AB 417 – Modern Tools for Local Investment
Why the Foster City Chamber Supports AB 417:
The Foster City Chamber of Commerce proudly supports AB 417 because it offers local governments—like our own—a smarter, more flexible way to invest in infrastructure, economic development, and community revitalization without raising taxes. Foster City is a master-planned community with no traditional downtown and limited commercial space, much of which is aging and underutilized. As our city evolves, so too must our economic and infrastructure strategies. AB 417 strengthens two vital, underused tools: Enhanced Infrastructure Financing Districts (EIFDs) and Community Revitalization and Investment Authorities (CRIAs). These tools allow cities to capture a portion of future property tax growth and reinvest it back into their communities, funding projects that directly support small businesses, housing, and public improvements.
This legislation is especially important for Foster City, where community leaders and business owners have long recognized the need for more vibrant, walkable mixed-use areas. AB 417 makes it easier to move those visions forward by streamlining the process to create financing districts, reducing bureaucratic delays, and expanding eligibility for projects. For example, small business improvements, commercial structure upgrades, and housing-focused redevelopment can all be supported under these revised rules. These investments help drive foot traffic, support entrepreneurs, and contribute to the long-term resilience of our local economy—without placing an additional burden on taxpayers.
The Chamber also values AB 417’s emphasis on local control, accountability, and collaboration. The bill encourages partnerships between cities, counties, and other local agencies while maintaining transparency through public engagement requirements. As a member of the California Association for Local Economic Development (CALED), the Chamber is aligned with economic developers and community leaders across the state who believe that local challenges require local solutions. AB 417 is a thoughtful and timely response to those challenges, and we believe it will help Foster City—and cities like ours—build stronger, more dynamic, and more economically resilient communities.
What is AB 417?
AB 417 is a bill that improves how cities like Foster City can plan, finance, and deliver local infrastructure and revitalization projects. It updates and streamlines two key local investment tools:
- Enhanced Infrastructure Financing Districts (EIFDs)
- Community Revitalization and Investment Authorities (CRIAs)
These programs allow cities to reinvest local property tax growth into public improvements, affordable housing, small business upgrades, and infrastructure— without raising taxes.
Why Does This Matter for Foster City?
Foster City doesn’t have a traditional downtown, but we do have aging commercial centers and a growing need for community gathering spaces. AB 417 gives us practical tools to:
- Support small business and mixed-use development
- Fund local infrastructure improvements
- Create vibrant, walkable community hubs
- Align development with climate and housing goals
Key Benefits of AB 417
- Streamlines the process to create or update EIFDs and CRIAs
- Reduces administrative red tape for local governments
- Encourages collaboration between local agencies
- Requires CRIAs to dedicate at least 25% of revenue to affordable housing
- Modernizes local economic development tools
How Do EIFDs and CRIAs Work?
Both EIFDs and CRIAs use Tax Increment Financing (TIF). A portion of future property tax growth in a designated area is reinvested back into that community. These tools are voluntary, locally controlled, and transparent.
Challenges This Bill Solves
- CRIAs have been underused due to restrictive boundaries and complex processes
- AB 417 aligns CRIA laws with more flexible EIFD rules
- Ensures public participation, transparency, and accountability remain intact
Who Supports AB 417?
AB 417 is sponsored by the California Association for Local Economic Development (CALED) and supported by cities and organizations across California.
The Foster City Chamber of Commerce is a proud CALED member, advocating for practical, flexible tools that support local economic development without raising taxes.
What’s Next?
AB 417 passed the State Assembly 62–0 and is now being considered in the California Senate.
How to Support AB 417 in the Senate
To effectively support AB 417 as it progresses through the California Senate, it's crucial to engage with key senators who will influence the bill's advancement.
1. Contact Senator Josh Becker (D-Menlo Park)
- Role: Represents Foster City
- Capitol Office: 1021 O Street, Suite 8710, Sacramento, CA 95814
- Phone:(916) 651-4013
- Contact: Senator Becker's Contact Page
2. Senate Governance and Finance Committee
This committee is likely to review AB 417 due to its focus on local finance and infrastructure.
Chair: Senator María Elena Durazo (D-Los Angeles)
- Capitol Office: 1021 O Street, Suite 7530, Sacramento, CA 95814
- Phone: (916) 651-4026
Vice-Chair: Senator Steven Choi (R-Irvine)
- Capitol Office: 1021 O Street, Suite 7130, Sacramento, CA 95814
- Phone: (916) 651-4037
Committee Members:
- Senator Jesse Arreguín (D-Berkeley)
1021 O Street, Suite 6630
Phone: (916) 651-4010 - Senator Christopher Cabaldon (D-Yolo)
1021 O Street, Room 7320
Phone: (916) 651-4003 - Senator John Laird (D-Santa Cruz)
1021 O Street, Suite 8720
Phone: (916) 651-4017 - Senator Kelly Seyarto (R-Murrieta)
1021 O Street, Suite 7120
Phone: (916) 651-4032 - Senator Scott D. Wiener (D-San Francisco)
1021 O Street, Suite 8620
Phone: (916) 651-4011
Take Action
If you'd like to show your support for AB 417, we’ve made it easy. Download a sample letter below and submit it through the California Legislature’s online portal or email your senator directly.
- Submit a support letter online:
calegislation.lc.ca.gov/Advocates - Contact Senator Josh Becker:
sd13.senate.ca.gov/contact
Download a Sample Support Letter
Whether you're a resident, a local business owner, or part of a nonprofit, your voice can help ensure AB 417 becomes law and brings new opportunities to Foster City and other communities across California.
More Information
Foster City Chamber of Commerce
(650) 573-7600
info@fostercitychamber.com
