The San Francisco Redevelopment Agency, along with all 400 redevelopment agencies in California, was dissolved on February 1, 2012, by order of the California Supreme Court in a decision issued on December 29, 2011 (California Redevelopment Association et al. v. Ana Matosantos). With the tight timeframe imposed by the Supreme Court decision, the former Agency staff has been working closely with the Mayor and the Board of Supervisors to ensure as orderly a transition as possible that preserves as many projects and programs as possible. Because the transition process is still ongoing, this website still contains sections on the former Redevelopment Agency’s projects and programs.
Below is a link to the website for the new Oversight Board, which state law requires the City as successor agency to create, to oversee certain fiscal management of former Agency assets other than affordable housing assets, and to exercise land use, development and design approval authority in redevelopment project areas where this control was exercised by the former Redevelopment Agency, as discussed below.
http://sfgov.org/oversightboard
Background
On June 28, 2011, the Governor approved two bills, AB 26 and AB 27, which amended the California Community Redevelopment Law, which regulates the activities of redevelopment agencies. AB 26 was the “dissolution” bill, which set November 1 as the date to dissolve all redevelopment agencies. The companion legislation AB 27, the “reinstatement” bill, allowed cities to keep their agencies in place by committing to substantial “community remittances” to be paid to the State.
AB 26 put the Agency into a state of suspension under which no new contracts, obligations or redevelopment plans could be approved. In July, a lawsuit was filed challenging the constitutionality of both AB 26 and AB 27. The Supreme Court accepted the case and issued a “stay” under which agencies remained in place but in the suspended state pending a decision by the court.
On December 29, 2011, the California Supreme Court issued its decision: it upheld AB 26, which eliminates redevelopment agencies, but struck down AB 27, which would have allowed cities to agree to community remittance payments to keep their agencies in place. As a result, under the schedule set by the Supreme Court, the San Francisco Redevelopment Agency was dissolved as of February 1, 2012. AB 26 provides that the City may become the successor to the Redevelopment Agency, and continue to implement “enforceable obligations” which were in place prior to the suspension—existing contracts, bonds, leases, etc.—and take title to all of the Agency’s housing and other assets.
Text of AB 26
Supreme Court Matosantos Decision
Sixth Amended Enforceable Obligation Payment Schedule
California Department of Finance AB 26 website
Successor Agency Legislation
On January 24, 2012, the Board of Supervisors adopted Resolution No. 11-12 sponsored by Supervisor Malia Cohen and co-sponsored by Supervisors Jane Kim and Christina Olague, to confirm the City’s role as the successor to the Redevelopment Agency. The resolution was approved by Mayor Edwin Lee on January 26, 2012. The resolution does the following:
1) approves the retention by the City as successor to the Redevelopment Agency of the Agency's affordable housing assets and functions upon the Agency's dissolution, including all funds in the Agency's Low and Moderate Income Housing Fund, and authorizing the Mayor's Office of Housing to manage these affordable housing assets and to exercise the housing functions that the Agency previously performed;
2) acknowledges that upon the Agency's dissolution the City as successor agency shall accept the transfer of all of the Agency's non-affordable housing assets, which shall be placed under the jurisdiction of the Director of the Department of Administrative Services unless otherwise provided for in the Charter, and that the Director shall have the authority to manage enforceable obligations associated with such assets and amend or make changes to such enforceable obligations , subject to AB 26 and Section 9.118 of the City's Charter;
3) provides for the required payment and performance of enforceable obligations, the transfer and establishment of funds and accounts, and for the administration of funds and other assets, all associated with the City's exercise of its responsibilities as successor agency to the Agency under state law;
4) authorizes the new Oversight Board, which state law requires the City as successor agency to create, to oversee certain fiscal management of former Agency assets other than affordable housing assets, and to exercise land use, development and design approval authority under the enforceable obligations for the Mission Bay Redevelopment Project Area, Hunters Point Shipyard Project Area and Zone 1 of the Bayview Hunters Point Redevelopment Project Area, and part of the Transbay Redevelopment Project Area, in place of the former Agency Commission.
Board Resolution 11-12
Budget Analyst’s Report on Resolution 11-12
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