Gov. Code, § 62459

(a) (1) After the adoption of the downtown revitalization financing plan, the district shall establish a process for eligible commercial-to-residential conversion projects identified pursuant to subdivision (d) of Section 62456 to opt into receiving incremental tax revenue generated by that same commercial-to-residential conversion project pursuant to this division. A district shall establish a process to reconsider the amount of incremental tax revenue to be distributed to a project if there is a change in use or the square footage of commercial space converted to housing planned to be built.

(2) An eligible commercial-to-residential conversion project may opt in to receive incremental tax revenue generated by that same commercial-to-residential conversion project pursuant to this division at any time before the project is issued the first building permit for the project.

(3) A commercial-to-residential conversion project shall not be eligible to opt in to receive incremental tax revenue pursuant to this division after December 31, 2032.

(b) After a commercial-to-residential conversion project opts in, the district shall determine whether it meets the requirements of this division and can begin receiving property tax incremental revenues. If the district determines that the project does not meet the requirements of this division, or that it does not have enough room under the limit established pursuant to paragraph (3) of subdivision (l) of Section 62456 for the project, the district shall not allow the project to begin receiving incremental tax revenue.

(c) For purposes of paragraph (1) of subdivision (a) of Section 62457, after a commercial-to-residential conversion project opts in to receive incremental tax revenue, and the district approves the project’s ability to receive incremental tax revenue, the district shall establish the base assessed value for the applicable property, which shall be the assessed value for the applicable property as shown on the assessment roll used in connection with the property by the local government, last equalized prior to the first building permit being issued as a part of the conversion of the commercial-to-residential conversion project.

(d) An eligible commercial-to-residential conversion project that opts in to receive incremental tax revenue pursuant to subdivision (a) shall comply with the labor standards established in Section 62460.