Bill Expected to Aid in Funding and Construction of Metro Projects
The City of West Hollywood has commended California Governor Gavin Newsom for signing Assembly Bill 761, which extends the life of Enhanced Infrastructure Financing Districts (EIFDs) from 45 to 75 years. The bill, authored by Assemblymember Laura Friedman (D-44), aims to align financing terms with federal Transportation Infrastructure Finance and Innovation Act (TIFIA) loans, a key funding source for local infrastructure projects, including the Metro K Line Northern Extension.
The legislation is expected to accelerate the construction of the K Line extension, bringing Metro rail service to West Hollywood sooner than the originally projected 2041 date. This move is part of a broader effort to create sustainable transit solutions across the region.
“AB 761 is a major step forward in securing funding for the Metro K Line extension, which will benefit West Hollywood, Mid-City, and Hollywood,” said West Hollywood Mayor John M. Erickson. “Our community strongly supports bringing Metro rail to WeHo, and we are grateful to Assemblymember Friedman, Supervisor Lindsey P. Horvath, and Governor Newsom for helping to make this vision a reality.”
West Hollywood, in collaboration with Metro, the City of Los Angeles, and Los Angeles County, has been working on the K Line Northern Extension project for years. The passage of AB 761 is seen as a crucial element in the project’s progress, which is currently nearing completion of its Environmental Impact Report (EIR).
EIFDs, a tax increment financing tool, will enable the City to leverage long-term property tax revenues for infrastructure development. By extending the maximum term of EIFDs to 75 years, local governments will have increased financial capacity to fund critical transit projects like the K Line extension.
The new law is expected to benefit not only West Hollywood but also other LA Metro projects, offering a significant boost to the region’s ongoing transit expansion efforts. LA Metro is in the midst of one of the largest transit expansions in the U.S., though rising project costs have slowed progress. The extended financing terms will provide local governments with an essential tool to support planned rail projects and meet climate goals.
For more information on the Metro K Line Northern Extension, visit www.weho.org/metro.
