1. New Rules for Redevelopment
PSWRC –NAHRO
2018 Conference
May 22, 2018
Susan E. Bloch

2. Community Redevelopment Act (1945)
Establishment
Community Redevelopment Act (1945)
Address blight
Affordable housing
Community Redevelopment Law (1951)
Tax increment authority (1952)

3. Tax Increment Financing
Redevelopment Powers
Land assembly
Land writedowns
Developer selection
Financing
Tax Increment Financing
Public bidding not required
TI - property Tax increment above base year within project area. State backfill schools.

4. Growth of Redevelopment
1966 – 27 redevelopment projects
1975 – 156 agencies, 195 project areas, $50 million/year
1984 – 293 agencies, 470 project areas, $378 million/year
2011 – over 400 agencies, project areas, $5 billion/year
Prop $/ fiscal year $5.6 billion per SCO

5. Reporting requirements Stricter blight findings
Reforms
Fiscal review / negotiated passthrough agreements /statutory passthrough payments
Tax increment caps
Time limits
Reporting requirements
Stricter blight findings
Time limits on eminent domain
Time limits – plan, debt, receipt of TI.
Report - HCD, SCO, legislative body.

6. RDA Housing Requirements
Replacement housing
20% set-aside for housing
Time limit for expenditure
Affordability covenants
Limits on admin, public improvement expenditures
Inclusionary housing requirement
Relocation
Replace demolished low/mod. Time limit for land development
Excess surplus
55 years

7. Demise of Redevelopment
Perceived abuses
Failure to comply with housing requirements
Use of TI to fund general gov’t purposes
Use of TI for golf courses, etc.
Opposition to eminent domain
State budget crisis
Expenditure, land development,

8. 2011 budget proposal AB x 1 26 (dissolve RDA’s) AB x1 27 (pay to play)
Dissolution
2011 budget proposal
AB x 1 26 (dissolve RDA’s)
AB x1 27 (pay to play)
CRA v. Matasantos
AB x1 27 unconstitutional
All RDAs dissolved effective
Governor’s budget proposal
AB 27 unconstitutional

9. Enforceable Obligations ROPS Fire sale of assets
AB x1 26 – June 2011
Successor Agencies
Oversight Boards
Enforceable Obligations
ROPS
Fire sale of assets

10. Due Diligence Reviews / sweep of housing and nonhousing funds
AB June 2012
Due Diligence Reviews / sweep of housing and nonhousing funds
State Controller audit and clawback
Fire sale suspended
80 page bill released 6/25/12 signed 6/ Fire sale suspended. FOC. Housing Asset inventory
True up payments

11. AB 1484 – Finding of Completion
Use pre-2011 bond proceeds
Repay Sponsor loans
Long-Range Property Mgmt Plan (LRPMP)

12. Housing Asset Inventory
AB 1484
Housing Asset Inventory
Land, loans, covenants, rents, funds payable to Low/Mod Fund
Transfer housing assets to Housing Successor
Pre-2011 bond proceeds
Loans and deferred payments. Dispute over payment for staff costs for retained EO’s

13. Limit on litigation funds
SB 107 September 2015
Limit on admin funds
Limit on litigation funds
Limit eligible loans (overturned Watsonville)
Overturned Glendale (interest rate)
Text Sept 10, amended 9/11, presented to Governor 9/17 signed 9/22

14. Attempt to overturn Emeryville (reinstated Sponsor-RDA agreements)
SB 107
Attempt to overturn Emeryville (reinstated Sponsor-RDA agreements)
Attempt to overturn Fairfield (funds returned to LMIHAF)
Permits limited expenditure of 2011 non-housing bond proceeds

15. Sponsoring jurisdiction or housing authority No Oversight Board review
Housing Successors
Sponsoring jurisdiction or housing authority
No Oversight Board review
CRL requirements (+)
Housing bonds – pre- and post-2011
All housing bonds, not just pre-2011.

16. Low and Moderate Income Housing Fund
Housing Successors
Low and Moderate Income Housing Fund
Monitoring/admin - $200,000
Homeless Prevention/Rapid Rehousing - $250,000
Development
New Construction/Rehab
Preservation/Acquisition of Covenants

17. Limits on senior housing Excess surplus Reporting
Housing Successors
Income targeting
At least 30% AMI
Max % AMI
Limits on senior housing
Excess surplus
Reporting

18. Susan E. Bloch Burke, Williams & Sorensen, LLP 1901 Harrison Street, Suite 900 Oakland, CA (510)