Cal. Streets and Highways Code - SHC § 36700. Section 36700.
This part shall be known and may be cited as the “Multifamily Improvement District Law.”
CHAPTER 1. General Provisions [36700. - 36705.]
Cal. Streets and Highways Code - SHC 1.
in effectCal. Streets and Highways Code - SHC § 36701. Section 36701.
The Legislature finds and declares all of the following:
(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)
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)
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)
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.
Cal. Streets and Highways Code - SHC § 36702. Section 36702.
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.
Cal. Streets and Highways Code - SHC § 36703. Section 36703.
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.
Cal. Streets and Highways Code - SHC § 36704. Section 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)
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)
Any provision in this part that conflicts with any other provision of law shall prevail over the other provision of law.
(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)
Assessments levied under this part are not special taxes.
(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.
Cal. Streets and Highways Code - SHC § 36705. Section 36705.
As used in this part:
(a)
“Activities” means, but is not limited to, all of the following:
(1)
Providing security services supplemental to those normally provided by the city.
(2)
Maintaining, including irrigating, landscaping.
(3)
Providing sanitation, graffiti removal, street and sidewalk cleaning, and other public services supplemental to those normally provided by the city.
(4)
Marketing, advertising, and promoting economic development, including
the retention and recruitment of businesses and tenants.
(5)
Providing managerial services for multifamily residential businesses.
(6)
Providing building inspection and code enforcement services for multifamily residential businesses supplemental to those normally provided by the city.
(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)
“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)
“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)
“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)
“Clerk” means clerk of the legislative body.
(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)
Parking facilities.
(2)
Benches, booths, kiosks, display cases, pedestrian shelters, signs, and entry monuments.
(3)
Trash receptacles.
(4)
Street lighting.
(5)
Street decorations.
(6)
Parks.
(7)
Fountains.
(8)
Planting areas.
(9)
Closing, opening, widening, or narrowing of existing streets.
(10)
Facilities or equipment, or both, to
enhance the security of persons and property within the district.
(11)
Ramps, sidewalks, plazas, and pedestrian malls.
(12)
Rehabilitation or removal of existing structures.
(h)
“Management district plan” or “plan” means a proposal as described in Section 36713.
(i)
“Multifamily improvement district,” or “district,” means a multifamily improvement district established pursuant to this part.
(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)
“Property” means real property situated within a multifamily improvement district.
(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)
“Tenant” means an occupant pursuant to
a lease or a rental agreement of commercial space or a dwelling unit, other than an owner.
Source: CA Legislative Counsel Bulk DataURL: https://downloads.leginfo.legislature.ca.gov/pubinfo_2025.zipFetched: 6/27/2026