California Preventing Former RDAs From Spending Bond Proceeds

About $1.5 billion in California redevelopment agency bond proceeds are in limbo, according to data compiled by a local official, as the state government challenges whether the agencies had any right to issue them. Locals are fighting the state government over bonds issued in the period after Gov. Jerry Brown announced his proposal to eliminate redevelopment but before lawmakers passed the legislation to do so. As officials from the state’s Department of Finance met with successor agencies to the former RDAs in the final months of 2012, word spread that state officials were saying that the proceeds from bonds issued between January 2011 and June 28, 2011 could not be spent. To make a point about the importance of the DOF clarifying its position on bonds issued during that time frame, one city manager’s office compiled information in a spreadsheet showing that at least 50 agencies issued $1.5 billion in bonds during that time period.

Bond Buyer

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