Governor Jerry Brown signed a pair of bills on Wednesday that will force redevelopment agencies to make “voluntary” contributions to the state or be eliminated
Under AB 26 1x and AB 27 1x, California will force its existing network of more than 400 redevelopment agencies, which spend property tax dollars to fix up blighted areas, to dissolve and join a new redevelopment program. The agencies would have to hand over $1.7 billion to the state and $400 million each year thereafter.
Supporters of redevelopment agencies have likened the plan to extortion and have promised to sue.
“Make no mistake about it: AB 1x 26/27 would lead to the elimination of redevelopment agencies throughout California,” said California Redevelopment Association Executive Director John Shirey in a statement. “Since the (legislative) passage of these bills, we’ve heard from dozens and dozens of agencies that will not be able to make the ‘ransom’ payment, and thus will be forced to shut down, eliminating hundreds of thousands of jobs in the process.”
Shirey has vowed that CRA and other organizations will file suit if the governor signs the bills. He contends that they violate Proposition 22, which was designed to prevent the transfer to certain funds, including redevelopment agencies’ tax increment, to the state.
Converse Consultants has worked with City and County Redevelopment Agencies throughout California, providing environmental, geotechnical and materials testing services on projects that have cleaned up slums, constructed low-income housing and improved communities in other ways.
We will continue to serve redevelopment and community development agencies to make our neighborhoods a better place to live.
For more information on Converse services for Redevelopment Agencies contact Beth George at bgeorge@converseconsultants.com.
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