(from Housing California) It is being widely reported to us that Democratic leadership in both houses and the administration have reached an agreement on the so-called redevelopment "budget trailer bill." Along with approximately 20 other trailer bills, both houses plan to vote on it next Tuesday.
We haven't seen the actual bill language yet, but have been briefed on the contents. While legislators were unable to budge the governor in his opposition to retaining the housing balances for housing purposes, they did negotiate other wins for housing. These include:
1) Retention of state’s Supplemental Educational Revenue Augmentation Fund (SERAF) repayments for housing purposes. In 2009-10 and 2010-11, many redevelopment agencies (RDAs) borrowed from their housing funds to make state-mandated payments to local schools. The trailer bill clarifies that when the monies are repaid to the housing funds, they can be retained by the successor housing agency (SHA). Western Center on Law and Poverty estimates the repayments will be approximately $325 million.
2) Retention of the proceeds of bonds that were sold for housing purposes, even if the funds aren't needed for enforceable obligations.
3) Retention of all real property purchased by a former RDA for housing purposes with 80% funds.
4) Rejecting the state Department of Finance's (DOF) proposal to allow SHAs to choose which housing obligations of redevelopment law it will perform.
5) A process and timeline for resolving Recognized Obligation Payment Schedule (ROPS) disputes between a successor agency and DOF.
We will share the bill language and a summary as soon it is available early next week.