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Monday, 06 February 2012 14:52

Speaker Pérez Introduces Post-RDA Bill

SACRAMENTO –Assembly Speaker John A. Pérez (D-Los Angeles) today announced he has introduced legislation, AB 1585, to assist local communities following the effective elimination of redevelopment agencies in California on February 1.

“The Assembly wants to provide options for communities after the elimination of redevelopment agencies,” Pérez said. “AB 1585 provides some tools and answers that will help communities as they pursue economic development and affordable housing for Californians.”

Assemblymember Toni Atkins (D-San Diego), who has been working with Speaker Pérez to identify post-RDA solutions, noted that the legislation is part of an overall effort to find ways to retain some of the benefits of RDAs, such as affordable housing and brownfield cleanup.

“We anticipate many more discussions with our local communities about how to move forward in the post-RDA era,” Atkins said. “The answers contained in the Speaker’s bill fill in some of the pieces to that puzzle and we will continue to work toward solutions for others.”

Provisions of the Speaker’s bill include:

Affordable Housing Funds and Responsibilities

  • Enact provisions of SB 8X (vetoed) to permit retention of Low and Moderate Income Housing Funds.
  • Include an incentive to ensure that Low and Moderate Income Housing funds are actually used for low and moderate income housing within a reasonable period of time.

Repayment of City or County Loans to RDAs

  • Enact provisions of SB 8X to include repayments for startup loans for each project area and for SERAF loans.
  • Provide limited discretion to oversight boards to consider authorizing repayment of other city or county loans, potentially including loans beyond the two-year cut-off.

Governmental Purpose Assets

  • Clarify that existing language that transfers of assets that were constructed and used for a governmental purpose be “pursuant to any existing agreement relating to the construction and use of such an asset” is not a requirement that there be such an agreement, only that the oversight board follow its terms if there is one.
  • Provide limited discretion to the oversight boards to consider other transfers when they are integrally related to, or necessary to the operation of, an existing governmental purpose facility, such as a parking structure integral to a governmental purpose facility.

Disposal of Other RDA Property and Assets

  • Require the oversight board to obtain an inventory of a former RDA’s assets before directing the successor agency to dispose of non-financial, real property assets.
  • Require disposals of assets to be done in a manner that, to the extent possible, preserves the asset value.

Scope and Financing of Enforceable Obligations

  • Clarify that bonds can be issued to meet payment requirements for enforceable obligations under limited circumstances.

City Redevelopment Employee Obligations

  • Clarify that costs incurred to fulfill collective bargaining agreements for layoffs or terminations of city employees who were directly performing work on behalf of the RDA are enforceable obligations that will be paid from property tax funds.

Uneven Bond Payments

  • Clarify that the semi-annual property tax allocations provided in AB 26X take bond payment cash-flow need into account.

Oversight Board Labor Member

  • Enact narrow conflict-of-interest exception contained in SB 8X to allow labor member participation.
  • Clarify the appropriate city employee organization from which the labor member is to be appointed in cases where city employees functioned as redevelopment staff.

Administrative Cost Ceiling

  • Authorize oversight boards to approve temporary increases in the administrative cost allowance to carry out the requirements of an enforceable obligation, to cover litigation costs, or to maintain and preserve the value of assets while in the possession of the successor agency.

CONTACT: John Vigna (916) 319-2408

Website of Speaker John A. Pérez:

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