(update from Housing California) After six months of turmoil and policy debate, Democrats in the legislature and Governor Brown have reached agreement on legislation to clarify and modify various provisions of last year's AB 26x, which dissolved redevelopment agencies. Both houses are scheduled to take up the bill Wednesday morning (June 27, 2012) at 9 A.M. and send it directly to Governor Brown.
The governor is expected to sign AB 1484, which will take effect immediately as a trailer bill to the state budget.
Based on preliminary calculations by legislative staff and Western Center on Law and Poverty, we estimate the bill's provisions will result in at least $725 million in funding for housing development:
• $325 million from repayments of Supplemental Educational Revenue Augmentation Fund (SERAF) loans
• $400 - $600 million from a 20 percent share of other loans repaid by the housing successor agency to the city or county. (Many localities loaned funds to their redevelopment agency for various purposes; AB 1484 allows those loans to be repaid.)
• An unknown amount from housing bonds sold prior to January 1, 2011, without an "enforceable obligation" attached to their proceeds. Unencumbered bond proceeds from both the housing and non-housing portions of redevelopment total approximately $1 billion.
Bond proceeds will be available upon the bill's signing. Funds from SERAF repayments and the 20 percent share of other loans will start flowing to the successor housing agencies as early as July 2013. The exact date will vary by locality based on when the successor agency's tax-increment receipts exceed its enforceable obligations.
Additionally, AB 1484 defines the "housing assets" that must be transferred to the housing successor agency to include all deed-restricted residential properties, whether acquired with housing set-aside or other funds, loan repayments, residual receipts, and other related revenue streams.
One major overarching issue in the proposed Department of Finance language was new authority for the department and county auditor-controllers to retain sales and property-tax revenues due to local governments if they fail to comply with the asset dissolution and property-tax distribution requirements imposed by AB 26X. This issue held up an agreement on the trailer bill for several days in mid-June.
While still in AB 1484, this new authority will be subject to judicial review.
Housing California will host a call this Friday at 1:30 p.m. to review the bill language and discuss its applicability. If you would like to join the call, email Julie Snyder. Additionally, Housing California will begin to compile a list of localities with outstanding SERAF loans and other loans that will be subject to AB 1484's 20 percent housing set-aside. Lastly, although "redevelopment fatigue" is extremely high in the Capitol, legislators may attempt to address outstanding issues that didn't make their way into AB 1484. Contact: Julie Snyder, 916.447.0503 x102 or email@example.com.