Back in July we reported that Governor Brown signed bills ABX1 26 and 27 into law, which required Redevelopment agencies to make “voluntary” contributions to the state or else be eliminated. The California Redevelopment Association (CRA) challenged, and the matter went to the California Supreme Court. For those that haven’t seen the news on the internet today (and that will be in tomorrow’s paper), in a devastating loss for state Redevelopment Agencies, the Supreme Court ruled that AB 26 is legal (i.e. the legislature can eliminate Redevelopment Agencies) and that AB 27 is illegal (i.e. legislation cannot take redevelopment for non-redevelopment purposes). The ruling that AB 27 is illegal is likely the end of the road for redevelopment agencies in California. The case is California Redevelopment Association vs. Ana Matosantos (S194861) and is available on the court’s website at http://www.courts.ca.gov/opinions-slip.htm.
The court extended some of the deadlines set forth in AB 26 that deal with winding down Redevelopment Agency affairs. We will be updating you in the near future as to how local implementation of this ruling will be handled.
The issues discussed in this update are not intended to be legal advice and no attorney-client relationship is established with the recipient. Readers should consult with legal counsel before relying on any of the information contained herein. Reuben & Junius, LLP is a full service real estate law firm. We specialize in land use, development and entitlement law. We also provide a wide range of transactional services, including leasing, acquisitions and sales, formation of limited liability companies and other entities, lending/workout assistance, subdivision and condominium work.
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