California Pitches New Financing Tool for Disaster-Hit Homes

California would issue securities to fund the purchase and rebuilding of homes in disaster-hit areas to stabilize property values and allow investors to defer tax on their capital gains under a bill the Assembly passed 56-3 on Monday.

The bill (A.B. 797) from Assemblymember John Harabedian (D) now moves to the Senate, where it must pass before Sept. 12 to reach Gov. Gavin Newsom (D). The governor hasn’t taken a position on the bill.

The financing mechanism in the Community Stabilization Act hasn’t been used in California before, Harabedian said. It aims to help victims ...