Enhanced Infrastructure Financing District

On January 1, 2015, Governor Jerry Brown signed into law, SB628, “Enhanced Infrastructure Financing Districts” (EIFDs) which allows for a separate government entity to be created by a city or county within a defined area to finance infrastructure projects with community-wide benefits.

Public Financing Authority Agendas


What is an EIFD?

Approved by State legislation in 2014, EIFDs can be formed among any entities with property taxing authority, including a City, County, or Special District, but excluding school districts. In Lakewood’s case, the two entities with property taxing authority include the City and the County of Los Angeles.

EIFD’s capture property tax revenue growth within their boundaries, and that tax revenue to issue bonds to fund infrastructure projects (e.g. streets, utilities, sidewalks, pedestrian safety enhancements) or other public purposes allowed by law.

Does an EIFD create new taxes or change my property taxes?

No. The EIFD does not have the power to impose new taxes on property owners and does not impact any taxpayer’s tax bill. Instead, EIFD captures tax property tax growth, known as “property tax increment,” and redirect it to new purposes, such as infrastructure and other public amenities.

Who approves an EIFD?

The local elected officials from each of the participating taxing entities that form an EIFD (e.g. City Council, County Board of Supervisors) vote to form the EIFD and create a Public Financing Authority. This Authority oversees EIFD financing and activities.

How long does an EIFD last?

An EIFD can collect and spend property tax increment up to 45 years after the first bond is issued.

What is the goal of Lakewood EIFD?

The goal of the Lakewood Enhanced Infrastructure Financing District is to create financing for infrastructure investments around various economic development opportunity sites within the City, such as aging commercial centers and sites designated in the City’s Housing Element for future housing development. The exact projects to be funded will be considered over the next several years, after the EIFD is formed.

Is an EIFD a developer subsidy?

EIFD is NOT a developer subsidy. The proposed district is NOT funding infrastructure that would otherwise be a developer/private sector obligation. EIFD is funding regionally beneficial public infrastructure of community-wide significance that is necessary to catalyze private sector investment that would otherwise not occur until decades later, if at all.