In a widely-anticipated decision, the California Supreme Court, in a ruling that included a partial dissent from Chief Justice Tani Cantil-Sakauye over ABX1 27, today ended redevelopment in California and struck a significant blow to affordable housing. The Supreme Court majority found that the “rda elimination bill,” ABX1 26, is constitutional but the “reconstitute rda bill,” ABX1 27 is unconstitutional.
The net effect of this decision is the worst case for affordable housing and job creation. As the Chief Justice wrote in her dissent, “…the Legislature’s attempt to balance the benefits of continued redevelopment with the need to fund vital local government services has apparently failed with little or no alternative to continued redevelopment available.”
California Housing Consortium’s Executive Director, Ray Pearl, states that “today’s ruling by the Supreme Court is an unfortunate outcome that will have far-reaching impacts on those in our society who need help the most. We urge the Legislature and the Governor to follow the intent of the original legislation and help find a solution to continuing to fund affordable housing in California. The need is as critical as ever and action is needed now.”