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Redevelopment Agencies – The Aftermath of the Supreme Court Decision

HomeAffordable Housing PodcastRedevelopment Agencies – The Aftermath of the Supreme Court Decision

Lynn Hutchins of Goldfarb and Lipman LLP returns to discuss short and long term implications of the elimination of the Redevelopment Agencies on affordable housing in California.

As part of its effort to balance the budget in 2011, the Governor and the State Legislature voted to eliminate local Redevelopment Agencies throughout the State of California. The legislation passed two trailer bills along with the budget – AB 1×26 eliminated redevelopment agencies and AB 1×27 would have allowed them to continue to exist if they made payments to the State to help balance the budget in this fiscal year and future years. The Redevelopment Agencies sued the State of California in an effort to strike down both pieces of legislation. On December 29th, the Supreme Court ruled that AB 26, the bill to eliminate redevelopment agencies is legal and struck down AB 27, ruling that under Proposition 22, it is illegal to force the localities to pay the State. This is the worst possible outcome for affordable housing because 20% of Redevelopment Funding, nearly $1 billion a year, was dedicated to affordable housing production in 400 jurisdictions throughout the State.

The Affordable Housing podcast has been following this issue closely and we have invited back Lynn Hutchins, a partner at Goldfarb and Lipman LLP, a leading redevelopment law firm in California, to discuss the short and long term implications of the Court’s decision.

Previous Affordable Housing Podcast episodes on this subject can be listened to on Eden Housing’s website at

For more information, visit:

· Senator President Pro tem Darrell Steinberg’s website,
· Non-Profit Housing Association of Northern California,
· Housing California, or
· Goldfarb and Lipman LLP

For more information about the Affordable Housing Podcast, please visit

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