Successor Agency

In June 2011 the Governor signed new legislation, designated as AB 1X26 and AB 1X27, which amended the Community Redevelopment Law (“CRL”) to immediately suspend most redevelopment agency activities and provided that on October 1, 2011, all redevelopment agencies were to be dissolved and that the affairs (disposal of assets) of the agencies would be transferred to successor agencies whose roles is to expeditiously wind down the affairs of the dissolved redevelopment agencies. The companion bill, AB 1X27, amended the CRL to establish an “Alternative Voluntary Redevelopment Program” under which redevelopment agencies could avoid dissolution by adopting an ordinance and agreeing to make certain annual payments to the county auditor-controller for subsequent distribution to other local agencies.

In July 2011, the League of California Cities and the California Redevelopment Association filed suit in the California Supreme Court to challenge the constitutionality of AB 1X26 and AB 1X27 and also requested the Court to stay the new legislation pending the Court’s decision on the matter. In August, 2011, a stay order was issued by the Court.

On November 1, 2011, the City Council approved a resolution electing to become a successor agency to the Redevelopment Agency in case the Court’s decision validated AB 1X 26 and invalidated AB 1X 27. On December 29, 2011, the California Supreme Court did rule that AB 1X26 is enforceable and AB 1X27 is not, effectively eliminating redevelopment statewide as of February 1, 2012. 

Except for those provisions of the Community Redevelopment Law that are repealed, restricted, or revised pursuant to AB 1X26, all authority, rights, powers, duties, and obligations previously vested with the former redevelopment agency, under the Community Redevelopment Law, are vested in the Successor Agency.

If you have any questions about the Successor Agency, please contact the Economic Development Division at (909) 335-4755 ext. 6.