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League Moves to Support Redesignation of Expiring Enterprise Zones

February 16, 2012
AB 484 (Alejo) will help ensure that businesses within an enterprise zone can continue to receive uninterrupted benefits until such time that the Department of Housing and Community Development (HCD) has completed a regulatory and administrative review of the program, issued a request for proposal, and issued conditional designation letters to the maximum number of enterprise zones within the state. Two enterprise zones face losing their designation this year without this legislation (Watsonville is set to expire in April and the Antelope Valley expired as of Jan. 31).
 

When Gov. Jerry Brown released his proposed 2012-13 budget, he indicated that the Administration would propose legislation to reform the enterprise zone program. In addition, the state's Department of Housing and Community Development (HCD) issued a memorandum announcing that no new zone designations would be issued until further notice, and zones that have recently received conditional designations would receive a one-time restart of their 180-month deadline to complete the final designation process.

Before HCD considers issuing requests for proposals on the enterprise zone program, it is seeking reforms that would:

  • Limit retroactive vouchering;
  • Reduce Target Employment Areas; and
  • Restrict the expansions of zones.

The League is ready to engage in conversations regarding reforms to the current enterprise zone program, with the intent to improve the enterprise zone program, not diminish the value enterprise zones bring to local jurisdictions across California. For these reasons, the League supports AB 484.

City officials are urged to immediately send support letters on AB 484. A sample support letter can be accessed on the League's website by typing "AB 484" into the search box.



 
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