California Governor Jerry Brown recently signed into law AB 1484, which is a trailer bill to the state’s budget and modifies certain provisions within AB 26x, which dissolved the activities of California’s redevelopment agencies (RDA) effective February 1, 2012. Specifically, AB 1481 modifies policies relating to the transfer of housing responsibilities associated with dissolved RDAs and redefines the term “housing asset”. The bill also imposes new requirements for RDA successor agencies with regard to the submittal of the Recognized Obligation Payment Schedule, due diligence review of unobligated balances, and the recovery and subsequent remittance of funds absent an enforceable obligation. The Southern California Association of Nonprofit Developers (SCANPH) estimates the bill’s provisions will result in at least $725 million in funding for housing development. This includes $325 million from repayments of Supplemental Educational Revenue Augmentation Fund (SERAF) loans, between $400 and $600 million from a 20 percent share of other loans repaid by the housing successor agency to the city or county, and 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. The bill goes into effect immediately.

Click here to read AB 1484.