California Redevelopment Law
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| California Redevelopment Law | |
|---|---|
| Name | California Redevelopment Law |
| Established | 1945 |
| Repealed | 2011 (Redevelopment agencies dissolved) |
| Jurisdiction | California |
| Related legislation | Dissolution Act, ABx1 26, AB 1484, Tax Increment Financing |
| Notable cases | California Redevelopment Association v. Matosantos, City of Berkeley v. BART, County of San Diego v. California Statewide Communities Development Authority |
| Agencies | California Department of Finance, Berkeley Redevelopment Agency, Redevelopment Agency of the City of Los Angeles, San Diego Redevelopment Agency |
California Redevelopment Law California Redevelopment Law comprised the statutory framework created to authorize municipal redevelopment agencies in California to plan, acquire, finance, and implement urban renewal and blight-elimination projects beginning in the mid-20th century. The law shaped redevelopment practice across cities such as Los Angeles, San Francisco, San Diego, Oakland, and Sacramento and intersected with state fiscal policy, landmark judicial decisions, and statewide political initiatives through the late 20th and early 21st centuries.
History
California enacted redevelopment enabling statutes in the aftermath of World War II as part of broader urban policy influenced by federal programs like the Housing Act of 1949. Early implementation in municipalities such as Los Angeles and San Francisco paralleled national urban renewal projects exemplified by Pruitt–Igoe-era controversies and redevelopment efforts in New York City and Chicago. Over decades redevelopment intersected with state initiatives such as Proposition 13 (1978), which affected property taxation and fiscal incentives, and political responses including legislation sponsored by the California Legislature and executive oversight by the Governor of California.
Legal Framework and Statutory Authority
Statutory authority derived primarily from the California Community Redevelopment Law codified in the Health and Safety Code, which empowered local agencies organized under municipal and county charters including the City of Los Angeles and County of San Diego. The law established definitions of blight and procedures for adoption of redevelopment plans subject to public hearing requirements and compliance with the California Environmental Quality Act. Oversight involved entities such as the California Department of Finance and the State Controller of California, with legal disputes reviewed by the California Supreme Court and federal courts when constitutional claims arose.
Redevelopment Agencies and Governance
Redevelopment agencies were separate public entities created by cities and counties, governed by boards often composed of city councilmembers or county supervisors—for example the Redevelopment Agency of the City of Los Angeles and the Berkeley Redevelopment Agency. Governance practices raised questions about transparency, fiduciary duty, and conflicts involving public officials in cities like Oakland and Long Beach. Interagency coordination with transit districts such as the Bay Area Rapid Transit District and housing authorities such as the Housing Authority of the City of Los Angeles was common.
Financing Mechanisms and Tax Increment Financing
Financing relied heavily on tax increment financing (TIF), a model whereby increases in assessed property tax within a project area were captured by the redevelopment agency to retire bonds and fund infrastructure. TIF practice linked to statewide fiscal policies influenced by Proposition 13 (1978) and debates in the California State Legislature about tax allocation. Agencies issued redevelopment project bonds, negotiated tax agreements with counties including Los Angeles County and San Diego County, and used leverage with federal programs administered by entities such as the United States Department of Housing and Urban Development.
Project Planning, Implementation, and Powers
Agencies used statutory powers including eminent domain, land assembly, relocation assistance, and project contracting to implement plans in districts such as Chinatown (San Francisco) and Skid Row (Los Angeles). Plans required findings of blight, public hearings, and environmental review under the California Environmental Quality Act. Implementation involved partnerships with private developers like those who worked on Mission Bay (San Francisco) and public authorities such as the Port of San Diego for waterfront redevelopment.
Controversies and Legal Challenges
Redevelopment activities provoked litigation and public controversy over eminent domain use, displacement in neighborhoods including West Oakland and Little Tokyo, Los Angeles, project subsidies to private developers, and fiscal effects on school districts including Los Angeles Unified School District. High-profile legal challenges reached the California Supreme Court and federal courts; cases like California Redevelopment Association v. Matosantos and related litigation tested statutory validity and constitutional claims. Political movements and ballot measures, including debates during the administration of governors such as Arnold Schwarzenegger and Jerry Brown, culminated in legislative reform and litigation over dissolution statutes.
Impact and Outcomes
Redevelopment produced built outcomes—commercial districts, housing projects, transit-oriented developments—visible in neighborhoods across San Francisco, Los Angeles, Sacramento, and San Diego. Outcomes included both revitalized corridors and critiques about gentrification, displacement, and inequitable subsidy distribution affecting communities represented by organizations like ACLU of Northern California and advocacy groups in East Palo Alto and South Los Angeles. Economic evaluations by state fiscal offices and academic researchers at institutions such as University of California, Berkeley and Stanford University informed debates over cost-effectiveness and social equity.
Repeal, Dissolution, and Post-redevelopment Administration
In 2011 the California Legislature adopted dissolution legislation including ABx1 26 and AB 1484, signed by Governor Jerry Brown, terminating redevelopment agencies and transferring assets and obligations to successor agencies and oversight by the California Department of Finance and county auditor-controllers. Litigation over dissolution reached the California Supreme Court in matters involving fiscal allocations and the disposition of former agency assets, reshaping urban revitalization practice and prompting cities to pursue alternative tools such as enhanced infrastructure financing districts and public-private partnerships.