The California Supreme Court's decision to strike down AB X1 27 and uphold AB X1 26 set off a frantic timeline by which redevelopment agencies essentially must preside over their own funerals while "successor agencies" take control of their assets and contracts. Since the Dec. 29 court decision, at least one legislative effort -- Senate Bill 659 -- and two lawsuits have tried to delay dissolution, but to no avail. As such, the following timeline and benchmarks will govern the closure of redevelopemnt agencies and the ascent of successor agencies and their oversight boards for as long as is required to liquidate agencies' assets, tend to legal matters, and pay off their debts.
Counties that do not wish to serve as "successor agencies" and instead want to pass those duties on to the state must notify the County Auditor-Controller.
Redevelopment agencies are officially dissolved.
Successor agencies have the option of retaining RDAs' affordable housing functions or passing those functions off to local housing authorities or, in some cases, to the State Housing Authority.
Each successor agency must review its respective RDA's interim enforceable obligation payment schedule (EOPS), which outline the RDA's contracts and obligations. Successor agencies may modify their EOPS and may thereafter only make payments outlined in the EOPS.
Each successor agency must adopt a permanent Recognized Obligation Payment Schedule (ROPS), which succeeds the EOPS. Each County Auditor-Controller will allocate property tax increment to pay obligations enumerated in the ROPS.
Successor agencies report to the state on whether the amount of tax increment identified by the County Auditor-Controller is sufficient to fund ROPS obligations for the next six-month fiscal period.
Successor agencies submit their respective ROPSs to the State Dept. of Finance and State Controller for approval.
Oversight boards are formed and must file membership with the Dept. of Finance. Successor agencies henceforth must pay obligations in the approved ROPS; no other obligations may be paid.
May 16 and onward
County Auditor-Controllers transfer funds to the successor agencies' Redevelopment Obligation Retirement Fund for payment of obligations described in the ROPS.