RDA Dissolution Timeline

With approval and adoption of the State Budget for Fiscal Year 2011-12, the California Legislature adopted, and the Governor signed ABx1 26 (Stats. 2011, chap. 5, “ABx1 26”) (the “Dissolution Act”),  in effect dissolving all redevelopment agencies in the State of California.

On December 29, 2011, the California Supreme Court issued its opinion in the case of  California Redevelopment Association, et al. v. Ana Matosantos, etc., et al ., Case No. S194861, and upheld the validity of the Dissolution Act and invalidated the Continuation Act.

The result of this decision is all redevelopment agencies will be dissolved and there is no option to continue the Agency’s existence by making payments to the State. As part of its decision, the Supreme Court extended deadlines for certain actions required or permitted under Dissolution Act by four (4) months. Dissolution of redevelopment agencies has been delayed until February 1, 2012 and there is Legislation pending that could delay it further (although it is unclear that the Governor has any intent to sign such Legislation should it be passed by the Legislature).

Attached is a timeline and action that City’s must take to Dissolve their Redevelopment Agencies.