There are a number of redevelopment updates making headlines both in California and nationwide.
National Redevelopment Update:
We've been following H.R. 1433 -- the "Private Property Rights Protection Act of 2011" -- a bill that would limit the power of eminent domain on a national platform. We last reported in January that the bill was finally adopted by the House Judiciary Committee, and would next make its way to the House for approval. According to an article on The Hill by Pete Kasperowicz, House votes to overturn Supreme Court decision on eminent domain, that next step has now occurred and the House approved the bill as well. Now, the bill will move to the Senate. Can it clear the last hurdle? We shall see.
California Redevelopment Update:
While the redevelopment battle wages on nationally, here's a quick update on what's taking place here in California with the wind-down process. There have been three bills introduced by the CRA to clean-up or otherwise alter the effects of AB1X 26:
- SB 1151: instead of throwing all the redevelopment agency assets on the market now (which would likely flood the market and further reduce the return on assets), this bill would require the successor agency 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. The agency would submit the plan on December 1, 2012 to the Department of Finance (DOF), and the DOF and oversight board would approve the plan by December 31.
- SB 1156: this bill would enable cities and counties to establish a "community development and housing joint powers authority" to assume successor agency responsibilities and create an additional sales tax to fund sustainable economic development and affordable housing.
- SB 1220: this bill, titled the "Housing Opportunity Trust Fund Act of 2012," would establish a permanent source of funding for afforable housing. The funding would come through the imposition of a $75 fee on the recordation of each real-estate document, and such funds would be used to support the development, acquisition, rehabilitation, and preservation of afforable housing.
We'll let you know if these bills gain any traction.