Having repealed the redevelopment authority of local governments two years ago, the state needs to implement an alternative method for improving communities and financing infrastructure and lower cost housing, the Urban Land Institute's California chapters say in a white paper.
And it can be done, the 22-page document says, without threatening the operational finances of local and state governments.
When Gov. Jerry Brown and the Legislature abolished the six-decade-old redevelopment program, under which local governments could put together projects and collect the incremental tax revenues from their construction, they cited its effects on the state treasury.
Local government redevelopment agencies were taking about $5 billion a year, roughly 10 percent, off the top of the statewide property tax pool and the state was being forced, under a ballot measure enacted in 1988, to make up about $2 billion a year of that diversion to local schools.
Since then, the local redevelopment agencies' finances have been unwound, although a number remain to be phased out, and uncommitted assets have been dispersed to other taxing agencies. However, there have been a number of lawsuits filed over how the shutdowns have occurred.