Could Los Angeles Have Made Better Use of Former Redevelopment Funds?

After a state decision to abolish California's redevelopment agencies seven years ago, Los Angeles still received some of that money, directing it to city services instead of affordable housing.

1 minute read

April 26, 2018, 9:00 AM PDT

By Philip Rojc @PhilipRojc


Los Angeles

Sean Pavone / Shutterstock

Around seven years ago, conflict engulfed California's redevelopment agencies. Critics charged them with cronyism and the state eventually decided to shut them down, ending what was originally intended as a source of funds to address blight with new affordable homes.

But while the agencies are gone, some of the funding is still there. Dakota Smith and Emily Alpert Reyes write, "Some of the funds that used to go to agencies now flow to cities, counties, special districts and schools. Los Angeles has received more than $394 million in former redevelopment dollars — also known as 'boomerang funds' — since redevelopment ended."

Under Mayor Eric Garcetti, those funds have been directed to the "day-to-day budget to help cover spending on police, firefighters and other city services, along with growing costs for retired employees." But given the continuing escalation of L.A.'s housing crisis, some are asking whether that was the right call.

Meanwhile, L.A. is taking other steps to address the shortage. "Garcetti has helped secure new sources of funding to house the poor in the last year and a half: A bond for homeless housing is bringing in more than $75 million this budget year, according to city officials. A new 'linkage fee,' which charges developers for new construction, could yield as much as $100 million annually for affordable housing after it goes into full effect next year."

Monday, April 9, 2018 in Los Angeles Times

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Cover CM Credits, Earn Certificates, Push Your Career Forward

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

July 9, 2025 - Diana Ionescu

Green vintage Chicago streetcar from the 1940s parked at the Illinois Railroad Museum in 1988.

Chicago’s Ghost Rails

Just beneath the surface of the modern city lie the remnants of its expansive early 20th-century streetcar system.

July 13, 2025 - WTTV

Aerial view of downtown San Antonio, Texas at night with rotating Tower of the Americas in foreground.

San Antonio and Austin are Fusing Into one Massive Megaregion

The region spanning the two central Texas cities is growing fast, posing challenges for local infrastructure and water supplies.

July 3, 2025 - Governing

White park shuttles with large Zion logo on side and red rock cliffs in background in Zion National Park.

Since Zion's Shuttles Went Electric “The Smog is Gone”

Visitors to Zion National Park can enjoy the canyon via the nation’s first fully electric park shuttle system.

4 hours ago - Reasons to Be Cheerful

Chart of federal transportation funding comparing Biden and Trump administration spending.

Trump Distributing DOT Safety Funds at 1/10 Rate of Biden

Funds for Safe Streets and other transportation safety and equity programs are being held up by administrative reviews and conflicts with the Trump administration’s priorities.

5 hours ago - Transportation for America

Close-up on yellow and black TAXI sign on top of beige car in central Munich, Germany.

German Cities Subsidize Taxis for Women Amid Wave of Violence

Free or low-cost taxi rides can help women navigate cities more safely, but critics say the programs don't address the root causes of violence against women.

6 hours ago - Bloomberg