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Speaker Pérez Introduces Redevelopment Cleanup Bill AB 1585

February 8, 2012
Last Thursday, Speaker John Pérez (D-Los Angeles) introduced AB 1585 to clean up certain provisions of the redevelopment dissolution bill AB 1x 26. This bill includes an urgency clause and will require a two-thirds vote.

AB 1585 is coauthored by Assembly Members Toni Atkins (D-San Diego), Roger Dickinson (D-Sacramento), Jerry Hill (D-South San Francisco), Holly Mitchell (D-Los Angeles), Henry Perea (D-Fresno) and Norma Torres (D-Pomona).

The bill makes various technical fixes to AB 1x 26 in an attempt to clarify the functions of successor agencies and oversight boards. The bill also seeks to protect affordable housing funds.

Specifically, AB 1585:

  • Makes changes to the “administrative cost allowance” to include temporary increases in order to carry out enforceable obligations. Temporary increases would be subject to oversight board approval. AB 1585 also specifies that employee costs associated with specific project duties are not included as administrative costs, but rather “project costs.”
  • Expands the definition of “enforceable obligation” to include any loans specific to a project area or other specified obligations including those between a city and redevelopment agency prior to Dec. 31, 2010. Any such obligations would be subject to oversight board approval prior to payment.
  • Allows cities to retain responsibility for housing functions previously performed by the redevelopment agency, including low and moderate income housing. Housing funds must be kept in a separate account and at least 80 percent of the funds must be encumbered within three years.

The League’s attorneys will continue to analyze the bill’s effects and will likely seek further clarifications and additional technical fixes. AB 1585, however, is a step in the right direction towards addressing some of the concerns raised by cities.

The League will continue to report on the additional amendments to AB 1585 and any other developments as the bill progresses through the Legislature.

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