With the recent passage of California Assembly Bill AB 26X, the California Supreme Court voted to dissolve all of the state’s redevelopment agencies, paying off enforceable obligations and disposing of agency assets by February 1, 2012. However, many of these redevelopment agencies have remaining balances in their Low and Moderate Income Housing Funds, which are designated specifically for affordable housing development. A new California Senate Bill, SB 654, stipulates that these Housing Fund balances must be used for housing construction and other housing-related purposes. In the absence of SB 654, AB 26X would require those funds to be liquidated and distributed as property tax revenues to local agencies. SB 654 has received strong bi-partisan support and recently passed unanimously in the California Senate Transportation and Housing Committee.
To read SB 654, click here.
To read the California Senate Transportation and Housing Committee’s bill analysis, click here.
To read AB 26X, click here.
