ABx1 26 also known as the "Dissolution Act" is legislation adopted and signed by Governor Jerry Brown in June 2011 and upheld by the California Supreme Court in California Redevelopment Association, et al. v. Ana Matosantos, et al., which amends the California Redevelopment Law and provides that the Agency will be dissolved effective as of February 1, 2012.
Under the Dissolution Act, the Agency will no longer be allowed to:
- Incur new indebtedness or other obligations or restructure existing indebtedness and other obligations.
- Make loans or grants.
- Enter into agreements.
- Amend existing agreements, obligations, or commitments.
- Renew or extend leases or other agreements.
- Transfer funds out of the Low and Moderate Income Housing Funds.
- Dispose of or transfer assets.
- Acquire real property.
- Prepare, adopt amend, or merge redevelopment plans.
- Approve any program, project, or expenditure.
- Prepare or amend implementation plans, relocation plans, or other planning documents.
- Cause the development or rehabilitation of housing units.
- Join a joint powers authority.
- Form or join a separate legal entity.
- Bring a validation action in connection with issuance of revenue bonds.
- Commence an eminent domain proceeding.
- Prepare a draft EIR.
- Undertake various affordable housing activities.
- Accept financial assistance.
- Increase employee compensation, bonuses, or number of agency employees and officials.
The Successor Agency’s authorized activities are to:
- Prepare the Enforceable Obligation Payment Schedule (“EOPS”) and Recognized Obligations Payment Schedule (“ROPS”).
- Make payments and perform other obligations as identified in the EOPS and ROPS.
- Dispose of Oversight Board approved Agency assets or properties expeditiously; while maximizing the assets or properties values.
- Wind down the Agency’s affairs.
- Prepare the administration budget.
As of July 1, 2018 and pursuant to Health and Safety Code 34179(j), Successor Agency’s actions are subject to the Countywide Oversight Board’s review and approval.