TITLE
Recommendation to amend the City's State Legislative Agenda related to Redevelopment and Housing. (Citywide)
DISCUSSION
As part of the State Budget earlier this year, the State passed AB X1 26 and AB X1 27, abolishing redevelopment and creating a process for cities to pay in order to continue redevelopment activities. Concurrent to that process, the Legislature introduced bills that seek to change the allowed uses of redevelopment funds. SB 450 (Lowenthal) proposes new restrictions on how redevelopment agencies can use Low and Moderate Income Housing Set-Aside Funds (Low/Mod Funds). AB 1250 (Alejo) places restrictions on how redevelopment dollars can be used, and prohibits the creation of additional redevelopment zones if a city has more than 25 percent of their land area in a redevelopment zone. These bills were discussed in the August 2, 2011 City Council study session on Redevelopment, and the City Council requested that the City take a position on several of the issues contained in those two bills. Further information on these two bills can be found in Attachment A.
A number of the provisions in these bills, and in potentially other future legislation being discussed, would have detrimental effects on redevelopment and housing in Long Beach. While SB 450 and AB 1250 may or may not move forward, it is expected that components of those bills may be included in proposed legislation to “clean up” AB X1 26 and AB X1 27. As such, staff recommends adding the following provisions to the State Legislative Agenda.
Proposed Additions:
· Oppose efforts to require a repayment of Housing Set Aside funds currently
allowed as an eligible use to pay to the State (AB X1 27)
· Support code enforcement as an eligible use of both Low/Mod Funds and
Redevelopment
· Oppose efforts to limit acquisition-rehabilitation as a method of providing
replacement housing in built-out cities
· Oppose changes to the current proportionality requirements on the
...
Click here for full text