Tag Archives: Department of Finance

Bond Insurer Sues to Undo Redevelopment Dissolution

21 Aug

Wall Street has weighed in on the dissolution of California’s former redevelopment agencies. Earlier this month, bond insurer Syncora Guarantee sued the state, claiming that the shuttering of 400-odd redevelopment agencies unfairly deprives bondholders of the money that they are owed. The insurer claims that the law violates both the California and U.S. constitutions, which each contain provisions that prohibit states from imposing laws that impair contractual rights. Continue reading

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Marching to a Post-Redevelopment Era

16 Jul

The shuttering of the state’s redevelopment agencies continues to unfold with the passage of Assembly Bill 1484 (AB 1484). The bill clarifies some procedural elements of redevelopment (RDA) dissolution, adds new regulations, and all-but-guarantees a showdown between local governments and the state as both grapple to allocate scarce tax resources.

The bill also, surprisingly, hints at one development strategy that the Legislature may adopt as we continue our march to a post-redevelopment era. Continue reading

May Revision and the Redevelopment Dissolution Clean-Up

22 May

On May 14th Governor Brown released the revised state budget for 2012-13. You probably already know that the state’s predicted deficit has ballooned to $15.7 billion (up from the $9.2 billion estimate in the January budget). And you’ve also probably heard that the budget is relying on an estimated $818 million dollars in property tax revenues as a result of the shuttering of the state’s redevelopment agencies.

What’s new with this revision is that the Governor is proposing to sweep all redevelopment housing monies (i.e., funds in addition to the $818 million referenced above) to help address the budget shortfall. Continue reading