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Bill To Create New Economic Development Tool for Disadvantaged Communities Moves to Assembly Local Government Committee

Additional Support Letters Requested

April 17, 2013
Today League-supported AB 1080 (Alejo) passed out of the Assembly Housing and Community Development Committee.
 
The measure would authorize local governments to create a new entity called a Community Revitalization Investment Authority (CRIA) aimed at improving low income and deteriorated communities, including closed military bases.

The League was joined in today’s hearing by the California Building Industry Association, the Special Districts Association and the League’s Latino Caucus in support of Assembly Member Alejo’s bill. 
 
Under the bill, a CRIA could be created by a city, a county, or by agreement between a city, county and special district through a joint powers authority. The CRIA would be responsible for investing property tax increment and other available funding with the consent of local agencies (other than schools). It would also provide broad authority mirroring former redevelopment authority. An amendment taken at the request of housing advocates requires 25 percent of the funds to be set aside for affordable housing.
 
For locations other than closed military bases, at least 80 percent of an area qualifying for a CRIA must be inhabited by persons with annual median household income equivalent to 80 percent of the annual statewide median income, and must also meet three of the four following conditions:
  • Unemployment in the area is at least 3 percent higher than statewide median unemployment;
  • Crime rates in the area are 5 percent higher than stated median crime rates;
  • The area has deteriorated or inadequate infrastructure such as streets, sidewalks, water supply, sewer treatment or processing and parks; and
  • The area has deteriorated commercial or residential structures.
Numerous economic development proposals have been introduced in the 2013 Legislative Session that are focused on different approaches and policy priorities. AB 1080 fills a void among those proposals by offering a tool that can be used in the state’s disadvantaged poorer areas and neighborhoods, which was the original focus of redevelopment. The legislation would be a critical first step and provide choices for local governments’ intent on addressing the challenges faced by California’s most disadvantaged and poorest areas, but will be less financially robust than the former redevelopment tool.
 
It now moves to the Assembly Local Government Committee, where other bills of interest to cities will also be heard on Wednesday, April 24 at 1:30 p.m., during the League’s Legislative Action Day.  
 
City officials are encouraged to send letters of support for AB 1080. The League’s support letter and a sample support letter are available on the League’s website.


 
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