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Community reinvestment agencies — local government bodies that use tax revenue to fund development in designated areas — currently must dissolve a project area six months after it stops collecting project area funds. This bill changes that process by defining a formal "dormancy period" as that six-month window, establishing it as the standard trigger for dissolution, and creating a new process that allows an agency to extend the dormancy period once, for up to two additional years, if the agency holds a public hearing, adopts a resolution explaining the unique circumstances requiring more time, and obtains approval from the local legislative body. The bill also changes what happens to any unspent funds at the end of the dormancy period — rather than directing those funds toward housing purposes as under current law, agencies must now return a proportionate share of leftover money to each taxing entity (such as school districts and counties) that contributed to the project area.