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Life After Redevelopment - Redevelopment Successor Agency
The "20%" Fund

In 1976, the California Legislature took action that required that 20 percent of all tax increment generated through redevelopment be set aside to create, preserve, and improve housing for low and moderate income persons.  Known as the Low and Moderate Income Housing Fund, this source of funding became arguably the most important tool for the development of affordable housing in California and created tens of thousands of housing opportunities for the State's low and moderate income residents.

In San Jose, Low and Moderate Income Housing funds have helped create thousands of new affordable units, provided homeownership opportunities for teachers and other workers key to our community's success, and assisted lower income households to improve their houses, helping them while improving neighborhood conditions.  

The End of Redevelopment

In 2011, in an effort to respond to State budget deficits, Governor Jerry Brown proposed and the State Legislature approved legislation that dissolved redevelopment agencies and with that action the Low and Moderate Income Housing Fund. AB 26 1X, signed by the Governor on June 28, 2011, required the creation of Successor Agencies to oversee the dissolution process. For affordable housing, however, the legislation allowed the cities or counties that created the redevelopment agency to choose to retain the housing assets and to continue to enforce the housing covenants and restrictions, and to exercise all other rights, powers, duties and obligations of the former redevelopment agency as it related to the Low and Moderate Income Housing Fund.  AB 1484, which was signed in June of 2012, clarified some portions of the original legislation, including providing more detailed language on the assets that could be retained.

The dissolution date was set as February 1, 2012 for all redevelopment agencies throughout the State.  The City of San Jose took action in January of 2011 to become the Successor Housing Agency and to retain the housing assets.  Because the City's Housing Department had administered the Low and Moderate Income Housing Fund since 1988, this was a simple action.

Council Actions

The Council has taken a number of actions related to the City's housing assets.  The links below include the original City actions to retain the assets, the Enforceable Obligation Payment Schedule that includes a number of housing obligations that must be paid, a series of Recognized Obligation Payment Schedules that lay out in six month increments the payments that will be made from tax increment, and other documents of interest.

List of Housing Assets
City Council Action to Accept Housing Assets
Enforceable Obligation Payment Schedule
Recognized Obligation Payment Schedule
Oversight Board Agendas and Reports