The San Francisco Redevelopment Agency, along with all 400 redevelopment agencies in California, was dissolved on February 1, 2012, by order of the California Supreme Court in a decision issued on December 29, 2011 (California Redevelopment Association et al. v. Ana Matosantos). On June 27, 2012, the California Legislature passed and the Governor signed AB 1484, a bill making technical and substantive changes to AB 26, the dissolution bill that was found largely constitutional by the Supreme Court on December 29, 2011. In response to the requirements of AB 26 and AB 1484, the City and County of San Francisco has created the Office of Community Investment and Infrastructure as the Successor Agency to the San Francisco Redevelopment Agency (“Successor Agency”). Pursuant to state and local legislation, the Successor Agency is governed by two bodies, the Oversight Board of the Successor Agency and the Commission on Community Investment and Infrastructure. Click on the links below for meetings and other information for the two governing bodies.
Under AB 26 and AB 1484, the Successor Agency is authorized to continue to implement three major redevelopment projects that were previously administered by the former Redevelopment Agency: 1) the Mission Bay North and South Redevelopment Project Areas, 2) the Hunters Point Shipyard Redevelopment Project Area and Zone 1 of the Bayview Redevelopment Project Area, and 3) the Transbay Redevelopment Project Area (collectively, the “Major Approved Development Projects”). In addition, the Successor Agency continues to manage Yerba Buena Gardens and other assets within the former Yerba Buena Center Redevelopment Project Area (“YBC”). The Commission on Community Investment and Infrastructure exercises land use, development and design approval authority for the Major Approved Development Projects and manages the former Redevelopment Agency assets in YBC in place of the former San Francisco Redevelopment Agency Commission. The Oversight Board of the Successor Agency, which is required by AB 26, oversees certain fiscal management of former Redevelopment Agency assets other than affordable housing assets. All affordable housing assets of the former Redevelopment Agency have been transferred to the City and County of San Francisco and are under the administrative jurisdiction of the Mayor’s Office of Housing.
Links Related to Dissolution
On June 28, 2011, the Governor approved two bills, AB 26 and AB 27, which amended the California Community Redevelopment Law, which regulates the activities of redevelopment agencies. AB 26 was the “dissolution” bill, which set November 1 as the date to dissolve all redevelopment agencies. The companion legislation AB 27, the “reinstatement” bill, allowed cities to keep their agencies in place by committing to substantial “community remittances” to be paid to the State.
AB 26 put the San Francisco Redevelopment Agency into a state of suspension under which no new contracts, obligations or redevelopment plans could be approved. In July, a lawsuit was filed challenging the constitutionality of both AB 26 and AB 27. The Supreme Court accepted the case and issued a “stay” under which agencies remained in place but in the suspended state pending a decision by the court.
On December 29, 2011, the California Supreme Court issued its decision: it upheld AB 26, which eliminates redevelopment agencies, but struck down AB 27, which would have allowed cities to agree to community remittance payments to keep their agencies in place. As a result, under the schedule set by the Supreme Court, the San Francisco Redevelopment Agency was dissolved as of February 1, 2012. AB 26 provides that cities may create successor agencies and continue to implement “enforceable obligations” which were in place prior to the suspension—existing contracts, bonds, leases, etc.—and take title to all of the former redevelopment agencies’ housing and other assets. On June 27, 2012, the Governor approved AB 1484, a budget trailer bill making some significant clarifications and procedural changes in AB 26, the redevelopment dissolution law.
Successor Agency Legislation
On January 24, 2012, the Board of Supervisors of the City and County of San Francisco adopted Resolution No. 11-12 in response to the Supreme Court’s December 29, 2011, decision upholding AB 26 and dissolving all redevelopment agencies in California. On September 25, 2012, the Board of Supervisors adopted Ordinance No. 215-12 in response to the Governor’s approval of AB 1484 on June 27, 2012. Together, these two local laws create the governing structure of the Successor Agency, with Ordinance No. 215-12 amending Resolution No. 11-12 in order to comply with the changes to AB 26 that were implemented with the approval of AB 1484.
Oversight Board (post-Dissolution)
The Oversight Board was created pursuant to AB 26, the state law that dissolved the San Francisco Redevelopment Agency, along with all 400 redevelopment agencies in California, on February 1, 2012.
The Oversight Board is one of two governing bodies for the Office of Community Investment and Infrastructure, which was created by the City and County of San Francisco as the Successor Agency to the San Francsico Redevelopment Agency ("Successor Agency") pursuant to AB 26 and AB 1484, a subsequent state law that clarified and amended AB 26. The Oversight Board oversees certain aspects of fiscal management of former Redevelopment Agency assets other than affordable housing assets. In performing that function, the Oversight Board owes a fiduciary duty to the holders of enforceable obligations with the former Redevelopment Agency and to the taxing entities that are entitled to an allocation of property taxes.