AB 761, recently signed into law by California Governor Gavin Newsom, significantly extends the term of Enhanced Infrastructure Financing Districts (EIFDs) from 45 to 75 years. Authored by Assemblymember Laura Friedman, this legislation aligns with the federal Transportation Infrastructure Finance and Innovation Act (TIFIA) loan terms, aiming to boost local financing for critical infrastructure projects, such as the Metro K Line Extension. This adjustment is expected to facilitate the construction of Metro rail service to West Hollywood and neighboring regions by potentially advancing the project’s completion ahead of the originally projected date of 2041.
The City of West Hollywood, in collaboration with Los Angeles County Supervisor Lindsey P. Horvath, played a crucial role in the introduction and passage of this bill. The local government anticipates that the extended EIFD terms will decrease annual payments and increase financing capabilities, thereby making the EIFDs a more practical tool for funding significant transit projects. Mayor John M. Erickson of West Hollywood highlighted the community’s strong support for enhancing Metro rail connectivity, which is seen as a pivotal development for improving regional mobility and transit integration.