{"id":85409,"date":"2019-08-25T00:01:59","date_gmt":"2019-08-25T07:01:59","guid":{"rendered":"https:\/\/calmatters.org\/?post_type=commentary&p=85409"},"modified":"2019-08-25T17:04:40","modified_gmt":"2019-08-26T00:04:40","slug":"resurrecting-redevelopment-for-housing","status":"publish","type":"post","link":"https:\/\/calmatters.org\/_ko\/commentary\/2019\/08\/resurrecting-redevelopment-for-housing\/","title":{"rendered":"A resurrection for redevelopment?"},"content":{"rendered":"

Voters and elected officials adopt policies on assurances of beneficial impacts, but they often interact with other decrees to produce what are called \u201cunintended consequences.\u201d<\/p>\n\n\n\n

Redevelopment has been a classic example for nearly seven\ndecades, and it may be on the verge of another twist.<\/p>\n\n\n\n

Redevelopment, authorized in the early 1950s, was aimed at\nencouraging local governments, cities mostly, to clean up neighborhoods deemed\nto have \u201cblight.\u201d They would invest in sewers, water systems and other public\nworks that would draw in private investment.<\/p>\n\n\n\n

To finance projects, local governments would float bonds and\nrepay them with \u201ctax increment financing.\u201d As property taxes in the improved project\nareas increased, the revenue gains could be retained by the sponsoring local\ngovernments.<\/p>\n\n\n\n

The new powers were used scantily at first, but even so drew\ncriticism when properties were seized from their owners, whole neighborhoods\nwere razed, and their occupants, often the poor and\/or immigrants, were\ncompelled to find new shelter elsewhere.<\/p>\n\n\n\n

Redevelopment exploded after voters passed Proposition 13 in\n1978 and placed a limit on all property taxes. Feeling the financial pinch, local\nofficials turned to redevelopment for relief, eventually creating more than 400\nlocal redevelopment zones, often on raw land, and subsidizing commercial\ndevelopment, such as shopping centers, auto dealerships and hotels, that would\ngenerate sales taxes and other revenues.<\/p>\n\n\n\n

Cities twisted the legal requirement for finding \u201cblight\u201d\nwith some very creative, even sneaky maneuvers. One declared some marshland to\nbe blighted because it was \u201csubject to periodic flooding.\u201d  And they would use generous grants of\nredevelopment money \u2013 bribes, actually \u2013 to lure tax-generating commercial\nbusiness away from neighboring cities.<\/p>\n\n\n\n

A decade after Proposition 13 passed, voters acted again,\npassing Proposition 98 that guaranteed certain levels of financing for public\nschools and required the state to provide whatever money schools needed if\nlocal property taxes didn\u2019t meet required levels.<\/p>\n\n\n\n

By and by, as redevelopment use expanded, diversions of property\ntaxes reached about $5.5 billion a year and because of Proposition 98, the\nstate was backfilling about $2 billion to schools.<\/p>\n\n\n\n

Thus, three sweeping policy decrees over several decades\ninteracted to produce the consequence of taxpayers throughout the state indirectly\nspending billions of dollars each year to subsidize commercial projects for a\nfew cities.<\/p>\n\n\n\n

The excesses of redevelopment \u2013 such as $5 million to\nunderwrite a \u201cmermaid bar\u201d just two blocks from the state Capitol in Sacramento\n\u2013 and its heavy financial impact on an upside-down state budget led then-Gov.\nJerry Brown and legislators to do away with it in 2011.<\/p>\n\n\n\n

Ever since, city officials have yearned for redevelopment\u2019s\nreturn, saying that its demise also reduced financing for badly needed low- and\nmoderate-income housing.<\/p>\n\n\n\n

Several highly modified versions have been enacted, but have\nlargely gone unused because all protected the state budget.<\/p>\n\n\n\n

This year, a new effort was mounted, that would recreate redevelopment with a new name, the Affordable Housing and Community Development Program. It would give a new state commission oversight power and once again require the state to make up losses of property taxes to schools.<\/p>\n\n\n\n

Senate Bill 5<\/a>, carried by Sen. Jim Beall, a San Jose Democrat, has made it through the Senate and is pending in the Assembly in the final weeks of the 2019 session. It\u2019s been estimated that if enacted, it would eventually divert about $2 billion a year in property taxes and require about $1 billion of it to be spent on housing.<\/p>\n\n\n\n

Sponsors \u2013 city officials and labor unions mostly \u2013 contend\nthat oversight would prevent the abuses of redevelopment from reappearing.<\/p>\n\n\n\n

Given its tortured history, however, skepticism is more than\nwarranted.<\/p>","protected":false},"excerpt":{"rendered":"

Redevelopment, a program supposedly meant to clean up urban blight but often misused, disappeared eight years ago, but a new bill would bring it back with a new name.<\/p>","protected":false},"author":73,"featured_media":81140,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"single-feature.php","format":"standard","meta":{"_acf_changed":false,"_stopmodifiedupdate":false,"_modified_date":"","newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","apple_news_api_created_at":"","apple_news_api_id":"","apple_news_api_modified_at":"","apple_news_api_revision":"","apple_news_api_share_url":"","apple_news_cover_media_provider":"image","apple_news_coverimage":0,"apple_news_coverimage_caption":"","apple_news_cover_video_id":0,"apple_news_cover_video_url":"","apple_news_cover_embedwebvideo_url":"","apple_news_is_hidden":"","apple_news_is_paid":"","apple_news_is_preview":"","apple_news_is_sponsored":"","apple_news_maturity_rating":"","apple_news_metadata":"\"\"","apple_news_pullquote":"","apple_news_pullquote_position":"middle","apple_news_slug":"","apple_news_sections":["https:\/\/news-api.apple.com\/sections\/49654979-841c-3b60-b9c1-b123dc98bd2d"],"apple_news_suppress_video_url":false,"apple_news_use_image_component":false,"_spanish_translation_id":0,"_is_translation":false,"_newspack_byline_active":false,"_newspack_byline":"","newspack_content_restriction_is_exempt":false,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[58,63,6],"tags":[40117],"legislator":[],"bill":[],"newspack_spnsrs_tax":[],"coauthors":[4174],"class_list":["post-85409","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-commentary","category-dan-walters","category-economy","tag-commentary","entry"],"acf":[],"apple_news_notices":[],"yoast_head":"\nCommentary: A resurrection for redevelopment? 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He began covering California politics in 1975, just as Jerry Brown began his first stint as governor, and began writing his column in 1981, first for the Sacramento Union for three years, then for The Sacramento Bee for 33 years and now for CalMatters since 2017. Dan is also the author or co-author of two books about California, \u201cThe New California: Facing the 21st Century\u201d and \u201cThe Third House: Lobbyists, Money and Power in Sacramento.\u201d He is a frequent radio show guest and occasionally appears on national television, commenting on California issues. Walters began his career in 1960 at the Humboldt Times in Eureka, California, a month before his 17th birthday, first as a newsroom aide and later as a police beat reporter. Having found his calling, he not only turned down a National Merit college scholarship but dropped out of high school, lacking one required class \u2013 ironically civics \u2013 to qualify for a diploma. Before moving to Sacramento to cover politics, he was the managing editor of three small daily newspapers. He has two adult daughters and three grandsons.","sameAs":["https:\/\/x.com\/DanCALmatters"],"birthDate":"1943-10-10","gender":"Male","jobTitle":"Columnist","worksFor":"CalMatters.org","url":"https:\/\/calmatters.org\/_ko\/author\/dan-walters\/"}]}},"parsely":{"version":"1.1.0","canonical_url":"https:\/\/calmatters.org\/_ko\/commentary\/2019\/08\/resurrecting-redevelopment-for-housing\/","smart_links":{"inbound":0,"outbound":0},"traffic_boost_suggestions_count":0,"meta":{"@context":"https:\/\/schema.org","@type":"NewsArticle","headline":"A resurrection for redevelopment?","url":"http:\/\/calmatters.org\/_ko\/commentary\/2019\/08\/resurrecting-redevelopment-for-housing\/","mainEntityOfPage":{"@type":"WebPage","@id":"http:\/\/calmatters.org\/_ko\/commentary\/2019\/08\/resurrecting-redevelopment-for-housing\/"},"thumbnailUrl":"https:\/\/i0.wp.com\/calmatters.org\/wp-content\/uploads\/2019\/07\/california-state-capitol-building-sacramento-1.jpg?resize=60%2C60&ssl=1","image":{"@type":"ImageObject","url":"https:\/\/i0.wp.com\/calmatters.org\/wp-content\/uploads\/2019\/07\/california-state-capitol-building-sacramento-1.jpg?fit=2000%2C1333&ssl=1"},"articleSection":"Dan Walters","author":[{"@type":"Person","name":"\ub304 \uc6d4\ud130\uc2a4"}],"creator":["Dan Walters"],"publisher":{"@type":"Organization","name":"\uce7c\ub9e4\ud130\uc2a4","logo":"https:\/\/calmatters.org\/wp-content\/uploads\/2019\/07\/calmatters-logo_2x.png"},"keywords":["commentary"],"dateCreated":"2019-08-25T07:01:59Z","datePublished":"2019-08-25T07:01:59Z","dateModified":"2019-08-26T00:04:40Z"},"rendered":"<meta name=\"parsely-title\" content=\"A resurrection for redevelopment?\" \/>\n<meta name=\"parsely-link\" content=\"http:\/\/calmatters.org\/_ko\/commentary\/2019\/08\/resurrecting-redevelopment-for-housing\/\" \/>\n<meta name=\"parsely-type\" content=\"post\" \/>\n<meta name=\"parsely-image-url\" content=\"https:\/\/i0.wp.com\/calmatters.org\/wp-content\/uploads\/2019\/07\/california-state-capitol-building-sacramento-1.jpg?resize=60%2C60&ssl=1\" \/>\n<meta name=\"parsely-pub-date\" content=\"2019-08-25T07:01:59Z\" \/>\n<meta name=\"parsely-section\" content=\"Dan Walters\" \/>\n<meta name=\"parsely-tags\" content=\"commentary\" \/>\n<meta name=\"parsely-author\" content=\"Dan Walters\" \/>","tracker_url":"https:\/\/cdn.parsely.com\/keys\/calmatters.org\/p.js"},"jetpack_featured_media_url":"https:\/\/i0.wp.com\/calmatters.org\/wp-content\/uploads\/2019\/07\/california-state-capitol-building-sacramento-1.jpg?fit=2000%2C1333&ssl=1","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/calmatters.org\/_ko\/wp-json\/wp\/v2\/posts\/85409","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/calmatters.org\/_ko\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/calmatters.org\/_ko\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/calmatters.org\/_ko\/wp-json\/wp\/v2\/users\/73"}],"replies":[{"embeddable":true,"href":"https:\/\/calmatters.org\/_ko\/wp-json\/wp\/v2\/comments?post=85409"}],"version-history":[{"count":3,"href":"https:\/\/calmatters.org\/_ko\/wp-json\/wp\/v2\/posts\/85409\/revisions"}],"predecessor-version":[{"id":85420,"href":"https:\/\/calmatters.org\/_ko\/wp-json\/wp\/v2\/posts\/85409\/revisions\/85420"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/calmatters.org\/_ko\/wp-json\/wp\/v2\/media\/81140"}],"wp:attachment":[{"href":"https:\/\/calmatters.org\/_ko\/wp-json\/wp\/v2\/media?parent=85409"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/calmatters.org\/_ko\/wp-json\/wp\/v2\/categories?post=85409"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/calmatters.org\/_ko\/wp-json\/wp\/v2\/tags?post=85409"},{"taxonomy":"legislator","embeddable":true,"href":"https:\/\/calmatters.org\/_ko\/wp-json\/wp\/v2\/legislator?post=85409"},{"taxonomy":"bill","embeddable":true,"href":"https:\/\/calmatters.org\/_ko\/wp-json\/wp\/v2\/bill?post=85409"},{"taxonomy":"newspack_spnsrs_tax","embeddable":true,"href":"https:\/\/calmatters.org\/_ko\/wp-json\/wp\/v2\/newspack_spnsrs_tax?post=85409"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/calmatters.org\/_ko\/wp-json\/wp\/v2\/coauthors?post=85409"}],"curies":[{"name":"\uc6cc\ub4dc\ud504\ub808\uc2a4","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}