By Megan Burks
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Calif. High Court: Redevelopment Must Go
The California Supreme Court nailed the redevelopment coffin shut last week, killing the funding mechanism that raised projects like the City Heights Urban Village and library.
The state legislature passed a law this summer to end the agencies as a means of filling its budget shortfall, which has caused deep cuts to education and social services.
Cities throughout the state were outraged by the law and took the state to court. Following last week’s ruling, they’re still outraged.
City Reacts to Redevelopment Ruling
City Councilman Todd Gloria called the decision a “worst case scenario” for neighborhoods like City Heights that rely on the money to remove blight and build affordable housing.
But many residents have pointed out that they don’t see enough of the benefits. Much of the money stays in downtown, earmarked for projects many call unnecessary.
Among skeptics, there’s hope the death of redevelopment means it can be reincarnated as a better, more equitable version of itself. For many, the ruling is a jumping-off point to start talking about solutions.
Click here to read local reaction on Twitter. Partner voiceofsandiego.org has collected several reader comments on the issue.
What to Expect Before the Tap Runs Dry
With redevelopment dollars rerouted to the state’s coffers, many are wondering if momentum will slow in City Heights.
Last summer, the city approved an agreement that safeguarded $4 billion of its redevelopment dollars. The agreement earmarked $220 million for City Heights to use through 2043 on infrastructure, affordable housing, parks and other projects.
There’s some doubt about whether that agreement is still valid, but a spokeswoman for the mayor said residents can still count on the money.
Click here for a full list of scheduled improvements.
What Does This Mean For Schools?
Things are also little hazy when it comes to figuring out what the ruling means for schools.
Reclaiming redevelopment dollars gives the state more wiggle room in its general fund, 40 percent of which must go toward education. But it could take years to see the effect.
The current education budget–the one asking local schools to trim $60 million–already took the redevelopment dollars into account.
Will the Ruling Hurt Affordable Housing?
The ruling cuts off the second largest source of funding for affordable housing in California. It also nullifies a guarantee that at least 15 percent of all new units built in a redevelopment area will be affordable.
But the situation isn’t dire just yet. Agencies will have to fulfill existing obligations to build affordable housing before they can dissolve, meaning the county should see many more units built in the the near future.