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California Supreme Court Abolishes Redevelopment Agencies

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On December 29, 2011, the California Supreme Court held that ABX 126, a law that abolished redevelopment agencies in September 2011, is constitutional, and held ABX 127, a law authorizing the existence of redevelopment agencies as long as they make a large annual payment to the state, unconstitutional. The court’s decision, therefore, upholds the abolition of redevelopment agencies and renders invalid the only law permitting the resurrection of these much-needed agencies.

Funding for affordable housing is desperately needed in California and prior to today’s holding, redevelopment agencies were a major source of that funding. Because there is evidence that suggests the California legislature did not intend this outcome, one can only hope that the legislature will take immediate action to prevent the loss of over $1 billion annually in affordable housing revenues in California in the new year.

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