Local Leaders Concerned Over Possible Redevelopment Agency Cuts

State lawmakers continue to work on a budget Governor Jerry Brown will sign.

Big cuts are expected, including local redevelopment agencies.

And, local leaders are concerned.

“It takes a large percentage of the resources that we get from redevelopment just to do one project. When you take that away, it really takes that ability away,” said John Raymond, director of Palm Springs economic development department.

Under the proposal, local tax dollars generated through RDA’s, would go to the state.

Riverside County would lose $30 million and be forced to put all housing projects on hold for a year, according to Tom Freeman, Commissioner for Riverside Count’s Economic Development Agency.

According to Raymond, Palm Springs might have to put on hold several affordable housing projects, including a project to convert the Sunset Palms apartments, located at 1433 Indian Canyon Drive, into affordable housing for seniors.

Other cities leaders in Cathedral City and Palm Desert have voiced similar concerns.

“Those bills to eliminate redevelopment funds really haven’t relieved cities and agencies from the obligation to provide for affordable housing. They’ve just taken the tools away,” said Raymond.

Some critics say redevelopment agencies need to be cut because cities misuse the money that’s supposed to go for affordable housing.

But Fred Bell, who builds homes for habitat for humanity, said that will mean fewer jobs and less money for nearly everyone.

“They’re talking about doing is allowing local government to tax further. So you could see local governments having to tax on an incremental basis for these services which just means higher taxes across the board,” said Bell.

Raymond says eliminating redevelopment agencies is illegal and could be challenged in courts.