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HCD Issues Guidelines For Noncontiguous Zone Expansions

One of the significant changes to the Enterprise Zone program instituted by AB 1550 last year was the ability for a zone to expand its borders non contiguously. HCD has now issued guidelines to zones explaining how to apply for such an expansion. While this new provision allows greater flexibility for the zones, it also creates an opportunity for local controversy. For example, the HCD memo explains, “The second criterion states that the jurisdictions must also demonstrate that the excluded areas between the proposed new boundaries would not, based on the enterprise zone’s EDS, also benefit from the expansion.” This seems to leave just enough subjectivity to ensure that someone will be unhappy at some point.

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