This part shall be known and may be cited as the “Multifamily Improvement District Law.”
Multifamily Improvement DistrictsGeneral Provisions
Section § 36700
This section names the law as the "Multifamily Improvement District Law" and establishes how it can be referred to.
Multifamily Improvement District improvement district law district naming
Section § 36701
This law section explains the circumstances of businesses in California's multifamily residential areas. These businesses often struggle due to poor facilities and services. The law aims to help economically disadvantaged neighborhoods by revitalizing them, creating jobs, and attracting new businesses. To achieve this, cities are allowed to fund improvements by collecting money specifically from the businesses or properties that will benefit from these changes. Importantly, the funds collected are not considered city taxes for the general public but are directly used for specific benefits for the businesses and properties involved.
The Legislature finds and declares all of the following:
(a)CA Streets And Highways Code § 36701(a) Many businesses that operate multifamily residential properties and commercial properties within predominantly multifamily neighborhoods of California’s communities are economically disadvantaged, are underutilized, and are unable to attract tenants because of inadequate facilities, services, and activities in those neighborhoods.
(b)CA Streets And Highways Code § 36701(b) It is in the public interest to promote the economic revitalization and physical maintenance of the multifamily residential neighborhoods to create jobs, attract new businesses, and prevent the erosion of the multifamily residential neighborhoods.
(c)CA Streets And Highways Code § 36701(c) It is of particular local benefit to allow cities to fund business related improvements and activities through the levy of assessments upon the businesses or real property that benefit from those improvements.
(d)CA Streets And Highways Code § 36701(d) Assessments levied for the purpose of providing improvements and promoting activities that benefit real property or businesses are not taxes for the general benefit of a city, but are assessments for the improvements and activities that confer special benefits upon the real property or businesses for which the improvements and activities are provided.
economic revitalization multifamily residential neighborhoods business improvement
Section § 36702
This section is about adding to existing laws that allow cities to charge fees or assessments for improvements within parking and business areas. It's designed to work alongside laws from 1989 and 1994 that deal with how cities can improve districts and raise money for these projects. It doesn't change any other laws related to city improvements or fundraising.
The purpose of this part is to supplement previously enacted provisions of law that authorize cities to levy assessments pursuant to the Parking and Business Improvement Area Law of 1989 (Part 6 (commencing with Section 36500)) and the Property and Business Improvement District Law of 1994 (Part 7 (commencing with Section 36600)). This part does not affect or limit any other provisions of law authorizing or providing for the furnishing of improvements or activities or the raising of revenue for these purposes.
city assessments Parking and Business Improvement Area supplement existing law
Section § 36703
This section offers an additional way to finance certain improvements or activities. It doesn't interfere with or restrict any other laws that also deal with funding or providing these improvements or activities.
This part provides an alternative method of financing certain improvements and activities. The provisions of this part shall not affect or limit any other provisions of law authorizing or providing for the furnishing of improvements or activities or the raising of revenue for these purposes.
alternative financing improvements financing activities
Section § 36704
This law allows charter cities the flexibility to create their own rules for levying assessments, meaning they can have different methods than those mentioned in this law. Apartment complexes or multifamily districts formed under this law don’t have to follow the 1931 assessment rules. If this law conflicts with other laws, its rules take precedence. The law encourages a broad interpretation, so even if part of it is found invalid, the rest stays effective. These assessments are not the same as special taxes. Any fee or charge must fairly reflect the benefit provided to the property and cannot exceed the cost of the benefit, separating general benefits from specific ones that are charged.
(a)CA Streets And Highways Code § 36704(a) Nothing in this part is intended to preempt the authority of a charter city to adopt ordinances providing for a different method of levying assessments for similar or additional purposes from those set forth in this part.
(b)CA Streets And Highways Code § 36704(b) A multifamily improvement district created pursuant to this part is expressly exempt from the provisions of the Special Assessment Investigation, Limitation and Majority Protest Act of 1931 (Division 4 (commencing with Section 2800)).
(c)CA Streets And Highways Code § 36704(c) Any provision in this part that conflicts with any other provision of law shall prevail over the other provision of law.
(d)CA Streets And Highways Code § 36704(d) This part is intended to be construed liberally and, if any provision is held invalid, the remaining provisions shall remain in full force and effect.
(e)CA Streets And Highways Code § 36704(e) Assessments levied under this part are not special taxes.
(f)CA Streets And Highways Code § 36704(f) Consistent with Article XIII C of the California Constitution, no assessment shall be imposed under this part on any property which exceeds the reasonable cost of the proportional special benefit conferred on that property. Only special benefits are assessable, and a city shall separate the general benefits from the special benefits conferred on any property.
charter cities authority multifamily improvement district exemption Special Assessment Investigation Act
Section § 36705
This section defines key terms related to multifamily improvement districts. It explains that 'activities' include services like additional security, landscaping, sanitation, marketing, business management, and code enforcement that go beyond what the city normally provides. An 'assessment' is a levy to fund these services and improvements, benefiting properties or businesses in the district.
'Improvement' refers to physical enhancements with an expected life of five years or more, such as parking, lighting, parks, and safety features. The section also clarifies what counts as 'business,' 'city,' and 'city council' under this part. It also defines entities and roles such as 'owners’ association,' which is a private nonprofit managing district improvements, and who 'property owners' are. Finally, it distinguishes 'tenants' as renters of commercial or residential units.
As used in this part:
(a)CA Streets And Highways Code § 36705(a) “Activities” means, but is not limited to, all of the following:
(1)CA Streets And Highways Code § 36705(a)(1) Providing security services supplemental to those normally provided by the city.
(2)CA Streets And Highways Code § 36705(a)(2) Maintaining, including irrigating, landscaping.
(3)CA Streets And Highways Code § 36705(a)(3) Providing sanitation, graffiti removal, street and sidewalk cleaning, and other public services supplemental to those normally provided by the city.
(4)CA Streets And Highways Code § 36705(a)(4) Marketing, advertising, and promoting economic development, including
the retention and recruitment of businesses and tenants.
(5)CA Streets And Highways Code § 36705(a)(5) Providing managerial services for multifamily residential businesses.
(6)CA Streets And Highways Code § 36705(a)(6) Providing building inspection and code enforcement services for multifamily residential businesses supplemental to those normally provided by the city.
(b)CA Streets And Highways Code § 36705(b) “Assessment” means a levy for the purpose of acquiring, constructing, installing, or maintaining improvements and promoting activities which will benefit the properties or businesses located within a multifamily improvement district.
(c)CA Streets And Highways Code § 36705(c) “Business” means all types of businesses, including, but not limited to, the operation of multifamily residential properties, retail stores, commercial properties, financial institutions, and professional offices.
(d)CA Streets And Highways Code § 36705(d) “City” means a city, county, city and county, or an agency or entity created pursuant to the Joint Exercise of Powers Act, Article 1 (commencing with Section 6500) of Chapter 5 of Division 7 of Title 1 of the Government Code, the public member agencies of which includes only cities, counties, or a city and county.
(e)CA Streets And Highways Code § 36705(e) “City council” means the city council of a city or the board of supervisors of a county, or the agency, commission, or board created pursuant to a joint powers agreement and which is a city within the meaning of this part.
(f)CA Streets And Highways Code § 36705(f) “Clerk” means clerk of the legislative body.
(g)CA Streets And Highways Code § 36705(g) “Improvement” means the acquisition, construction, installation, or maintenance of any tangible property with an estimated useful life of five years or more,
including, but not limited to:
(1)CA Streets And Highways Code § 36705(g)(1) Parking facilities.
(2)CA Streets And Highways Code § 36705(g)(2) Benches, booths, kiosks, display cases, pedestrian shelters, signs, and entry monuments.
(3)CA Streets And Highways Code § 36705(g)(3) Trash receptacles.
(4)CA Streets And Highways Code § 36705(g)(4) Street lighting.
(5)CA Streets And Highways Code § 36705(g)(5) Street decorations.
(6)CA Streets And Highways Code § 36705(g)(6) Parks.
(7)CA Streets And Highways Code § 36705(g)(7) Fountains.
(8)CA Streets And Highways Code § 36705(g)(8) Planting areas.
(9)CA Streets And Highways Code § 36705(g)(9) Closing, opening, widening, or narrowing of existing streets.
(10)CA Streets And Highways Code § 36705(g)(10) Facilities or equipment, or both, to
enhance the security of persons and property within the district.
(11)CA Streets And Highways Code § 36705(g)(11) Ramps, sidewalks, plazas, and pedestrian malls.
(12)CA Streets And Highways Code § 36705(g)(12) Rehabilitation or removal of existing structures.
(h)CA Streets And Highways Code § 36705(h) “Management district plan” or “plan” means a proposal as described in Section 36713.
(i)CA Streets And Highways Code § 36705(i) “Multifamily improvement district,” or “district,” means a multifamily improvement district established pursuant to this part.
(j)CA Streets And Highways Code § 36705(j) “Owners’ association” means a private nonprofit entity that is under contract with a city to administer or implement activities and improvements specified in the management district plan. An owners’ association may be an existing nonprofit entity or a newly formed nonprofit entity. An owners’
association is a private entity and may not be considered a public entity for any purpose, nor may its board members or staff be considered to be public officials for any purpose.
(k)CA Streets And Highways Code § 36705(k) “Property” means real property situated within a multifamily improvement district.
(l)CA Streets And Highways Code § 36705(l) “Property owner” or “owner” means any person shown as the owner of land on the last equalized assessment roll or otherwise known to be the owner of land by the city council. The city council has no obligation to obtain other information as to the ownership of land, and its determination of ownership shall be final and conclusive for the purposes of this part. Wherever this subdivision requires the signature of the property owner, the signature of the authorized agent of the property owner shall be sufficient.
(m)CA Streets And Highways Code § 36705(m) “Tenant” means an occupant pursuant to
a lease or a rental agreement of commercial space or a dwelling unit, other than an owner.
multifamily improvement district supplemental services landscaping
