New California RDA Law Has Governments Confused

A new California law meant to clean-up confusion stemming from the shutdown of the state’s redevelopment agencies may be making things worse for some local governments.  Those concerns about Assembly Bill 1484, a trailer bill adopted in connection with the state budget, extend to whether municipalities that took over responsibility for their former RDAs will be able to make debt payments. The statute, which opponents say was only in print for roughly 24 hours, set up a short schedule for the new agencies representing the former 400 state redevelopment agencies to make newly defined property tax payments. However, AB 1484 did make some things clearer.  It clarified that bond proceeds must be used for the purpose intended or be used to defease the bonds. The measure also allows the government entity that took over for a shuttered redevelopment agency to retain some of its tax revenue for low- and moderate-income housing.

Bond Buyer

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s