This week, as redevelopment agencies were shutting down in observance of yesterday's dissolution deadline, the State Senate approved a bill that would preserve former redevelopment funds that had been dedicated to the provision of affordable housing for low- and moderate-income residents. Senate Bill 654, sponsored by Sen. Darrell Steinberg (D-Sacramento), passed on a vote of 34-1. It now advances to the Assembly Housing and Community Development Committee and then to the Assembly Appropriations Committee.
The bill would preserve an estimated $1.36 billion currently in the coffers of former redevelopment agencies (now successor agencies) that were earmarked for affordable housing. Municipal and county housing authorities or other approved entities can receive the funds from their respective successor agencies. Without passage of the bill, those monies would go back to the state and localities would lose what many consider to be a crucial source of subsidy for the development of affordable housing.
While housing advocates and many lawmakers have hailed the vote, they have expressed frustration that Senate Republicans refused to support the bill as an urgency measure. Therefore, rather than take effect upon the governor's signing, SB 654 would not take effect until Jan. 1, 2013. Democrats had refused to support a version of the bill that included some measures to streamline the process of dissolving RDAs.
Amid partisan tit-for-tat, Steinberg complained that the lack of an urgency measure could cost over 20,000 jobs related to affordable housing. Senate Republican leader Bob Huff (Diamond Bar) noted that it was Democrats, led by Gov. Jerry Brown, who pushed for the elimination of redevelopment in the first place. Many supporters of redevelopment have claimed that it maintained and created countless jobs throughout the state.
Steinberg has said that he may try to re-insert language that would implement SB 654 immediately upon signing.
