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Community reinvestment agencies — local government bodies that use property tax revenue to fund development in designated project areas — would be required to dissolve a project area either six months after its tax revenue collection period ends (a window the bill formally defines as the "dormancy period") or, for project areas that never begin collecting funds, eight years after the agency first approves the project area. Agencies would be allowed to extend the dormancy period once, for up to two additional years, if they hold a public hearing, adopt a resolution documenting their progress and the specific circumstances requiring more time, and receive approval from the local legislative body, such as a city council or county commission; agencies could also still choose to dissolve a project area earlier than the standard timeline through a similar resolution and ordinance process. Any project area funds left unspent when the dormancy period ends would have to be returned proportionally to each taxing entity, such as school districts and counties, that contributed tax revenue to the project area, rather than being directed toward housing programs as required under current law. For project areas that had already begun a dormancy period before May 6, 2026, the bill sets a transition rule requiring dissolution five years after that dormancy period began, with any leftover funds distributed back to taxing entities in the same proportional way.