels to be developed exceed the density standards contained in paragraph (3) of subdivision (g). (D) The qualifying infill area’s inclusion of, or proximity or accessibility to, any of the following: (i) A transit station or major transit stop. (ii) On-demand transit services that provide or support new, restored, or expanded routes. (iii) Walkability to essential services or businesses. (E) The proximity of housing to parks, employment or retail centers, schools, or services. (F) The qualifying infill area location’s consistency with an adopted sustainable communities strategy pursuant to Section 65080 of the Government Code, alternative planning strategy pursuant to Section 65450 of the Government Code, or other adopted regional growth plan intended to foster efficient land use. (G) For qualifying infill areas, in awarding funds under the program, the department shall provide additional points or preference to projects located in jurisdictions that are designated prohousing pursuant to subdivision (c) of Section 65589.9 of the Government Code, in the manner determined by the department pursuant to subdivision (d) of Section 65589.9 of the Government Code. (2) In allocating funds pursuant to this subdivision, the department, to the maximum extent feasible, shall ensure a reasonable geographic distribution of funds. (3) For purposes of awarding grants pursuant to the competitive application process required by this subdivision or subparagraph (B) of paragraph (2) of subdivision (c), “qualifying infill area” means a contiguous area located within an urbanized area (i) that has been previously developed, or where at least 75 percent of the perimeter of the area adjoins parcels that are developed with urban uses, and (ii) in which at least one development application has been approved or is pending approval for a residential or mixed-use residential project that meets the definition and criteria in this section for a qualifying infill project. (e) (1) The department shall administer an over-the-counter application process for grants funded by the allocation specified in the appropriation or paragraph (2) of subdivision (a) of Section 53559.2 for capital improvement projects for small jurisdictions, pursuant to this subdivision. (2) Eligible applicants shall submit the following information in the application request for funding: (A) A complete description of the qualifying infill project or qualifying infill area and documentation of how the infill project or infill area meets the requirements of this section. (B) A complete description of the capital improvement project and requested grant funding for the project, how the project is necessary to support the development of housing, and how it meets the criteria of this section. (C) Documentation that specifies how the application meets all of the requirements of subdivision (g). (D) (i) Except as provided in clause (ii), a financial document that shows the gap financing needed for the project. (ii) For a qualifying infill project located in the unincorporated area of the county, the department shall allow an applicant to meet the requirement described in clause (i) by submitting copies of an application or applications for other sources of state or federal funding for a qualifying infill project. (E) (i) Except as provided by clause (ii), documentation of all necessary entitlement and permits, and a certification from the applicant that the project is shovel-ready. (ii) For a qualifying infill project located in the unincorporated area of the county, the department shall allow the applicant to meet the requirement described in clause (i) by submitting a letter of intent from a willing affordable housing developer that has previously completed at least one comparable housing project, certifying that the developer is willing to submit an application to the county for approval by the county of a qualifying infill project within the area in the event that the funding requested pursuant to this subdivision is awarded. (3) The department may establish a per-unit formula to determine the amount of funds awarded pursuant to this subdivision. (4) For purposes of awarding grants pursuant to the over-the-counter application process required by this subdivision: (A) “Qualifying infill area” means a contiguous area located within an urbanized area that meets one of the following criteria: (i) The area contains sites included on the inventory of land suitable and available for residential development in the housing element of the applicable city or county general plan pursuant to paragraph (3) of subdivision (a) of Section 65583 of the Government Code, and at least 50 percent of the perimeter of the area shall adjoin parcels that are developed with urban uses. (ii) The capital improvement project for which funding is requested is necessary, as documented by an environmental review or some other adopted planning document, to make the area suitable and available for residential development, or to allow the area to accommodate housing for additional income levels, and the area otherwise meets the requirements for inclusion on the inventory of land suitable and available for residential development in the housing element of the applicable city or county general plan pursuant to paragraph (3) of subdivision (a) of Section 65583 of the Government Code. At least 50 percent of the perimeter of the area shall adjoin parcels that are developed with urban uses. (iii) The capital improvement project for which funding is requested is necessary and integral to make the area suitable and available for residential development pursuant to Chapter 4.1 (commencing with Section 65912.100) of Division 1 of Title 7 of the Government Code. (B) “Qualifying infill project” means a residential or mixed-use residential project located within an urbanized area on a site that has been previously developed, or on a vacant site where at least 50 percent of the perimeter of the site adjoins parcels that are developed with urban uses. (f) (1) For catalytic qualifying infill areas, grants for small jurisdictions and large jurisdictions shall be provided using a selection process established by the department that meets all of the following requirements: (A) Applicants shall meet both of the following minimum threshold requirements: (i) Readiness, which includes both of the following: (I) A demonstration that the catalytic qualifying infill area development can complete environmen [Text truncated for display. Full text available on Congress.gov.]