Maligned Redevelopment Agencies Asked To Solve Foreclosure Crisis

California has more subprime mortgages than any other state, and redevelopment agencies are already in the business of financing housing, so the marriage may be a natural one. Plus, the subprime mess is hitting low-income neighborhoods where redevelopment agencies already operate.

While redevelopment agencies' move into "solving" the subprime loan and foreclosure situation might help struggling homeowners, it could also bolster the agencies themselves, which are trying to defend their budgets from a potential state raid.