Community Development Agency
Update: February 15, 2012. Subsequent to the California Supreme Court's upholding of AB1X 26, the Sebastopol Community Development Agency (CDA) was officially dissolved on February 1, 2012, along with all other redevelopment agencies in California. The City of Sebastopol will act as the CDA's successor entity for the purpose of meeting the CDA's prior financial obligations and disposing of any CDA assets. A new page will be created on this website in the near future with respect to the successor entity.
Update: In June of 2011, the California Legislature and Governor enacted legislation that will either eliminate the Community Development Agency effective October 1, 2011 or significantly change the manner in which and the revenue the Agency receives. As of July 1, 2011, the Agency has suspended work on all projects that were not construction related while the City determines whether it wants the Agency to continue. A list of those projects can be found here.
It is anticipated that the City will receive the fiscal information it will need with respect to future revenues and new obligations in early August. Within a relatively short period, the City Council will hold a public hearing and decide whether it wishes to continue to operate.
The basic purpose of California redevelopment law is to give cities a tool to help remove blighted conditions from a community. Blighted areas are defined in the law as areas in which there are conditions which constitute physical and economic liabilities requiring redevelopment in the interest of the health, safety and welfare of the people. These conditions are further defined as inadequate public improvements, utilities, unsafe buildings or inadequate parking. Further, the law talks about expanding the supply of affordable housing and employment opportunities for all citizens.
In order to accomplish these goals, a redevelopment agency may acquire land and buildings, dispose of real property, and construct public facilities. The sale of real property may include conditions on the sale of properties so that they are used in a manner consistent with the city's redevelopment plan. Public facilities can include infrastructure (streets, water and sewer facilities, etc.) and city buildings which benefit the redevelopment project area. There is a specific ban on the construction of city halls with redevelopment funds. A redevelopment agency may borrow money to implement these activities. Such borrowing can be in the form of loans from the city or private sources or from the sale of tax increment bonds.
The redevelopment agency must set aside 20% of its tax increment revenues for the purpose of assisting low and moderate income housing. These set aside funds can be used to acquire, improve, finance, rehabilitate and otherwise subsidize affordable housing (including mobile homes). These housing activities may take place in the city, both within and outside the redevelopment project area.
