Board updates EIFD policy to ease timelines and clarify affordable-housing options

The Monterey County Board of Supervisors voted Sept. 1 to adopt revisions to its Enhanced Infrastructure Financing District policy that change allowable timeframes for projects and clarify affordable-housing expectations, staff said.

Economics and county administrative staff proposed increasing the authorized EIFD term from 25 to 30 years, extending the required time to commence a project from 2 years to 7 years and allowing up to a 10-year implementation period before the county could begin dissolution proceedings if a project had not started. Staff also added clearer language on an affordable-housing mix and included an option permitting a 20% set-aside of district revenues for affordable housing uses, to be negotiated on a project-by-project basis.

Assistant staff told the board that financial analyses will be conducted on a project-by-project basis and that, where the county lacks in-house expertise, the city partner would cover third-party review costs. Board members emphasized the need to route major policy changes through the Economic Development Committee for education and discussion; staff said these specific revisions had been developed in cooperation with housing and city partners but had not gone to the committee first.

Supervisor Lopez moved adoption; Supervisor Alejo seconded. The board asked staff to incorporate comments from today’s discussion as proposals move forward and to return with any additional analysis and a committee briefing as appropriate.

The policy change is intended to make the EIFD tool more usable for city partners pursuing large-scale commercial or mixed-use projects while preserving project-level fiscal review and negotiation on revenue-sharing or set-aside terms.