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Solimar Research

Bills to Fund Housing, Manage Disposal of RDA Assets Introduced in Senate

Feb 23, 2012

This week Senate Pro Tem Darrel Steinberg (D-Sacramento) and Senator Mark DeSaulnier (D-Concord) introduced two bills that seek to solve what many consider to be serious problems caused by the demise of redevelopment. The first would give cities and successor agencies greater powers to maximize the value of redevelopment agency assets rather than subject them to a "fire sale." The second represnts a holy grail for many housing advocates: a consistent, dedicated source of funding for affordable housing, to the tune of up to $700 million per year. 

SB 1151 would require the successor agency (usually cities in the area formerly covered by the RDA) to prepare a long-range asset management plan that outlines a strategy for maximizing the long-term value of the real property and assets of the former redevelopment agency for ongoing economic development and housing functions. The bill would require the successor agency to submit the plan to the Department of Finance and the oversight board by December 1, 2012, and would require the approval of the plan by the department and oversight board by December 31, 2012.

SB 1156 would allow and authorize the use of new joint powers authorities and a new financing option for cities and counties throughout the state to develop sustainable economic development and affordable housing. The bill would require the new authority to assume from a successor agency the responsibility for managing the assets and property of the former redevelopment agency. Funds would be raised from a $75 recording fee assessed to real estate transactions throughout the state. These funds would help replace the 20% set-aside lost when redevelopment agencies went out of business Feb. 1.