March 20, 2012
Once the Governor decided to eliminate the redevelopment agencies, some agencies started to transfer assets. Since there were more than 500 redevelopment agencies, each with their own advisors and goals, the extent of the transfers is unclear. The CLTA has a task force at work trying to determine how to best address insuring RDA transfers and how to define the “housing assets” which will remain with successor agencies or local housing authorities.
Because RDAs were making transfers in anticipation of the legislation, a two year claw back provision was added to the legislation to allow challenges to the transfers. The legislation however does establish a process for properties to be sold by an oversight board with a 3 day period for the Department of Finance to decide to review the transfer. The CLTA wants to encourage finality in the process to make the properties insurable and is drafting legislative amendments with that goal in mind.