AB 564 (Mullin) provides additional certainty to successor agencies and all other public and private entities that benefits offered by a finding of completion from the DOF can be relied upon. By removing uncertainties, AB 564 will help to avoid unnecessary confusion and litigation.
Testifying in support of AB 564, League Legislative Director Dan Carrigg noted that cities are looking to move on from the difficult redevelopment dissolution process. The bill ensures that they are able to access loan repayments and other benefits.
A second League-supported bill, AB 981 (Bloom), allows the expenditure of bond proceeds that were issued by redevelopment agencies between Jan. 1, 2011, and June 28, 2011, the effective date of the redevelopment dissolution legislation. Specifically, the bill would authorize:
Bond proceeds issued before June 28, 2011, and backed by low and moderate income housing funds to be used for affordable housing purposes.
Successor agencies that receive a finding of completion to use proceeds from bonds issued before June 28, 2011, for their intended purposes.
AB 981 will allow these funds to be expended for their intended purposes thus creating many prevailing wage jobs, sheltering more families in affordable housing, and rebuilding critical infrastructure. Without a legislative policy change, these bond proceeds will sit idle while defeasance payments are made for up to 10 years.
These two bills now move to the Assembly Appropriations Committee.