County agency designated to handle remaining affordable housing projects

RIVERSIDE – The Riverside County Board of Supervisors has designated the county Housing Authority to manage publicly funded affordable housing projects begun by the Redevelopment Agency, which was eliminated by state legislation last year along with nearly 400 similar agencies throughout California.

In a 4-0 vote – with Chairman John Tavaglione absent – the board named the Housing Authority as “successor agency” to the county Redevelopment Agency in all housing-related matters.

The county’s Economic Development Agency was designated in March as the principal successor agency, overseeing all revitalization projects not connected to housing.

There are 28 low-to-moderate income housing projects in the works countywide, according to Tom Freeman of the Economic Development Agency.

“The critical issue for the county is creating more jobs,” said Supervisor Bob Buster. “Infrastructure improvements and redevelopment contribute to that.”

Buster expressed concerns about securing funding to complete remaining and future Redevelopment Agency projects as doubts linger about how to pay for them.

The board will hold a workshop on redevelopment during its Jan. 24 meeting.

In June, Gov. Jerry Brown signed Assembly bills 1x26 and 1x27, which mandated phasing out redevelopment agencies statewide and provided for an alternate program under which revitalization projects would be allowed to continue.

Supporters of the legislation argued that redevelopment dollars – gleaned from higher property tax receipts that result from projects – would be better used to fund schools and other municipal functions during the current tight budgetary times.

Opponents, including Riverside County, countered that redevelopment agency projects provided localized economic stimulus, creating construction jobs, eradicating blight and raising commercial and residential property values.

The League of California Cities and the California Redevelopment Association filed a lawsuit challenging the changes to redevelopment.

The California Supreme Court heard arguments in the matter and on Dec. 29, 2011, handed down a ruling upholding the legislation, ending redevelopment, but striking down a law requiring counties and cities to fork over roughly $1.7 billion by mid-January and make aggregate annual payments of $400 million to fund schools, community colleges, fire districts, and transit districts under the Alternative Voluntary Redevelopment Program.

Despite the decision, under AB 1x26, entities that wish to continue their redevelopment programs using successor agencies will be required to share revenues derived from projects.

According to the statute, funds not used to cover redevelopment agency debt and overhead costs will be “remitted to (a county’s) auditor-controller for (proportional) distribution to cities, the county, special districts and school districts.”

“The legislation that abolished RDAs and funding that had been available will now go back to the black hole of Sacramento,” said Supervisor Jeff Stone. “The state is balancing its books on the backs of local governments. It’s a shame.”

Riverside County’s redevelopment agency, with about $100 million in annual revenue, is the state’s seventh-largest. A total of 625 redevelopment projects have been completed in the county.

Stone said one point of discussion at the board’s Jan. 24 meeting should be downsizing staff in the county’s now-defunct Redevelopment Agency.