Existing law suspends various activities of redevelopment agencies and prohibits the agencies from incurring indebtedness for a specified period. Existing law also dissolves redevelopment agencies and community development agencies, as of October 1, 2011, and designates successor agencies, as defined. Existing law requires successor agencies to wind down the affairs of the dissolved redevelopment agencies and to, among other things, repay enforceable obligations, as defined, and to remit unencumbered balances of redevelopment agency funds, including housing funds, to the county auditor-controller for distribution to taxing entities. Existing law imposes various requirements on successor agencies and subjects successor agency actions to the review of oversight boards.

In the case of California Redevelopment Association v. Matosantos, Case No. S194861, the California Supreme Court ruled that the dissolution of redevelopment agencies and community development agencies shall take effect on February 1, 2012, or 4 months after the effective date or the deadline for performance of an obligation, except as specified.

This bill would instead provide that dissolution of redevelopment agencies and community development agencies shall take effect on April 15, 2012, and as otherwise specified. Other specified provisions would become effective on May 1, 2012, or require performance of certain actions on or before July 1, 2012.