Early Success at Saving Redevelopment Affordable Housing Funds: $60 Million Preserved in City of Industry & Alameda!

January 2, 2013 – The Southern California Association of Non-Profit Housing (SCANPH) won a temporary restraining order from the Sacramento Superior Court stopping the Department of Finance (DOF) from requiring the Los Angeles County Auditor Controller and the successor redevelopment agency of the City of Industry to redistribute $38 million that had been designated for affordable housing uses. At issue is the statutory and contractual obligation of the City’s former redevelopment agency to transfer 20% of its annual tax funds to the Housing Authority of the County of Los Angeles (HACoLA) for affordable housing development in exchange for the City’s exemption to zone sites for affordable housing under Housing Element Law.  DOF had directed the Auditor Controller and the City’s successor agency to distribute the funds to other county taxing entities.  PILP is co-counsel with Public Counsel and Katten, Muchin & Rosenman.

In December in a related City of Industry matter, SCANPH prevailed in efforts to get DOF to overturn an earlier “due diligence review” (DDR) decision disallowing the City’s 2010-2011 transfer of $17.6 million to affordable housing funds to HACoLA.

December 27, 2012.  $4.6 million in redevelopment affordable housing funds were saved for Alameda when lower income households, the City of Alameda and the Alameda Housing Authority succeeded in their hearing challenging DOF’s DDR decision to redistribute the funds for non-housing uses.  PILP represented the plaintiffs in the long standing Guyton v. Alameda case which resulted in a judgment in 1990 requiring a portion of redevelopment funds to be used exclusively for the development of housing affordable to very low and low income households.

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