As of February 1, 2012, California’s redevelopment agencies were permanently disbanded under the direction of Assembly Bill 1X26. However, on January 31, the California State Senate passed S.B. 654 which preserves the remaining balances in these redevelopment agencies’ Low and Moderate Income Housing Funds, approximately $1.5 billion, which were previously designated specifically for affordable housing development. S.B. 654, which passed the California Senate by a vote of 34 to 1, stipulates that these Housing Fund balances must be used for housing construction and other housing-related purposes. The Senate Bill will now be sent to the California State Assembly.
To read S.B. 654, click here.