Post-Redevelopment Bills May Pass California Legislature

Bills would permit cities and counties to create joint powers authorities to replace redevelopment agencies and require long-term real estate investment plans.
March 15, 2012, 5am PDT | Anonymous
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California Senate leader Darrell Steinberg has predicted that the Legislature will pass his post-redevelopment legislation – assuming the state revenues remain healthy.

Steinberg has introduced two bills – SB 1151 and SB 1156 – that would allow cities and other local agencies to form a new redevelopment entity with access to billions of dollars in former RDA assets, though not to the tax increment. Speaking to the Sacramento District Council of the Urban Land Institute on Tuesday, Steinberg said: "I don't know what the May revision [of the state budget] is going to say about the state's revenue. If May keeps us stable, then boom – aggressive all the way to the governors desk and I think he would likely sign the bill. If however growth is slow, we're going to have difficult decisions to make."

Steinberge claims that the RDAs went out of business with at least $2 billion in cash "in the bank," not counting the $1.4 billion in unencumbered affordable housing funds that is the subject of separate legislation. He estimated the overall value of RDA assets – including real estate – at $10 billion.

Thanks to Bill Fulton

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Published on Wednesday, March 14, 2012 in
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