New legislation signed into law June 29 will directly affect the Sacramento Housing and Redevelopment Agency (SHRA) and stall several major redevelopment projects in Sacramento. Bills ABx26 and ABx27, will reduce t the impact of (SHRA) by requiring them to pay a “year one” payment estimated at $22 million and approximately $5 million every year after that. As reported by the Sacramento Press, once the SHRA governing boards have an opportunity to review the completed analysis, they will give the agency their recommendations on the options available. They are currently in a state of limbo.
Redevelopment agencies have until Oct. 1 to either dissolve or make the first-year continuation payment to continue redevelopment activities. The California Redevelopment Association (CRA) plans to file a lawsuit in the next couple of weeks challenging the new legislation saying it’s unconstitutional after the passing of Proposition 22 last November that specifically prohibits the state from doing anything with local funds, including redevelopment funds.
Currently, several major redevelopment projects in Sacramento are stalled. These include the 800 K Street project, Township 9 project, and Veterans Village, a proposed new construction development in the Mather Redevelopment Area that would provide affordable housing for veterans.
Some projects that have already been approved, however, would not be affected by the new legislation, including the Seventh and H streets project, the La Valentina project on 12th Street, and the Hotel Berry renovation project.
To read the full Sacramento Press article please clicks here.
Great, so we get to have a nice hole in the ground on 8th & K for the next 7 years. Thanks, Moonbeam!
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