CSAC Urges Consent-Only for RDA 2.0 at Informational Hearing
March 15, 2018
Two Assembly Committees held a joint hearing earlier this week on community development tools, sometimes dubbed “Redevelopment 2.0.” At the hearing, CSAC urged legislators to seek full consent from any local agency providing property tax increment for development projects. CSAC also shared that the over-reliance on property tax increment can thwart development as local agencies must turn to developer fees for revenue needs.
The Assembly Committee on Housing and Community Development and Assembly Committee on Local Government joint hearing featured other speakers from local government, state agencies, housing advocates and community development proponents. Legislators questioned why newer community development tools, such as Enhanced Infrastructure Finance Districts (EIFDs) and Community Investment and Revitalization Authorities (CRIAs) were not more widely used.
There was consensus that these and other tools are still relatively new and local agencies need to time to assess the financial picture and work with partners across jurisdictions, which can be time-consuming. It was also shared that dispelling remaining mistrust of RDA-type arrangements for both cities and counties could be an impediment.