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Bill Creating New Economic Development Tool Moves to Assembly Floor

Cities Encouraged to Send AB 1080 Support Letters to Assembly Members

May 16, 2013
Cities are closely watching AB 1080 (Alejo), which a critical first step to affording local governments with flexible authority to improve economic development in disadvantaged areas. 
 
The bill passed out of the Assembly Appropriations Committee on Wednesday and is headed for a vote in the Assembly. 

Supported by the League, AB 1080 authorizes 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. Assembly Member Luis Alejo (D-Salinas) introduced AB 1080 as a new tool for local governments to improve conditions in disadvantaged communities and increase employment opportunities. This measure allows local government entities to collaborate as communities to solve problems and create new opportunities.
 
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 (excluding schools). Additionally, AB 1080 requires that 25 percent of the funds to be set aside for affordable housing, an increase from the amount formerly required by redevelopment agencies.
 
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: 
  1. Unemployment in the area is at least 3 percent higher than statewide median unemployment;
  2. Crime rates in the area are 5 percent higher than stated median crime rates;
  3. The area has deteriorated or inadequate infrastructure such as streets, sidewalks, water supply, sewer treatment or processing and parks; and
  4. The area has deteriorated commercial or residential structures.
Numerous economic development proposals have been introduced focusing 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 poorest and most disadvantaged areas and neighborhoods, which was the original focus of redevelopment.
 
Take Action
 
The League encourages city officials to send letters of support for AB 1080 as it moves to the Assembly Floor. A sample letter and the bill text are available online.  


 
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