ABx1 26 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 ABx1 26, the Agency is not only dissolved but the following 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.
The Successor Agency’s actions are subject to the Oversight Board’s review and approval. The Oversight Board shall consist of appointments by:
- Mayor (2)-including a former Agency employee representative of the largest bargaining unit
- Board of Supervisors (2)-including one member from the public
- County Superintendent (1)
- Chancellor of California Community Colleges (1)
- Largest Special District by property tax share (1)